The Global Contract Research Organization Market was valued at USD 69.25 Billion in 2022 and is projected to reach a value of USD 167.83 Billion by 2030. The Global Market is anticipated to grow to exhibit a CAGR (Compound Annual Growth Rate) of 11.70% over the forecast period.
The Contract Research Organization Market is driven by the outsourcing of clinical research by pharmaceutical and biotechnology companies. In recent years, the CRO business has experienced substantial growth, driven by the desire for speedier and more efficient drug development. Demand for clinical research services is anticipated to expand over the forecast period due to the rising number of new drug launches and rising expenditure in R&D activities. In addition, the rising emphasis on drug research and development, as well as the need to shorten time-to-market and costs associated with new drug development, are further drivers driving the expansion of this industry.
Increasing demand for clinical research outsourcing is one of the primary factors driving the growth of the CRO market. Biopharmaceutical businesses and academic institutions favour outsourcing clinical research because it allows them to focus on their core capabilities while minimising total expenditures. In addition, the increasing demand on biopharmaceutical businesses to decrease time-to-market and boost operational efficiencies is another driver driving the expansion of this market. There is a growing demand for outsourced clinical research services as an increasing number of businesses want to decrease expenses and increase productivity. Contract research organisations (CROs) are a cost-effective alternative to doing clinical research in-house, and they can provide knowledge and resources that may be difficult to get internally. CROs can aid in streamlining the entire clinical trial process, from beginning to end, and provide useful insights into the acquired data. In addition, CROs can aid in the management of the intricacies of global clinical trials, ensuring that all sites are coordinated appropriately and that data is collected uniformly across all areas. CROs can also assure compliance with all applicable laws and regulations thanks to their extensive understanding of the regulatory landscape. Significant benefits are associated with outsourcing clinical research to a CRO, and the market for these services is projected to expand in the future years. Access to skilled employees, shortened time to market, and cost savings are further advantages of outsourcing clinical research to CROs. In response to the increasing number of drug discoveries and the need for more rapid commercialization, pharmaceutical companies are increasingly turning to CROs to conduct their clinical studies. In addition, the majority of CROs have a global reach and can provide end-to-end solutions for clinical trials, which is another important element pushing their adoption.
Contract Research Organization Market Size, 2022 To 2030 (USD Billion)
The rising cost of drug development and the need for faster approvals are the major factors driving the growth of the CRO market. According to a recent study, the average cost of developing a new drug can go up to USD 2 Billion. The high cost of drug development is a major challenge for pharmaceutical and biotechnology companies, which are under pressure to generate returns on their investments quickly. In order to reduce costs, these companies are increasingly outsourcing clinical research activities to CROs, which offer services at a fraction of the cost of conducting trials internally. The increasing number of clinical trials being conducted globally is another factor driving the growth of the CRO market. According to ClinicalTrials.gov, there were approximately 218,000 clinical trials being conducted worldwide as of May 2021. The growing number of clinical trials is creating opportunities for CROs that have expertise in conducting these trials efficiently and effectively. Additionally, the prevalence of chronic diseases is on the rise globally. According to the World Health Organization (WHO), chronic diseases are responsible for more deaths than any other cause, and their incidence is increasing. The main risk factors for chronic diseases include tobacco use, unhealthy diet, and physical inactivity. Contract Research Organizations (CROs) play a vital role in the development of new treatments for chronic diseases. CROs provide crucial services such as clinical trial management, data analysis, and biostatistics. With their expertise and experience, CROs can help accelerate the development of new treatments and bring them to market faster.
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However, there are several key restraints that have been preventing the growth of the Contract Research Organization Market. Firstly, many pharmaceutical and biotechnology companies are hesitant to outsource their research and development (R&D) activities to CROs, as they are concerned about losing control over their intellectual property. Secondly, the high cost of clinical trials is another major restraint on market growth. According to a report by the Tufts Center for the Study of Drug Development, the average cost of conducting a Phase III clinical trial is US$94 million. Thirdly, another challenge faced by CROs is the increasing regulations imposed by various governments on clinical trials. In order to conduct a clinical trial in the United States, for instance, a sponsor needs to obtain an Investigational New Drug (IND) approval from the Food and Drug Administration (FDA). The process of obtaining an IND approval is both time-consuming and expensive. Lastly, a shortage of skilled personnel is also hindering market growth to some extent.
Top Market Trends
- Increasing use of technology: The use of technology is becoming increasingly important in clinical research, with eClinical solutions and electronic data capture (EDC) systems seeing rapid adoption. This is helping to speed up clinical trials and improve data quality.
- Consolidation: There has been consolidation in the CRO industry in recent years, with large players acquiring smaller CROs to expand their geographical reach and service offerings. This trend is expected to continue in the coming years.
- Emerging markets: There is strong growth potential in emerging markets such as Asia-Pacific, Latin America, and Eastern Europe, as these regions have a large patient population and are seeing an increasing number of clinical trials
- Outsourcing of clinical trials is increasing. As drug development costs continue to rise, more and more pharmaceutical companies are outsourcing their clinical trials to CROs. This trend is expected to continue as CROs become increasingly specialized and efficient at running clinical trials.
- The use of data analytics in clinical trials is on the rise. With the ever-increasing volume of data being generated in clinical trials, CROs are turning to data analytics to help them make sense of it all. Data analytics can be used to improve trial design, identify risk factors for patient drop-out, and predict which patients are most likely to respond to a particular treatment.
- Patient recruitment and retention are becoming increasingly challenging – and important. With longer and more complex clinical trials becoming the norm, recruiting and retaining patients has become a major challenge – and one that can make or break a trial. While traditional methods such as direct mail and newspaper ads are still used, CROs are increasingly turning to social media and online advertising to reach patients.
- Regulatory pressures are increasing worldwide. As clinical trials become more global in nature, CROs must comply with a growing number of regulations.
The market is segmented based on Types, Clinical Research Services, Early Phase Development Services, Laboratory Services, Therapeutic Areas, End Users, and Region. On the basis of Types, the market is segmented into Clinical Research Services, Early Phase Development Services, Laboratory Services, Consulting Services, and Data Management Services. Furthermore, based on Clinical Research Services, the market is segmented into Phase I, Phase II, Phase III, and Phase IV. On the basis of Early Phase Development Services, the market is segmented into Chemistry, Manufacturing & Controls Services, Preclinical Services, Pharmacokinetics/ Pharmacodynamics Services, Toxicology Testing Services, Other Preclinical Services, and Discovery Studies. Based on Laboratory Services, the market is segmented into Analytical Testing Services and Bioanalytical Testing Services. Based on Therapeutic Areas, the market is segmented into Oncology, Infectious Diseases, CVS Disorders, Neurology, Vaccines, Metabolic Disorders/Endocrinology, Immunological Disorders, Psychiatry, Respiratory Disorders, Dermatology, Ophthalmology, Gastrointestinal Diseases, Genitourinary & Women's Health, Hematology, and Other Therapeutic Areas. Based on end users, the market is segmented into Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, and Academic Institutes.
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Based on Types
Contract research organizations (CROs) that provide clinical research services hold the greatest share of the worldwide CRO market. During the projection period, this segment is expected to experience the highest growth rate. The continuing outsourcing of clinical research by pharmaceutical and biotechnology businesses is the driving force behind the expansion of the market. Pharmaceutical businesses are under enormous pressure to lower the costs and deadlines involved with drug development while maintaining compliance with ever-changing laws. Companies are able to focus on their core strengths while keeping control over the quality of data and findings when they outsource clinical research to CROs. In addition to the need for more personalized medicine and an increase in the number of complex clinical trials, the need for CRO services is also being driven by the increasing number of complex clinical studies. In recent years, the number of medications in late-stage research has decreased, therefore corporations increasingly rely on CROs to conduct early-stage clinical studies. The expansion of the medical device industry is another significant element driving market expansion. The rising cost of healthcare is another significant factor driving market expansion. As insurance firms and government health programs place a greater emphasis on cost containment, payment choices are increasingly supported by clinical data. CROs can generate RWE through observational research.
