The global Contract Research Organization (CRO) services market is projected to reach USD 74.3 billion by 2027 from USD 47.77 billion in 2020, at a CAGR of 9.5% during the forecast period. Healthcare contract research organization generally provides assistance to biotechnology, medical device and pharmaceutical companies in the form of research services outsourced on a contract basis. Different companies including Covance, Parexel and IQVIA among others are involved in CRO services. Currently, IQVIA is the largest CRO in the world that focus on digital health and artificial intelligence. Furthermore, over past few years, contract research organization market has started booming, due to shifting of CRO’s role towards secured services. Secured services include preclinical and clinical testing, discovery as well as regulatory approval that will enhance the overall business growth.
The history of contract research organization (CRO) market can be tracked back to 1940s and 50s with the foundation of enterprises such as Huntingdon Life Sciences and Charles River. In 1960s, progressing regulations for pharmaceutical products raised the need for drug companies to appropriately test drug compounds. Later in 1970s and 1980s, firms broadened into data management, clinical trials and logistics from traditional preclinical testing role. Later, when market started flourishing, the role of CRO again moved towards strategic and long-term role in the developmental process.
Pharmaceutical firms are gradually outsourcing research activities to private contract research organizations (CROs) and academic institutes that will eventually boost the industry demand. Pharma firms are adopting this strategy to remain flexible and competitive. The R&D activities that companies opt to outsource include extensive spectrum of tasks from basic research to late stage development. Such as assay development, target validation, lead optimization, genetic engineering, hit exploration, efficacy and safety tests in animal models as well as clinical trials concerning humans. Thus, above-mentioned aspects thereby, should accelerate the contract research organization market growth.
Therapeutic area segment is divided into neurology, clinical pharmacology, infectious disease, cardiology, oncology, ophthalmology, gastroenterology & hepatology and others. Cardiology segment accounted for around USD 1.2 billion in 2018 owing to increasing incidence of cardiovascular diseases. According to Heart Disease and Stroke Statistics 2017, maximum number of Americans suffered from cardiovascular diseases that will provide substantial segmental opportunities. Furthermore, several structures and initiatives undertaken by government will enhance contract research organization market expansion. For instance, European Cardiovascular Research Institute (ECRI) provides a definite structure that further conducts specific clinical trials for better patient supervision.
The prominent players in the global CRO services market are IQVIA (US), LabCorp (US), PAREXEL (US), PRA Health Sciences (US), PPD (US), ICON plc (Ireland), Syneos Health (US), Charles River (US), WuXi AppTech (China), SGS (Switzerland) and Medpace (US).
North America will continue to dominate the CRO services market during the forecast period Geographically, the global CRO services market has been segmented into five major regional segments—North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2019, North America accounted for the largest share of the CRO services market in 2019, followed by Europe and Asia Pacific. North America’s leading position in this market is primarily attributed to the high-quality standards in the pharmaceutical industry, rapid growth in its biosimilar and biologics market, and an increase in clinical trial activity.
The history of contract research organization (CRO) market can be tracked back to 1940s and 50s with the foundation of enterprises such as Huntingdon Life Sciences and Charles River. In 1960s, progressing regulations for pharmaceutical products raised the need for drug companies to appropriately test drug compounds. Later in 1970s and 1980s, firms broadened into data management, clinical trials and logistics from traditional preclinical testing role. Later, when market started flourishing, the role of CRO again moved towards strategic and long-term role in the developmental process.
Pharmaceutical firms are gradually outsourcing research activities to private contract research organizations (CROs) and academic institutes that will eventually boost the industry demand. Pharma firms are adopting this strategy to remain flexible and competitive. The R&D activities that companies opt to outsource include extensive spectrum of tasks from basic research to late stage development. Such as assay development, target validation, lead optimization, genetic engineering, hit exploration, efficacy and safety tests in animal models as well as clinical trials concerning humans. Thus, above-mentioned aspects thereby, should accelerate the contract research organization market growth.
Therapeutic area segment is divided into neurology, clinical pharmacology, infectious disease, cardiology, oncology, ophthalmology, gastroenterology & hepatology and others. Cardiology segment accounted for around USD 1.2 billion in 2018 owing to increasing incidence of cardiovascular diseases. According to Heart Disease and Stroke Statistics 2017, maximum number of Americans suffered from cardiovascular diseases that will provide substantial segmental opportunities. Furthermore, several structures and initiatives undertaken by government will enhance contract research organization market expansion. For instance, European Cardiovascular Research Institute (ECRI) provides a definite structure that further conducts specific clinical trials for better patient supervision.
The prominent players in the global CRO services market are IQVIA (US), LabCorp (US), PAREXEL (US), PRA Health Sciences (US), PPD (US), ICON plc (Ireland), Syneos Health (US), Charles River (US), WuXi AppTech (China), SGS (Switzerland) and Medpace (US).
North America will continue to dominate the CRO services market during the forecast period Geographically, the global CRO services market has been segmented into five major regional segments—North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2019, North America accounted for the largest share of the CRO services market in 2019, followed by Europe and Asia Pacific. North America’s leading position in this market is primarily attributed to the high-quality standards in the pharmaceutical industry, rapid growth in its biosimilar and biologics market, and an increase in clinical trial activity.
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