The global healthcare contract research organization (CRO) services market was valued at $38,996.9 million in 2018 and is expected to reach $66,036.6 million by 2026, registering a CAGR of 6.9% from 2019 to 2026. A CRO is an organization that is contracted by other companies to manage their trials, duties, and functions. A contract research organization (CRO) offers support to pharmaceutical and biotechnology industries in the form of outsourced pharmaceutical research services. It mainly provides services for biopharmaceutical development, biologic assay development, commercialization of new entity, preclinical research, clinical research, clinical trials management, and pharmacovigilance. These organizations can range from international full-service groups to small or niche service providing groups. In addition, CROs provide the experience of moving a novel drug, molecule, or a drug from its nascent phase to marketing approval, without any need for a sponsor for these services.
The major factors that drive the growth of healthcare CRO services market include surge in R&D for the development of novel drugs and medical devices and rise in healthcare expenditure. Moreover, CROs help in saving time and extra cost of manufacturers as it reduces the time taken to conduct a trial in a private lab compared to the time taken for doing the trial in-house, and that leads to significant cost savings. In addition, a persistent need has been witnessed for developments in oncology, stem cell research, cancer research, drug discovery, and to study different small molecules and their mechanisms, such as protein mechanism for therapeutic use. Small- and medium-sized pharmaceutical and biotechnology companies are constantly focusing toward conducting clinical trials for their products. Thereby, increased research pertaining to the development of novel medications to treat cancer, cardiac disorders and other chronic disorders further fuel the healthcare CRO services market growth. However, penetrating competition in the market and dearth of skilled professionals are the major factors anticipated to hamper the Healthcare CRO Services Market growth. For instance, according to the Labor Statistics analyzed by the U.S. Department of Labor’s Bureau, inadequacy of lab technicians has been witnessed in 2019. The requirement for lab technicians is expected to grow at an alarming rate by 2026, which is further expected to negatively impact the growth of the market. For instance, Canada is currently facing a nation-wide shortage of medical laboratory technologists. Moreover, rise in the biotech and pharmaceutical sector in developing economies is expected to create lucrative opportunities for healthcare CRO services market in the future.
Global Healthcare CRO Services Market Segmentation
The market is segmented on the basis of service type, therapeutic area, end-users, and region. By service type, it is categorized into early phase development, clinical development services, laboratory services, and consulting services. By therapeutic area, it is segmented into oncology, CNS disorder, cardiovascular disease, metabolic disease, infectious disease, diabetes, and others. By end-users it is segmented into pharmaceutical & biopharmaceutical companies, medical device companies, and academic institutes. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Service Type
Clinical Research Services segment is projected as one of the most lucrative segments.
Service Type segment review
By service type, the clinical development services segment accounted for 43% of the share in 2018 and is expected to exhibit a prominent growth rate in the future, owing to its increased demand for clinical trials for the development of novel drugs and innovative medical devices. This segment is anticipated to grow at the fastest growth rate of 7.3% during the forecast period.
By Therapeutic Area
Oncology is projected as one of the most lucrative segments.
End User segment review
By therapeutic area, the oncology segment dominated the CRO services market in 2018, and is anticipated to maintain its dominance during the forecast period. This is attributed to the significant increase in cancer incidences across the globe and thus, rise in ongoing research toward the development of novel drugs for its treatment.
North America accounted for the majority of the Healthcare CRO Services Market share in 2018 and is anticipated to continue this trend during the forecast period. This is attributed to the increased focus of leading companies in the field of biotech and pharmaceutical research. In addition, presence of leading companies and healthcare CRO service providers contributes to the market growth. Companies are constantly focused toward conducting research for development of new pharmaceutical products to treat various diseases, thereby contributing to the market growth of healthcare CRO services. However, Asia-Pacific is anticipated to grow at the fastest rate during the forecast period, owing to the rise in focus toward conducting R&D and developing novel products. Asia-Pacific is considered one of the fastest growing regions in the biotechnology & pharmaceutical market due to increased technological innovations and funding provided by governments and private organizations.
Comprehensive competitive analysis and profiles of major healthcare contract research organization (CRO) services market players such as IQVIA, PRA Health Sciences, ICON, Syneos, Evotec, Charles River, Medpace, Syngene, Biotelemetry, and Labcorp are provided in this report.
Asia-Pacific region would exhibit the highest CAGR of 7.4% during 2019-2026.
Key Benefits for Stakeholders:
- The healthcare CRO services market share and analysis is based on a comprehensive analysis of key developments in the healthcare CRO services industry.
- The development strategies adopted by the key market players are enlisted to understand the competitive scenario of the global market.
- The study provides an in-depth analysis of the market trends to elucidate the imminent investment pockets.
- The global healthcare CRO services market trends are studied from 2018 to 2026.
- Information about key drivers, restrains, and opportunities and their impact analysis on the healthcare contract research organization (CRO) services market size is provided.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the healthcare contract research organization (CRO) services market.
- The quantitative analysis of the global healthcare CRO services market from 2019 to 2026 is provided to determine the market potential.
Healthcare CRO Services Market Report Highlights
By Service Type
By Therapeutic Area
By End User
Key Market Players
Evotec SE, Medpace, Inc., ICON., IQVIA, CHARLES RIVER LABORATORIES Inc., Laboratory Corporation of America Holdings, Syneos Health, BioTelemetry Inc., Syngene International Limited, PRA Health Science
Contract research organization is a company that helps to conduct research for a sponsor company. These research services can range from early phase development of novel products to post marketing research activities. A contract research organization (CRO) can work with various sponsors simultaneously but have to follow ICH GCP (International Conference on Harmonization and good clinical practice) guideline.
The CRO services market is anticipated to witness steady growth in the future, owing to rise in chronic diseases, surge in medical expenditure, and increase in research & development in the field of biotech and pharmaceuticals. Moreover, increased adoption of outsourcing R&D activities and significant surge in number of clinical trials performed to develop innovative medical devices and medicines for treatment & diagnosis of various diseases contributes to the market growth. However, strong competition in the market and dearth of skilled professionals to perform clinical trials is anticipated to hamper the market growth in near future. On the contrary, rise in focus of developing economies in the field of biotechnology and pharmaceutical research is expected to create lucrative opportunities for CRO services in the future.