Global Functional Service Providers Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Functional Service Providers Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

A functional service provider is a company that is contracted to do a certain job for another organization. A functional service provider allows the organization to outsource the functional aspects of the job while retaining control of the job and data.

Market Overview:

The latest research study on the global Functional Service Providers market finds that the global Functional Service Providers market reached a value of USD 9640.02 million in 2022. It’s expected that the market will achieve USD 15425.41 million by 2028, exhibiting a CAGR of 8.15% during the forecast period.

Influence of COVID-19 Outbreak on Functional Service Providers Industry Development

During the epidemic, three types of companies increased the utilization rate of FSP in response to the crisis. First of all, some companies hope to start trials of new COVID-19 diagnoses, vaccines or treatments, or reuse existing drugs for COVID-19, but they do not want to stop or slow down plans in other treatment areas. Their expansion through FSP allows them to provide capabilities that enable them to work on COVID-19 candidate projects without affecting another ongoing research. Second, companies that need to strengthen specific types of expertise or fill geographic gaps are using FSP to do so in a highly targeted manner. Third, companies that accelerate the use and acceptance of remote monitoring, virtual informed consent and electronic medical records (EMR) have turned to the FSP model.
The inherent flexibility of the FSP model can successfully withstand the test of COVID-19. It has performed well in terms of expanding and shrinking resources. No outsourcing model can completely solve the problem of accurately predicting or accelerating patient recruitment. Unpredictable patient registration has greatly increased the uncertainty of the pandemic, and research has unexpectedly stalled due to travel restrictions and social distancing requirements. Coupled with the uncertainty of the influenza pandemic in the coming months, there is an urgent need for a model that can deploy resources flexibly. During the current public health crisis, the effective functions of the FSP model have been fully utilized.

Drivers of Functional Service Providers

FSP can reduce developer costs by reducing redundant activities. This can happen when project management is carried out in both pharmaceutical companies and contract research organization. These are expensive resources. If FSP partners use the systems and processes of pharmaceutical companies, supervision will also become simpler and cheaper.
The established full-service model, in which biopharmaceutical companies retain a preferred contract research organization (CRO) to perform the full range of clinical trial activities, has been increasingly complemented by a functional service provider (FSP) approach, which allows companies to engage discrete expert services-such as medical writing, biostatistics, or clinical monitoring-when and where they need them. Ability to move up and down in a given geographic area or treatment area plan according to the company's priorities is important. Flexible resourcing boosts efficiency and accelerates timelines.

Limitations of Functional Service Providers

Full service is still a large part of outsourcing business. It has been effective in the past, and it still works well now. For smaller companies, the full-service model is more feasible because they usually do not have the systems, processes, and technology to oversee the FSP model.
Part of the FSP model that is often overlooked: As multiple service providers are involved, some operating costs (such as project launch and research settings) will increase. Each provider needs to bear the costs associated with familiarizing with the scope of the project, agreement and participating in the kick-off meeting. It is important to take into account the increase in project management time and costs due to the efforts of the outsourcing provider of supervision and management functions.

Opportunities

of Functional Service Providers
The changing reality of clinical research today includes more technologically advanced drugs, such as genetic and CAR T cell therapies, as well as more complex trials that use major protocols and adaptive designs. Sponsors also face high research and development costs, as well as the ongoing challenges of recruiting and retaining patients for clinical trials. At the same time, advances in mobile technology, data aggregation and analysis tools, and risk management methods are changing the way clinical trial data is collected and monitored, thereby affecting the way companies outsource core clinical research tasks. In this increasingly complex environment, biopharmaceutical companies need to access more flexible methods and resource models, standardized systems, and remote functions to meet their outsourcing needs. This will increase the demand for the FSP outsourcing model of biopharmaceutical companies in the future.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview:

IQVIA is one of the major players operating in the Functional Service Providers market, holding a share of 16.29% in 2021.

IQVIA is a world leader in using data, technology, advanced analytics and expertise to help customers drive healthcare - and human health - forward. IQVIA Inc. provides healthcare research services. The Company offers data science cloud, portfolio management capabilities, commercial effectiveness solutions, managed care, and consumer health services.

Covance by Labcorp is a leading global life sciences company, which provides contract research services to the drug, medical device and diagnostics, crop protection and chemical industries. Employing over 26,000 people worldwide, they provide comprehensive drug development solutions and are on a mission to advance health and power clear, confident decisions.

Segmentation Overview:

By type, Data and Project Management segment accounted for the largest share of market in 2021.

Application Overview:

By application, the Pharma and Biotech Companies segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Functional Service Providers market covered in Chapter 3:

MMS Holdings
Clinical Professionals
WuXi Apptec
Rho
KCR
PPD
Parexel
ICON
PHASTAR
PRA Health Sciences
Covance
Catalyst Clinical Research
Quanticate
IQVIA
Syneos Health
TFS HealthScience

In Chapter 4 and Chapter 14.2, on the basis of types, the Functional Service Providers market from 2018 to 2029 is primarily split into:

Regulatory and Monitoring
Data and Project Management
Biostatistics
Statistical Programming
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Functional Service Providers market from 2018 to 2029 covers:

Pharma and Biotech Companies
Medical Device Companies
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)