Global Information Inc. would like to present a new market research report, "Medical Devices Contract Research Organizations - Global Opportunity Assessment, Competitive Landscape and Market Forecasts to 2018" by GlobalData.
The global medical devices Contract Research Organizations (CRO) market is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.5% over the period 2011-2018. The global medical devices CRO market achieved revenues of $3.2 billion in 2011, which are expected to rise to $7.4 billion by 2018.
CROs provide benefits such as financial and operational efficiencies, and are being increasingly used by medical device companies to fulfill their clinical needs. CROs are investing in information technology systems and other e-clinical technologies to reduce the time spent on data collection, management and flow. Other factors that are increasing the demand for CRO expertise are the increasing complexities of clinical trials and the need to conduct trials in overseas locations.
In 2011, the top players in the medical devices CRO market globally included Quintiles, Covance, PPD, ICON, PAREXEL, INC Research and Charles River Laboratories. Most of the major players in the industry are based in the US, but have operations in all the prominent markets globally. There has been an increase in the number of regional CROs, especially in the emerging markets of India and China with the unique selling propositions of low-cost and regional regulatory expertise.
The deals scenario is strong in the medical devices CRO market. Acquisition of smaller CROs by the larger ones to expand in overseas markets or to specialize in other areas has been the norm.
The US is the largest market for medical devices CROs, accounting for about 50% of the global market. The US medical devices CRO market was valued at $1.6 billion in 2011, and is forecast to grow at a CAGR of 11.6% during the period 2011-2018, to reach $3.4 billion. The US is the largest market due to the favorable conditions for clinical research and also because it is the largest medical devices market globally. The US medical devices market was valued at about $133 billion in 2011, and is forecast to grow at a CAGR of 6% during the period 2011-2018. According to clinicaltrials.gov, 53% of clinical trials are performed in the US, 24% in Europe, and the remaining 23% in Asia, Latin America, Africa and Australia.
Cost-containment pressures in the US have resulted in increasing outsourcing of clinical trials to overseas locations, leading to a boom in clinical activities in emerging regions such as India, China, Eastern Europe and Latin American countries. Although India and China presently have a small share in the clinical trials market, these countries are poised to witness high growth in the future.
The benefits of conducting clinical trials in the emerging countries of the Asia-Pacific region outweigh the challenges involved in entering these markets. Concerns such as acquiring the regulatory approval to begin a trial and safety of patients are being tackled by the governments of these countries. Countries such as India, China and Brazil still rank low in terms of positive regulatory experiences. Intellectual Property (IP) protection is another major concern of CROs and medical device companies when entering a particular market for clinical trials.
CROs are receiving easy access to patients and high patient retention rates in emerging countries such as India and China. With the improving quality of data from clinical trials conducted in these countries and the increasing acceptance of such data from the regulatory authorities in the US and Europe, the CRO market is expected to register significant growth over the coming years in the Asia-Pacific region.
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