Contract Research Organization (CRO) Services Market by Type (Early phase, Clinical, Lab, Consulting), Therapeutic Area (Oncology, Infectious Disease, Neurology, Immunology, Hematology, Vaccines, Cell & Gene Therapy), End User & Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global contract research organization (CROs) services market size was exhibited at USD 63.81 billion in 2022 and is projected to hit around USD 168.53 billion by 2032, growing at a CAGR of 10.2% during the forecast period 2023 to 2032.

Key Pointers:

• The clinical research services segment accounted for the largest share of this market in 2022.
• North America accounted for the largest share of the global Contract Research Organization (CRO) Services market.

The global market is driven by increased spending on research and development by manufacturers, patent expiries of various biologics leading to increase in the number of clinical trials, rising penetration of CROs, and growing focus of market players on conducting clinical trials in emerging markets.

Contract research organizations (CROs) are engaged in offering a range of research services on a contract basis to pharmaceutical, medical device, and biotechnology companies Large biopharmaceutical companies have been outsourcing most of their research and development activities in order to shift from fixed costs to variable costs, increase their access to new technological capabilities, and expand their global reach. This is promoting growth of the global contract research organization (CRO) services market.Rising prevalence of cancer globally is a key factor driving the number of clinical trials being conducted.

Contract Research Organization (CROs) Services Market Report Scope

 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 4.3% 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.

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 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.

Some of the prominent players in the Contract Research Organization (CROs) Services Market include:

• IQVIA (US)
• Laboratory Corporation of America Holdings (US)
• PPD (US)
• ICON (US)
• WuXi AppTec (China)
• Syneos Health (US)
• Charles River Laboratories International (US)
• Medpace Holdings (US)

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Contract Research Organization (CROs) Services market.

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
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)