Contract Research Organization Market Size & Growth | Report 28

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Contract Research Organization Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Early Phase Development Services, Clinical Research Services, Laboratory Services, and Post-Approval Services) and End User (Pharmaceutical & Biotechnology Companies and Medical Device Companies)

Publication Month: Sep 2021 | Report Code: TIPBT00002008 | No. of Pages: 189 | Category: Pharmaceuticals | Status: Published

The contract research organization (CRO) market is projected to reach US$ 88,835.19 million by 2028 from US$ 50,093.56 million in 2021; it is estimated to grow at a CAGR of 8.5% from 2021 to 2028.

A contract research organization provides support services to pharmaceutical, biotechnology, and medical device companies throughout the development of the product. Pharmaceutical & biotechnology companies and the medical device industry require various testing services such as preclinical services, clinical research services, analytical testing services, bioanalytical testing services, and regulatory services. CROs are specifically designed to perform these 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 market report aims to develop an understanding of the contract research organization market scope and trends that are expected to drive the market.

The contract research organization market is segmented based on type, end user, and geography. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The contract research organization market report offers insights and in-depth analysis of the market, emphasizing parameters such as contract research organization market size, market trends, technological advancements in the market, and market dynamics, along with the global analysis of the competitive landscape of the leading market players that are driving the contract research organization market growth.

The contract research organization 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. These drivers are expected to have significant short-, mid-, and long-term impacts on the contract research organization market size. 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 of the market.

Lucrative Regions for Contract Research Organization Market

Lucrative Regions for Contract Research Organization Market

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Market Insights


Increasing R&D Expenditures and Outsourcing Activities

Pharmaceutical and biotech companies focus on the research and development (R&D) to come up with new molecules for various therapeutic applications with high medical and commercial potential. The companies invest majorly on the R&Ds with an aim of delivering high quality and innovative products to the market.

R&D Investments by Major Pharmaceutical Companies

Company

R&D Investment (US$ Million) 2019

R&D Investment as Percentage of Revenue

Johnson & Johnson

12,245

15%

Novartis

9,402

19.82%

Pfizer

8,650

16.71%

Sanofi

6,752

16.66%

Bayer AG

5,993

13.0%

GSK

4,568

13.53%

Abbott

2,440

7.65%

R&D expenditures relate to the processes of discovering, testing and developing new products, upfront payments and milestones, improving existing products, as well as demonstrating product efficacy and regulatory compliance prior to launch. According to the International Federation of Pharmaceutical Manufacturers & Associations, the R&D expenditures in 2019 by the pharmaceuticals & biotechnology industry grew by approximately 20% than that of the expenditures in 2015. Moreover, in the US, R&D investments of biopharmaceutical companies have grown consistently over the past 15 years, and more than doubled the publicly funded National Institutes of Health’s (NIH) expenditures in 2019. R&D intensity by the research-based biopharmaceutical industry in the world amounts to 15%. In 2018 alone, the biopharmaceutical industry registered 9,114 patents through the Patent Cooperation Treaty (PCT) of the World Intellectual Property Organization. No other business sector has such high levels of R&D intensity.

The drug development and discovery are time-consuming and expensive process. 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 to check the quality and efficacy of the product. Therefore, the pharmaceutical & biotech companies prefer outsourcing the services to the CROs to save the cost and time.

Type-Based Insights

The global contract research organization market, based on type, is segmented into 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 held the largest market share in 2021 and is expected to continue its dominance of the contract research organization market with the highest contribution to the market growth during the forecast period. The growth of the segment is attributed to the increasing applications of sequencing to provide more precise treatment for ailments.

Contract Research Organization Market, by Type – 2021 and 2028

Contract Research Organization Market, by Type – 2021 and 2028

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End User-Based Insights

The global contract research organization market, based on end user, is segmented into pharmaceutical & biotechnology companies and medical device companies. The pharmaceutical & biotechnology companies segment held a larger market share in 2021 and is expected to have a higher CAGR during 2021–2028. The market growth of the pharmaceutical & biotechnology companies segment is attributed to the value that CROs bring to the development of products of pharmaceutical & biotechnology companies through research, clinical trials, and regulatory services. These services are widely used by the end user to save on infrastructure, R&D, and regulatory costs. Also, newly emerging pharmaceutical & biotechnology companies utilize the services of CROs to save on costs due to the considerably small infrastructure.

Strategic Insights

Report Coverage - Contract Research Organization Market
Report CoverageDetails
Market Size Value inUS$ 50,093.56 Million in 2021
Market Size Value byUS$ 88,835.19 Million by 2028
Growth rateCAGR of 8.5% from 2021-2028
Forecast Period2021-2028
Base Year2021
No. of Pages189
No. of Tables90
No. of Charts & Figures71
Historical data availableYes
Segments coveredType and End User
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
Free Sample Copy Available

Product launches and approvals are commonly adopted strategies by companies to expand their global footprints and product portfolios. Moreover, the contract research organization market players also focus on the partnership strategy to enlarge their clientele, which, in turn, permits them to maintain their brand name across the world. Also, collaborations and acquisitions with other market players are a common strategy that increases product development capabilities and global outreach. The market share is anticipated to flourish with the development of new innovative products by market players.

The List of Companies - Contract Research Organization (CRO) Market

  1. IQVIA Inc.
  2. Parexel International Corporation
  3. Charles River Laboratories, Inc.
  4. ACM Global Laboratories
  5. Merck KGaA (Bio Reliance Corporation)
  6. Celerion
  7. Clinitude
  8. Laboratory Corporation of America Holdings (Covance Inc.)
  9. Novotech
  10. Icon PLC
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the contract research organization (CRO) market.
  • Highlights key business priorities in order to assist companies to realign their business strategies.
  • The key findings and recommendations highlight crucial progressive industry trends in the global contract research organization (CRO) market, thereby allowing players across the value chain to develop effective long-term strategies.
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
  • Enhance the decision-making process by understanding the strategies that underpin security interest with respect to client products, segmentation, pricing and distribution.
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