Healthcare Contract Research Organization (CRO) Market Share & Trends Will Hit USD 54.7 Billion By 2025 : Grand View Research Inc.
San Francisco, 12 June 2019: The Report Healthcare Contract Research Organization (CRO) Market Size, Share & Trends Analysis Report By Type (Drug Discovery, Pre-Clinical, Clinical), By Service, By Region, And Segment Forecasts, 2019 – 2025
The global healthcare contract research organization (CRO) market size is expected to reach USD 54.7 billion by 2025, according to a new study by Grand View Research Inc. It is anticipated to expand at a CAGR of 6.6% during the forecast period. Increasing cost of drug development is expected to drive the growth. Drug maker and sponsor companies are under pressure to replace the revenue loss caused by generics, increasing patent expirations, number of partnerships to identify biologics, and growing R&D costs, which has made drug development more expensive and complex.
Regulatory framework for drug discovery and drug development is complex in various countries. Thus, an increasing need for expertise in different areas of drug development is driving the demand for outsourcing services. Drug companies are not only outsourcing production of medicines, but also clinical trials. With increasing privatization of clinical trials, there has been an increase in outsourcing of manufacturing processes to developing regions such as India, China, and Latin American countries.
China and India are projected to witness tremendous growth in near future, owing to their treatment naïve patient pool coupled with high disease prevalence. Furthermore, genetically diverse population, highly qualified investigators, and well-equipped hospitals are other factors creating growth opportunities in India for global clinical trials market.
In addition, growing pressure on market players to follow stringent timelines has increased the demand for outsourcing of research activities. Even government organizations are outsourcing their clinical trial activities to CROs so that they can carry out the clinical trials with the required infrastructure, expertise, and minimize cost and timelines. In 2015, the Canadian Federal Budget made an investment of USD 1.33 billion for the Canada Foundation for Innovation (CFI).
In January 2016, Charles River Laboratories International, Inc. entered into a definitive agreement to acquire WIL Research for approximately USD 585 million. The acquisition is expected to strengthen Charles’ ability to partner with global clients. The high R&D spending in oncology has also fueled the need for healthcare contract research outsourcing. Realizing this demand, France-based laboratory, XenTech increased its capacity of its animal care to 50% along with increasing collaborative research projects.
CROs are in a process of continuously improving their portfolio by integrating services with technology. This enables them to save more on time and deliver efficient and desired results to the clients. In June 2016, LSK Global Pharma Services Co., Ltd. expanded the use of Medidata Clinical Cloud by Medidata Clinical Solutions, Inc. Established in the year 2000, the company conducts clinical trials at both local and global scale. It utilizes Medidata’s electronic data capture, unified randomization, medical coding solution, and trial management supply solution.
In addition to offering improved services, CROs are in the process of collaborating to promote their services at a global level. For instance, In June 2017, PAREXEL entered into a merger agreement with West Street Merger Sub, Inc., a wholly-owned subsidiary of West Street Parent, LLC. According to the merger agreement, PARAXEL will survive as a subsidiary of West Street Parent, LLC, in a transaction valued at approximately USD 5.5 billion.
Access Research Report of Healthcare Contract Research Organization (CRO) Market @ www.grandviewresearch.com/industry-analysis/healthcare-contract-research-outsourcing-market
Further key findings from the study suggest:
Grand View Research has segmented the global healthcare Contract Research Organization (CRO) market on the basis of type, service, and region:
Healthcare Contract Research Organization (CRO) Type Outlook (Revenue, USD Million, 2014 - 2025)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information: www.grandviewresearch.com
The global healthcare contract research organization (CRO) market size is expected to reach USD 54.7 billion by 2025, according to a new study by Grand View Research Inc. It is anticipated to expand at a CAGR of 6.6% during the forecast period. Increasing cost of drug development is expected to drive the growth. Drug maker and sponsor companies are under pressure to replace the revenue loss caused by generics, increasing patent expirations, number of partnerships to identify biologics, and growing R&D costs, which has made drug development more expensive and complex.
Regulatory framework for drug discovery and drug development is complex in various countries. Thus, an increasing need for expertise in different areas of drug development is driving the demand for outsourcing services. Drug companies are not only outsourcing production of medicines, but also clinical trials. With increasing privatization of clinical trials, there has been an increase in outsourcing of manufacturing processes to developing regions such as India, China, and Latin American countries.
