Global Contract Research Organisation (CRO) Services Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Contract Research Organisation (CRO) Services Market Outlook

• Increased R&D investments by the pharmaceutical and biotechnology companies are fuelling the market growth.
• One of the major market trends is the rising focus on reducing operational costs during the drug development process, which is expected to stimulate the demand for CRO services.
• The rising strategic partnerships and technological advancements are likely to boost the market value in the forecast period.

Contract Research Organisation (CRO) Services Market Overview

A contract research organisation (CRO), also known as a clinical research organisation, is a term used to refer to a company engaged in providing research-related assistance to pharmaceutical, biotechnology, and medical device companies on a contract basis. Contract research organisation services are key to the pharma, biotech, and MedTech sectors. These services support the efforts of clients to research, test, modify, and market the latest medical devices and pharmaceuticals.

The rising expiration of patents, the introduction of generic drugs, and technological advancements, such as mHealth and big data are leading to greater outsourcing of research to CROs. These factors are primarily driving the growth of the contract research organisation (CRO) services market. The high competition in the market is resulting in increased mergers and acquisitions, which are expected to enhance the full-service capabilities and global reach of larger companies.

The market growth is expected to be higher in the developing regions owing to growing investment in research and development activities and favorable regulatory policies. While large companies serve as premium CRO providers for many pharma and biotech companies globally, the small and mid-sized CROs are focusing on a more personalised approach and seeking to expand in niche sectors. The rapid technological advancements and expansion of key players into lower-cost emerging markets are the major trends in the market. This is anticipated to have a positive effect on the market growth over the forecast period.

Contract Research Organisation (CRO) Services Market Growth Drivers

Increased Investment in Contract Research Organisations is Propelling the Market Growth

In November 2023, Netherlands-based CRO Julius Clinical Research secured growth investment from Ampersand Capital Partners, a private equity firm located in the United States. This majority recapitalization and partnership are expected to boost the scientific and therapeutic capabilities of Julius along with expanding its geographic footprint in North America and Europe markets. Such major investment initiatives are likely to accelerate the growth of CRO services, which is poised to impact the market landscape.

Contract Research Organisation (CRO) Services Market Trends

The market is witnessing several trends and developments to improve the current global scenario. Some of the notable trends are as follows:

Increased Focus on Cost Efficiency Likely to Boost Market Size

One of the major market trends is the rising focus on reducing operational costs during the drug development process. To ensure cost efficiency, many pharmaceutical companies are increasingly outsourcing clinical trials to CROs and shifting their focus to their core competencies. This outsourcing trend is expected to boost the market size in the forecast period.

Growth in Strategic Partnerships to Meet Rising Contract Research Organisation (CRO) Services Market Demand

In November 2023 , global contract research organisation (CRO) Fortrea announced a strategic partnership with Medidata, an American technology company that develops software as a service (SaaS) for clinical trials, with the aim to use Medidata AI Intelligent Trials to enhance participation and access of diverse population groups in clinical trials. Such alliances are a major trend that is set to propel the market growth in the coming years.

Technological Advancements Are Projected to Impact the Market Growth

The market is witnessing an increasing integration of digital health technologies, artificial intelligence (AI), and machine learning in clinical trials. Such advancements make the data management, patient recruitment, and monitoring processes needed in clinical trials more efficient. At the same time, such innovations also drive the demand for CROs that are equipped with these technologies.

Globalization of Clinical Trials is Elevating the Contract Research Organisation (CRO) Services Market Value

A significant market trend is the globalization of clinical trials, with studies being conducted in multiple regions in order to include diverse patient populations and ensure swift regulatory approvals. This is prompting many biotech firms and pharma companies to seek the local expertise and regulatory knowledge of CROs.

