Contract Research Organization (CRO) Market Size By Service (Early Phase Development Services {Discovery Services, Chemistry, Manufacturing & Control (CMC), Pre-clinical Services [Pharmacokinetics/Pharmacodynamics (PK/PD), Toxicology Testing Services]}, C

Contract Research Organization (CRO) Market Size By Service (Early Phase Development Services {Discovery Services, Chemistry, Manufacturing & Control (CMC), Pre-clinical Services [Pharmacokinetics/Pharmacodynamics (PK/PD), Toxicology Testing Services]}, Clinical Research Services {Phase I, Phase II, Phase III, Phase IV}, Laboratory Services {Bioanalytical Testing Services, Analytical Testing Services [Physical Characterization, Raw Material Testing, Batch Release Testing, Stability Testing]}, Regulatory Consulting Services), By Therapeutic Area (Oncology, Clinical Pharmacology, Cardiology, Infectious Disease, Neurology, Gastroenterology & Hepatology, Ophthalmology), By End-use (Pharmaceutical & Biopharmaceutical Companies, Medical Device Companies, Academic Institutes), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032

The global contract research organization market is expected to amass sizable growth through 2032, fueled by the increasing number of technological advancements in the industry and rising investments towards drug discovery and development.

Many pharmaceutical firms are making significant inroads towards novel drug development and discovery to treat numerous chronic diseases, augmenting CRO industry growth. The rising number of clinical studies resulting from these efforts are creating new growth opportunities for the market, which is currently in the midst of consolidating its infrastructure through technological advancements.

Significant R&D investments are being made by pharmaceutical firms, and world governments, to make their respective healthcare infrastructures pandemic proof. These investments are also finding their way to the CRO market.

To capitalize on the oncoming growth, several industry players are also focusing on mergers and acquisitions in the field. For instance, in April 2021, IQVIA, an American multinational pharmaceutical company, acquired Q2 Solutions, a major clinical lab service provider, to diversify its service offerings and increase income in growing regions.

The contract research organization market has been divided in terms of service, therapeutic area, end-use, and region.

Based on service, the regulatory consulting services segment is slated to record strong growth, fueled by increasing reliance of organizations on regulatory consulting service providers. Regulatory consulting services help companies refine their respective regulatory strategies, resolve regulatory problems, and ensure timely submission of regulatory documentation.

In addition, they also help firms obtain their regulatory objectives while also reducing the cost of regulatory errors. Since enterprises in the field heavily depend on regulatory consulting services to keep their operations compliant and attain product approval successfully, the segment receives a continuous revenue stream that helps it grow.

In terms of end-use, the pharmaceutical & biopharmaceutical companies segment held a revenue share of $31.5 billion in 2022. Moving ahead, the segment is projected to make large contributions towards market growth due to the high R&D investment that are being made towards novel drugs as well as therapies. Meanwhile, increasing government support and rising demand for CRO services, that perform numerous pharmaceutical research as well as clinical trials throughout the complex drug discovery process, are also slated to boost the segment size.

With respect to therapeutic area, the neurology segment is speculated to grow at more than 6.5% CAGR from 2023 to 2032. Increase number of clinical studies geared towards evaluating the treatment of severe brain and nervous system disorders is likely to foster market growth. Many manufacturers in the field are also expediting the development of numerous medical devices and drugs that can be used to treat neurological diseases, further creating high demand for CRO services.

From the regional perspective, the Asia Pacific contract research organization market is projected to witness substantial gains owing to the increasing geriatric population in the region, which is fueling the cases of chronic illnesses like cancer, diabetes, as well as heart disease. Surging demand from various pharmaceutical and medical device sectors of emerging APAC economies such as India and China are also outlining the regional scenario.