Contract Clinical Research Organization Market Witness Significant Growth Owing To Rising R&D Expenditure in Pharmaceutical and Biotechnology Industries

  • Ronak Shah
  • U.S.A
  • January 14, 2025

The Contract Clinical Research Organization Market is estimated to be valued at USD 80.10 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights’ The growth of the Contract Clinical Research Organization Market is driven by increasing R&D expenditure in pharmaceutical and biotechnology industries as well as rising demand for outsourcing of clinical trials.

Pharmaceutical companies are focusing on improving R&D pipelines and introducing new drug molecules to treat complex diseases such as cancer and diabetes. For instance, according to the Pharmaceutical Research and Manufacturers of America, R&D expenditure of pharmaceutical companies increased from US$ 71.4 billion in 2012 to US$ 79.6 billion in 2016. Furthermore, growth of biologics and biosimilars has also increased clinical trial activities globally. Companies are collaborating with CROs to reduce costs and improve operational efficiencies in clinical trials.

Key Market Trends: Rise in clinical trials for rare diseases: Rare diseases affect a small percentage of the population. However, clinical research for these diseases is on the rise globally. For example, in the U.S., the National Institutes of Health awarded more than US$ 105 million for rare disease projects between 2015 and 2017. Increased funding and government support are encouraging biopharmaceutical companies to focus on rare diseases as well.

Growing demand for outsourcing of clinical trials in emerging economies: Emerging economies such as India, China, Brazil, and Russia are offering low-cost opportunities for conducting clinical trials. Countries such as India offer nearly 60% lower costs for clinical trials as compared to developed nations. This is attracting global pharmaceutical companies to invest in these regions. In addition, the presence of a large patient pool and qualified medical workforce in these countries is further propelling the clinical trials market.

Contract Clinical Research Organization Market Opportunity: By Service Type-The clinical research service segment dominated the market in 2019 and accounted for more than 35% of global revenue. This is because clinical research organizations offer a wide range of clinical trial related services including protocol design, patient recruitment, safety monitoring, drug regulatory consultations, and clinical project management. The rising complexities in clinical trials have further increased the demand for specialized clinical research outsourcing services.

By Application Segment – The oncology therapeutic area segment accounted for the largest share of the contract clinical research organization market in 2019. This is due to the increasing cancer prevalence worldwide and rising investment in oncology drug development. Furthermore, oncology drug development requires large patient pools and experienced clinical research teams which drives increased outsourcing to CROs by biotech and pharmaceutical companies.

Key Market Takeaways The global contract clinical research organization market is anticipated to witness a CAGR of 9.3% during the forecast period 2024-2031, owing to growing outsourcing of clinical trials by pharmaceutical companies and rising focus on specialty areas. On the basis of service type, the clinical research service segment is expected to hold a dominant position, owing to the wide range of clinical trial related services offered. Based on therapeutic area, the oncology segment is projected to be the largest during the forecast period due to increased focus on immuno-oncology drug development.

On the basis of region, North America is expected to hold a dominant position over the forecast period, due to presence of majority global pharmaceutical companies and biotech startups in the US.

Competitor Insights: Some of the key players operating in the contract clinical research organization market include IQVIA., KCR, PPD, Parexel International, ICON plc, Laboratory Corporation of America Holdings, Syneos Health, PRA Health Sciences, Medpace Holdings, Inc.

Recent Developments: In July, mid-sized CRO Medpace partnered with Translational Software to provide accelerated development and regulatory submission capabilities using real-world data (RWD). Through the partnership, Medpace clients gain access to Translational’s RWE platform to support indication expansion, post-approval safety commitments and other late-phase studies. Industry experts note an increasing demand among biopharma clients for CROs to manage the complexity of clinical trials end-to-end rather than as piecemeal services. More information in full report.

Summary

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