Contract Research Organization (CRO) Market Size By Service Type (Early Phase Development Services {Discovery Services, Chemistry, Manufacturing & Control (CMC), Pre-clinical Services [Pharmacokinetics/Pharmacodynamics (PK/PD), Toxicology Testing Services]}, 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]}, Consulting Services), By Therapeutic Area (Oncology, Clinical Pharmacology, Cardiology, Infectious Disease, Neurology, Gastroenterology & Hepatology, Ophthalmology), By End-use (Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, Academic Institutes), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Oct 2019  |  Report ID: GMI3012  |  Authors: Sumant Ugalmugale, Rupali Swain

Report Format: PDF   |   Pages: 253   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry trends

Contract Research Organization Market size exceeded USD 36.5 billion in 2018 and is set to achieve over 7.6% CAGR up to 2025.
 

Contract Research Organization Market

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Healthcare contract research organization generally provides assistance to biotechnology, medical device and pharmaceutical companies in the form of research services outsourced on a contract basis. Different companies including Covance, Parexel and IQVIA among others are involved in CRO services. Currently, IQVIA is the largest CRO in the world that focus on digital health and artificial intelligence. Furthermore, over past few years, contract research organization market has started booming, due to shifting of CRO’s role towards secured services. Secured services include preclinical and clinical testing, discovery as well as regulatory approval, that will enhance the overall business growth.
 

The history of contract research organization (CRO) market can  be tracked back to 1940s and 50s with the foundation of enterprises such as Huntingdon Life Sciences and Charles River. In 1960s, progressing regulations for pharmaceutical products raised the need for drug companies to appropriately test drug compounds. Later in 1970s and 1980s, firms broadened into data management, clinical trials and logistics from traditional preclinical testing role. Later, when market started flourishing, the role of CRO again moved towards strategic and long-term role in the developmental process.
 

Contract Research Organization (CRO) Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 36.5 Billion (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 7.6% 2025 Value Projection: 61 Billion (USD)
Pages: 253 Tables, Charts & Figures: 400
Geographies covered (16): U.S., Canada, Germany, UK, France, Italy, Spain, China, Japan, India, Brazil, Mexico, South Africa, Saudi Arabia
Segments covered: Service type, Therapeutic area, End-use and Region
Companies covered (15): Charles River Laboratories International, Inc., Clinipace, CMIC Holdings Co., Ltd., EPS International Co., Ltd., ICON plc, IQVIA, Medpace, Inc., Syneos Health, Synteract, Worldwide Clinical Trials, WuXi AppTec, Laboratory Corporation of America Holdings (Covance Inc.), PRA Health Sciences Parexel International Corporation, Pharmaceutical Product Development, LLC.
Growth Drivers:
  • Increasing R&D expenditure worldwide
  • Rising number of clinical trials in emerging economies
  • Growing outsourcing of R&D activities globally
  • Rising technological advancements
Pitfalls & Challenges:
  • Intellectual property rights issues

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Growing outsourcing of R&D activities will boost the industry demand

Pharmaceutical firms are gradually outsourcing research activities to private contract research organizations (CROs) and academic institutes that will eventually boost the industry demand. Pharma firms are adopting this strategy to remain flexible and competitive. The R&D activities that companies opt to outsource include extensive spectrum of tasks from basic research to late stage development. Such as assay development, target validation, lead optimization, genetic engineering, hit exploration, efficacy and safety tests in animal models as well as clinical trials concerning humans. Thus, above-mentioned aspects thereby, should accelerate the contract research organization market growth.
 

However, issues pertaining to intellectual property rights in institutional research and technology transfer may hinder contract research organization industry growth over forthcoming years.
 

Adoption of clinical trials to determine safety and efficiency will drive the clinical research services revenue size

Service type segment covers early phase development services, clinical research services, laboratory services and consulting services. Clinical research services segment will witness over 7.5% CAGR during the analysis timeframe. The Human Studies Review Committee (HSRC) or Institutional Review Board (IRB) supervises and reviews professionalism in clinical research. Thus, presence of such government bodies to ensure patient safety will foster the business growth. Moreover, clinical research services are further fragmented based on Phase I, II, III, IV that accounts for total segmental expansion. Phase I studies are intended to measure the safety of an Investigational New Drug (IND) to detect a potential therapeutic dosage.
 