Based on End User
Based on end users, the pharmaceutical and biotechnological segment accounted for the largest share of the global CRO market in 2021, owing to the increasing R&D expenditure by pharmaceutical and biotechnology companies, growing demand for outsourced services, and rising number of clinical trials being conducted around the world. The pharmaceutical and biotechnology industry is one of the key end-user segments of contract research organizations (CROs). Pharmaceutical companies are increasingly relying on CROs for drug discovery and development services due to the complex nature of the drug development process. Also, biotechnology companies are outsourcing their R&D activities to CROs to reduce costs and time-to-market. Thus, the increasing R&D expenditure by these companies is expected to propel the growth of this segment during the forecast period.
Based on Therapeutic Areas
The oncology segment of the Contract Research Organization Market is the largest and fastest-growing segment. Oncology CROs provide a wide range of services to support the drug development process, from preclinical research to clinical trials and beyond. Oncology is a complex field with a wide variety of drugs in development, so oncology CROs must have a deep understanding of the disease process and the latest treatments. They also need to be able to design and conduct clinical trials that meet the rigorous standards of the FDA and other regulators. The oncology segment is expected to grow at a compound annual rate of 9.5% in the forecast period, reaching $32.7 billion by 2028. The growth of the oncology segment is being driven by the increasing incidence of cancer, the advancement of personalized medicine, and the continued development of new cancer therapies.
Based on Region
The North America region accounted for the largest share of the global CRO market in 2021, with an estimated 65% of the total market revenue. This can be attributed to the increasing number of clinical trials being conducted in the region, as well as the presence of a large number of CROs in countries such as the United States and Canada. The European region is expected to be the second-largest market for CROs, with an estimated 20% share of the global market in 2021. This can be attributed to factors such as the increasing number of biopharmaceutical companies in the region and the favorable reimbursement policies for clinical trials. The Asia-Pacific region is expected to witness the fastest growth during the forecast period, with a CAGR of 8.9%. This can be attributed to factors such as rising healthcare expenditure, increasing government support for clinical research, and a growing number of patients suffering from chronic diseases.
The key players in the Global Contract Research Organization Market include- Laboratory Corporation of America Holdings (US), Quintiles IMS (US), Parexel International Corporation (US), Pharmaceutical Product Development LLC (US) Inc., Pra Health Sciences Inc. (US), Icon PLC (Ireland) and others.
Recent Market Developments
● ICON PLC entered into a binding agreement in February 2021 to purchase PRA Health Sciences Inc., thereby expanding its portfolio to include healthcare intelligence and clinical research.
● To strengthen Charles River's scientific capabilities in the high-growth cell and gene therapy sector, Charles River Laboratories entered into a definitive agreement in February 2021 to purchase Cognate BioServices Inc., a cell and gene therapy contract development and manufacturing organization (CDMO).
● IQVIA made an announcement regarding its data aggregation plan in November 2021. This strategy served as the foundation for improving market insights. This made it easier for the organization to optimize the patients by utilizing the appropriate data and services. This resulted in the company's services functioning at a higher level of efficiency.
● The acquisition of Pharmaceutical Product Development, LLC was successfully finalized by Thermo Fisher Scientific Inc. in the month of December 2021. Because of this acquisition, the company was able to improve its most important services and offerings.
Segmentation of the Global Contract Research Organization Market
- Types (Clinical Research Services, Early Phase Development Services, Laboratory Services, Consulting Services, Data Management Services)
- Clinical Research Services (Phase I, Phase II, Phase III, Phase IV)
- Early Phase Development Services (Chemistry, Manufacturing & Controls Services, Preclinical Services, Pharmacokinetics/ Pharmacodynamics Services, Toxicology Testing Services, Other Preclinical Services, Discovery Studies)
- Laboratory Services (Analytical Testing Services, Bionalytical Testing Services)
- Therapeutic Areas (Oncology, Infectious Diseases, CVS Disorders, Neurology, Vaccines, Metabolic Disorders/Endocrinology, Immunological Disorders, Psychiatry, Respiratory Disorders, Dermatology, Ophthalmology, Gastrointestinal Diseases, Genitourinary & Women's Health, Hematology, Other Therapeutic Areas)
- End Users (Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, Academic Institutes)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- Laboratory Corporation of America Holdings (US)
- Quintiles IMS (US)
- Parexel International Corporation (US)
- Pharmaceutical Product Development LLC (US) Inc.
- Pra Health Sciences Inc. (US)
- Icon PLC (Ireland)
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analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market
attractiveness analysis by segments and North America, company market share analysis, and COVID-19
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