Contract Research Organization (CRO) Services Market Size, Share, Growth, Trends, Consumption, Revenue, Company Analysis, Regional Insights and Forecast 2021-2028

Published Date : Nov 2020 | No. of Pages : 200 Pages | Category : Healthcare

According to Vision Research Reports, the global contract research organization (CRO) services market size surpassed at US$ 51 Bn in 2020 and to reach US$ 96.7 billion by 2028 with a CAGR of 8% during the forecast period 2020 to 2028.

Contract research organizations are engaged in offering a range of research services on a contract basis to pharmaceutical, medical device, and biotechnology companies. The global contract research organization (CRO) services market is driven by increase in the penetration of CROs, globalization of clinical trials, rise in spending on research and development (R&D), and growth in the number of clinical trials being conducted worldwide. North America dominated the global contract research organization (CRO) services market in 2018 and the trend is anticipated to continue during the forecast period. Strong growth of the market in the region can be attributed to increase in the number of clinical trials and rise in the demand for biosimilars, owing to patent expiry, which fuels the demand for rapid conduction of trials and regulatory approvals. This prompts pharmaceutical manufacturers to approach CROs, thereby boosting the global contract research organization (CRO) services market.

Increase in Penetration of CROs

Demand for contract research organizations (CROs) has been increasing across all stages of research and development, from early stage development to late stage development and central laboratory services, over the last few years. This increase in the demand can be attributed to rise in patent expiry of major drugs, leading to growing focus of large biopharmaceutical companies on research and development. Moreover, increase in costs of research and development, rise in the demand for innovation in the research process, and the ability to achieve enhanced efficiencies by using scientific and therapeutic expertise of CROs have been contributing to rise in the penetration of CROs over the last few years. Adoption of CROs for clinical services increased to around 47% in 2018 from over 40% in 2015. The overall penetration of CROs, including preclinical and clinical services, reached over 40% in 2018 from 25% in 2015.

Rise in R&D Spending

Drug research and development costs are significantly high. These costs have been increasing consistently over the last few years. In 2017, the cost of manufacturing a new molecule entity (NME) was estimated to range between US$ 2 Bn and US$ 3.5 Bn. Furthermore, the total research and development spending is anticipated to increase at a rate of 2%–3% by 2020, primarily driven by significant unmet needs and significant technological advancements.

The surge in research and development costs has prompted various biopharmaceutical companies to outsource their research process to CROs, which ranges from target validation and lead optimization to animal testing and human clinical trials. R&D spending on oncology has been increasing significantly over the last few years, which has fueled the need for outsourcing of R&D activities. Consequently, a CRO called XenTech increased its production capacity for animal care products to over 50% along with rise in its collaborative research projects. This significant increase in R&D spending and rise in the demand for outsourcing of R&D activities fuel the global contract research organization (CRO) services market.  

Rise in Clinical Trials to Drive Global Market

Among services types, the clinical research services segment is likely to account for a major share of the global contract research organization (CRO) services market during the forecast period. The dental CRO segment is projected to expand at a rapid pace, due to significant rise in the number of clinical trials being conducted worldwide. Increase in the number of clinical trials is being driven by surge in the demand for innovative solutions in the healthcare industry, owing to technological advancements in the industry.

The phase III sub-segment dominated the clinical research services segment of the global contract research organization (CRO) services market in 2020. Growth of the sub-segment can be attributed to the large number of trials in medical oncology currently under testing in human subjects. Furthermore, phase III studies are highly cost intensive and they witness significant failure rate, which leads to increase in the outsourcing of clinical trials in this phase. 

Biopharmaceutical Companies to Lead Global Market

In terms of end user, the global CRO services market has been divided into medical device companies, biopharmaceutical companies, and others. The biopharmaceutical companies segment held the largest market share in 2020 and the trend is anticipated to continue during the forecast period. Growth of the segment can be attributed to surge in focus of biopharmaceutical companies on expansion, shifting from fixed costs to variable costs, and incorporation of technological advancements in the research process.

Prominent Regions

The global contract research organization (CRO) services market has been segmented into five major regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominated the global contract research organization (CRO) services market in 2020. Growth of the market in the region can be attributed to strong presence of market players in the region, high spending on research and development activities, and increase in the number of clinical trials being conducted. The contract research organization (CRO) services market in Asia Pacific is likely to expand at a high CAGR from 2019 to 2027. Growth of the market in the region can be attributed to increase in the focus by market players on untapped markets in the region.

Strategic Acquisitions by Key Players to Propel Global Market

The global contract research organization (CRO) services market is consolidated, in terms of number of players. Key players operating in the global contract research organization (CRO) services market are Laboratory Corporation of America Holdings, IQVIA Inc., Syneos Health, Inc., Parexel International Corporation, PRA Health Sciences, Inc., PPD, Inc., Charles River Laboratories, Inc., Icon plc, WuXi AppTec Group, and Medpace.

These players have adopted various strategies such as acquisitions and partnerships to expand their portfolio of services as well as geographical presence. In June 2019, LabCorp’s Covance drug development segment completed the acquisition of Envigo’s nonclinical contract research services business. This acquisition enabled the former to increase its global nonclinical drug development capabilities. As a part of this move, Envigo acquired Covance’s research models & services business, leading to establishment of an organization dedicated to offering a complete range of research models.

Market Segmentation

By Service Type

  • Early Phase Development
    • Discovery Services
    • Chemistry
    • Preclinical Services
      • Toxicology
      • Pharmacokinetics
      • Others
  • Clinical Research Services
    • Phase I
    • Phase II
    • Phase III
    • Phase IV
  • Laboratory Services
    • Bioanalytical Services
    • Analytical Services
    • Others
  • Consulting Services

By Therapeutic Indication

  • Oncology
  • Infectious Diseases
  • Immunological Disorders
  • Respiratory Diseases
  • Cardiovascular Diseases
  • Neurological Disorders
  • Others

By End User

  • Medical Device Companies
  • Biopharmaceutical Companies
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa

Report Scope

The Contract Research Organization (CRO) Services market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Contract Research Organization (CRO) Services market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Contract Research Organization (CRO) Services market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Contract Research Organization (CRO) Services market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Contract Research Organization (CRO) Services market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Contract Research Organization (CRO) Services capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Contract Research Organization (CRO) Services by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Contract Research Organization (CRO) Services market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Contract Research Organization (CRO) Services market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Contract Research Organization (CRO) Services market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Contract Research Organization (CRO) Services industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

Contract Research Organization (CRO) Services market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Contract Research Organization (CRO) Services market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Contract Research Organization (CRO) Services market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Contract Research Organization (CRO) Services market. These factors have benefited the growth of the global market for Contract Research Organization (CRO) Services. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Contract Research Organization (CRO) Services. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Contract Research Organization (CRO) Services are as follows:

  • History Year: 2017-2020
  • Base Year: 2020
  • Forecast Year 2021 to 2028

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2028);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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