The global clinical trials market size was valued at USD 48.68 billion in 2022 and is predicted to hit USD 83.55 bn by 2032 with a registered CAGR of 5.6% during the forecast period 2023 to 2032. U.S. clinical trials market was valued at USD 24.61 billion in 2022.
Key market Insights:
Clinical trials are a process of clinical research that is governed by a defined protocol which is carefully established to answer a precise patient care query. Clinical trials can be divided into five phases, with every phase playing a distinct purpose within the clinical trial. Every trial adheres to a procedure that designates what types of individuals may participate in the study.
The trials also outline exact plan of procedures, tests, medications, and doses within the trial apart from specifying the span of the study. In recent years, the costs associated with drug development have increased significantly, driving pharma and biotech companies to look for modernizations and smarter ways of conducting business.
One important trend is the outsourcing of clinical research activities by manufacturers. By subcontracting their R&D activities, pharma and biotech companies are reforming the drug development facilities business. The R&D service providers have risen from just a few establishments providing restricted clinical trial facilities to big conglomerates offering a extensive range of facilities like study design, preclinical evaluations, clinical trial management and planning, autonomous safety data audit, bio-statistical analysis and several more. CROs (Contract Research Organizations) started off by providing preclinical & clinical trial services, however they are now venturing into project administration.
Crucial factors accountable for market growth are:
| Report Highlights | Details |
| Market Size | USD 83.55 Billion by 2032 |
| Growth Rate | CAGR of 5.6% from 2023 to 2032 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Phase, Study Design, Indication |
| Companies Mentioned | Parexel, IQVIA, Charles River Laboratory, Omnicare, Kendle, Chiltern, and Pharmaceutical Product Development, LLC. |
ADOPTION OF NEW TECHNOLOGY IN CLINICAL RESEARCH
Digitization in biomedical research is also paving the way for the market growth. Digitization also helps in meeting stringent regulations by maintaining patient data records that reduces trial process errors through adoption of software such as electronic clinical outcome assessment (e-COA). Digitization helps in streamlining the clinical trial process thereby probing sponsors to invest more in the clinical trial process as chances of successful clinical trials are more through the adoption of newer technologies.
SHIFT TOWARDS PERSONALIZED MEDICINE
The paradigm shift towards personalized medicine is expected to have a positive impact on the clinical trial market. The classic clinical trial process is carried out on thousands of people while personalized medicine will focus only on the effect of drugs on individual patients for a specific period. Very few medicines in the development phase pass all phases of a clinical trial due to the traditional clinical trial approach. The mentality of “one size will fit all” is acting as a barrier for drugs that are currently in pipeline but would never see the day. The use of pharmacogenetics in the clinical trial process is expected to increase the number of drugs passing all phases of the clinical trial process. The shift towards personalized medicine is expected to increase the use of pharmacogenetics in the clinical trial phase thereby increasing the pipeline of drugs. This trend is expected to instigate biopharmaceutical companies to invest more in the clinical trial phase.
GROWING DISEASE VARIATION AND PREVALENCE
Growing prevalence of disease and incidence of new disease is expected to give further boost to the clinical trial market. Worldwide population has varied disease profile with emerging countries having the most diverse disease profile. This is expected to boost the clinical trial of new or rare disease which otherwise would not have found any sponsors. More number of patients having a specific disease would act as a stimulus for biopharmaceutical companies to invest more in clinical trials for a disease segment. Diverse population would also mean easy recruitment of patients and faster clinical trial process. Rare diseases are given a status of “Orphan disease” in U.S and biopharmaceutical companies who sponsor clinical trials for Orphan drugs would get incentives for the process. This trend is likely to have a positive impact on clinical trials for rare disease thereby increasing the global clinical trials market.
INCREASING COLLABORATION IN BIOMEDICAL RESEARCH
The trend of combination trials and collaborations in clinical trial is expected to rise which would further boost the global clinical trials market. Due to high drug development cost biopharmaceutical companies are now forming an alliance with each other to increase the resources and share the risk of high cost. Immuno-oncology collaborations in 2015 is a prime example of increase collaboration to combat risk associated with clinical trials. Recent example of immuno-oncology collaboration is of MSD and Lily for clinical trial phase for treatment of advanced soft tissue sarcoma.
The race to launch the molecule in the market in a feasible timeline and cost will propel the need for CROs service provides. The pharmaceutical companies, along with the increased research cost, also witness global regulation complexity. All of these variables create a need for expertise in different portfolios, driving the need for outsourcing the market. Drug companies are not only outsourcing the production of medicines but also clinical trials. With the increasing clinical trial privatization, there is a surge in outsourcing to developing countries such as India, China, and Latin America.
Phase 3 Segment Reported Foremost Market Stake in 2022
Phase 3 segment recorded the major market stake in the worldwide clinical trials market in 2022 and has garnered revenue share 54.6%. Implementation on a large scale is the major reason for high market share of phase 3. Other factors such as high cost and increasing trend of outsourcing are expected to boost the demand over the estimate period.
The Phase 2 clinical trials are anticipated to advance at the maximum CAGR through the forecast period. The Phase II segment held market share for 19.5% in 2021.
Interventional Study is Projected to Dominate the Study Design Segment of Clinical Trials Market Revenue
The requirement of clinical trials in developing diagnostic tests and vaccines for viral diseases such as the SARS CoV-2 has augmented the demand for clinical trials exponentially. Thus, high incidence of novel viral diseases and ongoing technological improvements in clinical trials are major reason for the high revenue share of interventional study. Interventional study segment is expected to grow at a CAGR of 5.4% from 2022 to 2030. The interventional design segment accounted largest market share 46% in 2022.
Oncology is Projected to Dominate the Indication Segment of Clinical Trials Market Revenue
Constant research on cancer treatment and increasing demand for precision medicine are the major reasons responsible for high market share of oncology. The oncology segment is expected to witness growth at a CAGR of 6.4% over the forecast period 2022 to 2030.
North America is Estimated to be the Largest Market for Clinical Trials
The research study covers key prospects and trends of clinical trials products throughout different regions including Europe, North America, Asia-Pacific, Middle East and Africa, and Latin America. Regionally, clinical trials market is dominated by North America due to high incidence of chronic disorders and presence of latest healthcare infrastructure. North America accounted largest revenue share 51.7% in 2022.
On the other hand, Asia-Pacific is anticipated to witness the rapid growth rate 6.8%, on account of increasing investment by governments in research and growing awareness regarding precision medicine.
Top Players contending in the Market:
In order to better recognize the current status of clinical trials, and policies adopted by the foremost countries, Precedence Research predicted the future evolution of the clinical trials market. This research study bids qualitative and quantitative insights on clinical trials market and assessment of market size and growth trend for potential market segments.
By Phase
By Study Design
By Indication
By Service Type
By Sponsor
By End User
By Application
By Geography
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