Global Contract Research Organization Market - Market Size & Forecast To 2032

Global Contract Research Organization Market - Market Size & Forecast To 2032

Global Contract Research Organization Market is estimated to be worth of USD 62.61 Billion in 2023 and isgrowing at a CAGR of 6.30% during the forecast period from 2023 to 2032. The Contract Research OrganizationMarket research report discusses the importance of the segments as well as the regional markets. An accurateoverview for different segments and regions has been prepared on the basis of the market size as well as thegrowth rate (CAGR). The market research offers a growth map of the global Contract Research Organization Marketto help clients design the required strategies to meet their business goals.

CRO stands for Contract Research Organization and generally provides clinical management services topharmaceutical, biotechnology and medical device manufacturers. Clinical trial management is complicated bymany factors, including sponsors, manufacturers, ethics committees, regulators, foundations, researchers, centersand legal departments. Furthermore, it is important to work according to good clinical practice guidelines andharmonized guidelines to ensure unaffected study quality.

CRO revenue sources are typically derived from the research and development budgets of pharmaceutical,biotechnology and medical device companies, governments, and other medical research organizations. Similarly,future revenue growth for CROs can be attributed to growth in overall R&D spending and pharmaceutical R&Doutsourcing. The growing need for time-efficient and cost-effective drug development with a high degree oftherapeutic expertise drives the demand for CRO services. Outsourcing R&D functions often provides an opportunityto leverage the power, scale and expertise of a CRO to optimize internal cost structures. Therefore, increasedmarket penetration of outsourced products is expected during clinical development and post-approval stages.

Certain nascent capabilities such as security assessments and regulatory services are also boosting the trend ofoutsourcing, thus boosting the growth of the market. These organizations collaborate with other companies todevelop innovative products that aid testing services.

In addition, the global burden of chronic disease is increasing rapidly. For example, chronic diseases account forabout 60% of the 56.5 million recorded deaths worldwide and 46% of the global burden of disease, according to theFood and Agriculture Organization of the United Nations. Based on June 2020, BMC Public Health article, WHOestimates that by 2020, non-communicable diseases (NCDs) will account for 80% of the global disease burden.

Cardiovascular disease accounts for more than half of deaths from chronic diseases, but obesity and diabetes areon the rise due to their prevalence and early onset.However, chronic disease is a problem that affects people all over the world, not just in developed countries.

Contrary to popular belief, emerging economies are increasingly facing chronic disease-related public healthproblems. Chronic diseases account for the majority of deaths in five of his six WHO regions, according to WHO.

Infectious diseases such as HIV/AIDS, tuberculosis, malaria and other related diseases remain prevalent in sub-Saharan Africa and are expected to continue to do so.Some key players of the market are IQVIA Inc. (US), Laboratory Corporation of America Holdings (US), Charles RiverLaboratories International, Inc. (US), WuXi App Tec Co., Ltd. (China), Syneos Health Inc. (US), Parexel InternationalCorporation (US), PPD, Inc. (a part of Thermo Fisher Scientific, Inc.), Pharmaron Beijing Co., Ltd. (China), ClinipaceInc. (US), ICON plc (Ireland), Medpace Holdings Inc (US), SGS SA (Switzerland), Frontage Holdings Corporation (US),PSI CRO AG (Switzerland), BioAgile Therapeutics Pvt. Ltd. (India), Firma Clinical Research, LLC (US), AccuLab LifeSciences (US), Novotech Health Holdings (Australia), Geneticist Inc. (US), Linical Americas (US), Celerion (US), AzelixLLC (US), Clinical Trial Service BV (Netherlands), Pepgra Healthcare Pvt Ltd. (UK), Axcent Advanced Analytics, Inc.(US), and Dove Quality Solutions limited (UK) and others.The Contract Research Organization Market report has been segmented By End User, Therapeutic Area and region.

Based on Therapeutic Area, the market is segregated into Oncology, Infectious Diseases, Central Nervous System(CNS) Disorders, Immunological Disorders, Cardiovascular Diseases, Respiratory Disorders, Diabetes, and OtherTherapeutic AreasOncology has the highest market share due to advances in research and technology and a focus on addressingbroader global disease threats such as oncology. Strict regulatory protocols and burdensome penalties fornoncompliance have also increased the length, cost, and complexity of clinical trials. Oncology is observed to be themost active and fastest growing therapeutic area for CROs and is currently the most important focus in clinicaldevelopment.

However, due to ongoing updates and optimizations, the market for Oncology is anticipated to hold a significantshare in the market throughout the projected period.

On the basis of end user, the market is bifurcated into Pharmaceutical & Biopharmaceutical Companies, MedicalDevice Companies, and Academic Institutes.

Pharmaceutical and biotech companies have captured the highest market share with pharmaceutical sponsorsincreasing investment in R&D and outsourcing R&D to independent service providers. According to Credit Suisse,only 41% of clinical development was outsourced in 2016. As these pharma CRO partners seek more efficientsolutions, reimbursement burdens and the regulatory environment increase development costs and complexity,which are expected to increase to 50% by 2020.

Also, the Medical device CROs are also growing rapidly. Management of medical technology and new healthcaredevelopments by CRO service providers is increasing the CRO market share of medical devices.

Based on region, the Contract Research Organization Market has been segmented into North America, Europe, AsiaPacific, Middle East & Africa, and South America. In 2022, the North America accounted for the significant sharexx.xx% in the global Contract Research Organization Market. This region was valued at USD xx.xx million in 2022,and it is projected to grow at a CAGR of xx.xx% during the forecast period, reaching USD xx.xx million by 2032.

North America dominance in the market mainly includes the region's key pharmaceutical companies and theirextensive activities in drug development, as well as excellent healthcare infrastructure. Pharmaceutical companiesare actively outsourcing clinical trials for the treatment of various disease states. These organizations are alsoinvesting more in research and development activities.