According to Nova One Advisor, the global pharmaceutical CRO market size was valued at USD 40.18 Billion in 2023 and is poised to grow from USD 43.13 Billion in 2024 to USD 81.51 Billion by 2033, at a CAGR of 7.33% during the forecast period (2024-2033).
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The growth of the market is driven by the growing complexity of clinical trials, such as the need for rigorous regulatory requirements and advanced technologies and increasing research and development costs. The increasing costs and complexity of the drug development procedure have led to a rising trend towards outsourcing these activities to CROs to minimize access and overhead specialized expertise contributed to streamlining the development process.
The pharmaceutical CRO market deals with companies that provide clinical trial services for the pharmaceutical industries to maintain clinical research services and studies to support product development. Pharmaceutical CRO provides an important component of the drug development ecosystem and offers a wide range of services that encompass every phase of the clinical trial process.
In addition, increasing significant preferences toward personalized and biologic medicine are contributing to the market expansion as they need specific technologies and expertise.
This advanced trend is driving the demand for specialized services that CROs provide, such as advanced data management and biomarker analysis. For instance, in July 2023, approximately 75% of clinical trials were conducted by contract research organizations by Thermo Fisher Scientific Inc. And further contributed to propel the growth of the pharmaceutical CRO market.
Pharmaceutical CRO Market Key Takeaways
- Asia Pacific pharmaceutical CRO market dominated the market in 2023 and accounted for a 45.86% share
- The Europe Pharmaceutical CRO Market is anticipated to grow over the forecast period
- The clinical segment dominated the market with a revenue share of 76.15% in 2023.
- The pre-clinical segment is projected to witness the fastest CAGR during the forecast year
- The small molecule segment dominated the market in 2023.
- The large molecule segment is anticipated to register a CAGR of 7.85% during the forecast period.
- The clinical monitoring segment dominated the market with the largest revenue share in 2023.
- The regulatory/medical affairs segment is projected to witness considerable growth from 2024 to 2033.
- The oncology segment dominated the market with a revenue share of 30.76% in 2023.
- The immunology segment is projected to witness a CAGR of 5.69% from 2024 to 2033.
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How is Pharmaceutical CRO Market Growing?
In addition, rising technological advancements in clinical trial management systems, artificial intelligence, and data analytics have enhanced contract research organization capabilities. These technologies improve data quality and efficiency, owing to faster clinical trial timelines. Various companies are rapidly adopting strategic initiatives to outsource non-core functions, which allows them to focus on their core capabilities.
These companies can access specialized resources and expertise that are critical for navigating complex regulatory processes and conducting clinical trials by partnering with CROs. This collaboration enables pharmaceutical companies to reduce costs associated with in-house R&D and enhance operational efficiency.
The Global Pharmaceutical CRO Market Trends
- The growing number of chronic disease treatments is expected to drive the pharmaceutical CRO.
- The rising investments into the research and development activities on CRO pharmaceuticals are estimated to enhance the market growth.
- The growing need for technological advancement in the production, drug development, and pharmaceutical industries is anticipated to accelerate the growth of the pharmaceutical CRO market.
Asia Pacific Pharmaceutical CRO Market Size and Forecast 2024 to 2033
The Asia Pacific Pharmaceutical CRO market size was exhibited at USD 18.71billion in 2023 and is projected to hit around USD 38.07 billion by 2033, growing at a CAGR of 7.36% during the forecast period 2024 to 2033.
North America pharmaceutical CRO market is experiencing significant growth leading the factors such as the availability of skilled workers in the region, a growing number of pharmaceutical companies, an increasing number of clinical trials, and an enhanced regulatory landscape. In addition, with significant investment in research and development activities, the region has a highly developed healthcare infrastructure further driving the market growth in the region. The U.S. and China are the major countries in the region.
U.S. Pharmaceutical CRO Market Trends
The U.S. market is expected to experience robust growth leading to growing investment in biopharmaceutical research and the presence of major market players. The prevalence of major pharmaceutical companies, combined with a cooperative regulatory environment from agencies such as the FDA has enhanced the process of drug development in the U.S. Furthermore, the market has a broad range of populations in the U.S. that improves comprehensive clinical trials, enabling more extensive quicker results and data collection.
Asia Pacific is dominated the pharmaceutical CRO market in 2023.
The market growth is driven by various factors such as the rising prominence of biopharmaceuticals, a growing number of clinical trials, and increasing investments in research and development in the region. The region provides a diverse patient population, which is essential for clinical studies. China, India, Japan, and South Korea are the major countries driving the market growth.