China and India are projected to witness tremendous growth in near future, owing to their treatment naïve patient pool coupled with high disease prevalence. Furthermore, genetically diverse population, highly qualified investigators, and well-equipped hospitals are other factors creating growth opportunities in India for global clinical trials market.
In addition, growing pressure on market players to follow stringent timelines has increased the demand for outsourcing of research activities. Even government organizations are outsourcing their clinical trial activities to CROs so that they can carry out the clinical trials with the required infrastructure, expertise, and minimize cost and timelines. In 2015, the Canadian Federal Budget made an investment of USD 1.33 billion for the Canada Foundation for Innovation (CFI).
In January 2016, Charles River Laboratories International, Inc. entered into a definitive agreement to acquire WIL Research for approximately USD 585 million. The acquisition is expected to strengthen Charles’ ability to partner with global clients. The high R&D spending in oncology has also fueled the need for healthcare contract research outsourcing. Realizing this demand, France-based laboratory, XenTech increased its capacity of its animal care to 50% along with increasing collaborative research projects.
CROs are in a process of continuously improving their portfolio by integrating services with technology. This enables them to save more on time and deliver efficient and desired results to the clients. In June 2016, LSK Global Pharma Services Co., Ltd. expanded the use of Medidata Clinical Cloud by Medidata Clinical Solutions, Inc. Established in the year 2000, the company conducts clinical trials at both local and global scale. It utilizes Medidata’s electronic data capture, unified randomization, medical coding solution, and trial management supply solution.
In addition to offering improved services, CROs are in the process of collaborating to promote their services at a global level. For instance, In June 2017, PAREXEL entered into a merger agreement with West Street Merger Sub, Inc., a wholly-owned subsidiary of West Street Parent, LLC. According to the merger agreement, PARAXEL will survive as a subsidiary of West Street Parent, LLC, in a transaction valued at approximately USD 5.5 billion.
Access Research Report of Healthcare Contract Research Organization (CRO) Market @ www.grandviewresearch.com/industry-analysis/healthcare-contract-research-outsourcing-market
Further key findings from the study suggest:
- Clinical trial services led the healthcare Contract Research Organization (CRO) market in 2018 owing to the fact that these services comprise four elaborate phases including human subjects. Increasing complexities in R&D trends have raised the need for expertise, thereby shortening the time required to commercialize the molecule
- Asia Pacific was the largest regional market with revenue share estimated at over 37% due to the reduced cost it offers compared to U.S and other developed economies. Increasing incidence of chronic and lifestyle diseases such as heart disease and diabetes coupled with ease of patient recruitment and availability of expertise for clinical trials are a few driving factors
- North America also held a significant market share owing to the presence of global industries, which invest most of their revenue in research activities. In addition, many academic institutes receive grants to undertake these activities. For instance, in July 2015, the University of Toronto received USD 1.5 billion under the Medicine by Design initiative
- Europe offers tax benefits to large and small-scale companies to promote more contract research outsourcing activities. The large companies can claim 30% deducible from the income of their R&D expenditure
- Major contributors in the global healthcare CRO market are Quintiles, Covance, Pharmaceutical Product Development, LLC (PPD), Parexel, Charles River Laboratories (CRL), ICON plc, inVentiv Health, and Medidata Solutions. According to the US database of trials, Parexel, Quintiles, and PPD are involved in large number of collaboration with the sponsors pertaining to clinical trials
- In September 2017, Laboratory Corporation of America Holdings acquired Chiltern in a transaction worth USD 1.2 billion. Chiltern became a part of LabCorp’s Covance Drug Development business unit.
Grand View Research has segmented the global healthcare Contract Research Organization (CRO) market on the basis of type, service, and region:
Healthcare Contract Research Organization (CRO) Type Outlook (Revenue, USD Million, 2014 - 2025)
- Drug Discovery
- Target Validation
- Lead Identification
- Lead Optimization
- Pre-Clinical
- Clinical
- Phase I Trial Services
- Phase II Trial Services
- Phase III Trial Services
- Phase IV Trial Services
- Project Management/Clinical Supply Management
- Data Management
- Regulatory/Medical Affairs
- Medical Writing
- Clinical Monitoring
- Quality Management/ Assurance
- Bio-statistics
- Investigator Payments
- Laboratory
- Patient and site Recruitment
- Technology
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information: www.grandviewresearch.com
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