Preclinical CRO Market

Preclinical CRO Market Outlook (2024 to 2034)

As revealed in a new study by Fact.MR, the global preclinical CRO market size is valued at US$ 12.19 billion in 2024 and is forecasted to expand at a CAGR of 7.1% to reach a size of US$ 24.15 billion by the end of 2034.

Preclinical contract research organizations (CRO) have become a profitable business environment as doctors and scientists keep researching new drugs to fight a variety of diseases. A preclinical CRO is a kind of support center offering expertise in research and development that becomes crucial in navigating a drug candidate through animal testing and advancing it into the clinical phase. The market is evaluated to have a further positive outlook as the medical sector develops new drugs to prevent and cure different chronic diseases.

Contact research organizations are becoming increasingly popular as more and more medical professionals are contacting them to provide clinical trial services for the pharmaceutical, biotechnology, and other medical device industries. These organizations help in providing detailed trials to conclude how effective and efficient a drug is before it can be passed to the clinical phase, thus improving its trustworthiness and demand in the market.

Key Market Growth Drivers

• Rising prevalence of chronic diseases has pushed medical professionals to better understand these diseases and start working on different cures. These cures or drugs have to be tested thoroughly before they can be released into the market, thus driving CRO service demand.
• Sometimes, medical professionals and sponsors lack the suitable resources to conduct trials. CROs are equipped with advanced technologies to execute trials, and thus, drug manufacturers are increasingly relying on them for clinical trials.
• CROs help in clinical trials and reduce the workload of drug manufacturers, leaving medical professionals to focus on their work without taking any pressure about trials.
• Every medicine or drug has different components and uses and requires different resources to conduct clinical trials before it can enter the market. CROs already have all kinds of available resources in place, thereby driving their demand.
• To produce an application to commercialize a medicine in a country, the sponsor must undertake research in that country, which can be time-consuming and costly. However, a CRO with research facilities and the right personnel can get the job done faster, allowing companies to commercialize their medicine in different countries.

All these factors have driven substantial demand for CROs across different countries as new drugs keep entering the market, leading to the overall expansion of the global preclinical CRO market size.

• With world-class medical infrastructure, the United States is a leading market and is set to account for 76.9% share of the North American market by 2034.

Report Attributes	Details
Preclinical CRO Market Size (2024E)	US$ 12.19 Billion
Forecasted Market Value (2034F)	US$ 24.15 Billion
Global Market Growth Rate (2024 to 2034)	7.1% CAGR
Canada Market Growth Rate (2024 to 2034)	8.5% CAGR
Brazil Market Value (2034F)	US$ 555 Million
North America Market Share (2024E)	41.8%
Latin America Market Share (2034F)	3.9%
Key Companies Profiled	Syneos Health Labcorp Premier Research Eurofins Scientific Parexel Icon Worldwide Clinical Trials Medpace Society for Clinical Research Catalent Pharma Solutions

Which Market Trends are Improving the Stance of CROs?

“Increase in Number of Biopharmaceutical Organizations”

Surge in the need for preclinical CRO services is being attributed to the ever-increasing number of biopharmaceutical companies across the world, particularly in developed and agricultural nations. Because small- and medium-sized biopharmaceutical companies typically lack the assets and knowledge required to conduct preclinical research, they are delegating these responsibilities to preclinical CROs.

“Increase in Chronic Diseases Driving Preclinical CRO Market Growth”

Increased prevalence of several chronic illnesses and gene-related disorders is a key concern worldwide. As a result, several biopharmaceutical and medical device firms have boosted their research investments to produce new and novel medications and technologies for the diagnosis, prevention, and treatment of chronic illnesses.

Preclinical CROs help biopharmaceutical and medical device businesses focus on their main operations by delivering solutions and services for drug and device research and development. As a result, fast growth and development of the biopharmaceutical sector on the back of rising cases of chronic diseases are expected to play a significant role in the expansion of the worldwide market for preclinical CROs.

“Growing Numbers of Life-saving Drugs Driving Need for Clinical Test Requirements”

Growing demand for new life-saving medications is driving up spending on preclinical research. Preclinical CROs play an important role in the development of novel pharmaceuticals and staging concepts for their commercialization. The latest COVID-19 pandemic increased activities related preclinical CROs. COVID-19 was new to the world, and thus, preclinical research was critical during this time. As a result, several organizations and governments invested heavily in preclinical viral research.

