PUNE, India, Oct. 15, 2021 /PRNewswire/ -- According to The Insight Partners study on "Contract Research Organization (CRO) Market to 2028 – Global Analysis and Forecast – by Type, End User, and Geography," the market is projected to reach US$ 88,835.19 million by 2028 from US$ 50,093.56 million in 2021; it is expected to grow at a CAGR of 8.5% during 2021–2028. The market growth is attributed to the surge in R&D expenditures and outsourcing activities, government initiatives to increase clinical trial participants, and rising number of clinical trials.
North America would dominate the contract research organization (CRO) market in 2021. The market growth in the US is attributed to increasing research and development (R&D) expenditures. Various pharmaceutical companies are experiencing short profit margins due to patent expiry, which is compelling the spurring manufacturers to reduce their in-house R&D activities and outsource these activities to contract research organizations. Thus, the focus of biotechnology and pharmaceutical companies to lower the drug development costs propel the market in the US.
Based on type, the contract research organization (CRO) market is segmented into early phase services, clinical research services, laboratory services, and post-approval services. The early phase services segment is further bifurcated into drug discovery services and preclinical services. The clinical research services segment is the largest shareholder in the market and is expected to register the highest CAGR during the forecast period. By end user, the contract research organization (CRO) market is segmented into pharmaceutical and biotechnology companies, and medical devices companies. The pharmaceutical and biotechnology companies segment holds a larger share of the market, and it is anticipated to register a higher CAGR in the market during the forecast period.
Increasing R&D Expenditures and Outsourcing Activities Fuel Contract Research Organization (CRO) Market Growth
R&D is an essential and crucial part of any company's business. Pharmaceutical and biotechnology companies focus on the R&D to come up with new molecules or active ingredients with the greatest medical and commercial potential for various therapeutic applications. Companies invest majorly on R&D for delivering high-quality and innovative products to the markets they serve. Research and development expenditures entail spending on the discovering, testing, and developing new products; making upfront payments and milestones; improving existing products; and demonstrating product efficacy and regulatory compliance prior to launch. According to the International Federation of Pharmaceutical Manufacturers & Associations, in 2019, the R&D expenditures by the pharmaceuticals and biotechnology industry grew by ~20% than those in 2015.
With the second wave of COVID-19, there has been an increasing number of cases in Latin American countries. With the high focus on treating the disease, governments in this region are encouraging clinical programs to fight against the novel coronavirus. Moreover, the majority of manufacturing companies have channelized their efforts toward developing therapeutics against this disease. Thus, the pandemic has had a slightly negative effect on other healthcare markets, such as contract research organization market.
Contract Research Organization (CRO) Market: Segmental Overview
Based on end user, the pharmaceutical and biotechnology companies' segment is anticipated to register a higher CAGR in the contract research organization (CRO) market during the forecast period.
Contract Research Organization (CRO) Market: Competitive Landscape and Key Developments
IQVIA Inc; Parexel International Corporation; Charles River Laboratories, Inc.; ACM Global Laboratories; Merck KGaA (Bio Reliance Corporation); Celerion; Clinitude; Laboratory Corporation of America Holdings (Covance Inc.); Novotech; and Icon PLC are among the key companies operating in the contract research organization (CRO) market. Leading players focus on launch of new products, expansion and diversification of market presence, and acquisition of new customer base for tapping the prevailing business opportunities.
In June 2021, Charles River Laboratories completed the acquisition of Vigene Biosciences for US$ 292.5 million in cash. The acquisition of Vigene Biosciences' extensive gene therapy capabilities further enhances Charles River's position as a premier scientific partner for cell and gene therapies.
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