Medical Affairs Outsourcing Market Size

Medical Affairs Outsourcing Market Analysis

The Medical Affairs Outsourcing Market size is estimated at USD 2.26 billion in 2024, and is expected to reach USD 4.01 billion by 2029, growing at a CAGR of 12.20% during the forecast period (2024-2029).

The COVID-19 pandemic has caused enormous damage to the medical affairs outsourcing market. Medical affairs professionals in the pharmaceutical industry had to modify their work schedules due to the emergence of the coronavirus epidemic. For instance, according to an article published by Pharmaceutical Medicine in July 2021, the COVID-19 pandemic has given rise to unforeseen circumstances resulting in a dramatic change in external stakeholder engagements, catapulting the medical affairs function into leading the way on scientific engagements and patient-centric endeavors. Healthcare professionals have mostly adopted this new method of communication, finding it helpful and appropriate. As per the same article, the changes in stakeholder interactions and behavior due to the pandemic are likely to persist in the foreseeable future for which medical affairs professionals need to enhance existing skill sets and acquire expertise in newer domains. Hence, the COVID-19 pandemic positively impacted the medical affair industry, which is expected to increase the demand for its outsourcing, thereby driving the growth of the medical affair outsourcing market over the forecast period.

Key factors contributing to the global market growth are the cost efficiency and high level of quality offered by the CROs and the increasing number of clinical trials coupled with increasing R&D expenditures. For instance, according to the Pharmaceutical Industry and Global Health Facts and Figures 2021 report, the annual research and development spending of the biopharmaceutical industry has been 7.3 times greater than that of the aerospace and defense industries, 6.5 times more than that of the chemicals industry, and 1.5 times more than that of the software and computer services industry. Hence, with strong investments in R&D activities and a pipeline of therapeutics under development, medical affairs outsourcing services are expected to grow significantly.

Additionally, various strategies adopted by the key market players such as product launches and mergers and acquisitions are anticipated to drive the market growth over the forecast period. For instance, in October 2021, Propharma Group acquired Pharmica Consulting which allows ProPharma Group to provide even more client support across the lifecycle. It also enables Pharmica Consulting to expand its solutions abroad, thus enhancing the company's overall growth.

Hence, due to the abovementioned factors, the medical affairs outsourcing market is anticipated to grow over the forecast period. However, lack of skilled professionals is likely to restrain the market growth over the forecast period.