Home > Pressrelease > Contract Research Organization Market size to exceed $83.5bn by 2028

Contract Research Organization Market size to exceed $83.5bn by 2028

  • Published Date: April 18, 2022

Contract Research Organization (CRO) Market size is set to surpass USD 83.5 billion by 2028, according to a new research report by Global Market Insights Inc.
 

Growing number of clinical trials across developing and developed countries will drive the business landscape. The need for well-established contract research organizations for outsourcing clinical trials will fuel the market demand.
 

Further, technological advancements coupled with increasing R&D expenditure worldwide are also anticipated to contribute to the rising outsourcing trend. Contract research organizations have a relatively better adoption rate for novel technology as compared to core pharmaceutical organizations owing to multiple factors. Technology plays a valuable part in simplifying the clinical trial projects and in post-approval phase in the terms of clinical phase evidence. Thus, adoption of technologies by various contract research organizations will boost the CRO market expansion.
 

Increasing outsourcing activities of R&D activities by pharmaceutical companies will fuel the market share

Pharmaceutical firms are increasingly outsourcing R&D activities to contract research organizations to enhance their operational performance. Furthermore, increasing outsourcing activities helps pharmaceutical and biotechnology companies to reduce infrastructure cost, resource cost and other overhead expenses. Also, outsourcing is benefiting biotech and pharma companies to remain flexible and competitive in advancing technologies, expand geographical presence, increase therapeutic expertise, and cater on-demand services.
 

Moreover, cost reduction is one of the major factors contributing to the shift of pharmaceutical and biotechnology companies to opt outsourcing for R&D activities. Contract research organizations cater end-to-end suite of solutions from basic research to late-stage development such as assay development, target validation, genetic engineering, lead optimization, efficacy, and safety tests in animal models as well as clinical trials concerning humans. Thus, the aforementioned factors will spur the CRO market value.
 

Stringent regulatory policies and lack of skilled professionals may hamper the market progression

Stringent regulatory policies may slow down the overall market demand. Various regulatory authorities such as U.S. FDA and European Medicines Agency have set international standards along with Good Laboratory Practice (GLP) regulations for conducting clinical trials. The GLP are based on factors that quality control must be built to eliminate errors. Furthermore, lack of skilled professionals may lead to imbalance of demand and supply to cater the increasing outsourcing of R&D activities. The contract research organizations need skilled professionals to analyze and maintain records of obtain accurate results.
 

Browse key industry insights spread across 286 pages with 389 market data tables & 16 figures & charts from the report,Contract Research Organization (CRO) Market Analysis 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]}, Regulatory Consulting Services), Therapeutic Area (Oncology, Clinical Pharmacology, Cardiology, Infectious Disease, Neurology, Gastroenterology & Hepatology, Ophthalmology), End-use (Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, Academic Institutes), Industry Analysis Report, Regional, Application Potential, Price Trends, Competitive Market Share & Forecast, 2022 - 2028in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/contract-research-organization-cro-market

 

Increasing demand for drug discovery will foster the business outlook

Contract research organization market from early phase development services segment accounted for 17.4% revenue share in 2021 and is estimated to show significant CAGR during the forecast period. Increasing demand for drug discovery coupled early phase trials in patients is expected to drive the segment revenue. The increasing demand for contract research organization in early phase development is increasing attributing to the factor such as streamlined management of R&D cost, low risk of repeat studies, and lower operational cost among others.
 

Wide scope for drug discovery and drug usage will enhance the industry size

Clinical pharmacology segment surpassed USD 3,043.2 million in 2021. This is attributed to wide scope, from the discovery of new target molecules to the effects of drug usage. The clinical pharmacology research is leading in the fields of cardiovascular, geriatric medicine, respiratory and its exponents. Furthermore, increasing focus of key market players in the field of clinical pharmacology will fuel the CRO market growth.
 

Increasing number of medical devices trial and advance technological devices for disease diagnosis will accelerate the industry trend

Medical device companies segment is predicted to reach USD 23.5 billion by 2028. The increasing number of medical devices trials and advance technological devices for disease diagnosis and treatment is projected to surge the outsourcing of clinical trials related to medical devices. Moreover, the application and design of medical devices studies vary significantly from studies of pharmaceutical products. Clinical trials play an important role during the development and life cycle of medical devices, thereby expected to augment the industry expansion.
 

Increasing pharmaceutical R&D expenditure will stimulate the regional market statistics

Europe contract research organization market is estimated to show considerable CAGR of 6.5% during the forecast period. This is attributed to growth disease burden and increasing awareness for early diagnosis and effective treatment. Furthermore, the presence of key market players in the region adds up to the increasing regional market revenue. Also, government funding for drug discovery and related research studies and increasing disposable income in the region are some of the prominent factors will spur the regional market development.
 

Key players undertake inorganic growth strategies to strengthen their business revenue

The major players operating in the CRO idustry include Charles River Laboratories, Inc., Laboratory Corporation of America Holdings, IQVIA, Pharmaceutical Product Development, PAREXEL International and Syneos Health, among others. These market leaders focus on strategies such as mergers & acquisitions, innovative service development & launches, and collaboration to generate more revenue and withstand market competition.
 

For instance, in In September 2021, Clinipace, and Triumph Research Intelligence (TRI), a global leader in risk-based quality management (RBQM) technology, announced their partnership. This partnership helped improve the quality, efficiency, and patient safety in global clinical trials.
 

Authors: Sumant Ugalmugle, Rupali Swain

Explore More on Related Topics: