Clinical Trial Market worth over $59.6bn by 2027
Published Date: April 16, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Clinical Trial Market size is set to surpass USD 59.6 billion by 2027, according to a new research report by Global Market Insights, Inc.
Clinical trial market growth is due to increasing R&D expenditure coupled with advancements in technologies. For instance, clinical trials involve various phases from identification of lead compounds to post marketing surveillance that require high investments in R&D activities. Thus, investment in technology will continue to play an important role in the expansion of clinical trials, thereby fostering the market expansion. Moreover, rising government grants to validate the clinical trials will accelerate the market value of clinical trials.
Rising opportunities for conducting clinical trials in the Asia Pacific region will boost the market revenue
The shifting trend from performing clinical trials in developed countries to its developing counterparts is largely propelled by the challenges faced in those countries, especially countries in North America and Western Europe. Also, one of the prominent setbacks that companies are witnessing in these regions is related to participant recruitment and subsequent retention. Failing to match patient numbers or timelines can significantly delay the product launch, resulting in increased costs associated with it. Furthermore, studies have found that nearly 57% of clinical trials fail owing to reduced patient counts, thereby translating into significant financial losses. Hence, low participation has largely encouraged several biopharmaceutical companies to seek clinical trial opportunities beyond U.S. and Europe. Thus, companies tend to opt APAC countries to conduct clinical trials, thereby supplementing the industry growth.
Sponsors are expected to cover the standard of care costs in developing nation that may slow down the clinical trial market progression
During clinical trials, the standard of care costs in U.S., Europe and Australia are generally covered by the patient’s regular payer such as relevant government agencies or insurance providers. While in several countries in the Asia Pacific region, the sponsors are predicted to cover the standard of care costs. This is observed even in healthcare systems with relatively higher government support. For instance, in South Korea, the sponsors are anticipated to pay for standard of care. The legal framework is being amended in order to allow insurance coverage for such costs in an attempt to advance the country’s clinical trial attractiveness. Thus, lack of standard of care payments in developing economies may potentially restrain the market demand. However, even after accounting for standard of care costs, sponsors are still noted to experience cost savings of nearly 30% as compared to conducting clinical trials in developed countries.
Increasing number of clinical trials in phase II will spur the segment growth
The clinical trial market for phase II segment accounted for USD 7.2 billion in 2020. Phase II clinical trials test both the effectiveness and safety of a drug or medical device. Trials in this stage can last from several months to a few years. In addition, growing number of clinical trials in phase II will influence the segment expansion.
Observational study is the fundamental part of epidemiological research
The observational study segment in the clinical trial market is poised to showcase 4.2% growth rate till 2027. Observational studies are those studies where researchers observe the effect of a risk factor, diagnostic test, treatment or other intervention. This study is the fundamental part of epidemiological research. Additionally, observational studies help researchers know what happens in real life situations. These studies serve as a collection of data from standard practice. Such advantages associated with this study will impel the segment value.
Browse key industry insights spread across 150 pages with 205 market data tables & 16 figures & charts from the report, “Clinical Trial Market Size By Phases (Phase I, Phase II, Phase III, Phase IV), By Study Design (Interventional Study, Observational Study, Expanded Access Study), By Therapeutic Area (Autoimmune Disease, Oncology, Cardiology, Infectious Disease, Dermatology, Ophthalmology), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Collaborative efforts of CRO industry players in the field of cardiology will fuel segment revenue
Cardiology segment captured 9% of the clinical trial market share in 2020 owing to collaborative efforts of CRO industry players in the field of cardiology. For instance, Cardialysis, a leading clinical research organization focusing on cardiology, provides a wide range of clinical research and cardiovascular core laboratory services. Similarly, the European Cardiovascular Research Institute (ECRI) offers a structure that facilitates researchers to conduct clinical trials. Such unique initiatives between the experts and leaders in the field of cardiology creates an opportunity for multinational investigator-initiated studies that will augment the market growth in the coming years.
Increasing development activities and large number of clinical trials in the European region will influence the market expansion
Europe clinical trial market is estimated to expand at a CAGR of over 5.1% till 2027. Rising government support for clinical research coupled with increasing number of clinical studies in European region will boost the industry progression. For instance, European CRO Federation (EUCROF) association focuses on promoting high quality clinical research. The association is engaged in developing training and educational programs for clinical research in the European Union. Similarly, according to The Association of British Pharmaceutical Industry (ABPI) report, UK ranks first in Europe for the number of early clinical trials, with 147 phase I and 253 phase II and 243 phase III clinical trials that were initiated in the UK in 2017. The report also stated that, UK held third position in phase I, second in phase II and fifth in phase III clinical trials among the top countries across the world. Thus, growing number of clinical studies in Europe will foster the regional growth during the forecast period.
Companies undertake inorganic growth strategies to strengthen their business portfolio and revenue
Eminent players operating in the clinical trial market include Laboratory Corporation of America Holdings, IQVIA, Pharmaceutical Product Development and PRA Health Science, PAREXEL International and Bioclinica among others. These industry leaders focus on strategies such as innovative service development & launches, mergers & acquisitions and collaboration to garner more revenue and sustain market competition.