Life Science Services Market Outlook
The growing global life science services market continues to attract significant capital, even if moderated from the high watermarks in 2020 and 2021, and continues to consolidate at a nice clip, with growth drivers from the COVID-19 pandemic and intensive innovation across the sector. Private equity and venture capital investment reached record levels in 2020 and 2021, and M&A activity over the past three years reached unprecedented highs in both volume and value. Key market drivers include the high levels of investment into the industry, which has supported the proliferation of emerging biotech and medtech companies that outsource a large proportion of services, as well as striking scientific innovation and breakthroughs in new classes of therapies, along with the continued proven advantages of outsourcing services. In the wake of the transformation from the COVID-19 pandemic, key investment themes playing on overarching secular drivers have emerged, including digitalization and decentralization, data analytics and real-world evidence, value demonstration and commercialization, site consolidation, and the massive promise of cell and gene therapy.