Healthcare Contract Research Outsourcing Market

The global healthcare contract research outsourcing market size was valued at USD 40.88 billion in 2020 and is projected to reach USD 67.88 billion by 2028, expanding at a CAGR of 6.4% during the forecast period, 2021-2028. The growth of the market is attributed to the growing preference for outsourcing activities due to cost and time constraints.

A contract research organization (CRO), also known as clinical research organization is a service organization that offers provision to the biotechnology, pharmaceutical industries, and various government research organization in the form of outsourced research facilities, which is available for both medical devices and drugs. CROs range from small niche specialty groups to large global full service administrations. The key role of the CRO is to supervise, plan, execute, and coordinate the procedures affiliated in the development of a clinical trial, as CROs are central contact point between the client and other trial actors. Services offered by this organizations are pharmacovigilance to post-approval services and drug discovery to commercialization along with these, it also offers expertise in project management, data management of research, research compliance, clinical study management, and in many other areas.

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The COVID-19 pandemic outbreak had significant impact on the market. During the pandemic, the lockdown imposed by government bodies across the globe resulted in suspended enrolment in most ongoing clinical studies and delays in starting new clinical trials by leading market players in the pharmaceutical industry, which hampered the demand of these services. However, the demand for COVID-19 testing, treatment, and vaccine development has risen, which increased the demand for healthcare CRO outsourcing.

Market Trends, Drivers, Restraints, and Opportunities

• Surging number of patent expiration in healthcare industry is projected to escalate the market expansion during the forecast period.
• Growing investment by key players in non-clinical and clinical research activities is one of the key factors driving the market growth.
• Rising demand for effective medical devices and drugs coupled with surging R&D programs is projected to boost the market during the forecast period.
• Lack of skilled professionals acts as a major challenge that can restrict the market growth in the coming years.
• Escalating development in biologics and drugs is anticipated to create significant growth opportunities for the market.

Scope of the Healthcare Contract Research Outsourcing Market Report

The report on the global healthcare contract research outsourcing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Healthcare Contract Research Outsourcing Market Segment Insights

Rising need drives the clinical monitoring segment

Based on services, the global healthcare contract research outsourcing market is divided into technology, laboratory, bio-statistics, clinical monitoring, regulatory/medical affairs, project management/clinical supply management, patient & site recruitment, investigator payments, quality management/assurance, medical writing, data management, and others. The clinical monitoring segment is projected to expand at robust growth rate during the forecast period due to rising need for monitoring ongoing clinical trial studies. However, the regulatory/medical affairs segment is anticipated to expand at a substantial CAGR during the forecast period owing to maintain compliance and growing demand to acquire approval for new drugs or devices.

Clinical segment to grow at high CAGR

On the basis of types, the market is segregated into pre-clinical, clinical, and drug discovery. The clinical segment is further segregated into phase I trial services, phase II trial services, phase III trial services, and phase IV trial services. The drug discovery segment is sub-categorized as lead optimization, target validation, and lead identification. The clinical segment is estimated to grow at high CAGR during the forecast period owing to the increasing need of personalized medicine, rising number of biologics, and escalating demand for advanced technologies. On the other hand, the pre-clinical segment is anticipated to register significant growth during the projected period attributed to the rising need to curb R&D expenses and increase in the number of preclinical trials involving large molecules.

Asia Pacific to constitute a key market share

In terms of region, the global healthcare contract research outsourcing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to constitute a key share of the market during the projected period owing to the favorable government initiatives, easy patient recruitment and retention, and high prevalence of chronic conditions in the region. However, the market of North America is anticipated to grow at a rapid pace during the forecast period due to the growing government support for R&D activities and increasing number of trials conducted and outsourced in the region.

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Segments

The global healthcare contract research outsourcing market has been segmented on the basis of

Services

• Technology
• Laboratory
• Bio-statistics
• Clinical Monitoring
• Regulatory/Medical Affairs
• Project Management/Clinical Supply Management
• Patient & Site Recruitment
• Investigator Payments
• Quality Management/Assurance
• Medical Writing
• Data Management
• Others

Types

• Pre-Clinical
• Clinical
  • Phase I Trial Services
  • Phase II Trial Services
  • Phase III Trial Services
  • Phase IV Trial Services
• Drug Discovery
  • Lead Optimization
  • Target Validation
  • Lead Identification

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Syneos Health
• GVK Biosciences Pvt. Ltd.
• ICON Plc
• Pharmaceutical Product Development, Inc.
• IQVIA
• Charles River Laboratory International, Inc.

Competitive Landscape

Key players competing in the global healthcare contract research outsourcing market are Syneos Health; GVK Biosciences Pvt. Ltd.; ICON Plc; Pharmaceutical Product Development, Inc.; IQVIA; and Charles River Laboratory International, Inc. Companies are focusing on providing various types of services to maintain their competitive position in the market. Companies have been widely engaged in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.

For instance, in October 2019, Society for Clinical Research Sites, a US based global and first organization completely dedicated to representing the interest of clinical research sites expanded its collaboration with the Parexel, a US based biopharmaceutical service provider. The company initially joined as a Site Engagement Partner and managed many important initiatives dedicated to improving the experience of the patient in clinical trials.