According to a new report published by Allied Market Research, titled, "Healthcare CRO Services Market by Service Type, Therapeutic Area, and End User: Global Opportunity Analysis and Industry Forecast, 2018–2026,” the global healthcare CRO services market size is expected to reach $66,036.80 million by 2026, registering a CAGR of 6.9% from 2019 to 2026, in terms of value.
CRO is an organization or a group that provides services including clinical trials and early phase development of drugs or a medical device other organizations or companies on a contract basis. These organizations provide support to the pharmaceutical and biotechnology industries in the form of outsourced pharmaceutical research services. These organizations or companies contract CROs for conducting clinical trials to explicit the need of hiring permanent staff. Further, contracting with CROS effectively reduces the time it takes to conduct a trial in-house leading to significant cost savings. Several companies prefer such organizations to conduct research on behalf of them for cost savings.
Significant increase in R&D for the development of drugs & medical devices and increase in private biotechnology organizations are the major factors driving the growth of healthcare CRO services market. Moreover, surge in healthcare expenditure and rise in government initiatives toward promoting R&D in the field of biotechnology propels 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 growth of healthcare CRO services market. Moreover, rise in the biotech and pharmaceutical sector in developing economies is expected to create lucrative opportunities in the future.
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, the clinical development services segment accounted for 43% of the total share in 2018 and is expected to exhibit a prominent growth rate in the near 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, the oncology segment dominated the healthcare 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.
Key Findings of the Study:
- By service type, the clinical research services segment accounted for the highest healthcare CRO services market share of 40% in 2018 and is anticipated to grow at the fastest rate during the forecast period.
- By region, North America was the major shareholder and accounted for the highest share of 48% in 2018.
- By therapeutic area, the oncology segment is expected to grow at a CAGR of 7.3% during the forecast period.
- By end user, the pharmaceutical companies segment dominated the market in 2018 and is anticipated to maintain its dominance during the forecast period.
Comprehensive competitive analysis and profiles of major healthcare CRO services market players such as IQVIA, PRA, ICON, Syneos, Evotec, Charles River, Medpace, Syngene, Biotelemetry, and Labcorp are provided in this report.