Contract Research Organization (CROs) Services Market 2024
Contract Research Organization (CROs) Services Market Size, Share Report, 2024-2032

Contract Research Organization (CROs) Services Market Share, Size, Trends, Industry Analysis Report, By Service Type; By Therapeutic Area; By End-Use; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Feb-2024
  • Pages: 115
  • Format: PDF
  • Report ID: PM4495
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

Contract research organization (CROs) services market size was valued at USD 74.13 billion in 2023. The market is anticipated to grow from USD 81.00 billion in 2024 to USD 166.80 billion by 2032, exhibiting the CAGR of 9.4% during the forecast period

Contract Research Organization (CROs) Services Market Overview

The increasing investment in the R&D programs, preference for the outsourcing activities owing to time and cost constraints, and the patent expiration of blockbuster drugs are the crucial factors that are anticipated to drive the growth of the market in the forecast period. Contract research outsourcing partnerships provide a sophisticated level of service, prompting biopharmaceutical and pharmaceutical companies to entrust most projects to contract research organizations. This is facilitating the growth of the market.

  • For instance, in October 2023, according to the Australian Government Department of Health and Aged Care, the Clinical Trials Activity initiative will receive $750 million over ten years, starting in the year 2022-23.

Contract Research Organization (CROs) Services Market Size

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Contract Research Organizations (CROs) rely on their specialized expertise and regulatory knowledge to effectively manage complicated clinical trials in the pharmaceutical, biotechnology, and medical device industries. Contract Research Organizations offer a broad range of services, including data management, patient recruitment, study design, and regulatory compliance, significantly driving market growth.

A Contract Research Organization is a company that provides research services to the biotechnology, medical device, and pharmaceutical industries on a contract basis. The services offered include biologic assay development, biopharmaceutical development, preclinical research, commercialization, clinical trial management, clinical research, and pharmacology. A contract research organization, also known as a Clinical Research Organization, an outsourcing partner for pharmaceutical and biotechnology companies that cater to research needs for medical and drug devices.

The complex processes involved in drug development facilitates the growth of the market. Contract research organizations offer specialized expertise and capabilities in genomics, pharmacovigilance, data analytics, and regulatory affairs. Numerous CROs actively collaborate with pharmaceutical companies on research and innovation, resulting in the development of novel methodologies, technologies, and therapies. Furthermore, contract research organizations allow pharmaceutical companies to focus on their core competencies, such as drug discovery, marketing, and market access, by outsourcing specific research tasks.

Electronic data capture (EDC), electronic trial master files, and risk-based monitoring have changed the way of research processes. Contract research organizations (CROs) have positioned themselves at the forefront by enthusiastically embracing and leveraging these advanced technologies, allowing them to offer exceptional advantages to their clients. Furthermore, the use of risk-based monitoring methods enables CROs to identify and manage potential risks as they arise, ensuring the quality and compliance of studies in real-time.

The COVID-19 pandemic has had a positive and negative impact on the contract research organization services market. The growth of the market was slowed in 2020 owing to the lockdown. During the COVID-19 pandemic, numerous pharmaceutical and biopharmaceutical companies increased their efforts in R&D and manufacturing procedures to develop and distribute testing kits, vaccines, and medications that target the SARS-CoV-2 virus. To strengthen their R&D initiatives, these pharmaceutical and biotech companies formed extensive collaborations with Contract Research Organizations (CROs) through global, long-term agreements, partnerships, and cooperative ventures.

  • For instance, In January 2021, ICON formed a partnership with Pfizer and BioNTech to launch a ground-breaking initiative aimed at developing experimental COVID-19 vaccines.

The COVID-19 pandemic has hampered the growth of the contract research organization services market. The suspension of clinical trial activities has reduced demand for contract research organization services. Furthermore, government-imposed measures such as travel restrictions, lockdowns, and social distancing have had a negative impact on the growth of the contract research organization services market.

Contract Research Organization (CROs) Services Market Dynamics

Market Drivers

Increasing prevalence of chronic diseases and the growing number of clinical trials driving the growth of the market

The increase in chronic diseases is anticipated to drive the growth of the contract research organization market demand in the market forecast period. Sedentary lifestyles, poor dietary choices, tobacco use, and smoking are major contributors to the rise in chronic diseases. Furthermore, the emergence of the COVID-19 pandemic has resulted in a global focus on research and development, contributing to increased spending in this sector.

The rising number of patients suffering from chronic diseases is expected to drive the growth of the contract research organization market. According to World Health Organization (WHO) data, a significant portion of the population suffers from chronic illnesses. Every year, approximately 41 million people die from chronic diseases. To reduce costs and workload, companies that manufacture pharmaceuticals and medical devices for chronic disease treatments are gradually outsourcing their early-phase clinical trials. This outsourcing trend is anticipated to drive the growth of the contract research organization services market development.

Market Restraints

Stringent regulatory challenges and lack of skilled professionals hamper on the growth of the market

The contract research organization operates under strict regulatory guidelines from bodies such as the FDA and EMA. These guidelines establish stringent compliance standards, including extensive documentation, stringent quality control measures, and a commitment to ethical behavior. Complying with these standards can be complex and resource-intensive, resulting in additional costs, time-consuming processes, and potential project delays. The need for strict adherence adds complexity to contract research operations, affecting their effectiveness and financial performance.

The contract research organization market growth faces a challenge due to a need for more skilled professionals, which has impacts across multiple domains, including Therapeutic Expertise, and weakens the effectiveness of Patient Recruitment. This shortage has implications for regulatory affairs, which pose challenges for services such as clinical data analysis and clinical custom synthesis.

