Contract Research Organization (CRO) Market is expected to reach US$ 88,835.19 million by 2028

Published Date: 29 Sep 2021

Contract Research Organization Market: Key Insights

 

According to our latest study on “Contract Research Organization Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, End User, and Geography,” the market is expected to reach US$ 88,835.19 million by 2028 from US$ 50,093.56 million in 2021; it is expected to grow at a CAGR of 8.5% from 2021 to 2028. The contract research organization (CRO) market growth is attributed to the surge in R&D expenditures and outsourcing activities, government initiatives to increase clinical trial participants, and rising number of clinical trials. However, the dearth of skilled professionals is expected to hamper the growth of the contract research organization market. The contract research organization market report also studies the ongoing opportunities and contract research organization market trends that can have a significant impact on the growth potential of the market.

 

Contract research organizations are outsourcing companies that provide support services to pharmaceutical, biotechnology, and medical device companies. Pharmaceutical, biotechnological, and medical device companies require various testing services such as preclinical services, clinical research services, analytical testing services, bioanalytical testing services, and regulatory services for which CROs have specifically designed their services which perform testing services to reduce the in-house cost and time of the companies required to conduct the extensive range of testing services to comply with the national and international regulatory standards. The contract research organization market report studies the lucrative areas in the market and aims to understand the ongoing contract research organization market trends and opportunities.

 

The primary types of services provided in the contract research organization market are early phase development services, clinical research services, laboratory services, and post-approval services. The early phase development services segment is further segmented into drug discovery services and pre-clinical services. The clinical research services segment is expected to hold the major share of the contract research organization market size during the forecast period. The growth of the segment is attributed to the most prominent type of service sought by leading pharmaceutical, biotechnology, and medical devices companies which significantly reduces costs to the company.

 

The demand for contract research organizations and their services in research, development, and regulatory approvals has increased significantly over the years with many pharmaceutical, biotechnology, and medical devices companies looking to outsource their R&D, regulatory, clinical trials, and other projects to CROs. CROs provide robust and highly sophisticated infrastructure and services. Recent investments in R&D expenditure by leading companies that utilize services of CROs have seen a rise. According to a report of Pharmaceutical Research and Manufacturers of America (PhRMA), the entire biopharmaceutical industry has invested an estimated US$ 102 billion in R&D in 2019.


R&D Investments by Pharma Member Companies, 2019

Year

R&D Investment (US$ Billion)

2016

65.5

2017

71.4

2018

79.6

2019

83.0

 

The drug development and discovery are time-consuming and expensive processes. The process from early discovery or design to development to regulatory approval can take more than 10–15 years. Throughout the development phase of a drug substance, various testing services are required for quality check and product efficacy. Therefore, the pharmaceutical and biotech companies prefer outsourcing services to CROs to save the cost and time.

 

Contract Research Organization Market: Competition Landscape and Key Developments

IQVIA Inc; Parexel International Corporation; Charles River Laboratories, Inc.; ACM Global Laboratories; Merck KGaA (Bio Reliance Corporation); Celerion; Clinitude; Laboratory Corporation of America Holdings (Covance Inc.); Novotech; and Icon PLC are among the key companies operating in the contract research organization market. The companies adopt product innovation strategies to meet the evolving customer demands worldwide, which also permits them to maintain their brand name in the global contract research organization market. Primarily, market players create partnerships, collaborations, and contracts with leading biotechnology, pharmaceutical, and medical devices companies to provide various services including preclinical, clinical, drug discovery, and others, which further boosts the contract research organization market growth. The leading market players also acquire small-sized/startup CROs which further increases their revenue, geographical presence, and service portfolio.

 

Some of the recent developments in the contract research organization market include:

In June 2021, Charles River Laboratories completed the acquisition of Vigene Biosciences for US$ 292.5 million in cash. The acquisition of Vigene Biosciences’ extensive gene therapy capabilities further enhanced Charles River’s position as a premier scientific partner for cell and gene therapies.

In April 2021, Parexel and Veeva Systems entered into strategic collaboration to accelerate clinical trials through technology and process innovation. The collaboration integrated the best of each company’s experience across thousands of clinical studies across the world.

Download Free PDF Brochure