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The contract research organization (CRO) market is a dynamic sector within the broader pharmaceutical and biotechnology industry. CROs play a crucial role in providing outsourced research services to pharmaceutical, biotechnology, and medical device companies. The market dynamics of the CRO industry are influenced by several key factors.
Firstly, the increasing complexity and cost of drug development have driven pharmaceutical and biotechnology companies to outsource various aspects of their research and development processes to CROs. These companies seek to leverage the specialized expertise and infrastructure of CROs to accelerate the drug development timeline and reduce overall costs. As a result, the demand for CRO services has been steadily growing in recent years.
Secondly, advancements in technology and the emergence of new therapeutic areas have expanded the scope of services offered by CROs. Traditionally focused on clinical trial management and data analysis, CROs now offer a wide range of services including preclinical research, biomarker analysis, pharmacovigilance, and regulatory affairs support. This diversification of services has enabled CROs to cater to the evolving needs of their clients and capture a larger share of the market.
Moreover, the globalization of clinical trials has been a significant trend shaping the dynamics of the CRO market. Pharmaceutical companies are increasingly conducting clinical trials in emerging markets such as Asia-Pacific, Latin America, and Eastern Europe to take advantage of cost efficiencies and access to diverse patient populations. CROs with a global footprint and local expertise in these regions are well-positioned to capitalize on this trend and expand their client base.
Furthermore, strategic partnerships and collaborations have become common in the CRO industry as companies seek to enhance their service offerings and geographical reach. CROs often collaborate with academic institutions, government agencies, and other industry stakeholders to access specialized expertise, innovative technologies, and regulatory support. These partnerships not only enable CROs to offer comprehensive solutions to their clients but also foster innovation and knowledge exchange within the industry.
Additionally, regulatory compliance and quality assurance are paramount in the CRO market due to the highly regulated nature of the pharmaceutical and biotechnology industries. CROs must adhere to stringent regulatory standards and guidelines to ensure the integrity, reliability, and confidentiality of the data generated during clinical trials and research studies. Compliance with regulatory requirements not only enhances the credibility and reputation of CROs but also instills trust and confidence among their clients.
Moreover, mergers and acquisitions (M&A) have been prevalent in the CRO market as companies seek to consolidate their market position, expand their service offerings, and gain access to new geographic markets. M&A activity among CROs has led to the formation of larger, more diversified entities capable of offering end-to-end solutions to their clients. However, integration challenges and cultural differences can pose significant hurdles in the success of M&A transactions in the CRO industry.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Type, Clinical Trial Phase, End-User, and Region |
Contract Organization Market Highlights:
Global Contract Research Organization (CRO) Market Overview:
The Contract Research Organization (CRO) Market Size was valued at USD 64.13 Billion in 2023. The Global Contract Research Organization industry is projected to grow from USD 72.31 Billion in 2024 to USD 192.80 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.04% during the forecast period (2024 - 2032). In general, contract research organizations help offer research-based services to businesses such as medical, government organizations biotechnical, pharmaceutical, and others. These industries require services related to data management, clinical operation, regulation, quality assurance, and submission.
The Contract Research Organization (CRO) market is showing exponential growth during the forecast period due to several important factors such as the availability of funds for research, government support for research & development, rising well-developed healthcare sector and healthcare expenditures, and rising patient population across the world.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
In July 2024: ICON plc, a global leader in CRO services, has completed its acquisition of PRA Health Sciences. This strategic move significantly expands ICON's capabilities in clinical trial services and enhances its global reach. The merger is expected to strengthen ICON’s position in the Healthcare CRO market by offering an even broader range of services, including advanced trial management, data analytics, and regulatory consulting.
In May 2024: Charles River Laboratories has announced the opening of a new state-of-the-art facility in Singapore, expanding its global footprint and enhancing its service capabilities in Asia. The new facility will focus on preclinical and clinical research services, including toxicology studies, pharmacokinetics, and efficacy testing.
Contract Research Organization (CRO) Market Trends
- Rising investment by biopharmaceutical and medical device companies to boost the healthcare CRO market growth
The majority of the pharmaceutical, biopharmaceutical and medical device industries continue to invest a considerable amount of money in the creation of new drugs and technologies. To bring high-quality, novel products to healthcare CRO market, the pharmaceutical industry, in particular, is actively spending on research and development. Sponsors typically contract with independent services companies to create therapeutic products and other products, which enables them to adopt a more flexible cost structure and avoid maintaining redundant development capabilities around the globe.
The global healthcare CRO market is being fueled by rising investments made in clinical and non-clinical research activities by many important enterprises, as well as by outsourcing to numerous contract research organizations services that help give cost-effective development options. The pattern indicates that the major pharmaceutical corporations are increasing their R&D productivity and working together on new R&D. The pharma R&D industry is evolving as businesses try to expand the number of remote workers and concentrate on creating trial outcomes that are more patient-centric and responsive. In addition to significantly contributing to the healthcare CRO market boom in the forecast term, these new growth trends are anticipated to accelerate the development of new technologies and pharmaceuticals.
Contract Research Organization (CRO) Market Segment Insights:
Contract Research Organization (CRO) Type Insights
The global CRO market segmentation, based on type, includes Drug Discovery, Clinical Development. The Drug Discovery segment held the majority share 2021 of the global healthcare CRO market revenue. This segment includes services related to drug discovery, such as target identification and validation, hit-to-lead, and lead optimization. Drug discovery is a complex and time-consuming process, and contract research organizations offer expertise and resources that can help drug developers accelerate the process. The growing demand for outsourced drug discovery services is expected to drive Contract Research Organization (CRO) market growth.
Healthcare CRO Clinical Trial Insights
Based on Clinical Trials, the global Contract Research Organization (CRO) market segmentation includes Preclinical Trials, Phase I, Phase II, Phase III, Phase IV, and Others. The preclinical trials segment dominated the market in 2021 during the forecast period, 2024-2032 This is due to the growing demand for preclinical trial services from the pharmaceutical and biotechnology industries. Preclinical trials are conducted to assess the safety and efficacy of new drugs and therapies before they are tested on humans. These all factors for Contract Research Organization (CRO) positively impact market growth.
Contract Research Organization (CRO) End User Insights
Based on End-User, the global Contract Research Organization (CRO) market segmentation includes Academic institutes, pharmaceutical companies, and medical service companies. The pharmaceutical companies segment dominated the healthcare CRO market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032. The growth of this segment includes the increasing prevalence of chronic diseases, the growing geriatric population, and the increasing uptake of new treatments, which helps increase sales these factors for Contract Research Organization (CRO) positively impact the market growth.
Figure 2: Global Contract Research Organization (CRO) Market, by End-User, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Contract Research Organization Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to dominate the healthcare CRO market during the forecast period. The growing pharmaceutical and biotechnology industries in this region are the major factors driving the growth of the Contract Research Organization (CRO) market in North America. The US is the largest market for CROs, followed by Canada. The large pharmaceutical and biotechnology industries, the presence of a large number of clinical research sites, and the availability of advanced infrastructure and technology are the major factors driving the growth of the Contract Research Organization (CRO) market in the US. Canada is the second-largest market for CROs in North America. The growing pharmaceutical and biotechnology industries, the availability of skilled labor, and the presence of a large number of clinical research sites are the major factors driving the growth of the Contract Research Organization (CRO) market in Canada.
Figure 3: GLOBAL CONTRACT RESEARCH ORGANIZATION MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s Contract Research Organization (CRO) market accounts for the second-largest market share. The healthcare CRO market is driven by the growing demand for outsourced clinical research services, the increasing number of clinical trials being conducted in the region, and the availability of skilled personnel and infrastructure. The main challenge facing the Contract Research Organization (CRO) market is the high cost of clinical trials.