What are the Limitations of Contract Research Organizations?

“Regulatory Changes and Quality Control Assurance Affecting Market Growth Trajectory”

Because the pharmaceutical and biotechnology sectors are heavily regulated, changes in regulatory requirements lead to significant challenges for contract research organizations. Adapting to new legislation and ensuring compliance with ever-changing standards is a tough and costly task.

Maintaining high-quality standards is critical while conducting research and clinical trials. To meet regulatory authorities' rigorous standards, CROs must consistently invest in quality control and assurance systems.

CROs also manage sensitive and proprietary information on behalf of their clients. This data covers both patient health information and clinical trial results. Given the growing threat of cyberattacks and data breaches, they need to safeguard their data while maintaining their privacy.

Country-wise Evaluation

Why are CROs Thriving in the United States?

“High Number of Life Science Businesses in the Country”

Attribute	United States
Market Value (2024E)	US$ 4.14 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 7.4 Billion

The United States has several life science enterprises that are adopting clinical research services. CROs that provide these services are in high demand as technology developments such as telemedicine and virtual trials become increasingly widespread.

Drug development activities by biotech and pharmaceutical corporations are rising in the United States. These companies are increasingly relying on CROs for support, such as access to equipment and services for patients, enrolment and recruitment data, individualized protocol design, improved trial completion rates, and cheaper costs.

What's Improving the Market Environment in Brazil for Preclinical CROs?

“Government Making Regulatory Approval Process Easier”

Attribute	Brazil
Market Value (2024E)	US$ 225 Million
Growth Rate (2024 to 2034)	9.4% CAGR
Projected Value (2034F)	US$ 555 Million

The clinical research organization business in Brazil is rising due to a variety of causes. Increasingly aging and rising population is a big contributing factor, driving the demand for cutting-edge medical cures and treatments. Furthermore, recent government reforms and policies have simplified the process of conducting clinical trials and research in the country.

Authorities have implemented several measures to expedite the regulatory clearance process for innovative drugs and cures, enticing global corporations to move their research and development activities to the country. Furthermore, evolution of healthcare and growing wealth levels in Brazil have increased the demand for sophisticated healthcare services, making clinical research even more attractive.

Category-wise Insights

Which Key Type of Service is Providers by CROs to Drug Manufacturers?

“Drug Development Key as They Possess Advanced Medical Equipment”

Attribute	Drug Development Services
Segment Value (2024E)	US$ 4.71 Billion
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 9.16 Billion

After detailed research and analysis, a variety of drug manufacturers opt to hire a CRO to develop their drugs based on their research. The primary reason for this is due to advanced medical tools available with CROs that can help the process of drug development more ahead faster. The process of getting approval also gets expedited, thus helping drug manufacturers to introduce the drug into the market sooner.

Which Companies Look for CROs to Assist Them With Clinical Trials?

“Biopharmaceutical Companies Key Clients of CROs for Drug Development and Clinical Trials”

Attribute	Biopharmaceutical Companies
Segment Value (2024E)	US$ 5.55 Billion
Growth Rate (2024 to 2034)	8.5% CAGR
Projected Value (2034F)	US$ 12.52 Billion

Biopharmaceuticals are complex medicines made from living cells or organisms. These medicines are often produced using cutting-edge biotechnological methods. Such medicines have to be efficiently tested before they are introduced into the market to the final user. Thus, professionals always look for an expert CRO in this field to work with clinical trials to conclude whether the medicine is fit to enter the market for consumption.

Market Landscape

Fast deployment of advanced healthcare technology for better medical care is one of the key factors fueling rivalry in the market. To retain their market share and broaden their product line, major corporations are exploring combinations as well as introducing novel products.

Key players in the preclinical CRO market are seeking to provide different services to address the evolving preclinical CRO market trends, including preclinical brain imaging and optical preclinical imaging.

• Editas Medicine reported in January 2021 that it had acquired FDA clearance for an Investigational New Drug (IND) Application for EDIT-301, which is used to treat transfusion-dependent beta-thalassemia.

Key Segments of Preclinical CRO Market Research

• By Service :

  • Bioanalysis & DMPK Studies
  • Toxicology Testing
  • Compound Management
  • Chemistry
  • Safety Pharmacology

• By End Use :

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

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa