Research and Development Outsourcing Services Market Report 2026

The research and development outsourcing services market size has grown strongly in recent years. It will grow from $9.64 billion in 2025 to $10.57 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to rising product development complexity, increasing cost burden of in house r&d, growing need for specialized technological expertise, expansion of global outsourcing ecosystems, rising corporate focus on innovation efficiency.

The research and development outsourcing services market size is expected to see strong growth in the next few years. It will grow to $15.35 billion in 2030 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to growing reliance on international r&d partnerships, increasing focus on accelerated market entry, rising demand for advanced technology development, expansion of offshore research ecosystems, strengthening emphasis on risk optimized innovation models. Major trends in the forecast period include growing adoption of external innovation partnerships, rising shift toward cost efficient r&d models, increasing demand for specialized global r&d expertise, expansion of cross border outsourced development programs, strengthening focus on faster product development cycles.

The increasing demand from the consumer electronics industry is anticipated to boost the growth of the research and development outsourcing services market over the coming years. The consumer electronics industry encompasses the production and sale of electronic devices and gadgets designed for personal use, such as smartphones, televisions, and laptops. Outsourcing research and development services is widely adopted in this industry, as it enables companies to access specialized technical expertise, shorten product development cycles, and reduce operational costs while maintaining innovation momentum. For instance, in May 2023, according to the Japan Electronics and Information Technology Industries Association, a Japan-based trade association, total electronic equipment production in Japan reached $523.65 billion (¥771,457 million). In addition, consumer electronics production amounted to $2.17 billion (¥32,099 million) in May 2023, compared to $1.71 billion (¥25,268 million) in May 2022. Therefore, increasing demand from the consumer electronics industry is driving the growth of the research and development outsourcing services market.

The growing demand for cloud-based services is expected to further propel the growth of the research and development outsourcing services market. Cloud-based services refer to computing resources and applications delivered over the internet on an on-demand basis, eliminating the need for organizations to maintain extensive physical infrastructure. Demand for cloud-based services is rising due to organizations’ need for scalable, flexible, and cost-effective computing environments that support digital transformation and rapid innovation. Cloud-based platforms support research and development outsourcing by enabling seamless collaboration, real-time data sharing, and advanced computational capabilities across geographically distributed research teams. For instance, in April 2025, according to the American Bar Association, a US-based professional organization, approximately 75% of attorneys reported using cloud computing for work-related tasks, up from 69% in 2023 and about 70% in 2022. Therefore, the growing adoption of cloud-based services is further driving the growth of the research and development outsourcing services market.

In September 2024, Pace Life Sciences, a U.S.-based contract development and manufacturing organization (CDMO) and a division of Pace, a Science and Technology Company, acquired Catalent's Center of Excellence for Small Molecule Analytical Services from Catalent Inc. This acquisition allows Pace Life Sciences to enhance its capabilities as a CDMO and expand its network of analytical services throughout the United States and Puerto Rico. Catalent Inc. is a U.S.-based pharmaceutical company that offers pharmaceutical outsourcing services, including research and development activities.

Major companies operating in the research and development outsourcing services market report are KPIT Technologies Limited, QuEST Global Services Pte Ltd, Cyient Limited, GlobalLogic Inc, L&T Technology Services Limited, Luxoft Holding Inc, EPAM Systems Inc, HCL Technologies Limited, Tech Mahindra Limited, Wipro Limited, Tata Consultancy Services Limited, Infosys Limited, Cognizant Technology Solutions Corporation, Capgemini Engineering, Akkodis Group, Alten Group, Bertrandt AG, Altran Technologies, Tata Elxsi Limited, FEV Group GmbH, AVL List GmbH.

North America was the largest region in the research and development outsourcing services market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the research and development outsourcing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The research and development outsourcing services market includes revenues earned by entities by providing services such as component innovations, design, new process innovations, new product innovations, and software design,. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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