Preclinical CRO Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI2860
Preclinical CRO Market size is projected to experience significant growth from 2018 to 2024.
Rising need and demand for outsourcing should accelerate business growth in forthcoming years. Contract research firms offer quicker R&D to companies. Many emerging economies are found to employ CROs for carrying out their R&D activities and clinical trials. Thus, numerous companies are increasingly relying on outsourcing for drug development. For instance, according to American Pharmaceutical Review, developing companies are found to outsource 55% services during the first phase of clinical trials whereas 69% of medium-sized biotech and pharmaceutical companies outsource during second phase. Thus, growing demand for outsourcing should stimulate market growth.
Increasing need for R&D cost containment will positively impact preclinical CROs market growth. Technological advancements and product innovation account for substantial cost in R&D. Additionally, R&D cost for every approved new molecular entity is increasing. Thus, improved efficiency and need for reduction in cost further escalates the demand for outsourcing or contract research organizations, thereby impelling market share.
However, lack of standardization to regulatory policies can potentially impede market growth in recent years.
Toxicology testing service segment will witness lucrative growth during the forecast timeframe owing to increasing demand for testing of new drugs and chemicals. Robust growth in pharmaceutical and biopharmaceutical sector accelerates the rise in need for toxicology testing. Efforts to decrease animal testing coupled with rising focus on early safety assessments will further assist in boosting segmental growth in upcoming years.
Biopharmaceutical companies end-use segment will contribute to significant market share. High segmental share is attributable to growing focus of the firms to reduce R&D expenditure. Increase in number of drug entities owing to growing competition and disease burden will propel biopharmaceutical companies growth. Moreover, stringent regulatory requirements for drugs and biopharmaceutical products should impel segmental growth in forthcoming years.
U.S. preclinical CROs market will show remarkable growth. Growth can be credited to high demand for toxicology testing. High quality and greater success rate will lead to substantial growth in the country. Furthermore, fast development of biosimilars across the country should stimulate increase in U.S. preclinical CROs industry size over the forecast timeframe.
India preclinical CROs market will grow at considerable CAGR over the projected timeframe. India offers preclinical services at lower costs than developed nations that fosters customer preference. Initiatives by Indian Government to expand the CRO potential will offer attractive market opportunity in recent years. In addition, availability of scientific expertise in the country will spur business growth in India.
The major market players of global preclinical CRO market include Envigo Corporation, MPI research, Eurofins Scientific, PRA Health Sciences, Wuxi AppTec, Medpace, Pharmaceutical Product Development, Paraxel International Corporation, ICON and Laboratory Corporation of America. Firms are emphasizing on strategic alliances such as collaborations and partnerships for expanding their market reach. For instance, in October 2016, Envigo Corporation collaborated with Intertek and OCSiAl. This initiative will assist the company in enhancing its position in industry.
Preclinical CRO market by service, 2013-2024 (USD Million)
- Bioanalysis and DMPK studies
- Toxicology testing
Preclinical CRO market by end-use, 2013-2024 (USD Million)
- Biopharmaceutical companies
- Government and academic institutes
- Medical device companies
The above information is provided for the following regions and countries:
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia
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