Government initiatives for conducting specific clinical trials will provide substantial growth opportunities

Therapeutic area segment is divided into neurology, clinical pharmacology, infectious disease, cardiology, oncology, ophthalmology, gastroenterology & hepatology and others. Cardiology segment accounted for around USD 1.2 billion in 2018 owing to increasing incidence of cardiovascular diseases. According to Heart Disease and Stroke Statistics 2017, maximum number of Americans suffered from cardiovascular diseases that will provide substantial segmental opportunities. Furthermore, several structures and initiatives undertaken by government will enhance contract research organization market expansion. For instance, European Cardiovascular Research Institute (ECRI) provides a definite structure that further conducts specific clinical trials for better patient supervision.
 

Pharma industry is focusing on developing novel vaccines to treat chronic diseases that will prove beneficial for the CRO market growth

Global Contract Research Organization Market, By End-use, 2018, 2025 (USD Million)
Global Contract Research Organization Market, By End-use, 2018, 2025 (USD Million)

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End-use segment is further classified into pharmaceutical & biopharmaceutical companies, medical device companies and academic institutes. Pharmaceutical and biopharmaceutical companies’ segment will witness around 54% revenue share in 2018. This is majorly due to the increasing government support for pharmaceutical companies and rising demand for CRO services. This will offer essential clinical trials during drug discovery process that will surge the segmental revenue share. These companies aim at developing innovative medicines to prevent diseases that further boost industry growth.
 

Increasing demand for contract research services across the globe will boost the industry progress

Asia Pacific Contract Research Organization Market, By Country, 2018 & 2025 (USD Million)
Asia Pacific Contract Research Organization Market, By Country, 2018 & 2025 (USD Million)

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Asia Pacific CRO market will show over 8.5% CAGR owing to increasing outsourcing by pharmaceutical and biotechnology companies. Regional growth can be attributed to strong foothold of foremost pharma and biopharma companies along with rising R&D investments. Moreover, improving trend of outsourcing research activities to countries such as India and China due to lower costs and presence of capable healthcare professionals should enhance the regional growth.
 

India market accounted for around 1.2 billion in 2018. According to the WHO, cancer is the leading cause of death that will surge the demand for oncology drugs in the country. Also, rising number of investigational compounds and ongoing interventional trials will spur the overall CRO business growth in India. Moreover, changing regulatory environment along with focus of Indian companies including Vitas Pharma and Bugworks on drug discovery accelerates the contract research organization services demand.
 

IQVIA is currently the largest CRO market player across the globe

Some of the prominent business players operating in contract research organization market are Charles River Laboratories International, Clinipace, CMIC Holdings, EPS International, ICON, IQVIA, Medpace, Parexel International, PRA Health Sciences and Synteract. These market players are strategically implementing different approaches to garner higher market share. For instance, IQVIA navigates specific key drivers of the industry including artificial intelligence and digital health.
 

Some of the recent industry developments:

  • In October 2018, Distributed Bio and Charles River partnered to create a platform for integrated antibody discovery. This strategic partnership allowed Charles River’s clients to access Distributed Bio’s antibody discovery platforms
     
  • In February 2018, CMIC Holdings announced its collaborative agreement to provide comprehensive clinical trial services. This strategy aimed at increasing customer offerings thereby enhanced its business revenue share
     

The contract research organization market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2014 to 2025, for the following segments:

By Service Type

  • Early phase development services
    • Discovery services
    • Chemistry, manufacturing & control (CMC)
    • Pre-clinical services
      • Pharmacokinetics/pharmacodynamics (PK/PD)
      • Toxicology testing 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
  • 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
    • France
    • UK
    • Italy
    • Spain
  • Asia Pacific
    • Japan
    • India
    • China
  • Latin America
    • Brazil
    • Mexico
  • Middle East Asia & Africa
    • Saudi Arabia
    • South Africa

Frequently Asked Questions (FAQ) :

A contract research organization in healthcare provides assistance to biotechnology, medical device and pharmaceutical companies in the form of research services outsourced on a contract basis.
Global market for contract research organization will achieve over 7.6% CAGR from 2019 to 2025, according to a new report published by Global Market Insights, Inc.
Rapidly developing research practices along with rising outsourcing of R&D activities will be key driving factors for the growth of CRO industry worldwide.

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