The Asia Pacific region is expected to grow at the fastest CAGR for the Contract Research Organization (CRO) market. This is due to the growing number of pharmaceutical and biotechnology companies in the region, as the increasing number of clinical trials being conducted in the region. In addition, the region has a large population, which is a major factor in the growth of the Contract Research Organization (CRO) market.
Contract Research Organization (CRO) Key Market Players & Competitive Insights
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Contract Research Organizations (CRO). With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, Contract Research Organization (CRO) market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a Contract Research Organization (CRO) market climate that is becoming more competitive and growing, competitors in the Contract Research Organization (CRO) industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Contract Research Organization (CRO) industry to benefit customers and expand the market sector. The Contract Research Organization (CRO) market has recently given medicine some of the most important advantages. Major hair care product market players, including IQVIA, Charles River Laboratories, Envigo, PPD Inc, ICON, and others, are attempting to increase market demand by funding R&D initiatives.
ICON, established in 1990, is a company that provides pharmaceutical, biotechnology, and medical device companies with outsourced clinical research and development services. It provides services such as preclinical and clinical research, adaptive trials, biosimilar development, consultation, medical imaging, bioanalytical and central laboratories, and full-spectrum resourcing.
Also, Envigo was established in 1931, is a contract research business that provides early-stage clinical research services to the pharmaceutical and biotechnology sectors, as well as the government, universities, and other life science organizations. The company specializes in biological product research, contract breeding, custom antibody production, full-spectrum health monitoring, genetic testing, research models, and surgical services, allowing researchers to achieve and safeguard the global potential of life-enhancing research and products.
Key Companies in the Contract Research Organization (CRO) market include
- ICON
- Laboratory Corporation of America holdings
- PRA health science
- IQVIA
- PPD Inc
- Med pace
- Envigo
- Charles River Laboratories
- Paracel international company
Contract Research Organization (CRO) Industry Development
October 2023:IQVIA (US), a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry, announced a strategic collaboration with argenx (Netherlands) to advance treatment for patients suffering from rare autoimmune diseases by utilising innovative and integrated technology-enabled pharmacovigilance (PV) safety services and solutions.
October 2022:The PPD (US) clinical research business and Thermo Fisher Scientific Inc (US), the world leader in science service, have announced the establishment of the PPD DCT Network to support global investigators and research sites participating in decentralized clinical trials (DCTs) for pharmaceutical and biotech customers.
July 2022:Labcorp®, a global leader in life sciences, has expanded its automated clinical trial kit production line in Mechelen, Belgium. The new, automated line will be used to produce specimen collection kits for clinical trial investigator sites in Europe, the Middle East, and Africa.
July 2021:Labcorp®, a global leader in life sciences, has expanded its automated clinical trial kit production line in Mechelen, Belgium. The new, automated line will be used to produce specimen collection kits for clinical trial investigator sites in Europe, the Middle East, and Africa.
September 2021:IQVIA (US) announced a collaboration with HealthCore, Inc. to advance real-world evidence (RWE) studies with increased quality and efficiency. RWE studies incorporate innovative scientific methods with dynamic data from electronic medical records, pharmacy, medical claims, laboratory and genomics records, and patient-reported outcomes.
July 2021:Parexel(US) announced an expansion in China to open a new clinical trial supplies depot to support timely access to supplies and medications to clinical sites and patients
Contract Research Organization (CRO) Market Segmentation
Contract Research Organization (CRO) Type Outlook
- Drug Discovery
- Clinical Development
Contract Research Organization (CRO) Clinical Trial Outlook
- Preclinical trials
- phase I
- phase II
- phase III
- phase IV
- others
Contract Research Organization (CRO) End-User Outlook
- Academic institutes
- Pharmaceutical companies
- Medical service companies
Contract Research Organization (CRO) Regional Outlook
North America
- US
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
-
Middle East
-
Africa
-
Latin Americ
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