China Pharmaceutical CRO Market Trends
The Chinese market for pharmaceutical CRO is experiencing significant growth during the forecast period leading to the increasing investment in research and development activities and growing government support. China is the fastest growing country in the healthcare industry.
Chinese contract research organizations (CROs) have witnessed an increase in demand from domestic clients prioritizing growth and innovation. For instance, in March 2024, a leading global pharmaceutical company, Aurisco Pharmaceutical, was pleased to announce the completion of its investment in cGMP peptide manufacturing capacity at the company's USFDA-inspected site in Yangzhou, China.
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Pharmaceutical CRO Market Segment Insights
By type insights
The clinical segment dominated the market with a revenue share of 76.15% in 2023. The growth of the segment is mainly due to rising demand for a shift towards a patient-centric approach, a stringent regulatory environment, and increasing demand for clinical trials. CROs are incorporating methodologies and technologies that improve patient retention and engagement, further increasing their role in the clinical segment. For instance, in August 2024, a global contract research organization (CRO), Worldwide Clinical Trials developed tailored solutions for advancing therapies and announced the adoption of a Clinical Trial Management System (BSI CTMS) for conducting clinical trials.
The pre-clinical segment is expected to grow fastest during the forecast period. The segment growth is fueled by heightened regulatory scrutiny, collaborations with emerging companies, the rise of biologics, technological advancements, and increased demand for early-stage research. In addition, the increasing demand for personalized medicines has accelerated the need for significant pre-clinical testing to ensure efficacy and safety, driving segment growth.
By molecule type insights
The small molecule segment dominated the pharmaceutical CRO market in 2023. In small molecule drug development. There have been significant advancements. The small molecules are used to treat various diseases such as prevalent diseases, cancer, diabetes, fever, and migraines. The significant use of small molecule drugs for treating these diseases is boosting the segment growth.
The large molecule segment is anticipated to grow fastest during the forecast period. The segment growth is contributed to the increasing number of large molecule drug approvals. In addition, the increasing prevalence of infectious conditions is fueling higher capital investments and accelerating the demand for new therapeutic solutions by biotech and pharmaceutical companies to develop new drugs.
By service types
The clinical monitoring segment dominated the pharmaceutical CRO market in 2023. Clinical monitoring is necessary for ensuring the compliance and integrity of clinical trials. Clinical monitoring ensures adherence to regulatory standards, verifies data accuracy, and oversees clinical trial conduct, making it a crucial component of the process of drug development. It has implemented extensive source data verification and remote clinical monitoring, which has accelerated the rising presence of technology in clinical trials.
The regulatory/medical affairs segment is expected to witness significant growth in 2023. The rapid growth in outsourcing for regulatory affairs is fueled by drug pipelines, product registrations, clinical trial approaches, and increasing research and development activities. For instance, in September 2022, a provider of regulatory services globally, PharmaLex GMBH announced the launch of a new office in China, enabling consumers access to a team of experts in biopharmaceutical and pharmaceutical regulatory affairs in the region.
Therapeutic Areas Insights
In 2023, the oncology segment led the market, making up 30.76% of total revenue. This growth is largely driven by the increasing number of cancer cases, which creates a higher demand for safe and effective treatments. According to data from the American Cancer Society (January 2023), around 2 million new cancer cases are expected in the U.S. in 2024. As cancer rates rise, the need for better treatments will fuel more research and development by pharmaceutical companies. For example, Merck is actively working on new cancer therapies and expanding its current oncology offerings. These factors together are expected to drive further growth in the oncology sector.
The immunology segment is expected to grow at a compound annual growth rate (CAGR) of 5.69% from 2024 to 2033. This growth is fueled by the increasing emphasis on immunotherapy, a promising treatment for cancer and autoimmune diseases. Advances in immunology have also led to new developments in cell and gene therapies, as well as biologics, all of which contribute to the market’s expansion.
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Personalized Medicine Market : The global personalized medicine market size was valued at USD 530.11 billion in 2023 and is anticipated to reach around USD 1,176.66 billion by 2033, growing at a CAGR of 8.30% from 2024 to 2033.
Biologics Contract Development Market : The global biologics contract development market size was estimated at USD 8.49 billion in 2023 and is projected to hit around USD 18.68 billion by 2033, growing at a CAGR of 8.2% during the forecast period from 2024 to 2033.
Healthcare Contract Research Organization (CRO) Market: The global healthcare contract research organization market size was valued at USD 52.19 billion in 2023 and is anticipated to reach around USD 104.60 billion by 2033, growing at a CAGR of 7.2% from 2024 to 2033.
