The global functional service provider market is expected to register a CAGR of 7.49% during the forecast period and is expected to hit USD 20,787.30 million by 2027.
Functional service provider (FSP) is an outsourcing model in clinical development that gives pharmaceutical companies, biotech companies, medical device companies, and research institutes to outsource full or partial aspects of specific functions to a contract research organization. FSPs are companies that are contracted by other organizations to perform certain jobs while still being in control of the overall operations. The global functional service providers (FSP) market is growing due to the increasing number of clinical trials and RD investments.
The global functional service provider market is mainly segmented into type, stage, and application. On the basis of type, the functional service provider market has been sub-segmented into clinical monitoring, medical writing, data management, pharmacovigilane, biostatistics/programming, regulatory affairs and others. On the basis of stage, the functional service provider market has been segmented into clinical development and post approval. Based on application, the functional service provider market is segmented into biopharma companies, biotech companies, medical devices company and research centers and academic institutes.
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The global functional service provider market has been segmented on the basis of region into North America, Europe, Asia-Pacific, and the Rest of the World. The North American market is further divided into the US and Canada. The European functional service provider market has been segmented into Germany, France, the UK, Italy, Spain, and the rest of Europe. The functional service provider market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World functional service provider market includes the Middle East, Africa, and Latin America.
Developed healthcare infrastructure, high number of clinical trials, and the presence of major key players in the region such as IQVIA (US), Parexel (US), and Labcorp Drug Development (US) are some of the key factors driving growth for the North America functional service providers (FSP) market. According to ClinicalTrials.gov, there were 393,739 clinical studies registered globally as of October 27, 2021, out of which 127,129 (32%) were in the US. Moreover, a total of 60,947 recruiting studies were recorded globally, of which 34% were based in the US. According to Health Canada, the authority that authorizes clinical trials in Canada stated that there are approximately 900 clinical trials registered in Canada every year. Thus, high number of clinical trials in the North American region results in high demand for FSP services.
Asia-Pacific is the fastest-growing regional market for functional service providers market as it is developing rapidly and is a favorable environment for conducting clinical trials. The APAC region has become a hotspot for conducting clinical trials due to various factors such as high patient population, reduced costs of conducting trials, and favorable regulatory policies. Moreover, key players working in the global functional service providers market are actively expanding into this region, further driving the regional market growth. For instance, in May 2021, IQVIA (US) announced the expansion of its IQVIA Biotech subsidiary in the APAC region to provide its clinical trial services.
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Key Findings of the Study
- The global functional service provider market is expected to reach USD 20,787.30 million by 2027 at a CAGR of 7.49% during the forecast period.
- The North American region accounted for the largest share of the global market, which is majorly attributed to the increasing clinical trials in this region.
- Based on type, the clinical monitoring segment dominated the global market in 2020, whereas the pharmacovigilance segment is projected to be the fastest-growing segment during the study period, 2021–2027.
- Based on stage, The post approval segment dominated the market in 2020; the clinical development segment is projected to be the fastest-growing segment.
- Based on application, the biopharma companies segment dominated the market in 2020 and is projected to be the fastest-growing segment at a CAGR of 8.0% during the forecast period.
- Some of the key players operating in the functional service provider market are IQVIA Inc. (US), Laboratory Corporation of America Holdings (US), Parexel International Corporation (US), Icon Plc (Ireland), PPD Inc. (US), Quanticate International Limited (UK), BioPoint Inc. (US), RHO, Inc. (US), Wuxi AppTec Co., Ltd. (China), and KPS Life, LLC (US).
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