Clinical Trials Support Service Market to Witness a Rise in Revenue of US$ 47.1 Billion By 2032

The global clinical trials support service market was valued at US$ 25.2 billion in 2023 and is projected to surpass US$ 47.1 billion by 2032, growing at a CAGR of 7.22% during the forecast period from 2024 to 2032.

The global clinical trials support service market was valued at US$ 25.2 billion in 2023 and is projected to surpass US$ 47.1 billion by 2032, growing at a CAGR of 7.22% during the forecast period from 2024 to 2032.

The clinical trials support service market is witnessing remarkable growth due to several key factors. These include the increasing complexity of trials, a rise in research and development (R&D) investment, and a growing emphasis on patient-centricity. Outsourcing services such as data management and site selection to specialized providers is seen as a way to streamline drug development. Furthermore, technological advancements are likely to further optimize the process, indicating a future of faster and more efficient trials.

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As the world experiences a rise in various diseases and conditions, there is a growing focus on developing new, safer, and more effective treatments. This emphasis has led to an increased demand for strong and efficient clinical trial support services. The CDC has highlighted a surge in clinical trials, particularly in the field of infectious diseases, which can be due to recent global health challenges necessitating rapid research and solution development. The FDA has reported a 15% increase in the number of new drug application (NDA) submissions in the past year, indicating the thriving pharmaceutical industry and the growing need for clinical trial support services.

The utilization of Contract Research Organizations (CROs) for strategic support services and the outsourcing of clinical trials represents a significant transformation in the pharmaceutical research landscape, guaranteeing improved efficiency and cost-effectiveness. For example, a medium-sized biotech company delegated its Phase II trial to a specialized CRO, leading to savings of around US$ 2 million in personnel expenses, as indicated by market analysis. The analysis suggests that these savings stem from the decreased requirement for an internal clinical research team, as companies can leverage the expertise of CROs instead. Major pharmaceutical firms have also acknowledged and embraced this emerging pattern.

Cost Reduction Needs: Leading to the Adoption of Clinical Trial Support Services

In 2023, it cost an average of US$ 2.6 billion to bring a new drug to the market. This high cost has led companies in the clinical trial support service market to seek ways to minimize expenses, particularly those related to trials. Contract Research Organizations (CROs) and their Clinical Trial Support Services (CTSS) have been effective in saving costs by streamlining the drug creation process, reducing overheads, and creating economies at scale.

Outsourcing clinical trials to CROs has shown tangible financial benefits. For example, research from the Tufts Center for the Study of Drug Development revealed that outsourcing a Phase III trial can lead to a 41% cost reduction compared to executing it in-house. Additionally, a study by Astute Analytica found that companies who outsource over half of their R&D activities achieve 35% higher returns on investments (ROI). Furthermore, a mid-sized biotech firm was able to cut personnel costs by US$ 2 million just by outsourcing its Phase II trial.

Large pharmaceutical companies, such as AstraZeneca and GSK, have recognized the potential benefits of clinical trial support services and have formed partnerships with CROs to achieve similar cost-cutting, improved patient recruitment rates, and overall efficiency optimization.

The high cost of drug development has been a major concern, with estimates of the cost varying from US$ 113 million to just over US$ 6 billion. The expenses of developing a new drug increase as the benefits it provides decrease since larger and more extensive trials are needed for regulatory approval. Moreover, a significant amount of public funding contributes to the research of most new drugs, which gives the public a valid interest in guaranteeing reasonable pricing for life-saving medications.

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Trend in Clinical Trials Support Services Market: Shift Toward Patient-Centric Trials

A significant trend in the clinical trials support service market is the shift toward patient-centric trials. This shift is due to the FDA’s emphasis on the importance of patient-reported outcomes and the increasing complexity it adds to the trials. Services that aid in patient recruitment, retention, and real-world data collection are gaining prominence due to this evolution, leading to a spike in demand for specialized support services, further propelling the market forward.

The FDA’s release of guidelines in 2020 emphasizing the need for patient diversity in clinical trials has had a substantial impact on the industry. Approximately 40% of pharmaceutical companies reported revising their recruitment strategies to ensure a broader and diverse participant base post these guidelines.

Notably, the focus on diversity in clinical trials has seen a significant shift. In 2019, only about 20% of clinical trials reported having a diverse patient base. However, by 2022, this figure had leaped to 35%. The trajectory suggests that by 2025, we might see over half of the new clinical trials placing a priority on patient diversity.

Companies emphasizing diverse trials can potentially speed up their drug’s time-to-market by up to six months, leading to a potential increase in revenues by 10-15%. Moreover, focusing on diversity has another intangible yet profound impact: building trust. A 2022 survey highlighted that 60% of respondents from historically underrepresented communities would be more willing to participate in clinical trials if they were aware of the trial’s commitment to diversity.

Asia Pacific and Latin America: Witnessing a Surge in Clinical Trial Support Services Market Revenue

In recent years, the Clinical Trial Support Services market in Asia Pacific and Latin America has experienced substantial growth. This expansion is driven by a combination of factors, including demographics, cost competitiveness, untapped potential, evolving regulatory landscapes, and the emergence of local expertise.

The growth in these regions is influenced by several factors. Demographics play a significant role, with Asia Pacific representing 60% of the world’s population and Latin America holding an 8% share. This substantial population provides a large patient pool necessary for global clinical trials. Additionally, the aging demographic and the expansion of the middle class have increased the demand for clinical trials, particularly for diseases associated with aging and lifestyle-related conditions. For example, rising disposable incomes in countries such as Brazil have made private healthcare more accessible.

According to a report by Astute Analytica, clinical trial costs in Asia Pacific and Latin America are notably lower (25-40%) than in North America or Europe. This affordability extends to various operational aspects, including investigator fees, site rentals, and patient compensation. Moreover, government incentives, such as tax breaks and grants, further contribute to the appeal of these regions for clinical trials. Examples of such incentives include China’s R&D tax exemption and Singapore’s clinical research grants.

Global Clinical Trials Support Service Market Leaders

  • Charles River Laboratories
  • Covance Inc.
  • Icon PLC
  • inVentiv International Pharma Services
  • IQVIA
  • Laboratory Corp. of America Holdings
  • Novotech
  • Parexel International
  • Pharmaceutical Product Development LLC
  • Quotient Bioresearch
  • WuXi AppTec
  • Leukemia & Lymphoma Society (LLS)
  • Other prominent players

Market Segmentation Overview

By Trial Type

  • Centralized Clinical Trial
  • Decentralized Clinical Trial

By Therapeutic Type

  • Small molecules
  • Biologic drugs
  • Medical Therapeutic Types

By Phases

  • Preclinical Studies
  • Phase I
  • Phase II
  • Phase III
  • Phase IV

By Services

  • Site Management
  • Patient Recruitment
  • Clinical Trial management
  • Data Management
  • Others

By Application

  • Oncology
  • CNS and mental disorders
  • Cardiovascular diseases
  • Infectious diseases
  • Blood disorders
  • Others

By End User

  • Pharmaceutical & Biotechnology companies
  • Contract Research Organizations (CROs)
  • Medical Therapeutic Types Companies
  • Others

By Region

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

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