Healthcare CRO Market Size, Share, Growth, and Industry Analysis by Type (Early Phase Development, Clinical Research, Laboratory, Consulting Services), by Application (Biopharmaceutical Companies, Academic and Research Institutes, Others), Regional Insights and Forecast to 2031

Updated On: 29 April 2024

HEALTHCARE CRO MARKET REPORT OVERVIEW

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The global healthcare CRO market size was USD 44730 million in 2022 and the market is projected to touch USD 62340 million by 2028, exhibiting a CAGR of 5.7% during the forecast period.

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, and clinical trials management. These organizations can range from international full-service groups to small or niche service providing groups. 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.

Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Manufacturers need to stay updated with changing market trends and develop products that meet growing consumer needs. Companies coming up with progressive technological solutions for firming their positions.

COVID-19 Impact:  Pandemic Hampered The Market Due To Unexpected Disruption In The Sector

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID- 19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. COVID- 19 had negative impact on the market due to economic slowdown, unpredictability in financial sector and high unstable market. The pandemic resulted in decreased demand due to a disrupted supply chain, drop in sales of products, delivery schedules. Travel bans imposed affected business collaboration and partnership. Demand had recently reduced due to travel bans and lockdown during the COVID-19 pandemic. The continuous loss in the business due to the lockdown measures is projected to directly influence the growth of the investments in the market.

LATEST TRENDS

"Use Of Innovative Products To Boost The Market Growth "

Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological advancement with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant innovation in manufacturing of products is anticipated to stimulate product demand.

HEALTHCARE CRO MARKET SEGMENTATION

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• By Type Analysis

According to type, the market can be segmented into early phase development, clinical research, laboratory, consulting services

Early phase development will capture the maximum market share through forecast period.  

Early phase development - It includes services related to the early stages of drug development, such as preclinical research, pharmacokinetics, and safety assessments.

Clinical research - Clinical research specialize in conducting clinical trials, including Phase I, Phase II, Phase III, and Phase IV trials. They help biopharmaceutical companies gather data on the safety and efficacy of new drugs and therapies. 

Laboratory - Laboratory provide services related to laboratory testing, sample analysis, and data generation. They play a crucial role in supporting research and clinical trials by conducting various tests and analyses.

Consulting services- Consulting services offer advisory and consulting services to pharmaceutical and biotechnology companies. They provide expertise in regulatory affairs, strategy development, and project management.

• By Application Analysis

According to application, the market can be segmented into biopharmaceutical companies, academic and research institutes, others

Healthcare CRO market players cover segment as biopharmaceutical companies will dominate the market share during forecast period.

Biopharmaceutical companies - Biopharmaceutical companies are the primary clients for CRO services. They rely on CROs for various aspects of drug development, including clinical trials, data management, and regulatory support.

Academic and research institutes Academic and research institutes engage CROs for collaborative research projects, clinical studies, and scientific research. CROs provide expertise and resources to support academic and scientific events.

Others – It include a range of clients such as medical device companies, government agencies, non-profit organizations, and other entities that require CRO services for specific research or development projects.

DRIVING FACTORS

"Rising Prevalence Of Various Chronic Diseases To Boost The Market Growth"

The rising prevalence of various chronic diseases such as cancer, diabetes, cardiovascular diseases, respiratory diseases, and musculoskeletal disorders is encouraging the pharmaceutical industry to invest heavily in the research and development of innovative and effective drugs and diagnostic devices. The rising burden of chronic diseases is fostering the investments by the pharmaceutical manufacturers in the drug discovery to develop new and effective drugs.  The rising demand for life-saving innovative drugs boosts the expenditure in the clinical and pre-clinical trials.

"Technological Advancement and Innovation To Upsurge The Market"

Technological advancements and innovation activate unique revenue augmenting opportunity which will upsurge the healthcare CRO market growth. Growing investment in research and development activities and growing awareness about benefits are expected to deliver profitable opportunities for the market. Constant development are one of the trends in the market in variety of practices. Advances in technology, including data analytics, electronic data capture, and remote monitoring, have improved the efficiency and effectiveness of clinical trials, attracting more clients to CROs.

 RESTRAINING FACTOR

"High Competition To Hamper The Market Growth"

The Healthcare CRO market is highly competitive, with numerous CROs vying for contracts. Intense competition can put pressure on pricing and profit margins. Technical difficulties will reduce the industry revenue.

HEALTHCARE CRO MARKET REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Region Due To Rising Prevalence Of Chronic Disease"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East and Africa.

Asia Pacific is further expected to witness growth in the procedure trays market share. The region is dominating the market due to rising prevalence of chronic diseases in the region. The rising inhabitants and increasing income levels are also contributing to the development of the market. Upsurge in investments by key market players for the R&D undertakings and enlargement of their production abilities and product portfolios are projected to upsurge the growth. The expansion of regional market is being aided by technological developments.

KEY INDUSTRY PLAYERS

"Key Players Focus On Partnerships To Gain Competitive Advantage"

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger. The collective efforts of these major players expressively impact the competitive landscape and future path of the market.

List Of Market Players Profiled

• Quintiles Transnational Holdings (U.S.)
• Laboratory Corporation Of America Holdings (U.S.)
• Pharmaceutical Product Development (U.S.)
• PAREXEL International (U.S.)
• PRA Health Sciences (U.S.)

INDUSTRIAL DEVELOPMENT

March 2020: Medpace Holdings, Inc, a healthcare CRO, partnered with Medidata Solutions, a service company, to integrate its imaging systems and workflow with Medidata Rave imaging for clinical trials.

REPORT COVERAGE

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.