by The global shared services market refers to a centralized approach of outsourcing various common business functions, processes, and resources within an organization to achieve cost optimization and better utilization of resources. Shared services mainly include finance and accounting, supply chain management, human resources (HR) management, customer relationship management (CRM), information technology (IT), and procurement services. Adopting a centralized shared services model enables businesses to gain economies of scale while enhancing transparency, control, and efficiency of operations.
The global shared services market is estimated to be valued at US$ 162.48 Mn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Adoption of integrated business models is expected to propel growth of the market during the forecast period.
Market Dynamics
Adoption of integrated business models and focus on reducing operational costs are expected to drive growth of the global shared services market over the forecast period. Integrating core operations and processes helps in achieving synergies, enhances economies of scale, and improves overall productivity and efficiency. This has prompted various organizations to adopt shared services models to gain strategic and financial benefits. Additionally, outsourcing non-core functions helps businesses focus on their core competencies while reducing operational costs through centralized shared services centers. Cost savings associated with shared services is another major factor fueling adoption among organizations.
Segment Analysis
The shared services market can be segmented into clinical trial/biobanking sample management and sequencing services. The clinical trial/biobanking sample management segment is currently dominating the market due to the rising number of clinical trials and increasing partnership between academic institutions and pharmaceutical companies to set up centralized biobanking services for effective sample collection and storage. This segment handles all processes related to sample collection, processing, storage and supply chain management to ensure compliance with global regulations.
PEST Analysis
Political: Government regulations around data privacy and security are becoming more stringent. Harmonization of regulations across borders can help streamline clinical trials.
Economic: Rising R&D expenditure on drug discovery and precision medicine by biopharma companies is driving market growth. Outsourcing non-core services proves cost-effective.
Social: Increased awareness about personalized medicine and precision testing is encouraging people to donate samples for research. However, biospecimen donation requires addressing privacy and consent related concerns.
Technological: Adoption of AI, cloud and blockchain technologies is optimizing operations. Automation can improve turnaround times and bring services closer to customers.
Key Takeaways
The Global Shared Services Market Analysis is expected to witness high growth over the forecast period supported by factors such as increasing clinical trials activities, adoption of personalized medicine, rising importance of biobanks and growing need to optimize operational costs. The global shared services market is estimated to be valued at US$ 162.48 Mn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
From a regional perspective, North America currently dominates the market due to presence of global biopharma leaders and growing genomics research activities in the region. The Asia Pacific region is anticipated to be the fastest growing market owing to rising healthcare spending, growing patient population and increasing number of local clinical trials by international players in countries such as China and India.
Key players operating in the shared services market are INOVIQ, Bio-Rad Laboratories, Inc., Abbott, Becton, Dickinson and Company, Merck KgaA, QIAGEN, Thermo Fisher Scientific Inc., CENTOGENE N.V., PerkinElmer Inc., and Siemens Healthcare Private Limited. INOVIQ offers comprehensive services for clinical trials, biobanking and genomics while Bio-Rad provides solutions for sample management, liquid handling and PCR testing. Merck KgaA hosts one of the largest biobanks globally for pharmaceutical and diagnostic research projects. Thermo Fisher Scientific offers a wide portfolio of genomic testing, informatics and cold chain logistics services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