Report Segmentation

The market is primarily segmented based on service type, therapeutic area, end-use, and region.

By Service Type

By Therapeutic Area

By End-Use

By Region

  • 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
  • Oncology
  • CNS Disorder
  • Cardiology
  • Infectious Disease
  • Metabolic Disorder
  • Renal/Nephrology
  • Others

 

  • Pharmaceutical & Biopharmaceutical
  • Medical Device Companies
  • Academic and Research Institutes
  • Others

 

  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Contract Research Organization (CROs) Services Market Segmental Analysis

By Service Type Analysis

  • The clinical research services segment held the largest market share in 2023. The increasing prevalence of individuals with chronic illnesses is driving a heightened demand for additional clinical trial endeavors, significantly contributing to the expansion of this sector. Furthermore, the rising inclination among pharmaceutical and biotechnology firms to delegate their clinical trial operations is expected to drive the growth of the contract research organization services market segment.

By Therapeutic Area Analysis

  • The oncology segment accounted for the largest market revenue share in 2023. The rise in cancer incidence and the growing demand for novel cancer treatments are contract research organization services market drivers for the growth of the segment. For instance, in 2020, the World Cancer Research Fund (WCRF) reported 18.1 million new cancer cases. Furthermore, the growing trend toward personalized medicine in oncology, combined with increased interest from pharmaceutical and biotechnology companies in outsourcing clinical trial activities for comprehensive oncology research to advance new treatments, is anticipated to drive the growth of the segment.

By End-Use Analysis

  • Based on end-use analysis, the market has been segmented on the basis of pharmaceuticals and biopharmaceuticals, medical device companies, academic and research institutes, and others. The pharmaceuticals and biopharmaceuticals segment held the largest revenue share in the market. The growing trend of pharmaceutical and biotech companies, particularly smaller and mid-sized enterprises needing more expertise in the preclinical phase of drug development, to outsource comprehensive services is anticipated to drive demand for this segment during the contract research organization services market forecast period. This growth is mainly driven by expanding biotechnology product pipelines and a shift in the trend of biotech companies retaining their assets for longer periods.

Contract Research Organization (CROs) Services Market Regional Insights

North America dominated the largest revenue share of the market in 2023

  • North America dominated the contract research organization services market due to the presence of numerous contract research organizations, which are equipped with advanced technologies and systems to equalize the entire processes delivered by the companies. The contract research organization market in North America is anticipated to expand due to an increased demand for cutting-edge technologies in disease diagnosis and treatment. Increased investment in R&D by regional companies, research institutes, and non-profit organizations has accelerated market growth. Furthermore, the rising prevalence of chronic diseases, a growing demand for low-cost digital health solutions, and a geriatric population have contributed to increased R&D activity.
  • Asia Pacific has witnessed the fastest growth in the market, owing to the increasing number of pharmaceutical and biotechnology companies, as clinical trials are conducted in more numbers in the region. Also, the region has a large population, which is an essential factor in the contract research organization services market is responsible for growth of this segment.

Competitive Landscape

The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.

Some of the major players operating in the global market include:

  • AccuLab Life Sciences
  • Caidya
  • Charles River Laboratories
  • CTI Clinical Trial & Consulting
  • IQVIA Inc.
  • KCR S.A.
  • Labcorp Drug Development
  • Lexitas
  • Medpace
  • Parexel International (MA) Corporation
  • Pharmaron
  • Syneos Health
  • TFS HealthScience
  • Thermo Fisher Scientific Inc.

Recent Developments

  • In October 2023, IQVIA and Argenx formed a strategic partnership to improve care for people with rare autoimmune disorders. The partnership will utilize innovative technology to deliver comprehensive pharmacovigilance (PV) safety services and solutions, ensuring novel approaches to treatment support.
  • In October 2023, LabCorp announced the acquisition of Baystate Health's outreach laboratory business as well as certain operational assets. Baystate Health operates laboratory service centers throughout Massachusetts, USA.
  • In January 2023, AlphaCRO, a well-known Contract Research Organization (CRO), announced a strategic partnership with BioPharm Innovations, an advanced technology firm that specializes in clinical trial management solutions.

Report Coverage

The Contract Research Organization (CROs) Services Market report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.

The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, service type, therapeutic area, end-use, and futuristic growth opportunities.

Contract Research Organization (CROs) Services Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 81.00 billion

Revenue forecast in 2032

USD 166.80 billion

CAGR

9.4% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Service Type, By Therapeutic Area, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization    

Report customization as per your requirements with respect to countries, region and segmentation

Quality Assured

We strive to offer our clients the finest in market research with the most reliable and accurate research findings. We use industry-standard methodologies to offer a comprehensive and authentic analysis of the Contract Research Organization (CROs) Services Market. Besides, we have stringent data-quality checks in place to enable data-driven decision-making for you.

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FAQ's

AccuLab Life Sciences, Caidya, Charles River Laboratories, CTI Clinical Trial & Consulting, IQVIA Inc., KCR S.A are the key companies in Contract Research Organization (CROs) Services Market.

Contract research organization (CROs) services market is CAGR of 9.4% during the forecast period

The Contract Research Organization (CROs) Services Market report covering key segments are service type, therapeutic area, end-use, and region.

Increasing technological advancements will facilitate the growth of the market. are the key driving factors in Contract Research Organization (CROs) Services Market

The Contract Research Organization (CROs) Services market size is expected to reach USD 166.80 Billion by 2032