Global Contract Research Organization (CRO) Services Market By Service Type (Pre-Clinical, Discovery, Clinical, and Laboratory Services), Application (Oncology, Cardiology, Infectious Disease, Metabolic Disorders, Diabetes, and Others), End-User (Pharmaceutical & Biopharmaceutical, Medical Device, Academic and Research Institutes) and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 – 2030

Market Perspective

The global Contract Research Organization (CRO) Services Market was valued at USD 42.95 billion in 2022 and is projected to reach USD 112.53 billion by 2030, growing at a CAGR of 11.81% from 2023 to 2030.

The contract research organization services play a critical role in the pharmaceutical and biotechnology industries. CROs offer outsourced research services to companies in these sectors. These services encompass clinical trials, drug discovery, development, laboratory services, regulatory support, and post-marketing surveillance.

The applications of CRO services are wide-ranging, encompassing drug development, biopharmaceutical research, medical device testing, and regulatory consulting. The growth of the market is driven by several factors such as the growing complexity of clinical trials, the need for cost and time efficiency, increased research and development activities in the life sciences sector, and the demand for accelerated drug approvals to address patient needs.

Key Insights

• Based on service type, the discovery segment acquired the largest market share in 2022
• Based on application, the oncology segment captured the highest revenue share in 2022
• Based on end-user, the medical device segment generated a significant market share in 2022
• On the basis of region, North America accounted for the largest market share in 2022

Cost Efficiency in Drug Development Fuels Contract Research Organization (CRO) Services Market Growth

One of the primary factors fueling the growth of the market is the imperative for cost efficiency in the field of drug development. To confront the ongoing challenge of reducing expenses, pharmaceutical companies are compelled to explore avenues that enable them to maintain research quality and speed while minimizing costs. Employing the services of CROs offers pharmaceutical companies the opportunity to utilize specialized knowledge and infrastructure, while also avoiding the significant capital investments typically associated with in-house research. This cost-effective strategy empowers companies to undertake a greater number of research and development activities, thereby increasing the demand for CRO services.

Concerns Pertaining to Regulatory Challenges Impede Contract Research Organization (CRO) Services Market Development

Regulatory challenges and compliance issues act as significant factors restraining the growth of the CRO services market. The pharmaceutical and biotech industries are subject to stringent regulations and oversight by health authorities. Non-compliance or data irregularities in clinical trials can result in costly delays or even project cancellations. The need to adhere to diverse and evolving regulatory frameworks adds complexity and risk to CRO operations, thereby impacting their profitability and growth potential.

Recent Developments

September 2023: ICON announced its collaboration with Biomedical Advanced Research and Development Authority (BARDA). This partnership aims to conduct a clinical trial to assess the efficacy of advanced COVID-19 vaccine candidates.

March 2021: PSI CRO unveiled its plan to establish a new office in Ra'anana, Israel. This strategic move not only facilitates the expansion of PSI's workforce in the region but also enhances its ability to ensure the timely completion of clinical trials.

Segmentation Analysis

Based on service type, the market is categorized into pre-clinical, discovery, clinical, and laboratory services. The pre-clinical segment garnered the highest revenue in 2022 due to the growing focus on cancer research and the expanding pipeline of oncology drugs in various stages of development.

Based on end-user, the market is categorized into pharmaceutical & biopharmaceutical, medical device, academic and research institutes. The medical device segment held the largest market share in 2022, mainly driven by the increasing complexity of medical device development and the growing demand for outsourced services to navigate the evolving regulatory landscape.

North America Experienced Robust Growth Due to Favorable Regulatory Environment

North America dominated the contract research organization (CRO) services market in 2022 owing to several factors, including a well-established pharmaceutical and biotech industry, advanced research infrastructure, a highly skilled workforce, and a favorable regulatory environment. Additionally, North America benefits from the early adoption of innovative technologies, thereby reinforcing its standing in the CRO services market. The future outlook for the regional market looks promising, with continuous advancements in drug development and clinical research.

Asia Pacific to Witness Substantial Growth Owing to the Large Population

Asia-Pacific is emerging as the fastest-growing region in the contract research organization (CRO) services market with the highest CAGR, primarily driven by the increasing presence of emerging markets such as China and India. These countries have become tourist destinations for pharmaceutical and biotechnology companies due to their large patient populations, cost-effective research options, and evolving regulatory frameworks. Furthermore, Asia Pacific offers a vast pool of skilled professionals and a growing number of contract research organizations, making it an increasingly competitive region for CRO services. This growth is underpinned by the globalization of clinical trials and the region's commitment to improving research capabilities, making it a hub for further expansion in the CRO sector.

Competitive Landscape

The global contract research organization (CRO) services is fragmented with key players such as Charles River Laboratories, WuXi AppTec, Medpace, Parexel International (MA) Corporation, Syneos Health, Société Générale de Surveillance SA, Clinipace, IQVIA Inc, ICON plc, and PSI, among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product launches, and collaborations to expand their business globally and enhance their competitive position.

The global Contract Research Organization (CRO) Services Market is segmented as follows:

By Service Type

• Pre-Clinical
• Discovery
• Clinical
• Laboratory Services

By Application

• Oncology
• Cardiology
• Infectious Disease
• Metabolic Disorders
• Diabetes
• Others

By End-User

• Pharmaceutical & Biopharmaceutical
• Medical Device
• Academic and Research Institutes

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America