May 2024
The global pharmaceutical CRO market size accounted for USD 44.58 billion in 2024, grew to USD 47.89 billion in 2025 and is predicted to surpass around USD 91.20 billion by 2034, representing a solid CAGR of 7.42% between 2024 and 2034. The Asia Pacific pharmaceutical CRO market size is evaluated at USD 20.95 billion in 2024 and is expected to grow at a solid CAGR of 7.52% during the forecast year.
The global pharmaceutical CRO market size is calculated at USD 44.58 billion in 2024 and is anticipated to reach around USD 91.20 billion by 2034, expanding at a CAGR of 7.42% from 2024 to 2034. The increasing burden of chronic disease in the worldwide population is driving the demand for the research and development process for drug discovery and development that is driving the growth of the market.
The Asia Pacific pharmaceutical CRO market size is exhibited at USD 20.95 billion in 2024 and is projected to be worth around USD 43.32 billion by 2034, growing at a CAGR of 7.52% from 2024 to 2034.
Asia Pacific dominated the pharmaceutical CRO market in 2023. The growth of the market is attributed to the rising development in the healthcare infrastructure, the rising population, and the prevalence of chronic illness in the population, which are collectively driving the demand for robust medicinal and healthcare services and the innovations in the drugs and treatment are driving the demand for the pharmaceutical CROs for the research and development activities in the pharmaceuticals. Additionally, the increasing investment in pharmaceutical companies and healthcare growth is contributing to the expansion of the pharmaceutical CRO market across the region.
India ranked third in pharmaceutical production by volume, with continued growth in the industry. As per the recent EY FICCI report, the Indian Pharmaceutical market is expected to reach US$ 130 billion by the end of 2030. India supplies over 50% of the global demand for various vaccines, and the global demand for 40% of the generic medicines in the US and 25% demand in the UK. India has the highest number of pharmaceutical manufacturing facilities, which is associated with the US Food and Drug Administration (USFDA), and has 500 API producers, which make up 8% of the global API market overall.
North America expects the fastest growth in the market during the forecast period. The growth of the market is increasing due to the higher presence of the leading healthcare institutes and pharmaceutical companies, causing the higher demand for the pharmaceutical CROs to outsource the research and development activities in the innovations and manufacturing of drugs and treatment for the various types of diseases that are collectively driving the growth of the pharmaceutical CRO market in the region.
Pharmaceutical CROs are companies that provide outsourced research and development programs for the innovation of novel drugs and treatments. The rising economic stability in the countries and the spending on healthcare are driving the healthcare infrastructure. The increasing healthcare costs, research and development costs, and increasing demand for clinical trials for drug discovery and development are driving the demand for the pharmaceutical CRO market.
How Can AI Impact the Pharmaceutical CRO Market?
Artificial Intelligence (AI) plays an important role in the enhancement of the efficiency of pharmaceutical CROs in clinical trials and clinical research. AI and machine learning help in limiting the cost of operations associated with clinical research and drug development. It assists the pharmaceutical, CROs, and medical device companies in increasing the speed of the drug development process, enhancing clinical trial efficiency, enhancing data analysis, enhancing test automation, enhancing test automation, and management and collection accuracy.
Report Coverage | Details |
Market Size by 2034 | USD 91.20 Billion |
Market Size in 2024 | USD 44.58 Billion |
Market Size in 2025 | USD 47.89 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 7.42% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Type, Molecule Type, Therapeutic Areas, Service, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East, & Africa |
Rising demand for personalized medicines
The increasing healthcare infrastructure and the rise in genetic disorders are driving the demand for personalized medication. The inclination towards biologics and personalized medicines is contributing to the expansion of pharmaceutical CROs. The rising demand for personalized medicines is driving the demand for the research and development program for clinical trials, and drug development for personalized medicines is driving the growth of the pharmaceutical CRO market.
High Cost
The increased cost associated with clinical trials and drug development due to the strong quality assurance, advanced technology, and adherence to international standards limits the adoption of pharmaceutical CROs in small and medium healthcare institutions and restrains the growth of the pharmaceutical CRO market.
Emergence of technologies in CRO
The technological adoption of the pharmaceutical CRO for transforming the industrial process and clinical research, the technological adoption is creating opportunities for the expansion of the pharmaceutical CRO market. Technologies such as decentralized and remote trials, wearable technology, biosimulation, tech-enabled patient recruitment, and management are helping revolutionize the pharmaceutical CRO process.
The clinical segment dominated the pharmaceutical CRO market in 2023. The rising demand for clinical trials is driving the demand for pharmaceutical CROs. The CROs efficiently provide clinical trial management services in the different healthcare institutes like biotech, pharmaceutical, and medical device industries. In the clinical trial, the CRO is sponsored to perform a number of tasks, including planning, coordinating, executing, and supervising. The CROs help enhance technologies and methodologies, which increase patient engagement.
The pre-clinical segment is expected to grow at the fastest rate in the market during the forecast period. CROs help in preclinical research for drug development and manufacturing. Preclinical CROs perform several operations, including laboratory testing, safety assessment, drug formulation, regulation compliance, drug screening or design control, toxicology, biocompatibility, maximum dosage studies, and species expertise.
The small molecule segment led the pharmaceutical CRO market in 2023. The increasing demand for small molecule drug development for the treatment and diagnosis of common health conditions drives the growth of the segment. The significant demand for molecule drugs owing to the rise in diseases in the population, such as diabetes, migraine, fever, cancer, and others, contributes to the development of molecule drugs.
The large molecule segment is predicted to witness significant growth in the market over the forecast period. The rising prevalence of chronic diseases in the population and the rise in infectious disease cases are driving the demand for the large molecule segment. Additionally, further investment in CROs for development and innovations in drug discovery and development are driving the growth of the segment.
The clinical monitoring segment accounted for the largest growth in the pharmaceutical CRO market in 2023. The contract research organization (CRO) is the company responsible for providing clinical trial research to pharmaceuticals, which further includes clinical monitoring. Clinical monitoring is the responsible process for maintaining the integrity of clinical trial data and patient safety. CRO helps in the clinical monitoring process to maintain the protection of participants, ensure data accuracy, identify and analyze issues, plan for risks, and enhance the trials.
The regulatory affairs or medical affairs segment is expected to grow substantially during the predicted period. The CRO is the company that provides research and development processes in biotech, medical devices, and pharmaceuticals. It plays an essential part in the regulatory or medical affairs in the pharmaceutical and helps the client with several processes such as regulatory compliance, data management, clinical trial design and execution, statistical analysis, and regulatory consulting.
The oncology segment dominated the market in 2023. The rising prevalence of cancer worldwide due to changing lifestyles and environment drives the demand for continuous research and development activities for the innovations and launch of the treatment, medicines, and diagnostic procedures, which boosts the growth of the CRO in the oncology segment. The increasing demand for better treatment procedures for cancer patients’ outcome rate is increasing the research and development activities in oncology and boosting the growth of the pharmaceutical CRO market.
The immunology segment is expected to grow significantly in the market during the predicted period. The increasing prevalence of chronic and common diseases in the population due to the lowered immune system boosts the demand for CROs for research and development activities in the development and manufacturing of immunology drugs. Additionally, the research and development for biologics and gene therapies are driving the growth of the market.
Segments Covered in the Report
By Type
By Molecule Type
By Service
By Therapeutic Areas
By Geography
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