Biologics Market : The global biologics market size was estimated at USD 511.04 billion in 2023 and is projected to hit around USD 1,374.51 billion by 2033, growing at a CAGR of 10.4% during the forecast period from 2024 to 2033.
Biotechnology Market : The global biotechnology market size was estimated at USD 1.54 Trillion in 2023 and is projected to hit around USD 5.68 Trillion by 2033, growing at a CAGR of 13.95% during the forecast period from 2024 to 2033.
Oncology Market : The global oncology market size was estimated at USD 222.36 billion in 2023 and is projected to hit around USD 521.60 billion by 2033, growing at a CAGR of 8.9% during the forecast period from 2024 to 2033.
Clinical Trials Market : The global clinical trials market size was estimated at USD 81.90 billion in 2023 and is projected to hit around USD 153.59 billion by 2033, growing at a CAGR of 6.49% during the forecast period from 2024 to 2033.
U.S. Pharmaceutical Market : The U.S. pharmaceutical market size was valued at USD 602.19 billion in 2023 and is projected to surpass around USD 1,093.79 billion by 2033, registering a CAGR of 6.15% over the forecast period of 2024 to 2033.
Pharmaceutical CRO Market Company Insights
Some of the major players in the market such as IQVIA, Medpace, Thermo Fisher Scientific Inc., Laboratory Corporation of America Holdings, ICON plc, Parexel International (MA) Corporation, and others contributed to the market growth. These major players operating in the market are undertaking various initiatives such as mergers & acquisitions, partnerships, collaborations, product launches, and others to increase the reach of their services and strengthen their market presence.
- For instance, in May 2022, the PPD clinical research business of Thermo Fisher Scientific was recognized for excellence in the 2022 CRO Leadership Awards. This is the 11th consecutive year the business has been honored through this award program, which is based on a survey of biotech and pharmaceutical professionals conducted for Life Science Leader magazines and Clinical Leader.
Pharmaceutical CRO Market Top Key Companies:
The following are the leading companies in the pharmaceutical CRO market. These companies collectively hold the largest market share and dictate industry trends.
- Parexel International (MA) Corporation.
- ICON plc
- Laboratory Corporation of America Holdings
- Thermo Fisher Scientific Inc.
- Medpace
- IQVIA
- CTI Clinical Trial & Consulting
- WuXi AppTec
- Veeda Clinical Research
Pharmaceutical CRO Market Recent Developments
- In April 2024, Parexel expanded its collaboration agreement with Palantir to accelerate power clinical outcomes and clinical data delivery for patients.
- In February 2024, ICON plc boosted its feasibility, protocol optimization, and patient recruitment capabilities by leveraging the TriNetX platform. This platform connects to the EMR systems of a growing network representing over 57 million patients worldwide.This advancement will drive market growth by improving trial efficiency, reducing costs, and enhancing recruitment strategies, making clinical studies faster and more effective.
- In September 2023, ICON plc entered into a partnership agreement with the U.S. Biomedical Advanced Research and Development Authority (BARDA),to conduct clinical trials for next-generation COVID-19 vaccines. This will further accelerate the development and deployment of innovative vaccines.
- In November 2023, a new company was launched by AstraZeneca to allow contract research organizations (CROs) and Big Pharma to pay to access its tried-and-tested digital solutions for running clinical trials.
- In April 2024, in India, Goldman Sachs expanded its coverage CRO space as supply diversification.
- In October 2023, the launch of its clinical trial excellence project in India was launched by Roche Pharma India to strengthen the capacities of public health institutions to do drug research and clinical trials in India. To implement the project in India through gap assessment, and facilitating upskilling activities through knowledge sharing, training, and workshops, Roche has engaged Quinary Clinical Research, a Clinical Research Organization (CRO)
Pharmaceutical CRO Market Report Segmentation
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the Pharmaceutical CRO market.
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 Molecule Type
- Small Molecules
- Large Molecules
By Services
- Project Management/Clinical Supply Management
- Data Management
- Regulatory/Medical Affairs
- Medical Writing
- Clinical Monitoring
- Quality Management/ Assurance
- Biostatistics
- Investigator Payments
- Laboratory
- Patient And Site Recruitment
- Technology
- Others
By Therapeutic Areas
- Oncology
- CNS Disorders
- Infectious Diseases
- Immunological Disorders
- Cardiovascular Disease
- Respiratory Diseases
- Diabetes
- Ophthalmology
- Pain Management
- Other
By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
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