Global Healthcare Contract Research Organization Market Overview
The key driver impacting the healthcare contract research organization market is the rising government funding to develop new drugs worldwide. For instance, NIH funding adds to published research linked with every one of the 210 new drugs allowed by the Food and Drug Administration between 2010–2016. Communally, grant funding in total is more than $100 billion for this research. It invests over $1B in awards every year through its Small Business Technology Transfer (STTR) and Small Business Innovation Research (SBIR) programs. In 2019, NIH's SBIR and STTR programs invested almost $1.2b for early-stage drug development. Also, the presence of an ever-expanding pharmaceutical industry is adding growth to the market. For instance, As per the India Brand Equity Foundation, globally Indian pharmaceutical market stands 3rd in production by volume and 14th by value. The domestic pharmaceuticals market revenue comes to $20.03 bn in 2019, which is enhanced by 9.3% from 2018. The market of the Pharma Industry in India is anticipated to attain $130 Bn by 2030. Moreover, the mounting pressure on industry players to pursue strict timelines has amplified the outsourcing research activities demand to contract research organizations (CROs), contributing to the Healthcare contract research organization's market growth in the coming years.
According to Value Market Research, the global healthcare contract research organization market size was valued at around USD 40000 million in 2020, and it is estimated to grow at a CAGR of about 6.6% during the forecast period 2021 to 2027.
The Governments and public-sector organizations that have made noticeable investments towards enhanced biomedical research are estimated to augment healthcare contract research organization in the forecast period. For instance, The NIH is the most significant public funder of biomedical research globally. It consists of 24 institutes and centers awarding $32 billion per year in grants to get better human life and decrease illness and disability. Similarly, Horizon 2020 (H2020) is the largest EU Research and Innovation program with almost €80 billion of funding available in seven years (2014 to 2020). Multinational clinical trials can seek out funding under the H2020 “Health, demographic change and wellbeing” program. The high fundings give rise to more clinical research, leading to massive market demand in the coming years. However, quality issues of CRO services may hamper the market in the long run. Also, intellectual property rights issues negatively impact the market. The current industry trends, such as the favorable environment for clinical trials in developing countries, and the high adoption of innovative trial designs, are expected to offer new lucrative market opportunities for the key players.
The Healthcare contract research organization market is vast, with many local and global players. The Healthcare contract research organization market is extensive, with many regional and international players. The important market leaders follow numerous strategies to improve their market position, such as acquisitions, extending product portfolio, contracts, amalgamation, contracts, acquisitions, product upgrades to enlarge their market share across the globe. The significant players studied in the report include ICON Plc, Syneos Health, Covance, Charles River Laboratories (CRL), IQVIA, Covance, PAREXEL International Corporation, Medidata Solutions, GVK Biosciences Private Limited, Pharmaceutical Product Development, LLC (PPD), and Pharmaron.
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In this research report, the Healthcare contract research organization market is segmented by type, service, and region.
Analysis by Type:
By type, the report is categorized into drug discovery, preclinical, and clinical. The clinical services segment dominates the type segment with over 76.7% share in 2020. It is a rising number of biologics, the need for personalized medicines and orphan drugs, and the demand for advanced technologies. Also, the clinical trial includes four elaborate phases that include human subjects. Moreover, the globalization of clinical trials, technological advancement, and high demand for CROs to conduct clinical trials contribute to the massive demand from the clinical services segment in the forecast period.
Analysis by Service:
By services, the report is categorized into project management/clinical supply management, regulatory/medical affairs, medical writing, data management clinical monitoring, quality management/ assurance, bio-statistics, investigator payments, laboratory, patient and site recruitment, technology, and others. The clinical monitoring segment dominates the services segment with over 18% share in 2020. It is due to the growing number of clinical trials and the necessity of monitoring those studies that lead to more demand for the services. Moreover, the introduction of smart analytics and real-time data acquisition devices is estimated to improve clinical monitoring data in the healthcare sector, contributing to clinical monitoring segment growth in the forecast period.
Analysis by Region:
In the regional outlook of the global Healthcare contract research organization market, the Asia Pacific region dominates globally with a 46.9% market share in the forecast period. It is due to the high prevalence of chronic conditions and easy patient recruitment and retention. Moreover, the availability of diverse populations and favorable government support, and establishment of regulations as per accepted standards contributes to tremendous market growth across North America.
Market Segmentation covered in the Report:
By Type
- 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)
By Service
- 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
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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