Contract Research Organization Services Market Forecasts from 2023 to 2028

The global contract research organizations (CRO) services market was valued at US$76.6 billion in 2021.

The contract research organizations (CRO) services market is projected to grow strongly during the forecast period. Contract research organization services (CRO) encompass a range of offerings including clinical research services, laboratory services, and consulting services which are used by pharmaceutical, biotechnology, and medical device industries. The rising R&D activities and technological advancements are the prominent drivers boosting the contract research organization CRO services market size.

Increasing R&D activities bolsters the contract research organization services market growth.

Companies intensify their R&D efforts to innovate and bring new products to market, they increasingly rely on CROs to outsource specialized research services. This strategic partnership allows businesses to access a wide range of expertise, optimize resources, expedite development timelines, and ultimately foster innovation, thereby propelling the expansion of the CRO service market. According to the National Center for Science and Engineering Statistics, the United States witnessed a significant rise in research and development (R&D) investments, with a $51 billion increase in 2020, reaching a total of $717 billion. Projections for 2021 indicate further growth, with estimates suggesting a rise to $792 billion.

Growing clinical trials drives the contract research organization services market expansion.

Pharmaceutical, biotechnology, and medical device companies rely on CROs for their specialized expertise and regulatory knowledge to efficiently manage complex clinical trials as CROs offer comprehensive services, ranging from study design and patient recruitment to data management and regulatory compliance, thereby adding more to the overall market growth. According to the Australian Government Department of Health and Aged Care, the Clinical Trials Activity initiative has allocated $750 million of funding over 10 years, starting from 2022-23. This significant investment aims to support Australian researchers and patients in conducting comprehensive national and international clinical trials, thereby enabling the testing of innovative treatments.

Technological advancements drive the contract research organization services market growth.

Electronic data capture (EDC), electronic trial master files (eTMFs), and risk-based monitoring have revolutionized the way research processes are conducted. Contract research organizations (CROs) have emerged as leaders in embracing and harnessing these cutting-edge technologies, enabling them to provide their clients with unparalleled benefits. Additionally, the adoption of risk-based monitoring techniques empowers CROs to proactively identify and address potential risks in real-time, ensuring study quality and compliance. For instance, Tata Consultancy Services (TCS), in April 2022, launched a risk-based monitoring solution for clinical trials which empowers intelligent decision-making and streamlines operations, revolutionizing the clinical trial monitoring process with valuable insights.

Asia-Pacific is expected to be a market leader.

Asia-Pacific is predicted to dominate the market owing to its expanding pharmaceutical, biotechnology, and medical device industries which have presented a vast market for clinical research and development. Additionally, governments in countries like China and India have implemented supportive regulatory frameworks and incentives to encourage clinical research, further fuelling the demand for CRO services. According to the National Bureau of Statistics of China, in 2021, China's investment in social Research and Experimental Development (R&D) reached a remarkable 2.7864 trillion yuan, compared to the previous year representing a notable 14.2 % increase.

Regulatory challenges restrain the contract research organization services market growth.

The CRO industry operates within a highly regulated environment, governed by stringent guidelines from regulatory authorities like the FDA and EMA. These regulations impose rigorous compliance standards on CROs, necessitating extensive documentation, quality control measures, and adherence to ethical practices. Meeting these requirements can be a complex and resource-intensive process, leading to additional costs, time-consuming procedures, and potential delays in project timelines. The need for meticulous compliance adds a layer of complexity to CRO operations, impacting their efficiency and profitability.

Key Developments

• March 2023 ClinChoice Medical Development, a leading player in the medical research and development sector, announced the successful acquisition of CROMSOURCE a prominent ISO-certified full-service contract research organization. This strategic acquisition marks a significant milestone for ClinChoice, as it strengthens the company's capabilities, expands its service portfolio, and reinforces its position as a comprehensive and reliable partner for clients seeking top-notch contract research services.
• January 2023 RQM+, a renowned regulatory and quality consulting firm, expanded its services by introducing comprehensive clinical trial services. This strategic move is aimed at complementing its existing Clinical Research Organization (CRO) offerings and providing end-to-end support for the entire product lifecycle of medical devices, digital therapeutics, and diagnostics.
• July 2022 Inotiv, a leading non-clinical Contract Research Organization (CRO), revealed its acquisition of Protypia, a Tennessee-based company renowned for its expertise in protein bioanalysis and tissue-based protein and peptide mass spectrometry. The $11 million deal was for meeting the surging demand for bioanalytical services, especially in the discovery lab and other related fields. With this strategic acquisition, Inotiv aims to bolster its offerings and efficiently cater to the growing needs of its clients in the realm of bioanalytical research

Company Products

• Early Phase Clinical Trails PPD, a reputable contract research organization (CRO), is committed to delivering Early Phase Clinical Trials services. Their specialized team of global experts in early development and clinical pharmacology plays a vital role in conducting a comprehensive evaluation of the unique attributes of a compound. This evaluation aims to identify both the strengths and potential weaknesses that could impact the outcomes of ongoing and future trials

Segmentation

By Molecule Type

• Vaccines
• Cell Gene Therapy
• Others

By Type

• Early Phase Development Services
• Preclinical
• Toxicology Testing
• Discovery Studies
• Chemistry, Manufacturing, and Controls
• Pharmacokinetics /Pharmacodynamics
• Clinical Research Services
• Phase I
• Phase II
• Phase III
• Phase IV
• Phase V
• Laboratory Services
• Analytical Testing
• Bioanalytical Testing
• Physical Characterization
• Stability Testing, Batch Release Testing
• Raw Material Testing
• Other Analytical Testing
• Consulting Services

By Therapeutic Area

• Oncology
• Breast Cancer
• Lung Cancer
• Colorectal Cancer
• Prostate Cancer
• Others
• CNS Disorders
• Infectious Diseases
• Cardiovascular Diseases
• Respiratory Disorders
• Diabetes
• Other Therapeutic Areas

By End-User

• Pharmaceuticals and Biopharmaceuticals Companies
• Medical Devices Companies
• Academic Institutes

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Other