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Contract Research Organization Market Size
Contract Research Organization Market size accounted for USD 56.7 billion in 2022 and is estimated to grow at 6.9% CAGR between 2023 and 2032. Rising adoption of advanced technologies for efficient R&D outcomes and the increasing outsourcing trends in the clinical trials industry has largely influenced the global market growth.
The significant shift from maintaining manual/paper-based records to digital data capture technologies is largely transforming and propelling the market growth. Moreover, the advent of COVID-19 has largely triggered the adoption of digital resources across clinical trials enhancing the quality of data while allowing greater flexibility. Furthermore, digital technologies can transform the companies’ approach towards clinical development by incorporating valuable insights from multiple sources and increasing the volume of data collected in trials enhancing clinical trial productivity, thereby fuelling the market expansion.
Contract research organization, also known as clinical research organization, is a company that assists in managing complex clinical research & trial responsibilities, clinical development & commercialization of new products for sponsor companies and drug discovery primarily in the biotechnology, medical device and pharmaceutical industries. These organizations offer services such as clinical trial management, preclinical research, clinical research, commercialization, and pharmacovigilance among other research services. These are outsourced on contract basis, also known as fee-for-service basis.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 56,5 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 6.5% |
| 2032 Value Projection: | USD 108 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 287 |
| Tables, Charts & Figures: | 406 |
| Segments covered: | Service, Therapeutic area, End-use and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Increasing R&D expenditure worldwide will spur the CROs industry growth
Increasing burden of chronic diseases worldwide is expected to propel the contract research organization market growth over the forecast period. Sedentary lifestyle, unhealthy eating habits, consumption of tobacco and smoking are some of the prominent factors contributing to the increasing burden of chronic diseases. Furthermore, the emergence of COVID-19 and Ebola pandemic has further increased the R&D expenditure worldwide. Additionally, the focus on developing novel drugs to meet the unmet medical requirements are amongst the key value drivers of research-based pharmaceutical & biotechnology companies. The pharmaceutical sector develops several novel drugs that offer valuable clinical benefits. The surging number of investments by government as well as private organizations are amongst the prime variables driving the number of pharmaceutical research and development activities, thereby propelling the market demand.
Intellectual property issues may hamper the contract research organization market statistics
Intellectual property issues are one of the major concerns faced in outsourcing clinical trials that may potentially slow down the contract research organization industry growth. Most of the medical devices and drug candidates are patented products and outsourcing the same to a contract research organization may increase the chances of data leakages. Furthermore, pharmaceutical companies that develop novel solutions are obligatory to submit clinical data concerning safety and efficacy to respective government and regulatory authorities to get the approval of such drugs. Hence, issues concerning the patent along with the provisions for pre- and post-grant disagreement are quite burdensome. However, it improves the efficiency of scrutiny and has assisted to revoke patents. It is necessary to focus more on the clinical trial agreements as the government also closely inspects the issues concerning clinical trials. However, such issues hamper the CRO’s reputation and may possibly hinder the CRO market growth.
Contract Research Organization Market Analysis
Based on service type, the contract research organization market is segmented into early phase development services, clinical research services, laboratory services and regulatory consulting services. The clinical research services segment is expected to reach USD 63.55 billion by 2032. The clinical research services are further sub segmented into Phase I, Phase II, Phase III, Phase IV. The segmental growth is attributed to the increasing prevalence of chronic diseases and increasing demand for effective medications and diagnostics products. Furthermore, various contract research organizations offer wide range of clinical trial research services and support different areas of medical device and drug development.
Based on therapeutic area, the contract research organization market is bifurcated into oncology, clinical pharmacology, cardiology, infectious disease, neurology, gastroenterology & hepatology, ophthalmology and others. Oncology segment contributed USD 30.85 billion revenue in 2022. Increasing prevalence of cancer has compelled sponsors to focus on developing different therapies and medical devices for better management of cancer. Hence, leading to an increased number of clinical trials and discovery of various drugs for the cancer treatment.
Based on end-use, the contract research organization market is divided into pharmaceutical & biopharmaceutical companies, medical device companies and academic institutes. Pharmaceutical & biopharmaceutical companies segment is anticipated to witness significant CAGR of 7.4% over the forecast period. The increasing segmental growth is majorly attributed to surge in outsourcing of R&D. Increasing demand for contract research organization owing to increasing number of clinical trials coupled with a paradigm shift towards outsourcing the same is expected to further facilitate the market growth. Additionally, increasing government support with increasing funding as well as subsidies with respect to conducting clinical trials is expected to promote the industry demand.
North America contract research organization market surpassed USD 24.4 billion in 2022 and is projected to register significant growth throughout the forecast period. The significant market growth is attributed to higher density of pharmaceutical and biotechnology companies across the North America region. Moreover, increasing focus of pharmaceutical and biotechnology for outsourcing clinical trials for treatment of various disease is expected to fuel the North American market size.
Contract Research Organization Market Share
Major market players operating in the contract research organization industry include :
- Charles River Laboratories, Inc.
- Laboratory Corporation of America Holdings
- IQVIA
- Pharmaceutical Product Development
- PAREXEL International and Syneos Health
Mergers & acquisitions, partnerships & collaboration are some of the most adopted business strategies observed to sustain market position.
Some of the recent industry developments:
- In March 2022, argenx SE and IQVIA collaborated to develop new indications for VYVGART for the treatment of myasthenia gravis in adult patients. The collaboration is anticipated to support clinical development, commercial, regulatory, and real-world evidence strategy to accelerate the development of new indications for VYVGART. This strategy enhances the company’s long-term business collaborations while expanding its customer base.
Impact of the COVID-19 pandemic
The emergence of COVID-19 pandemic had disrupted major aspects of CRO business and R&D activities around the globe. The strictly imposed lockdown and restriction on the movement of the people owing increasing number of COVID-19 cases were significantly noted to have impacted the CRO market. However, as the pandemic progressed, several clinical trials resumed and an increasing amount of accelerated clinical trials pertaining to developing a vaccine were noted to be initiated. Hence, the COVID-19 pandemic had a moderate effect on contract research organization industry. Further, the market witnessed growth owing to increasing number of clinical trials amid an increasing demand for effective and novel vaccines and drugs to control and curb the SARS-CoV2 virus. Many biotechnology and pharmaceutical companies are noted to have made long term agreements, collaborations, and partnerships with CROs.
The contract research organization (CRO) market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 - 2032, for the following segments:
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By Service Type
- Early phase development services
- Discovery services
- Chemistry, manufacturing & control (CMC)
- Preclinical services
- Pharmacokinetics/Pharmacodynamics (PK/PD)
- Toxicology services
- Others
- Clinical research services
- Phase I
- Phase II
- Phase III
- Phase IV
- Laboratory services
- Bioanalytical testing services
- Analytical testing services
- Physical Characterization
- Raw Material Testing
- Batch Release Testing
- Stability Testing
- Others
- Regulatory consulting services
By Therapeutic Area
- Oncology
- Clinical pharmacology
- Cardiology
- Infectious disease
- Neurology
- Gastroenterology & Hepatology
- Ophthalmology
- Others
By End-use
- Pharmaceutical & Biopharmaceutical Companies
- Medical Device Companies
- Academic Institutes
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- South Africa
- Saudi Arabia
Frequently Asked Questions (FAQ) :