Contract Research Organization (CRO) Market size to grow by USD 63.35 billion from 2024-2028, Market Growth at 12.61% CAGR expected during the forecast period, Technavio

NEW YORK, March 20, 2024 /PRNewswire/ -- The Contract Research Organization (CRO) Market size is estimated to grow by USD 63.35 billion from 2024 to 2028, according to Technavio. The market is estimated to grow at a CAGR of 12.61% during the forecast period. North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 40%.

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Segment Overview
Technavio has segmented the market based on type, Application (Clinical research, Early phase development, Laboratory, and Regulatory consulting), End-user (Pharmaceutical and biopharmaceutical companies, Medical device companies, and Academic institutes), and Geography (North America, Europe, Asia, and Rest of World (ROW)). 

• The clinical research segment, led by Clinical Research Organizations (CROs), is poised for significant growth. CROs offer comprehensive clinical research services, ensuring adherence to regulatory guidelines and maintaining data quality. Valued at USD 28.47 billion in 2018, this segment is driven by sponsored research activities by key players and government entities, fostering R&D advancements. Continuous developments within CROs further support clinical research initiatives, propelling segment growth and overall market expansion.

Geography Overview
By geography, the global contract research organization (cro) market is segmented into North America, Europe, Asia, and Rest of World (ROW). The report provides actionable insights and estimates the contribution of all regions to the growth of the global contract research organization (cro) market.

• North America is poised to contribute 40% to the global market growth. Major Contract Research Organizations (CROs) like Charles River Laboratories and Laboratory Corporation of America, headquartered in the region, provide R&D services globally. Factors such as access to a large patient pool and the thriving biopharmaceutical and medical device industries drive demand for clinical trials and trial supplies, boosting market growth.

Insights on the market contribution of various segments including country and region wise, historic (2018 to 2022) and forecast market size (2024 to 2028) 

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What's New?

• Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession 
• Global competitiveness and key competitor positions 
• Market presence across multiple geographical footprints - Niche

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Market Dynamics

M&A activities by companies is the key factor driving market:

Increased M&A activities among companies are reshaping the industry landscape. Large CROs are engaging in mergers to enhance their capabilities and geographic reach. For example, Thermo Fisher's acquisition of PPD in December 2021 illustrates this trend. Such activities accelerate research, drug development, and market growth. 

Leading trends influencing the market 

Capacity utilization and constraints are key trends in the market. Most CROs struggle with developing advanced downstream purification technologies, hindering their ability to operate at full capacity. Additionally, limited approved manufacturing facilities and shortages of cost-effective single-use products further constrain capacity. These limitations may impede market growth in the forecast period.

Major challenges hindering the market growth

A shortage of skilled professionals poses a significant challenge for the market. CROs require trained personnel to meet tight production timelines, yet the lack of necessary skills leads to non-compliance among laboratory workers, affecting product quality. Moreover, attracting and retaining skilled professionals is difficult, hindering technology adoption and impeding market growth.

Insights on Market Drivers, trends, & Challenges, historic period (2018 to 2022) and forecast period (2024 to 2028) 

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What are the key data covered in this Contract Research Organization (CRO) Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Contract Research Organization (CRO) Market between 2024 and 2028
• Precise estimation of the size of the Contract Research Organization (CRO) Market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the Contract Research Organization (CRO) Market industry across North America, Europe, Asia, and Rest of World (ROW)
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of Contract Research Organization (CRO) Market vendors

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Analyst Review:

The Contract Research Organization (CRO) market, integral to biotechnology and medical device manufacturers, facilitates clinical trial management and research and development (R&D) activities. With increasing R&D budgets from governments and pharmaceutical entities, notable players like Pharmaceutical Product Development, LLC and Science 37 are driving innovation through decentralized clinical trial Software as a Service (SaaS) solutions.

Across various sectors, including biotechnology, pharmaceuticals, and medical devices, CRO services cater to non-clinical research activities and address chronic diseases like cardiovascular diseases, obesity, diabetes, cancer, and immunological disorders. Moreover, CROs play a crucial role in combating infectious diseases such as HIV/AIDS, TB, and malaria, particularly in regions like the United States and the European Union.

Therapeutically, CRO services cover a wide range of areas including oncology, CNS disorders, cardiology, metabolic disorders, infectious diseases, and neurological disorders. Collaborating with academic and research institutes, CROs contribute significantly to precision/personalized medicine initiatives and research and development endeavors.

Market analysis, including revenue projections, CAGR (Compound Annual Growth Rate), and industry trends, alongside factors such as pricing analysis, patent analysis, and insights from conferences and webinars, are instrumental in understanding the dynamics of the CRO services market. With a focus on key stakeholders' buying behavior and regulatory compliance, CROs continue to drive patient recruitment and retention efforts, particularly in the context of decentralized clinical trials (DCT). In regions like Asia Pacific, Latin America, the Middle East, and Africa, the CRO market presents immense growth opportunities, catering to the diverse needs of pharmaceutical, biopharmaceutical, and medical device companies, and meeting the demands of clinical trials across various therapeutic areas.

Market Overview:

The Contract Research Organization (CRO) market is witnessing significant growth driven by factors such as increasing R&D budgets in the biotechnology and pharmaceutical sectors. Chronic diseases like cancer, cardiovascular diseases, and diabetes are spurring demand for clinical trial management services. Additionally, precision medicine initiatives and the rise of personalized medicine are shaping the industry landscape. Key players like Pharmaceutical Product Development, LLC and Science 37 are leading in offering decentralized clinical trial Software as a Service (SaaS) solutions. With a focus on therapeutic areas like oncology, infectious diseases, and neurology, the CRO market is expected to expand globally, particularly in regions like North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

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SOURCE Technavio