Contract Research Organization (CRO) Services Market by Service Type (Early Phase Development, Clinical Research Services, Laboratory Services, and Consulting Services), Disease Indication (Oncology, Infectious Diseases, Cardiovascular, Central Nervous System (CNS), Respiratory, and Autoimmune Disorders), End User (Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, and Research & Academic Institutes) – Global Outlook & Forecast 2021-2031
According to the deep-dive market assessment study conducted by Growth+ Reports, the global contract research organization (CRO) services market was pegged at ~US$ 47.36 billion in 2020. The market is expected to witness a CAGR of ~8.8% from 2021 to 2031.
Factors such as the increasing incidence of chronic diseases and the growing number of clinical trials are propelling the market growth. Moreover, the rising investment for R&D of new drug coupled with increasing outsourcing of analytical testing and clinical trial services are some of the other factors playing a crucial role in driving the market growth. However, stringent norms for the development of drugs, vaccines, and medical devices is a restraining factor for the market growth.
COVID-19 pandemic has affected millions of lives worldwide. Many drug developers globally are focused on finding a cure for COVID-19. During the pandemic, CROs have been supporting these companies to conduct clinical trials. For instance, in April 2020, IQVIA launched a new COVID-19 trial matching service to help accelerate treatment and vaccine development in the U.S.
Development and commercialization of a new drug is a tedious process and requires a well-developed infrastructure and well-trained professionals. Thus, big pharmaceutical & biotech companies outsource these processes to CRO service companies that do this work for them. There are several benefits of outsourcing drug development that include reduced or control operational and labor costs as well as enables their company to utilize internal resources for the core business development.
The number of clinical trials is increasing as companies are focusing on finding a cure for diseases that have higher incidence rates such as cancer, autoimmune diseases, and infectious diseases, among others. As the development process is very lengthy many companies outsource these activities to CROs. Companies have entered into agreements and collaborations with CROs for conducting trials for the development of their product. For instance, in April 2019, CStone Pharmaceuticals, entered into an exclusive regional licensing agreement with Numab Therapeutics AG for the development and commercialization of NM21-1480, a potential best-in-class monovalent, tri-specific antibody-based molecule targeting PD-L1, 4-1BB, and human serum albumin. However, differing regulations for clinical trials in different countries hamper the growth of CRO services market to a certain extent. Most of the clinical trial relates processes are outsourced to countries such as Japan, India, and China owing to the presence of a larger patient population base. However, as the guidelines and other processes such as filling vary, they act as a barrier for the CRO service market growth.
Regionally, the Asia-Pacific market is anticipated to grow at a higher CAGR during the forecast period. Factors attributing to the growth of the CRO services market in this region include a large patient population base coupled with increasing R&D activities in this region. Companies have shifted manufacturing and development units in emerging countries such as China and India. This is due to the fact that the cost for drug development is comparatively low as well as the regulatory timeframe required for the development of the product in these countries is also less.
Some of the prominent players operating in the global contract research organization (CRO) services market include QVIA, Charles River Laboratories, WuXi AppTec, Laboratory Corporation of America Holdings, Parexel International Corporation., PPD Inc., Eurofins Scientific, Icon plc, Syneos Health, and PRA Health Sciences, among others.