Contract Research Organisation (CRO) Services Market Segmentation

Market Breakup by Service Type

• Drug Discovery
• Preclinical
• Clinical
• Data Analysis & Reporting
• Clinical Data Monitoring
• Project Management
• Consulting Services
• Others

Market Breakup by Therapeutic Indication

• Oncology
• Cardiovascular
• Central Nervous System (CNS)
• Dermatology
• Respiratory
• Others

Market Breakup by End-user

• Academic & Research Institutes
• Biotech Companies
• Medical Device Companies
• Others

Market Breakup by Region

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

Contract Research Organisation (CRO) Services Market Share

Market Segmentation Based on Service Types is Likely to Hold Substantial Market Share

Based on the service type, the market share is segmented into drug discovery, preclinical, clinical, data analysis & reporting, clinical data monitoring, project management, and consulting services, among others. The clinical services segment, which includes the management of clinical trials across Phases I to IV, constitutes a significant market share. The rising demand for specialized expertise in trial design, patient recruitment, and regulatory compliance are some of the factors pushing the segment's growth. Further, several pharmaceutical and biotechnology companies are preferring to outsource clinical trials to CROs to manage costs more effectively.

Contract Research Organisation (CRO) Services Market Analysis by Region

North America dominates the market for contract research organisation (CRO) services owing to the presence of major biotech and pharma companies. Within the region, the ongoing research and development activities and clinical trials are supporting the market growth. Further, with the advancing healthcare sector, there has been significant growth in terms of research, medications, and drug delivery, which is driving the demand for contract research organisation (CRO) services in the region. Thus, CROs are increasingly gaining prominence in the regional market due to the rise in the number of drug development projects across the nation. Moreover, in the Asia Pacific region, the market is expected to witness substantial growth over the forecast period as a result of rapid urbanization, growing investments in research and development, and favorable government initiatives.

Leading Players in the Contract Research Organisation (CRO) Services Market

The key features of the market report comprise strategic initiatives by the leading key players including mergers and collaborations and new product launches. The major companies in the market are as follows:

Australian Healthcare Solutions

This niche consulting organisation is based in Australia and specializes in the Australian medical device market. Australian Healthcare Solutions, through a combination of its local expertise and robust infrastructure, provides clinical research services to both domestic and international clients.

Avance Clinical

Headquartered in Australia, Avance Clinical is considered the largest full-service Australian contract research organisation, offering clinical trials and related services to support drug development efforts in the Phase I and II studies conducted in New Zealand and Australia. With more than 150 clinical trial experts, the company assists international biotech firms with clinical trial management, quality assurance, and medical writing.

Charles River Laboratories

Charles River Laboratories International, Inc., headquartered in Massachusetts, United States, is a significant player in the market. The company is a leading provider of preclinical and clinical trial services, such as preclinical testing, clinical trial management, laboratory services, and regulatory consulting.

CMIC HOLDINGS Co., LTD

CMIC HOLDINGS Co., LTD, considered Japan's largest contract research organisation, has a strong market presence. CMIC's expertise in the regulatory environment of Japanese and other Asian markets helps it to efficiently conduct clinical trials in these regions.

Other key players in the market include George Clinical, HCL Technologies Limited, ICON plc, Medpace Inc., Novotech, Parexel International, SGS SA, and Syneos Health.

Key Questions Answered in the Contract Research Organisation (CRO) Services Market Report

• What was the global contract research organisation (CRO) services market value in 2023?
• What is the global contract research organisation (CRO) services market forecast outlook for 2024-2032?
• What are the regional markets covered in the EMR report?
• What is market segmentation based on the service type?
• What is the market breakup based on therapeutic indication?
• Who are the major end users in the market?
• What are the major factors aiding the global contract research organisation (CRO) services market demand? 
• How has the market performed so far and how is it anticipated to perform in the coming years?
• What are the market's major drivers, opportunities, and restraints? 
• Which regional market is expected to lead the market share in the forecast period? 
• Which country is expected to experience expedited growth during the forecast period? 
• How does the rising burden of chronic diseases affect the market landscape?
• What are the major global contract research organisation (CRO) services market trends?
• How does the rise in R&D expenditure impact the market size?
• Which service type will dominate the market share? 
• Which therapeutic indication is expected to have a high market value in the coming years?
• Which end user is projected to contribute to the highest market growth?
• Who are the key players involved in the contract research organisation (CRO) services market?
• What are the current unmet needs and challenges in the market?
• How are partnerships, collaborations, mergers and acquisitions among the key market players shaping the market dynamics?