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Clinical Trials Market size was estimated at over USD 42.9 billion in 2020 and is projected to grow at 4.9% CAGR between 2021 and 2027. Increasing prevalence of chronic diseases coupled with growing demand for clinical trials in developing countries is escalating the market growth. Also, the market is driven by rising number of biologics and demand for CRO to conduct clinical trials. Furthermore, several pharmaceutical and biotechnology firms are currently initiating clinical trials for severe infectious and chronic conditions including cancer and HIV that will boost the market expansion.
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Clinical trials are large-scale research studies assessing novel tests & treatments and evaluating their effects on human health outcomes. Individuals voluntarily participate in clinical trials to test medical interventions including drugs, medical devices and other biological products. The clinical trials are conducted in four phases and require to be approved before initiation. People of all ages can participate in clinical trials.
Rising cases of COVID-19 has led to several disruptions in the healthcare sector while also severely impacting the execution of clinical trials globally. The major setback faced by clinical trials is that they usually deal with vulnerable populations that are at the highest risk of exposure to coronavirus such as geriatric population or patients with pre-existing conditions. Additionally, several clinical trials are noted to have been postponed or suspended amidst operational complications inflicted due to restriction on the movement of individuals. However, impact of COVID-19 pandemic is slowly dissipating over the industry as lockdown conditions have begun to ease in several parts of the world.
As the demand for novel drugs and advanced medical devices emerge, the subsequent demand for efficient, fast-paced and reliable clinical trials program is noted to rise. Moreover, with significantly lower rates of approval and high costs associated, the drug development process is extremely risky for biotech/pharmaceutical companies. Therefore, outsourcing the clinical trials program to various contract research organizations (CRO) is identified to offer significant time and cost savings to the pharmaceutical company. Also, specific CROs are observed to have specific regional penetration.
Conducting clinical trials in various countries involves multiple regulatory hurdles that may hamper the market revenue. The regulations can be streamlined with the help of diversified regulatory authorities, but currently, a sluggish operational pace is observed. For instance, the Institutional Review Board (IRB) approval, regulatory, import licensing and contract negotiations are processed simultaneously in certain countries while others are observed to process these separately. This leads to increased time to launch clinical trials, thereby potentially decreasing the industry expansion. In addition, several countries require local language translation, import and export licensing alongside presenting data on local patients. Thus, a complex regulatory framework coupled with a significant language barrier may lower the regional growth.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | USD 42,925.0 Million |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 4.9% |
2027 Value Projection: | USD 59,690.5 Million |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 150 |
Tables, Charts & Figures: | 221 |
Segments covered: | Phase, Study Design, Therapeutic Area and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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Get more details on this report - Request Free Sample PDF
Phase III segment held 49.3% of the market share in 2020 and is predicted to showcase stable growth rate of 4.6% by 2027. Increasing demand to evaluate the new treatment with existing treatment in this phase will fuel the market demand in the upcoming years. Also, the focus of phase III clinical trials is to demonstrate and confirm the preliminary evidence gathered in the previous trials that drug is safe, beneficial and offers effective treatment for the intended indication. Phase III clinical trials determine if the new drug or combination of drugs is better or equivalent to the standard of care.
Interventional study segment in the clinical trials market is poised to attain a CAGR of 5.1% through 2027 owing to various advantages associated with this study. The advantages include elimination of recall bias, as the data on exposure is obtained before disease develops. Furthermore, interventional study is amongst the top hierarchical pyramid of evidence, as this study is the better way to measure the efficacy of new intervention. The study is carried for majority of drugs or biologics followed by clinical procedures and device intervention studies, thereby increasing the demand for such studies in the future.
Clinical trials market for oncology segment is expected to reach USD 23.4 billion by 2027. Growing incidence of cancer will ultimately increase the new drug development and clinical trial activities for disease treatment, thereby impelling the market growth. Rise in the number of oncology CRO services is another contributing factor in the segment revenue.
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North America clinical trials market size was over USD 23.9 billion in 2020. Increasing focus of pharmaceutical companies on novel drug development for treatment of various chronic diseases is anticipated to foster the industry revenue. Additionally, growing geriatric population is a contributing factor in industry growth. For instance, as per the U. S Census Bureau report, the geriatric population of U.S. aged 65 and above was around 54 million in 2019 and is set to reach 98.2 million by 2060. Such rapidly growing geriatric population suffering from various chronic disorders will surge the demand for medicines/drug therapies. This will ultimately boost the new drug development and clinical trial activities, thereby driving the regional expansion.
Prominent players operating in the market include Laboratory Corporation of America Holdings, IQVIA, Pharmaceutical Product Development and PRA Health Science, PAREXEL International and Bioclinica among others. New service launch, partnerships and collaboration are the most adopted business strategies to sustain market position.
Market, By Phases
Market, By Study Design
Market, By Therapeutic Area
The above information is provided for the following regions and countries: