Healthcare Contract Research Organization Market

Healthcare Contract Research Organization Market Outlook (2022-2032)

The global sales of healthcare contract research organization garnered a market value of US$ 44 Bn in 2022 and is expected to register a CAGR of 6% by accumulating a market value of US$ 79 Bn through the assessment period 2022-2032

Report Attributes	Details
Market Size Value in 2022	US$ 44 Bn
Project Market Forecast Value in 2032	US$ 79 Bn
Global Growth Rate (2022-2032)	6%
Market Share of North America	40%
Key Companies Profiled	Charles River Laboratories (CRL) Syneos Health Pharmaceutical Product Development, LLC (PPD) PAREXEL INTERNATIONAL CORPORATION IQVIA HOLDINGS INC. GVK Biosciences Private Limited (Aragen) ICON Plc. Covance Inc. Medidata Solutions, Inc.

An increase in research and development activities along with an inclination towards outsourcing activities due to time and cost constraints is expected to drive the healthcare contract research organization market. Furthermore, contract research outsourcing offers cutting-edge services. Thus, government organizations have exhibited a preference towards assigning projects to CROs.

Demand Analysis of Healthcare Contract Research Organization from 2015 to 2021 Vs Market Projections for 2022 to 2032

As per Fact.MR’s report, from 2015 to 2021, demand for healthcare contract research organization market surpassed US$ 40 Bn by the end of 2021. According to the report, the market flourished at a CAGR of 5.2% during the aforementioned historical period. The ever evolving nature of chronic and infectious diseases is prompting pharmaceutical and healthcare companies to avail research facilities to develop novel drugs and treatments.

During the COVID-19 pandemic, prospects for healthcare CRO further heightened. The highly contagious nature of the novel severe acute respiratory syndrome (SARS) induced by the virus has prompted various international level coalitions among pharmaceutical companies as well as governments to discover a cure. This has translated into development of effective vaccines. Further research is underway to develop an oral drug to counter this virus.

Research and development for clinical trials and initiatives by government to cut down on the time for approval of medicines are driving the demand for healthcare contract research organizations. Thus, the sales of healthcare contract research organization are expected to exceed US$ 79 Bn by registering a CAGR of 6% in the forecast period 2022-2032.

Healthcare and Pharmaceuticals Companies Healthcare Contract Research Organization?

An increase in the pressure on drug developers related to clinical data management, stringent safety standards and regulatory environments are expected to positively influence the demand for contract research organizations within the healthcare sector.

In addition, healthcare and pharmaceutical companies are not only outsourcing clinical trials but also production of medicines. Thus, with an increase in clinical trial privatization, outsourcing to developing countries has been observed.

Many healthcare contract research organizations are focusing on enhancing their global research network to provide better services to their customers. Thus, demand for healthcare contract research organizations is expected to surge. 

Country-wise Analysis

Government initiatives Escalating Market for Healthcare Contract Research Organization?

High prevalence of chronic conditions along with the availability of diverse populations such as geriatric, women and children are increasing the demand for healthcare contract research organizations in Asia Pacific. Not only do countries like India and China offer easy patient recruitment and retention but they also follow regulations set by the government.

Besides this, favourable initiatives by public organizations to reduce the timeline of drug approval are helping the market. In addition, due to the adverse effects of the coronavirus pandemic, the Indian government is taking initiatives to reduce the approval time for medicines. Thus, Asia Pacific is expected to hold more than 40% market share for healthcare contract research organizations.

Government Funding Augmenting Market for Healthcare Contract Research Organization?

The highest number of trials undertaken and outsourced in North America. In addition, government support for R&D activities via grants and funds to research institutes and companies is positively influencing the healthcare contract research organization market.

Moreover, due to the onset of the coronavirus pandemic, the U.S. government invested in research for vaccines. Thus, North America is expected to hold more than 25% market share for healthcare contract research organizations.

Category-Wise Insights

Why is Healthcare CRO for Clinical Trials Acquiring Importance?

Recent epidemic events and a rise in the case of biologics is leading to the demand for new treatments. In addition, the need for personalized medicines and orphan drugs is increasing the importance of clinical services. Furthermore, demand for a contract research organization to conduct clinical trials along with technological evolution and globalization of clinical trials is driving the growth of clinical trials.

Phase III clinical trials are the most expensive clinical trials. Moreover, 90% of the expenses occur during the clinical development from this phase. Thus, clinical services are expected to hold more than 70% market share for healthcare contract research organizations.

Cost Effectiveness Driving Clinical Monitoring for Healthcare Contract Research Organization?

Introduction of smart analytics along with real-time data acquisition devices is expected to improve clinical monitoring data in the healthcare sector. In addition, clinical research is being outsourced to CROs owing to reasons such as cost-effectiveness and technical expertise.

Furthermore, the increasing number of clinical trials & the need to monitor those studies are creating demand for these services. Moreover, real-time data acquisition related to drug safety and toxicity allows early identification of trial errors and enables timely rectifications. Thus, clinical monitoring is expected to hold more than 20% market share for healthcare contract research organizations.

Competitive Landscape

Prominent healthcare contract research organizations are collaborating with leading pharmaceutical and healthcare companies to expedite their clinical trials, drug discovery and drug development processes. Some notable developments in this regard are as follows:

• In January 2022, Charles River Laboratories International Inc. and Valo Health LLC announced a multi-year strategic partnership to transform drug discovery and development process by using human-centric data and computation powered by AI
• In October 2021, Syneos Health announced the acquisition of RxDataScience. The company is focusing on offering technology based innovations to accelerate production.

Attribute	Details
Forecast Period	2022-2032
Historical Data Available for	2015-2021
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe Asia Pacific Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Germany U.K France Italy BENELUX Nordics China Japan South Korea GCC Turkey South Africa
Key Segments Covered	Type Service Region
Pricing	Available upon Request

Key Segments Covered in Healthcare Contract Research Organization Industry Report

• By Type :

  • Pre-Clinical Healthcare Contract Research Organization
  • Healthcare Contract Research Organization for Drug Discovery
    • Lead Identification
    • Target Validation
    • Lead Optimization
  • Clinical Healthcare Contraction Research Organization
    • Phase I Trial Services
    • Phase II Trial Services
    • Phase III Trial Services
    • Phase IV Trial Services
  • Full Healthcare Contract Research Organization

• By Service :

  • Healthcare CRO for Project Management/Clinical Supply Management
  • Healthcare CRO for Quality Management/ Assurance
  • Healthcare CRO for Bio-statistics
  • Healthcare CRO for Regulatory/Medical Affairs
  • Healthcare CRO for Medical Writing
  • Healthcare CRO for Investigator Payments
  • Healthcare CRO Services for Laboratory
  • Healthcare CRO for Data Management
  • Healthcare CRO for Clinical Monitoring
  • Healthcare CRO for Patient and Site Recruitment
  • Healthcare CRO for Technology
  • Healthcare CRO for Other Services