Contract Research Organization Services Market

The contract research organization (CRO) services market is projected to reach USD 129.8 billion by 2029 from an estimated USD 82.0 billion in 2024, at a CAGR of 9.6% during the forecast period.

Clinical research efforts have been progressively outsourced to CROs during the past few years. Factors including cost effectiveness, access to technologically advanced infrastructure and regulatory know-how provided by Contract research organisations help market players predict a continuous increase in outsourcing. Moreover, a rising therapeutic pipeline and a changing scene of drug research help to explain market expansion. For businesses in the Contract Research Organisation (CRO) Services industry, the more emphasis on research and development creates opportunities.

Contract Research Organization Services Market Size, Dynamics & Ecosystem

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Contract Research Organization (CRO) Services Market Dynamics

MARKET DRIVER: Increasing number of drugs in pipeline

For the past eight to ten years, the potency of the pipeline has been expanding continuously due to the desire for novel therapies for many indications. Drug candidates under clinical development grew in numbers on the pipeline. For instance, within ten years the research and development pipeline doubled from 10,479 pharmaceuticals in 2013 to 21,292 in 2023. As a result, during the past few years, the percentage of outsourcing of drug development activities has also been rising. With an eye towards using the skills of CROs—including necessary infrastructure, therapeutic expertise, and regulatory experience—the sponsors—including academic institutions and biotechnology and pharmaceutical companies—outsource drug development activities. Consequently, the expansion of the CRO services market results from the increase in the R&D pipeline.

OPPORTUNITY: Growing focus on precision/ personalized medicine

As the benefits offered by personalized medicines have been recognized, the research and development initiatives in the area of precision/ personalized medicine have been growing largely. There has been a consistent growth in the number of products approved as personalized medicines by the US FDA. For instance, the US FDA has approved more than 50 drugs as personalized medicines between 2020 and 2022 which was merely 11 drugs in 2019. Additionally, CROs have also started offering special services for precision/ personalized medicines as well. This is attracting pharmaceutical and Biotech compenies to outsource these trials from CROs as well. Some instances of companies offering associated services include Labcorp, IQVIA, among others.

CHALLENGE: Patient recruitment and retention

Patient recruitment is the process of enrolling individuals for various phases of a clinical research. It is rather important for the result of the clinical investigation. Any clinical study's effectiveness depends critically on efficient patient recruitment and retention all through the trial. From the whole medication development process, patient recruiting has always presented a difficulty. This is mostly the result of various factors, including ignorance, complexity in the inclusion/exclusion criteria, and some longer-lasting trials that provide difficulties for retention. Furthermore another element causing difficulties in patient recruitment is a lack of knowledge about the viewpoint of patients. Decentralised clinical trials (DCT), however, are supposed to reduce the influence of this problem. Since they give time and place liberty to the subjects of the clinical studies, decentralised trials help to effectively recruit patients. Therefore, using DCT more often could help to lessen the consequences of this difficulty in the next years.

Leading organisations in the industry have been running for several years with diversified service portfolios, modern technologies, and powerful worldwide sales and marketing systems. Among the well-known companies in the CRO Services market are IQVIA Inc. (US), Thermo Fisher Scientific Inc. (US), Iicon Plc (Ireland), WuXi AppTec (China), Syneos Health (US), Charles River Laboratories (US), Fortrea, Inc. (US), Pharmaron (China), Eurofins Scientific (Luxembourg) and Medpace (US).

Contract Research Organization Services Market Segmentation & Geographical Spread

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The clinical research services accounted for the largest share of the type segment in overall Contract Research Organization (CRO) Services in 2023.

On the basis of type, the CRO Services market is segmented into Clinical Research Services, Early Phase Development Services, Laboratory Services, Consulting Services and Data Management Services. In 2023, the clinical research services segment accounted for the largest share of the CRO Services market owing to a major factor including growing number of clinical trials from phase 1 to 4 and an increase in the outsourcing of clinical research and development activities among others.

The oncology subsegment of the therapeutic area segment dominated the overall CRO Services market in 2023.

Based on Therapeutic areas, the CRO Services market is segmented into Oncology, Infectious Diseases, CVS Disorders, Neurology, Vaccines, Metabolic Disorders/Endocrinology, Immunological Disorders, Psychiatric, Respiratory Disorders, Dermatology, Ophthalmology, Gastrointestinal diseases, Genitourinary and Women's health, Haematology, and other therapy areas. Owing to factors including the steadily rising number of clinical trials against oncology indications, growing research and development funding channeled for oncology drug development initiatives, and an increasing frequency of various types of cancers in the upcoming years, oncology accounted for the biggest market share.

North America was the largest market for the overall CRO Services market in 2023 and also during the forecast period.

Geographically, the CRO Services market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa. The CRO Services market was dominated by North America in 2023, and this dominance is anticipated to continue throughout the forecast period between 2024 and 2029. The market for CRO Services is expanding in the region as a result of factors like growing size of the pharmaceutical industry in the region, and large funds dedicated to pharma R&D, among others.

Key Market Players

The prominent players in the CRO Services market are IQVIA Inc. (US), Laboratory Corporation of America Holdings (US), Thermo Fisher Scientific Inc. (US), ICON Plc (Ireland), WuXi AppTec (China), Syneos Health (US), Charles River Laboratories (US), Fortrea, Inc. (US), Pharmaron (China), Eurofins Scientific (Luxembourg) and Medpace (US)  among others.

Scope of the Contract Research Organization Services Industry

This report categorizes the Contract Research Organization Services Market to forecast revenue and analyze trends in each of the following submarkets:

By Type

• Clinical Research Services
  • By Phase
    • Phase III
    • Phase II
    • Phase I
    • Phase IV
  • By Study Design (For Phase III & IV)
    • Interventional
    • Real World Evidence (RWE)
• Early phase development Services
  • Chemistry, Manufacturing and Controls Services
  • Preclinical Services
    • Pharmacokinetics/ Pharmacodynamics Services
    • Toxicology Testing Services
    • Other Preclinical Services
  • Discovery Studies
• Laboratory Services
  • Analytical Testing Services
    • Physical Characterization Services
    • Raw Material Testing Services
    • Batch Release Testing Services
    • Stability Testing Services
    • Other Analytical Testing Services
  • Bioanalytical Testing Services
• Consulting Services
• Data Management Services

By Therapeutic Area

• Oncology
• Breast Cancer
• Lung Cancer
• Colorectal Cancer
• Prostate Cancer
• Other Cancer
• Infectious Diseases
• CVS Disorders
• Neurology
• Vaccines
• Metabolic Disorders/Endocrinology
• Immunological Disorders
• Psychiatry
• Respiratory Disorders
• Dermatology
• Ophthalmology
• Gastrointestinal Diseases
• Genitourinary & Women’s Health
• Hematology
• Other Therapeutic Areas

By End User

• Pharmaceutical & Biopharmaceutical Companies
• Medical Device Companies
• Academic Institutes

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia Pacific (APAC)
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • New Zealand
  • Rest of Asia Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • Middle East
  • Africa

Recent Developments

• In October 2023, IQVIA Inc. (US) and argenx (US) entered a strategic collaboration to support treatment for patients suffering from rare autoimmune disorders through innovative and comprehensive technology-enabled pharmacovigilance (PV) safety services and solutions.
• In October 2023, LabCorp announced the acquisition of the outreach laboratory business and selected operating assets of Baystate Health, comprising laboratory service centres operated by Baystate Health throughout Massachusetts, US.

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