Number of pages: 100 | Report Format: PDF | Published date: February 01, 2021
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023 to 2031
According to the deep-dive market assessment study by Growth Plus Reports, the global contract research organization (CRO) services market was valued at US$ 68.3 billion in 2022 and is expected to register a revenue CAGR of 10.63% to reach US$ 169.54 billion by 2031.
Contract research organizations are very important in the pharmaceutical, biotechnology, and medical device industries by providing outsourced research and development solutions. Most of their services offer clinical trials and regulatory support, data management, biostatistics, medical writing, and quality assurance. They enable companies to accelerate their drug development process, reduce costs, and access specialized expertise. In recent years, contract research organizations have gained popularity due to drug development's rising complexity and cost.
The increasing popularity of personalized treatment is influencing the growing demand for contract research organization services. Personalized treatment involves the development of targeted therapies. Contract research organizations contribute to the research and development of these therapies by performing preclinical and clinical studies, evaluating drug safety and efficacy, and providing regulatory support. They play an important role in designing and executing clinical studies that evaluate the effectiveness of targeted treatments in patient subpopulations based on unique molecular features.
Market players are implementing various strategies to increase revenue in the contract research organization (CRO) services market. Contract research organizations are growing their service offerings to deliver end-to-end drug development solutions. They may acquire a significant portion of the market and expand income streams by providing various services, such as early-phase development, late-phase trials, and post-marketing surveillance. CROs are expanding their presence in emerging markets and regions such as Asia Pacific with growing pharmaceutical industries. By establishing local operations, they can cater to the specific needs of these markets, gain a competitive advantage, and capture new revenue opportunities.
Increased research and development outsourcing is the prominent factor in increasing the revenue share of the contract research organization services market. Pharmaceutical and biotechnology companies increasingly outsource their research and development activities to contract research organization services. There were 20,109 drugs in the pipeline in 2022 in the R&D pipeline. This trend is expected to continue due to the benefits of cost savings, access to specialized expertise, and flexibility in managing research projects. As a result, the revenue share of the contract research organization services market is projected to grow significantly in the forecast years.
Additionally, regulatory authorities impose strict guidelines and requirements for drug development and clinical trials. Compliance with these regulations is crucial for pharmaceutical and biotech companies to gain product approval. CROs ensure regulatory compliance by providing expertise in clinical trial design, data management, quality assurance, and regulatory submissions. CROs stay updated with the evolving regulatory landscape, enabling companies to navigate the complex regulatory environment effectively and meet the necessary compliance standards.
Rapid technological advancements, such as electronic data capture, wearable devices, telemedicine, and real-time data analytics, are transforming the landscape of contract research organizations. Contract research organizations approving and integrating these technologies in their services can offer enhanced capabilities, improved efficiency, and more accurate data collection and analysis, which are attractive to pharmaceutical and biotech companies. Furthermore, using this technology in clinical trials can lead to faster recruitment and better patient engagement, resulting in a more streamlined and cost-effective trial process.
However, contract research organizations may face limited growth due to increasing competition and pricing pressure from pharmaceutical companies seeking to reduce costs.
The global contract research organization (CRO) services market is analyzed from four perspectives: service type, therapeutic area, end user, and region.
Contract Research Organization (CRO) Services Market by Service Type
Based on service type, the global contract research organization (CRO) services market is segmented into early-phase development, clinical research, laboratory, and consulting services.
The clinical research services segment accounted for 50% of the market share in 2022. This is attributed to pharmaceutical and biotechnology companies' increasing demand for drug development. Additionally, the emergence of new technologies and the growing trends of outsourcing clinical trials are contributing to the segment's revenue growth. Moreover, the increasing trends for personalized medicine are also driving the growth of the clinical research services segment.
The early-phase development services segment held 20% of the market share in 2022. the trend is expected to continue as pharmaceutical companies are increasingly outsourcing their early-phase development services to CROs due to their increased efficacy, cost savings offered to them, and access to specialized expertise.
