Cell Banking Outsourcing Market Size, Trends & Industry 2032

Report Description

Cell Banking Outsourcing Market Outlook 2032

The global cell banking outsourcing market size was USD 12.7 Billion in 2023 and is likely to reach USD 53.0 Billion by 2032, expanding at a CAGR of 17.2% during 2024–2032. The market growth is attributed to the ­­rising production of biopharmaceuticals and increasing adoption of cell-based therapies.

Cell banking outsourcing refers to the practice of delegating the tasks involved in creating and maintaining cell banks to external service providers. These cell banks are essentially repositories of cell lines that are crucial for research, development, and production of biopharmaceuticals such as cancer therapeutics and vaccines. For instance,

• In January 2021, according to an article published in Dovepress, silencing the cell surface signals by cancer stem cells are expected to help the immune system. It recognizes the tumor locations and prevent tumor cargo from adhering to healthy cells, thus preventing its transformation. Additionally, the induced pluripotent stem cells (iPSCs) are used to immunize and vaccinate against tumor cells due to surface-antigen similarity between iPSCs and cancer cells. 

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Pharmaceutical and biotech companies outsource cell banking activities to leverage expertise, infrastructure, and cost savings offered by specialized service providers. Rise of cell-based therapies for various diseases is a major factor propelling the cell banking outsourcing market. The need for efficient and reliable cell banking services increases with the demand for these therapies grows.

Maintaining high-quality cell banks and adhering to strict regulatory standards are paramount concerns. Outsourcing partners are expected to have robust cybersecurity measures and stringent contractual agreements to ensure data protection and confidentiality. The rise of digitalization is leading to the adoption of virtual cell banking systems, allowing for remote monitoring and improved transparency in outsourced processes.

Impact of Artificial Intelligence (AI) in Cell Banking Outsourcing Market

Enhanced cell line characterization with the help of artificial intelligence is expected to propel the global market in the coming years. Moreover, the streamlined bank management by automating the routine tasks in cell bank management, such as monitoring storage conditions, scheduling thawing and testing processes, and generating reports, which is expected to boost the market during the forecast period.

Application of personalized medicine and the predictive maintenance of equipment failures or environmental fluctuations, prevents the disruptions, thus fueling the market. Additionally, cost reduction, fast development, and improved data management by integrating AI with the cell banking outsourcing are driving the market and boosting revenue in the near future.

Cell Banking Outsourcing Market Dynamics

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Major Drivers

Rising production of biopharmaceuticals is driving the global market. Biopharmaceuticals often rely on well-characterized and controlled cell lines, making the cell banking a crucial step in the manufacturing process. Increasing adoption of cell-based therapies is fueling the market. An growing collaboration and partnership are getting noticed in the cell banking outsourcing market. For instance,

• In September 2021, STEMCELL Technologies launched human pluripotent stem cell (hPSC) characterization and banking services in partnership with WiCell. These services provide researchers with comprehensive cell quality assessments and enable them to generate cell banks using standardized practices.

Existing Restraints

Increasing concerns for intellectual property and data security are expected to hinder the global market during the projected period. Furthermore, the lack of standardization across the different regions and service providers is restraining the market. Inconsistency makes it challenging for companies to as compare options and ensure consistent quality across their outsourced activities.

Emerging Opportunities

Focus on personalized medicines is leading to an increase in working with a wide variety of complex cell lines. This creates a high demand for outsourcing partners with expertise in handling these specialized cells effectively. Additionally, the expansion of gene therapies and advancements in automation and robotics are expected to improve the efficiency and accuracy of cell banking process.

Scope of the Cell Banking Outsourcing Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Regional Analysis

In terms of region, the global cell banking outsourcing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominates the global market in 2023 owing to the strong biopharmaceutical industry. Increasing focus on innovation and advanced technologies in North America is fueling the regional market.

North America has an established regulatory framework that provides clarity and predictability for outsourcing companies, making it a favorable environment for the regional market. Additionally, increasing collaboration among key players for novel product manufacturing and launch is expected to propel the market during the forecast period. For instance,

• In February 2021, American CryoStem collaborated with BioTherapeutic Labs Corp for the research and development of stem cells.

The market in Asia Pacific is projected to grow at a significant pace in the coming years owing to the rapid growth of the biopharmaceutical industry. Asia Pacific has a thriving biopharmaceutical industry that is experiencing exponential growth. This surge necessitates robust cell banking infrastructure and expertise thus, fueling the demand for outsourcing services. Furthermore, increasing government initiatives and investments is driving the regional market. For instance,

• In February 2022, the Government of India assisted in establishing state-of-the-art stem cell research facilities in 40 premier medical research and educational institutes to promote the study and development of regenerative medicine in the nation.

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Segment Analysis

Type Segment Analysis

Based on type, the cell banking outsourcing market is divided into master cell banking (MCB), working cell banking (WCB), and viral cell banking (VCB). The master cell banking (MCB) segment held the largest share of the global market in 2023 owing to its crucial role in biopharmaceutical development. Moreover, the expertise and experience provided by outsourcing offering the specialized knowledge and experience, ensuring the establishment of MCBs is fueling the segment.

The working cell banks (WCBs) segment is anticipated to expand at a substantial CAGR during the forecast period due to its high demand. Increasing demand for biopharmaceuticals is driving the need for large-scale production. Furthermore, the WBCs are directly derived from MCBs and are used directly for large-scale manufacturing of biopharmaceutical products, thereby boosting the segment.

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Phase Segment Analysis

On the basis of phase, the global market is segregated into bank storage, bank characterization, and bank preparation. The bank storage segment is anticipated to expand at a considerable CAGR during the forecast period owing to its critical role in cell viability. The bank storage encompasses preserving MCBs and WCBs under controlled conditions.

Sophisticated preservation needs provided by the outsourcing for the maintenance of cell banks to ensure optimal temperature, gas composition, and other critical storage parameters is driving the segment. Outsourcing providers offer the infrastructure and know-how for sophisticated storage solutions that traditional in-house facilities might not be equipped for.

The bank characterization and testing segment is projected to register a robust growth during the assessment years due to the regulatory requirements. The cell lines used in biopharmaceutical development need to undergo rigorous characterization and testing to ensure their purity, viability, absence of contaminants, and adherence to regulatory standards. Outsourcing offers the expertise in conducting these tests and analyses, ensuring compliance, and minimizing risks, boosting the segment.