According to Precedence Research, the global contract research organization (CROs) services market size was reached at US$ 56.91 billion in 2021 and is expected to reach over US$ 135.26 billion by 2030, growing at a CAGR of 10.1% from 2021 to 2030.
Contract research organization (CROs) provides research services to biotechnology, pharmaceutical, and medical device firms. The drug discovery to pharmacovigilance and commercialization to post-approval services are only some of the services available. A sponsor contracts a contract research organization (CROs) on a project-by-project basis for clinical trials. Contract research organization (CROs) provide the expert assistance, expertise, and execution experience needed to finish clinical trials safely and efficiently, without requiring the sponsor to engage full-time staff.
The growing importance of contract research organization (CROs) services will contribute to the market’s expansion. In recent years, contract research organization (CROs) services have become more prevalent in the healthcare industry. There have been substantial advancements in the healthcare field, including research and drug development. Contract research organization (CROs) services organizations are becoming increasingly popular.
The contract research organization (CROs) services market demand is being accelerated by the expanding ageing population, the rise in chronic disease, and the lifestyle-related disorders. The market is growing because of the rising prevalence of chronic disorders, particularly among the elderly.
The other factors contributing to the growth of contract research organization (CROs) services market are the massive increase in patient specimens tested in the labs and the resulting demand for clinical lab testing services include increased disease monitoring and screening, which is supported by government public health screening policies; epidemic spread of chronic diseases such as diabetes; rise in new strains of infectious diseases, and the need for routine diagnostics in long-term disease management.
Due to increase in the rate of cancer, diabetes, and other infectious diseases, the contract research organization (CROs) services market is in a developing state; as the number of patients pool grows, so does the demand for clinical laboratory services. These services are also cost-effective, and they are the least invasive technique for making therapeutic decisions. These medical technologies allow for greater flexibility in healthcare management by allowing for earlier disease detection and treatment.
Furthermore, the development of new and innovative technologies that enables faster analysis and are more user-friendly that contribute to the growth of the contract research organization (CROs) services market. Other key factors driving the global contract research organization (CROs) services market are the increasing acceptance of digital pathology portals and the increasing inclination among the global population for comprehensive health checkups provided by clinical laboratories.
Another key factor driving the market growth of contract research organization (CROs) services is the development and expansion of the clinical laboratory services globally. The inadequate reimbursements, a scarcity of experienced specialists, and strict government rules, on the other hand, stifle the growth of contract research organization (CROs) services market during the forecast period.
Scope of the Contract Research Organization Services Market
|Market Size||US$ 135.26 Billion by 2030|
|Growth Rate||CAGR of 10.1% from 2021 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Europe|
|Forecast Period||2021 to 2030|
|Segments Covered||Service Type, End User, Region|
|Companies Mentioned||BIO Agile Therapeutics, Novotech Health Holding, Parexel International, Firma Clinical Research, Charles River Laboratories, Axcent Advanced Analytics, Geneticist In., Dove Quality Solutions, Frontage Holding Corporation, WuXi AppTec|
End User Insights
Based on the end user, the pharmaceutical and biotechnological segment dominated the global contract research organization (CROs) services market in 2020, in terms of revenue. The growing trend of outsourcing end-to-end services among pharmaceutical and biotechnological companies, particularly among small and mid-size enterprises without significant competence in the preclinical phase of drug development, is projected to raise demand for the segment during the forecast period.
The academic and research institutes segment is estimated to be the most opportunistic segment during the forecast period. In the preclinical stage of discovery development, academic and research institutes play a crucial role. Furthermore, the segment will rise as a growing number of academic institutions outsource pre-clinical research activities to contract research organization (CROs) services companies.
Service Type Insights
Based on the service type, the clinical services segment garner 65% revenue share in 2020. The rising prevalence of chronic diseases, as well as the growing demand for accurate and timely disease diagnosis, is driving the segment growth.
The pre-clinical segment is estimated to be the fastest growing segment during the forecast period. The increased research and development budgets for drug development are driving up demand for pre-clinical contract research organization (CROs) services, which will propel the segment growth during the forecast period.
Based on the region, the North America accounted 65% revenue share in 2020. Increasing government spending in research and development, as well as rising need for efficient medicines for the management of chronic diseases, are expected to drive contract research organization (CROs) services market sales in North America during the forecast period. Due to strong healthcare awareness, rising demand for technologically advanced products and massive spending on healthcare services in the region, the North America is projected to maintain its predominance.
The Europe is estimated to be the most opportunistic segment during the forecast period. This is attributed to the rising focus on research and development initiatives in various companies such as biotechnology and pharmaceutical companies.
Key Companies & Market Share Insights
With the presence of several companies, the global contract research organization (CROs) services market is highly fragmented. The key market players are attempting to increase their market share by implementing various marketing strategies such as new acquisition, product launches, investments, partnerships, and mergers and acquisitions. In June 2018, Cereno Scientific AB signed a collaboration agreement with OCT, which is a full-service clinical contract research organization (CROs) Services Company.
Some of the prominent players in the global contract research organization (CROs) services market include:
Segments Covered in the Report
By Service Type
By End User
No cookie-cutter, only authentic analysis – take the 1st step to become an Precedence Research client