Life Sciences Engineeringand R&D Pulse Report 2026 Report scope This report presents the key insights from the LifeSciences Engineering Pulse 2026, part of ourbroader cross‑sector Engineering & R&D Pulse. It is based on a global survey of 200 senior lifesciences leaders from large organizations acrosspharmaceuticals, biotechnology, medical devices,and digital health. Respondents are senior decision-makers responsiblefor engineering across the entire product lifecycle –from early R&D and design to regulatory and qualitycompliance, industrialization, supply chainoperations, and commercialization. The quotes and case studies included are illustrativein nature, may be drawn from publicly availablesources, and do not necessarily reflect the views orstatements of survey respondents. The data in the report was gathered by the Capgemini Research Institute in August 2025 viaa survey of executives at organizations with more than $1 billion in annual revenue. Thisdata is from a subset of 200 Life Sciences C-level and Senior Leadership across NorthAmerica, Europe, APAC, and the Middle East. Reportdemographics Subsector breakdown: PharmaceuticalsMedTechBiotechnologyLab automation and research toolsDigital health and Software-as-a-Medical Device (SaMD) What youwill learn Few industries share the life sciences' weight of responsibility. Every drug approved, every device deployed, every therapy developed has a direct bearing onhuman health and quality of life. Yet the organizations entrusted with that responsibility areoperating in one of the most complex environments in recent memory – one defined by geopoliticalvolatility, intensifying global competition, accelerating technological disruption, structural cost andtime pressures, and an unprecedented pace of technological change driven by AI. A practical lens on the forcesdriving change – and the solutionsleading organizations areadopting. The question this report asks is a simple but urgent one:are life sciences organizations preparedto meet this moment? Based on the evidence gathered from senior executives across the sector,the answer is that while ambition is high, the gap between strategic intent and operationalreadiness remains significant – and the window to close it is narrowing. Our aim was threefold:to understand the forces shaping the industry’s strategic agenda; tobenchmark where organizations currently stand in their engineering transformation journeys; andto identify the solutions, models, and technologies that leading organizations are deploying to staycompetitive. In doing so, we sought not only to surface individual challenges, but to provide acollective view – one that allows leaders to benchmark their progress, learn from peers, and findshared solutions to shared problems. Key findings Organizations are aligned on vision – but not yet prepared todeliver at scale. The findings of this report deliver a clear message: theconvergence of geopolitical volatility, accelerating AI adoption,deepening talent shortages, and sustained cost and timelinepressures is fundamentally reshaping life sciences engineering. What we found was a sector that issimultaneously brimming withopportunity and burdened bychallenges that threatencompetitiveness, resilience, andinnovation. These forces are creating an important gap between strategicambition and execution readiness—one that the industry can nolonger afford to ignore.” Nirlipta PandaVice President and Global Head of IndustryLife Sciences |Capgemini Engineeringnirlipta.panda@capgemini.com The urgency oflife sciencestransformation is real Geopolitical uncertaintyemerges as a major concern, with 53% of life sciences executives naming it as amajor threat and 57% acknowledging gaps in their readiness to manage its impact. From tariffs and tradebarriers to sovereignty mandates and global conflicts, leaders face a fragmented world where cross-border collaboration is harder. Supply chain fragility reinforces this vulnerability: half of respondents seedisruptions – including raw material scarcity – as a major threat, and 47% say they are not adequatelyprepared for them. The pressuresreshaping the lifesciences sector Talent shortages, particularly in critical disciplines such as engineering, digital, and AI, are anotherpersistent pressure point. Nearly half, 43%, identify skills scarcity as a significant threat, and almost asmany acknowledge they are unprepared to fill these gaps. Compounding this is the rapid acceleration of AI technologies, including generative and agentic AI. Half ofrespondents see AI as a major threat, but also an opportunity, though respondents are largely confident intheir preparedness for the coming AI wave, at least more so than other challenges. We risk losing significant market shareto startups and emerging marketplayers within the next five years, ifwe fail to innovate faster. Finally, longstanding concerns loom large.Cost rises(82% report increases over thelast three years) and