Healthcare Contract Research Organization Market Size, Share, and Trends 2024 to 2034

The global healthcare contract research organization market was estimated at USD 50 billion in 2022 and is expected to reach over USD 89.96 billion by 2032, expanding growth at a CAGR of 6.10% from 2023 to 2032.

Healthcare Contract Research Organization (CRO) Market Size in the U.S. 2023 To 2032

The U.S. healthcare contract research organization market was valued at USD 12.60 billion in 2022 and is projected to be worth around USD 22.89 billion by 2032, at a CAGR of 6.2% from 2023 to 2032.

North America was the largest healthcare contract research organization market in 2022 and accounted 43.2% revenue share. The presence of several top biopharmaceutical and biosimilar companies along with the presence of several CROs has collectively contributed towards the market growth. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), US conducts more than half of the research & development activities in the pharmaceutical field and also holds intellectual rights of a significant amount of new medicines. Thus, the rapidly growing investments in the research and development by the top pharmaceutical companies are expected to significantly drive the growth of the North America contract research organization market in the forthcoming years.

Asia Pacific was the second most dominant healthcare contract research organization market in 2022. This is attributable to the rising prevalence of chronic diseases, easy recruitment and retention of patients, and strict adherence to the regulatory standards. Moreover, the presence of several top contract research organizations in the region that offers high quality services at a low cost has fueled the growth of the Asia Pacific healthcare contract research organization market. The availability of cheap labor and experienced research professionals at affordable costs is further fueling the market growth.

Growth Factors

The global healthcare contract research organization market is significantly driven by the increased investment by the biotechnology and the biosimilar companies in the research and development of new drugs and diagnostic instruments. Moreover, rising preferences for outsourcing activities to the CROs for saving time and costs and expiry of patent in the healthcare sector is a prominent factor that drives the growth of the global healthcare CRO market. The high quality services offered by the healthcare CROs instigate the various government organizations to outsource various projects to the CROs, which positively impacts the market growth. The pharmaceutical companies are the major source of revenue generation in the healthcare contract research organization market. The rapid growth of the biopharmaceutical industry is the major driver of the healthcare contract research organization market. The biopharmaceutical industry accounts for around 20% of the pharmaceutical industry. Moreover, the rapidly growing biosimilar companies are investing heavily in the research of various biosimilar drugs that foster the demand for the services of the healthcare CROs across the globe.

Scope of the Healthcare Contract Research Organization (CRO) Market

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 demand for life-saving innovative drugs boosts the expenditure in the clinical and pre-clinical trials. In 2020, the healthcare contract research organization market has witnessed a surge in the demand for the services of the healthcare CROs for the research of the COVID-19 virus and the development of its vaccine. The favorable government regulations and policies regarding the clinical and pre-clinical studies in the developed regions like Europe and North America has significantly driven the growth of the healthcare contract research organization market. Moreover, the wider range of services such as data management, clinical supply management/project management, medical writing, clinical monitoring, patient & site recruitment, bio-statistics, and regulatory & medical affairs offered by the healthcare CROs has attracted the pharmaceutical companies to outsource their activities and helped in cost and time saving.

The rising demand for the drug discovery services is significantly boosting the growth of the global healthcare contract research organization market. 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 investments in the development of small molecule drugs have significantly driven the demand for the drug discovery services of healthcare CROs across the globe. The small molecule drugs are the most effective drugs that can effectively treat various diseases by directly affecting the infected cells. Moreover, the growing penetration of CROs across the globe owing to the lucrative growth opportunities being offered by the market due to the growing geriatric population and growing burden of non-communicable diseases is significantly propelling the market growth.

Service Insights

Based on the service, the clinical monitoring segment dominated the global healthcare contract research organization market, garnering a market share of around 20.8% in 2022. This can be attributed to the technical expertise and specialized services offered by the CROs that helps to save time and cost of the client and also provides efficient results. The adoption of real time data acquisition equipment and smart analytics amongst the healthcare CROs has enhanced the clinical monitoring services, which is further expected to drive the market growth. These technologies help to detect any errors early and avoid the delay or termination of the projects.

The regulatory/medical affairs segment is expected to grow at a CAGR of 10.9% from 2023 to 2032.  There are strict regulations and rules imposed by the government that needs to be followed strictly. The regulatory affairs associated with various tasks such as clinical trials, product registration, research & development, and approvals are hectic and hence most of the companies outsource these tasks to the specialist CROs.

Type Insights

Based on the type, clinical segment dominated the global healthcare contract research organization market, accounting for around 76.6% of the market share in 2022. The rising demand for the personalized medicines and growing number of biologic drugs coupled with the rising demand for the advanced technologies in the healthcare CROs. The Phase III of the clinical trials are the most expensive phase that generates the maximum revenue.

The pre-clinical segment is expected to grow at a fastest rate 8.3% during the forecast period. The failure of 50% of the toxicology tests in the pre-clinical trials is expected to foster the number of pre-clinical trials.

Key Market Developments

• In September 2020, Innoplexus and Paraxel collaborated to launch Clearinghouse, an online resource for the researchers and clinical trial sponsors that provided all the datasets and information regarding the COVID-19 virus.
• In October 2019, Parexel extended its collaboration agreement with Society for Clinical Research Sites.
• In February 2021, ICON Plc agreed to acquire PRA Health Sciences, Inc. for expanding its portfolio in clinical research.

The various developmental strategies like partnerships, acquisitions, mergers, collaborations, and new product launches with latest and innovative features fosters market growth and offers lucrative growth opportunities to the market players.

Some of the prominent players in the market include:

• QVIA
• LabCorp
• Charles River Laboratories
• WuXiAppTec
• Syneos Health
• Parexel International
• PPD
• ICON Plc
• Medpace Holdings
• SGS
• PSI CRO AG
• Axcent Advanced Analytics
• BIO Agile Therapeutics
• Firma Clinical Research
• Acculab Life Sciences

Segments Covered in the Report

By Service

• Data Management
• Clinical Supply Management/Project Management
• Medical Writing
• Clinical Monitoring
• Patient & Site Recruitment
• Bio-Statistics
• Regulatory & Medical Affairs
• Investigator Payments
• Technology
• Laboratory
• Quality Management
• Others

By Type

• Pre-Clinical
• Clinical
• Phase I Trial Services
• Phase II Trial Services
• Phase III Trial Services
• Phase IV Trial Services
• Drug Discovery
• Target Validation
• Lead Identification
• Lead Optimization

By Application

• Oncology
• Cardiovascular
• Autoimmune/Inflammation
• Central nervous system (CNS)
• Dermatology
• Infectious diseases
• Diabetes
• Pain
• Others

By End-use

• Pharmaceutical & Biopharmaceutical Companies
• Medical Device Companies
• Others

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Malaysia
  • Philippines
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa