Contract Research Organization (CRO) Services Market

The global CRO services market in terms of revenue was estimated to be worth $76.6 billion in 2023 and is poised to reach $127.3 billion by 2028, growing at a CAGR of 10.7% from 2023 to 2028.

Factors such as continuously growing pharmaceutical, biopharmaceutical, and medical device R&D pipelines and technological advancements in the clinical trials process are driving the growth of this market. Besides, the growing demand for new clinical trial designs for cell & gene therapies is expected to offer growth opportunities to companies operating in this market.

Attractive Opportunities in the Contract Research Organization (CRO) Services Market

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CRO Services Market Dynamics

DRIVERS: Growing size of the drug R&D pipeline

Over the last decade, the drug discovery and development field has grown consistently. There has been continuous growth in the number of clinical studies conducted, resulting in novel drug molecules entering various phases of the clinical drug development cycle. According to Pharma R&D Annual Review 2022, the number of drugs in the R&D pipeline grew from 17,737 in 2020 to 20,109 in 2022. As per the ClinicalTrials.gov website, the number of registered studies went up from 32,517 in 2019 to 36,770 in 2022, at a CAGR of 4.2% between 2019 and 2022. This growth in the R&D pipeline of novel drugs is boosting the outsourcing of the drug development process with an aim to manage capacities and access scientific and process innovations to develop cost-effective and efficient drug molecules ultimately. This is expected to drive the CRO Services market growth.

OPPORTUNITIES: Need for novel clinical trial designs for complex cell & gene therapies

Cell & gene therapies are complex and very specific. They are perceived to address unmet medical needs. This has led to increased investment in developing and commercializing new cell & gene therapies. As of April 2021, 16 cell & gene therapies have been approved by the US FDA. In 2020, around 362 cell & gene therapies were under clinical development. The growing number of cell therapy candidates, coupled with their rapid progression through the various phases of clinical development, has increased the demand for facilities that offer R&D services for these therapies. Thus, the end users, like Biotech companies and academia, prefer reliance on CROs for their specialized skills and scientific expertise. Besides, CROs also offer greater regulatory clarity and global reach for clinical studies. These factors are, thus, expected to drive the CRO services market.

CHALLENGES: Patient recruitment and retention for clinical studies

One of the major and unaddressed challenges for CROs, CDMOs, and life science companies is Patient recruitment and retention. The main challenges related to patient recruitment include protocol complexities and competition in clinical trials, which makes it increasingly hard to find qualified patients. Moreover, a lack of understanding of the patient's perspective is another factor that makes it difficult for recruiters to retain patients throughout the trial. However, decentralized clinical trial services are likely to reduce the effects of this challenge over the coming years. Many of the service providers of patient recruitment rely heavily on offline recruitment through marketing in newspapers, public transport, or street posters. In contrast, organizers rely heavily on doctors and study center recruitment. This can be overcome through the use of social media and various other online marketing channels.

The Clinical Research Services subsegment of the type segment dominated the Contract Research Organization (CRO) Services Market in 2022:

Based on type, the CRO services market is segmented into clinical research services, early-phase development services, laboratory services, consulting services, and data management services. The clinical research services segment accounted for the largest share of this market in 2022. The large share of this segment can primarily be attributed to factors such as the growing size of the R&D pipeline of drugs and high clinical trial expenses.

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North America was the largest regional market for Contract Research Organization (CRO) Services Market in 2022.

North America accounted for the largest share of the global Contract Research Organization (CRO) Services market. As a result of the growing outsourcing of R&D activities to CRO and the increasing number of clinical studies being conducted in the region, North America holds the largest share.

The key players in the global Contract Research Organization (CRO) Services market are IQVIA (US), Laboratory Corporation of America Holdings (US), PPD (US), ICON (US), WuXi AppTec (China), Syneos Health (US), Charles River Laboratories International (US), and Medpace Holdings (US).

CRO Services Market Scope

This report categorizes the CRO services market into the following segments and subsegments:

By Type

• Clinical Research Services
• Early phase development Services
• Laboratory Services
• Consulting Services
• Data Managenment Services

By Clinical Research Services

• Phase III
• Phase II
• Phase I
• Phase IV

By Early Phase Development Services

• Chemistry, Manufacturing and Controls Services
• Preclinical Services
• Pharmacokinetics/ Pharmacodynamics Services
• Toxicology Testing Services
• Other Preclinical Services
• Discovery Studies

By Laboratory Services

• Analytical Testing Services
  • Physical Characterization Services
  • Raw Material Testing Services
  • Batch Release Testing Services
  • Stability Testing Services
  • Other Analytical Testing Services
• Bioanalytical Testing Services

By Therapeutic Area

• Oncology
  • Breast Cancer
  • Lung Cancer
  • Colorectal Cancer
  • Prostate Cancer
  • Other Cancer
• Infectious Diseases
• CVS Disorders
• Neurology
• Vaccines
• Metabolic Disorders/Endocrinology
• Immunological Disorders
• Psychiatry
• Respiratory Disorders
• Dermatology
• Ophthalmology
• Gastrointestinal Diseases
• Genitourinary & Women’s Health
• Hematology
• Other Therapeutic Areas

By End User

• Pharmaceutical & Biopharmaceutical Companies
• Medical Device Companies
• Academic Institutes

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific (RoAPAC)
• Latin America (LATAM)
  • Brazil
  • RoLATAM
• Middle East and Africa (MEA)

Recent Developments

• In November 2022, IQVIA (US) collaborated with Clalit Health Services (Israel) to combine their clinical trial delivery, real-world research, data, and genomics capabilities.
• In October 2022, the PPD clinical research business of Thermo Fisher Scientific launched the Decentralized Clinical Trials Network to support global investigators and research sites participating in decentralized clinical trials (DCTs).

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