Global Healthcare CRO Services Market Size, Share, Forecast Report, 2020-2027
The global healthcare contract research organization (CRO) services market was valued at $38,996.9 million in 2018 and is expected to reach $66,036.6 million by 2026, registering a CAGR of 6.9% from 2019 to 2026. A CRO is an organization that is contracted by other companies to manage their trials, duties, and functions. A contract research organization (CRO) offers support to pharmaceutical and biotechnology industries in the form of outsourced pharmaceutical research services. It mainly provides services for biopharmaceutical development, biologic assay development, commercialization of new entity, preclinical research, clinical research, clinical trials management, and pharmacovigilance. These organizations can range from international full-service groups to small or niche service providing groups. In addition, CROs provide the experience of moving a novel drug, molecule, or a drug from its nascent phase to marketing approval, without any need for a sponsor for these services.
The major factors that drive the growth of healthcare CRO services market include surge in R&D for the development of novel drugs and medical devices and rise in healthcare expenditure. Moreover, CROs help in saving time and extra cost of manufacturers as it reduces the time taken to conduct a trial in a private lab compared to the time taken for doing the trial in-house, and that leads to significant cost savings. In addition, a persistent need has been witnessed for developments in oncology, stem cell research, cancer research, drug discovery, and to study different small molecules and their mechanisms, such as protein mechanism for therapeutic use. Small- and medium-sized pharmaceutical and biotechnology companies are constantly focusing toward conducting clinical trials for their products. Thereby, increased research pertaining to the development of novel medications to treat cancer, cardiac disorders and other chronic disorders further fuel the healthcare CRO services market growth. However, penetrating competition in the market and dearth of skilled professionals are the major factors anticipated to hamper the Healthcare CRO Services Market growth. For instance, according to the Labor Statistics analyzed by the U.S. Department of Labor’s Bureau, inadequacy of lab technicians has been witnessed in 2019. The requirement for lab technicians is expected to grow at an alarming rate by 2026, which is further expected to negatively impact the growth of the market. For instance, Canada is currently facing a nation-wide shortage of medical laboratory technologists. Moreover, rise in the biotech and pharmaceutical sector in developing economies is expected to create lucrative opportunities for healthcare CRO services market in the future.
Global Healthcare CRO Services Market Segmentation
The market is segmented on the basis of service type, therapeutic area, end-users, and region. By service type, it is categorized into early phase development, clinical development services, laboratory services, and consulting services. By therapeutic area, it is segmented into oncology, CNS disorder, cardiovascular disease, metabolic disease, infectious disease, diabetes, and others. By end-users it is segmented into pharmaceutical & biopharmaceutical companies, medical device companies, and academic institutes. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Service Type segment review
By service type, the clinical development services segment accounted for 43% of the share in 2018 and is expected to exhibit a prominent growth rate in the future, owing to its increased demand for clinical trials for the development of novel drugs and innovative medical devices. This segment is anticipated to grow at the fastest growth rate of 7.3% during the forecast period.
End User segment review
By therapeutic area, the oncology segment dominated the CRO services market in 2018, and is anticipated to maintain its dominance during the forecast period. This is attributed to the significant increase in cancer incidences across the globe and thus, rise in ongoing research toward the development of novel drugs for its treatment.
North America accounted for the majority of the Healthcare CRO Services Market share in 2018 and is anticipated to continue this trend during the forecast period. This is attributed to the increased focus of leading companies in the field of biotech and pharmaceutical research. In addition, presence of leading companies and healthcare CRO service providers contributes to the market growth. Companies are constantly focused toward conducting research for development of new pharmaceutical products to treat various diseases, thereby contributing to the market growth of healthcare CRO services. However, Asia-Pacific is anticipated to grow at the fastest rate during the forecast period, owing to the rise in focus toward conducting R&D and developing novel products. Asia-Pacific is considered one of the fastest growing regions in the biotechnology & pharmaceutical market due to increased technological innovations and funding provided by governments and private organizations.
Comprehensive competitive analysis and profiles of major healthcare contract research organization (CRO) services market players such as IQVIA, PRA Health Sciences, ICON, Syneos, Evotec, Charles River, Medpace, Syngene, Biotelemetry, and Labcorp are provided in this report.
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