Clinical Trials Supplies Market Forecast Report | Size & Share 2027

[Research Report] The clinical trial supplies market was valued at US$ 1,867.44 million in 2019 and is expected to grow at a CAGR of 7.4% from 2020 to 2027 to reach US$ 3,298.91 million by 2027.

Market Insights and Analyst View:

The clinical trial is an investigation study that defines whether a medical approach, therapy, or device is effective, safe, and useful for human applications. These studies help to find which therapeutic approaches experiment is best for certain diseases. Clinical trial supplies management is necessary for evading overproduction, oversupply, and inventory expiration. With the increasing costs of drug discovery, clinical trial supplies are obtaining more importance. In addition, implementing more stringent handling requirements for a type of biopharmaceutical product starting clinical trials and clinical trial supplies strategy needs to be continuously improved. The growth of the global clinical trials supplies market is attributed to key driving factors such as increasing R&D expenditures in the pharmaceutical & biopharmaceutical companies, increase in the number of clinical trials, and higher costs of drug development in developed nations. However, the rising cost of drug development and clinical trials and challenges for clinical trials due to the coronavirus's negative impact is expected to restrain the market growth during the forecast years.

 

Growth Drivers and Challenges:

The growing healthcare sector in developing countries of Asia-Pacific creates better opportunities for the clinical trial supplies management market players to expand their business. The huge patient population in these countries is generating demand for more clinical trials. More clinical trials are conducted in the Asia Pacific than in the US or Europe. This shift is ascribed to low operational costs, large patient recruitment potential, contract research organization's growth, favorable regulatory environment, and better clinical trial capacity and quality. In developed regions such as North America and Europe, ~35% of trials are delayed due to problems in patient recruitment, and one-fifth of the trials are refrained from enrollment due to insufficient subjects. As per the report “Clinical Trials in Asia: A World Health Organization database study,” from 2008 to 2017, the average yearly rise in the number of clinical trials conducted was 41.9% in Iran, 27.1% in Sri Lanka, 23.3% in China, 21.3% in India, 18.4% in Japan, 14.7% in Thailand, 8.4% in Malaysia, and 12.9% in Korea.

The high incidence of chronic diseases in Asia is a key factor likely to contribute to the surge in the number of clinical trials in Asia. According to the World Health Organization (WHO), non-communicable diseases cause 55% of the total deaths, ~8 million every year, in the region. In addition, pharmaceutical companies are likely to conduct drug trials for treating gastroesophageal or liver cancer in China or Korea, respectively, as these countries have many patients suffering from these diseases. Moreover, clinical trials in Asia cost ~30–40% lower than in the US and the EU as the doctor visits and medical treatments and procedures are less pricey in Asian countries.

Moreover, the major players in the market, such as Catalent, Inc., Thermo Fisher Scientific, Inc., Almac Group, Parexel International Corporation, Biocair, UDG Healthcare plc (Sharp), PCI Healthcare Services, Owens & Minor Inc., KLIFO, Rubicon Research Pvt. Ltd., CLINICAL SUPPLIES MANAGEMENT HOLDINGS, INC. are anticipated to provide significant growth opportunities to the players operating in the worldwide clinical trials supply market during the forecasted period.

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Clinical Trial Supplies Market: Strategic Insights

Market Size Value in	US$ 1,867.44 Million in 2019
Market Size Value by	US$ 3,298.91 Million by 2027
Growth rate	CAGR of 7.4% from 2020-2027
Forecast Period	2020-2027
Base Year	2020

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Report Segmentation and Scope:

The “Global Clinical Trials Supplies Market” is segmented based on product & services, stage, drug type, application, and geography. Based on products & services, the market is segmented into manufacturing, packaging & labeling, and logistics & distribution. Based on stage, the clinical trial supplies market is segmented into phase I, II, III, and bioequivalence studies. The clinical trial supplies market is segmented into small-molecule and biological drugs based on drug type. Based on application, the clinical trial supplies market has been segmented into oncology, cardiovascular diseases, neurological disorders, respiratory disorders, and others. The clinical trials supply market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on products & services, the market is segmented into manufacturing, packaging & labeling, and logistics & distribution. The logistics & distribution segment held the largest share of the market in 2019; the segment is anticipated to register the highest CAGR in the market during the forecast period. The logistics and distribution segment is estimated to be the largest segment by product and service, owing to the rising contract manufacturing in the pharmaceutical industry. The cost required for the clinical trial process is much higher. Pharmaceutical and biopharmaceutical companies invest a lot in strict handling of pharmaceutical operations during clinical trials. Thus, various pharmaceutical companies outsource their clinical trials to avoid the unnecessary handling cost due to overproduction, oversupply, and inventory expiration. Thus, the factors are responsible for the growth of the clinical trials supply & logistics market.