Contract Research Organization (CRO) Services Market by Therapeutic Area
Based on the therapeutic area, the global contract research organization (CRO) services market is segmented into oncology, infectious diseases, cardiovascular, central nervous system (CNS), respiratory, autoimmune disorders, and others.
The oncology segment dominated the global contract research organization (CRO) services market with increased revenue share in 2022. This can be attributed to the increasing prevalence of cancer and the growing demand for effective treatment options. As stated by WHO, cancer is the leading cause of mortality across the globe, accounting for over 10 million deaths in 2020, or roughly one in every six people. Additionally, advancements in technology and drug development for oncology are expected to drive the revenue growth of the oncology segment in the forecast years.
Contract Research Organization (CRO) Services Market by End User
Based on end user, the global contract research organization (CRO) services market is segmented into pharmaceutical & biopharmaceutical companies, medical device companies, and research & academic institutes.
The pharmaceutical & biopharmaceutical companies segment dominated the global contract research organization (CRO) services market with around 30% of the revenue share in 2022. The increasing demand for outsourcing drug development services by pharmaceutical and biopharmaceutical companies is expected to drive the growth of the CRO services market. Additionally, the rising trend of personalized medicine and targeted therapies that need special efforts in clinical trials is anticipated to fuel the demand for CRO services in pharmaceutical & biopharmaceutical companies.
The medical device companies segment is expected to show lucrative growth in the forecast years. This growth can be attributed to the increasing demand for technologically advanced medical devices and rising healthcare expenditure. Additionally, the growing prevalence of chronic diseases and the need for efficient diagnosis and treatment are also expected to drive the growth of this segment.
Contract Research Organization (CRO) Services Market by Region
Based on the region, the global contract research organization services market is segmented into North America, Europe, Asia Pacific, Latin America, & the Middle East & Africa.
North America accounted for the majority of the market revenue share in 2022. The significant increase in pharmaceutical businesses based in the region and their broad drug research activities and strong healthcare infrastructure are factors responsible for the region's supremacy. Pharmaceutical companies increasingly focus on outsourcing clinical studies to address various disease problems. Furthermore, these companies are increasing their R&D investments.
The European contract research organization services market is characterized by many top pharmaceutical and biotechnology companies involved in research and development, leading to drug development for many prevalent and rare diseases. Moreover, the market is expected to grow significantly due to the increasing demand for outsourcing R&D activities, cost-effective drug development, and the need for specialized expertise. The rising trend of strategic partnerships and collaborations between contract research organizations and pharmaceutical companies is also expected to drive market growth.
The Asia Pacific region is projected to grow rapidly in the forecast due to the significant growth in research and development in the coming years, driven by increasing demand for clinical trials and drug development. Factors such as favorable government initiatives and rising investments in healthcare infrastructure also contribute to the growth of the contract research organization services market in this region.
Several companies are emphasizing development tactics, such as new launches, product approvals, and other elements like patents and events. The market saw acquisition, partnership, and cooperation activities as inorganic development tactics. These initiatives have enabled the expansion of future economic business prospects and increased demand for calcitonin in the global contract research organization (CRO) services market.
Some of the prominent companies having the largest revenue share in the global contract research organization (CRO) services market are,
Contract research organizations (CROs) offer various services to pharmaceutical, biotechnology, and medical device companies, including clinical trial management, data management, regulatory affairs support, and drug safety monitoring. These services are essential for successfully developing and commercializing new drugs and medical devices.
The global contract research organization (CRO) services market was valued at US$ 169.5 billion by 2031.
The global contract research organization (CRO) services market has witnessed significant growth in recent years due to the increasing demand for outsourcing clinical trials, rising R&D expenditure, and the growing number of drug development programs.
The global contract research organization (CRO) services market is expected to register a revenue CAGR of 10.63% by 2031.
North America has dominated the global contract research organization (CRO) services market.
*Insights on financial performance are subject to the availability of information in the public domain