CRO Services Market

Global CRO Services Market Size (2020 to 2025)

The global CRO Services market size is anticipated to grow at a 6.66% CAGR from 2020 to 2025. It is estimated that the global market was valued at USD 36.9 billion in 2020 and is relied upon to achieve USD 50.9 billion by 2025.

The factors that are fuelling the growth of the contract research organization services market are increased number of research and development activities, increased number of clinical trials, the rapid growth of the geriatric population and the subsequent increase in the prevalence of chronic diseases, the development of new drugs and the growing acceptance of evidence-based medicine for various therapeutic areas. Increased outsourcing of early phase clinical services, clinical and laboratory testing services by pharmaceutical companies to boost profits, and avoid high investment costs and reduce process and product validation time.

The significant factors that challenge the growth of contract research organization services are the lack of qualified scientists and difficulties in assigning staff expertise for specific projects.

From an operational point of view, cybersecurity is becoming increasingly important. Clinical trial sponsors are particularly apprehensive about keeping their data private, especially after a recent breach involving clinical data. Businesses are concerned about what happens if their data is stolen and if it could harm R&D activities. Pharmaceuticals and life sciences companies using CROs to protect their test data are now emphasizing new operational strategies. The factors, as mentioned above, are slowly degrading the demand of the market.

Demand for CROs has increased as health facilities have unlocked various benefits from conventional research organizations to commercial businesses. As demand for CROs has increased, investors have identified tremendous growth opportunities in CROs. The increase in the number of investors involved in the development of research advisory organizations is likely to provide several options for the growth of contract research organization services.

CROs are now expanding their target market by expanding and deepening solutions throughout the life cycle of drug development. Increased investment in technology and big data will continue to play an important role. Most importantly, wearable devices, a potentially disruptive technology, offer significant market opportunities, and recently, CROs have begun to utilize data from mobile medical wearable devices to improve data quality and test efficiency, which is providing lucrative opportunities for the growth of contract research organization service market during the forecast period.

REPORT COVERAGE:

This research report on the Global CRO Services Market segmented and sub-segmented into the following categories and analyzed market size and forecast for each segment until 2025.

CRO Services Market – By Type

• Clinical Research Services                
• Phase I Clinical Research Services              
• Phase II Clinical Research Services             
• Phase III Clinical Research Services           
• Phase IV Clinical Research Services           
• Early-Phase Development Services                              
• Discovery Studies             
• Chemistry, Manufacturing, & Control (CMC)        
• Preclinical Services           
  • Pharmacokinetics/Pharmacodynamics (PK/PD)
  • Toxicology Testing Services
  • Other Preclinical Services
• Laboratory Services                             
• Bioanalytical Testing Services      
• Analytical Testing Services            
  • Physical Characterization
  • Raw Material Testing
  • Batch-Release Testing
  • Stability Testing
  • Other Analytical Testing Services
• Consulting Services                

Based on type, the Clinical research services segment accounted for the largest share of this market segment. The laboratory services segment is anticipated to witness the highest growth due to the increase in subcontracting of analytical and bioanalytical testing services by pharmaceutical and biopharmaceutical companies and medical device companies.

CRO Services Market – By Therapeutic Area

• Oncology
• CNS
• Cardiovascular          

Based on the therapeutic area, the oncology segment has the largest share in this market segment. It is mainly due to factors such as the rise in the prevalence of cancer worldwide and increases in the number of clinical trials conducted for oncology.

CRO Services Market – By End User

• Pharmaceutical
• Biopharmaceutical
• Medical Device Companies

Based on end-user and biopharmaceutical held the largest share in this market segment. To boost profit margins, avoid high capital expenditure, and reduce the time of drug development, pharmaceutical and biopharmaceutical have increased the outsourcing of early-phase development services, clinical research, and laboratory testing services, thereby aiding the growth of the CRO Services market.

CRO Services Market – By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Geographically, North America has the largest share in the global market. The large share of this regional segment can be credited to its high-quality pharmaceutical industry standards, swift growth in the biosimilars and biologics market, increase in demand for outsourcing services by pharmaceutical and biopharmaceutical companies, and rise in the number of clinical trials in this region. The market in the Asia-Pacific region is expected to grow the most in the coming years. It is mainly due to the rapid growth in the pharmaceutical industry, favorable government policies, and an increase in the number of pharmaceutical companies establishing manufacturing facilities, and lower cost for clinical trials in the region.

NOTABLE COMPANIES IN THE MARKET

Some of the companies dominating the Global CRO Services Market are Quintiles Transnational Holdings Inc., Laboratory Corporation of America Holdings, Pharmaceutical Product Development, PAREXEL International Corporation, ICON Plc, PRA Health Sciences Inc., InVentiv Health Inc., Charles River Laboratories International Inc., INC Research Holdings Inc., and Wuxi PharmaTech.

RECENT DEVELOPMENTS IN CRO SERVICES INDUSTRY:

• In April 2019, FHI 360 has launched a new CRO service, called FHI Clinical. The company focuses on helping companies in the hard-to-reach market and settings of limited resources.
• In 2018, Cereno Scientific collaborated with CRO ‘OCT’ to enhance business operations and increase productivity.
• In August 2017, Chiltern was acquired by LabCorp. The acquisition will help LabCorp become a market leader in CROs by expanding mid-market biopharmaceuticals and improving medical device operations.
• In July 2017, Mapi Group was acquired by ICON; the acquisition will help boost ICON's business, as well as add Analytics, real-world data, significant trading presence, and regulatory expertise.