Outsourcing clinical trials to contract manufacturers and service providers provides sufficient time to develop other drug formulations, maintain frequent and constant communication with pharmaceutical companies, and prevent risks and other benefits. Companies such as Fisher Clinical Services, Inc., PAREXEL International, and Piramal Pharma Solutions offer logistics and distribution services to pharmaceutical and biopharmaceutical companies. Thus, the factors mentioned above are responsible for the growth of the clinical trial supply market size.

Clinical Trials Supplies Market, by Product – 2019 and 2027

Based on stage, the clinical trial supplies market is segmented into phase I, phase II, phase III, and bioequivalence studies. The Phase III segment held the largest share of the market in 2019 and is estimated to register the highest CAGR in the market during the forecast period. Phase III clinical trial stage is done for large patient groups. The phase III clinical trial stage assist in determining the short-term and long-term efficacy of the active pharmaceutical ingredients. Thus, the assessment is done for the formulated drug's total and associated therapeutic values. As many patients are involved in the clinical trials of phase III, it is important to maintain the efficacy, safety, and accuracy of the drug, which otherwise may result in adverse effects of the drugs in many patients registered for the phase III clinical trials. Shertech Manufacturing is one such company that offers phase III clinical trial services, and it offers comprehensive, definitive data related to efficacy and side effects to its customers. It also assists in complying with FDA standards that further assist in introducing the drug into the market and completing the required licensing applications. Thus, pain management contributes to the clinical trial supplies market and is expected to continue the trend during the forecast period.

 

Regional Analysis:

Based on geography, the clinical trials supplies market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The North America, clinical trials supplies market has been analyzed based on three major countries — the US, Canada, and Mexico. The US clinical trials supply market is estimated to hold the largest clinical trials supplies market share during the forecast period. The US's clinical trial supplies market growth is attributed to the presence of market players in the region that offer manufacturing, storage, logistics, and other services, which is likely to enhance the market growth in the country. For instance, Alderley Analytical, Almac, and others are well-known manufacturing organizations offering a wide range of integrated services to more than 600 pharmaceutical and biotech companies. Additionally, the rise in demand for services and medicines in areas of orphan and rare diseases is expected to encourage drug manufacturers to develop smart medicines and recruit patients for clinical trials. The increasing urge for the development of new drugs in the country is also expected to increase the number of industry entrants by keeping up to the fast pace of the pharmaceutical industry.

The UK is the second leading region in the global clinical trials supplies market. Germany holds the largest share in the Europe clinical trials supplies market during the forecast period due to the factors such as the increasing geriatric population and demand for the development of new drugs for various disease types, which has increased the demand for pharmaceutical industries to invest in the R&D for the development of new innovative drugs into the market in the UK.

Industry Developments and Future Opportunities:

Various initiatives taken by key players operating in the global clinical trials supplies market are listed below:

• In May 2020, Sharp, part of UDG Healthcare, purchased a pharmaceutical packaging facility from Quality Packaging Specialists International (QPSI) in the US. Situated in Macungie of, Pennsylvania, the 160,000ft² facility provides primary and secondary pharmaceutical packaging services to its customers. The Macungie facility provides bottling, blistering, vial labeling, medical device kitting, and sterlization services
• In April 2021, Catalent added cryogenic capabilities at its Philadelphia clinical supply services facility. This expansion helped increase Catalent's capabilities in gene therapies, packaging, labeling, and distribution of cryogenic materials for clinical trials.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the clinical trials supply market are Catalent, Inc., Thermo Fisher Scientific, Inc., Almac Group, Parexel International Corporation, Biocair, UDG Healthcare plc (Sharp), PCI Healthcare Services, Owens & Minor Inc., KLIFO, Rubicon Research Pvt. Ltd., CLINICAL SUPPLIES MANAGEMENT HOLDINGS, INC. among others are the leading companies operating in the clinical trials supplies market. These companies focus on various growth strategies such as collaboration, product launches, business expansions, and agreements to retain their position in the global market. Their widespread global presence allows them to serve a large set of customers and subsequently increases their clinical trials supplies market share.