PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390154
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390154
The global contract research organizations (CRO) services market was valued at US$76.6 billion in 2021.
The contract research organizations (CRO) services market is projected to grow strongly during the forecast period. Contract research organization services (CRO) encompass a range of offerings including clinical research services, laboratory services, and consulting services which are used by pharmaceutical, biotechnology, and medical device industries. The rising R&D activities and technological advancements are the prominent drivers boosting the contract research organization CRO services market size.
Companies intensify their R&D efforts to innovate and bring new products to market, they increasingly rely on CROs to outsource specialized research services. This strategic partnership allows businesses to access a wide range of expertise, optimize resources, expedite development timelines, and ultimately foster innovation, thereby propelling the expansion of the CRO service market. According to the National Center for Science and Engineering Statistics, the United States witnessed a significant rise in research and development (R&D) investments, with a $51 billion increase in 2020, reaching a total of $717 billion. Projections for 2021 indicate further growth, with estimates suggesting a rise to $792 billion.
Pharmaceutical, biotechnology, and medical device companies rely on CROs for their specialized expertise and regulatory knowledge to efficiently manage complex clinical trials as CROs offer comprehensive services, ranging from study design and patient recruitment to data management and regulatory compliance, thereby adding more to the overall market growth. According to the Australian Government Department of Health and Aged Care, the Clinical Trials Activity initiative has allocated $750 million of funding over 10 years, starting from 2022-23. This significant investment aims to support Australian researchers and patients in conducting comprehensive national and international clinical trials, thereby enabling the testing of innovative treatments.
Electronic data capture (EDC), electronic trial master files (eTMFs), and risk-based monitoring have revolutionized the way research processes are conducted. Contract research organizations (CROs) have emerged as leaders in embracing and harnessing these cutting-edge technologies, enabling them to provide their clients with unparalleled benefits. Additionally, the adoption of risk-based monitoring techniques empowers CROs to proactively identify and address potential risks in real-time, ensuring study quality and compliance. For instance, Tata Consultancy Services (TCS), in April 2022, launched a risk-based monitoring solution for clinical trials which empowers intelligent decision-making and streamlines operations, revolutionizing the clinical trial monitoring process with valuable insights.
Asia-Pacific is expected to be a market leader.
Asia-Pacific is predicted to dominate the market owing to its expanding pharmaceutical, biotechnology, and medical device industries which have presented a vast market for clinical research and development. Additionally, governments in countries like China and India have implemented supportive regulatory frameworks and incentives to encourage clinical research, further fuelling the demand for CRO services. According to the National Bureau of Statistics of China, in 2021, China's investment in social Research and Experimental Development (R&D) reached a remarkable 2.7864 trillion yuan, compared to the previous year representing a notable 14.2 % increase.
The CRO industry operates within a highly regulated environment, governed by stringent guidelines from regulatory authorities like the FDA and EMA. These regulations impose rigorous compliance standards on CROs, necessitating extensive documentation, quality control measures, and adherence to ethical practices. Meeting these requirements can be a complex and resource-intensive process, leading to additional costs, time-consuming procedures, and potential delays in project timelines. The need for meticulous compliance adds a layer of complexity to CRO operations, impacting their efficiency and profitability.