The Contract Research Organization (CRO) Services Market is expected to witness high growth due to the heavy use of outsourcing services.

The Contract Research Organization (CRO) services market is expected to reach US$6 million by 2024 and is expected to show a CAGR of 10.2% during the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

The growth of the contract research organization (CRO) services market is driven by the increase in outsourcing services by pharmaceutical and biotechnology companies. CRO services help pharmaceutical companies reduce costs associated with drug development and clinical trials. Lack of internal resources and knowledge also drives the procurement of CRO services.

Key Market Trends:

Rising demand for clinical trials in emerging markets and increasing R&D expenditure by pharmaceutical companies are the major trends in the contract research organization (CRO) services market. Emerging economies such as India, China, Brazil and others offer cost-effective destinations for clinical trials. Furthermore, these countries provide large treatment-naïve patient pools which help in easier patient recruitment. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), R&D spending by biopharmaceutical companies increased from US$ 49.6 billion in 2012 to US$ 79.6 billion in 2019. Increased focus on R&D by pharma giants is anticipated to propel the market growth over the forecast period. More coverage can be found in the sample copy.

Clinical Trial Management Opportunities

Clinical trial management segment accounted for over 35% of global Contract Research Organization Services market share in 2024. This was due to increasing R&D investments by pharmaceutical and biotechnology companies for developing new drug molecules. CROs provide clinical trial management services such as patient recruitment and retention activities, clinical trial design, medical writing and regulatory services. They help sponsors in efficiently managing the entire clinical research process from protocol development to clinical study report generation. The clinical trial management market is expected to grow at a CAGR of 12% during the forecast period owing to rising complexity of clinical trials and focus on patient centric care.

Laboratory Services Opportunities

The laboratory services segment is anticipated to witness significant growth and reach a value of USD 8 Bn by 2031. CROs help pharmaceutical companies in conducting preclinical and clinical laboratory tests for drug development and validation. They offer services including bioanalytical testing, analytical method development and validation, clinical pathology and histology. Increasing outsourcing of laboratory services by sponsors has fuelled the growth of this segment. Moreover, advancements in technologies such as personalized medicine have further boosted demand for specialized laboratory testing services.

Key Market Takeaways

The global Contract Research Organization Services market size was valued at USD 23.55 Bn in 2024 and is anticipated to witness a CAGR of 10.2% during the forecast period 2024-2031. This can be attributed to growing R&D expenditure of pharmaceutical companies and rising clinical trial complexities.

Based on type, the clinical trial management segment is expected to hold over 35% market share owing to increasing focus on patient centric clinical trials. Laboratory services segment is poised to grow at a robust CAGR of 12.5% during the forecast period.

By therapeutic application, oncology was the largest segment in 2024 and is estimated to retain its dominance till 2031. This is due to high research focus on developing advanced cancer treatments.

Regionally, North America dominated the global CRO market with over 45% revenue share in 2024 due to presence of majority global pharmaceutical players. Europe and Asia Pacific are also expected to grow steadily during the forecast period.

Competitor Insights:

PAREXEL
WuxiPharmaTech
Syneos Health
PRA Health Sciences
IQVIA
Charles River

Recent Developments in Contract Research Organization (CRO) Services Market

In June 2023 Laboratory Corporation of America Holdings acquired Envigo RMS Holding Corp. to expand into non-clinical research services. This came after Labcorp’s purchase of clinical research organization MVP earlier in the year. Similarly, in July 2023, Wuxi AppTec completed the acquisition of Altasciences to strengthen its early phase capabilities in the US and Canada. Such deals allow CROs to deepen their expertise across critical development stages.

In July 2023, Medidata entered a strategic partnership with Anthropic to leverage AI and machine learning for clinical trial planning and patient enrollment. PRA Health Sciences too tied up with digital health company Akili to conduct mobile-based clinical assessments. Syneos health acquired math technology company Statcore to bolster its biostatistics capabilities. Such deals allow CROs to embed cutting-edge solutions into their service portfolios and meet evolving sponsor demands. Full coverage of the report available here.