What Has Driven the Growth of the Research And Development Outsourcing Services Market in Recent Years?
The research and development outsourcing services market has seen considerable growth due to a variety of factors.
• In recent times, the market size for research and development outsourcing services has seen substantial growth. The market value is predicted to climb from $8.89 billion in 2024 to $9.64 billion in 2025, with a compound annual growth rate (CAGR) of 8.4%.
Factors that contributed to the growth during the historic period include a rise in the complexity of R&D activities, an increasing demand for cost optimization and specialty expertise, as well as a higher level of competition in the market and the necessity for a quicker time-to-market.
What is the Market Size Forecast for the Research And Development Outsourcing Services Market?
The research and development outsourcing services market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for outsourcing services in research and development is predicted to experience a robust growth in the coming years, reaching a value of $13.95 billion in 2029, displaying a compound annual growth rate (CAGR) of 9.7%.
The market boom within this forecasted period can be accredited to the growing acceptance of cloud-based services, the escalating need for personalized R&D services, a rise in demand for R&D services in developing economies, and a focus on main competencies by subcontracting non-essential R&D functions. Significant trends anticipated during this forecasted stretch include the incorporation of artificial intelligence and machine learning, the broadening of outsourcing services beyond the conventional sectors, the heightened usage of data analytics to gain research insights, an increase in the demand for comprehensive R&D outsourcing solutions, and partnerships between small and large enterprises.
What Factors Are Driving Growth In The Research And Development Outsourcing Services Market?
The surge in corporate access to global talent through outsourcing services is believed to spur growth in the research and development outsourcing services market. Companies worldwide are merging talents to satisfy their needs and specifications. Global talent extends the spectrum and richness of experience in the existing workforce, thus accelerating the mobility of organizations. It facilitates interaction with workers from distinct cultures using a global talent pool. As stated in the 2022 Global Software Outsourcing Trends and Rates Guide compiled by Accelerance, a provider of software development resources and an outsourcing advisor, 64% of firms delegate their application development to other enterprises in need of advanced expertise from external partners, such as IT outsourcing firms. Therefore, enhanced access to global outsourcing provisions is predicted to stimulate the research and development outsourcing services market.
What Are The Main Segments Of The Global Research And Development Outsourcing Services Market?
The research and development outsourcing services market covered in this report is segmented –
1) By Type: On Shore, Off Shore
2) By Size: Small And Medium Enterprises, Large Enterprises
3) By End User: Automotive, Consumer Electronics, Telecommunications, Semiconductor, Aerospace, Healthcare, Construction
Subsegments:
1) By On Shore: Domestic R&D Services, Localized R&D Partnerships, In-House R&D Teams
2) By Off Shore: International R&D Services, Remote R&D Partnerships, Outsourced R&D Teams In Foreign Locations
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What Emerging Trends Are Influencing The Growth Of The Research And Development Outsourcing Services Market?
Partnership and collaboration are emerging as prominent trends in the research and development outsourcing market. Top technology providers are forging Alliance with different firms to expedite their progress in the research and development outsourcing market. To illustrate, in January 2022, the US-based pharmaceutical company Eli Lilly and Company established a partnership with Evotec SE, a drug discovery and development company based in Germany, for the discovery of metabolic disease drugs. This union will leverage Evotec's substantial proficiency and established reputation in the realm of metabolic diseases, in tandem with its extensive and inclusive database of kidney disease patients. Evotec commits to identifying potential drug candidates for the treatment of diabetes and chronic kidney diseases, either from targets spotted by Lilly or indicated by Evotec.
Who Are the Key Players in the Research And Development Outsourcing Services Market?
Major companies operating in the research and development outsourcing services market include:
• Cyient Limited
• GlobalLogic Inc.
• HCL Technologies Ltd.
• Tech Mahindra Ltd.
• Mindtree Ltd.
• Accenture plc
• Altair Engineering Inc.
• Capgemini Service SAS
• Cisco Systems Inc.
• DXC Technology Company
• Hitachi Ltd.
• Kistler Holding AG
• KPIT Technologies Ltd.
• QuEST Global Services Pte. Ltd.
• Sonata Software Ltd.
• Tata Consultancy Services Ltd.
• Wipro Ltd.
• Aricent Inc.
• Cognizant Technology Solutions Corp.
• EPAM Systems Inc.
• Luxoft Holding Inc.
• Synechron Inc.
• WNS Global Services Pvt. Ltd.
• Infosys BPM Ltd.
• Aspire Systems Inc.
• Microsoft Corporation
• Samsung Electronics Co. Ltd.
• Intel Corporation
• Beyondsoft Corporation
• Blue Star Infotech Ltd.
• Asahi Kasei Corporation
• L&T Technology Services Limited
What Is The Most Dominant Region In The Research And Development Outsourcing Services Market?
North America was the largest region in the research and development outsourcing services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the research and development outsourcing services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
