12 August 2022
Visiongain has published a new report entitled Contract Research Organisations (CROs) Market Report 2022-2032: Forecasts by Services (Preclinical, Clinical (Phase I, Phase II, Phase III, Phase IV), Laboratory Services, Consulting Services, Data Management Services), by Company Size (Large Pharma & Biotech Companies, Mid-sized Pharma & Biotech Companies, Small Pharma & Biotech Companies), by Drug Type (Small Molecules, Large Molecules), by Therapeutic Area (Oncology, CNS, Cardiology, Infectious, Metabolic, Others) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The global Contract Research Organizations (CROs) market was valued at US$57.1 billion in 2021 and is projected to grow at a CAGR of 9.95% during the forecast period 2022-2032.
Biotech firms seek collaborations with CROs to stay competitive in the Global Market
It is quite advantageous for biotech and pharmaceutical businesses to collaborate with a CRO that can support them all the way through their clinical research services such as clinical trials, preclinical research, pharmacovigilance, biopharmaceutical development, bioassay development, and data management among others. A seasoned, full-service CRO has a vast network of experts and approaches pharmaceutical drug development from the perspective of the end goal. Working closely with a good regulatory team is essential since biotech companies inevitably encounter regulatory restrictions that must be met. Biotech companies typically have high levels of technical skill in the product development process but frequently lack the necessary regulatory knowledge. Additionally, regulatory standards may differ between nations and areas. A biotech company finds it challenging to keep up with the constantly evolving rules of the international market. CROs can contribute more expertise, value in this area, and make a difference.
The major drivers for the growth of the contract research organizations (CROs) market are increasing R&D expenditure by major pharmaceutical and biotech companies coupled with growing number of clinical trials in emerging countries. On the other hand, stringent regulatory scenarios in developed economies and intellectual property rights issues are restraining the growth of this market.
How has COVID-19 had a Significant Positive Impact on the Contract Research Organizations (CROs) Market?
The COVID-19 pandemic abruptly and drastically altered the global demand and required a universal response. While certain sectors, like retail, hospitality, and transportation came to a screeching halt, others, like healthcare, had to instantly adjust to cope with the massive humanitarian crisis brought on by COVID-19. Clinical trial practitioners in the life sciences sector had to quickly adapt to provide alternate methods of participant monitoring and care in a setting where physical access was not an option. In clinical studies conducted during the pandemic, numerous data collection techniques that had been available for years but had not been extensively used were rapidly implemented.
The COVID-19 epidemic last year forced sectors to quickly adapt and change in response to a situation they had never encountered before. To survive, industries grouped, got innovative, and stepped outside of their comfort zones. In a world where conventional, on-site procedures were no longer an option, which required fast shifting to accommodate alternate means of monitoring and caring for clinical trial participants. The pandemic hastened the widespread acceptance of novel strategies, technologies, and models—many of which had previously been cautiously investigated and tested.
Additionally, the industry has gained insight into when and how to use these strategies to enhance clinical research thanks to the pandemic's forced adoption of fit-for-purpose, hybrid, and decentralized clinical trial models. Fortunately, the tools and software needed to support these advancements in clinical research are already in place and are intended to lead the way for clinical trials in the future. Study teams can be sure that technology will not hinder them as clinical trial methodologies continue to change.
How will this Report Benefit you?
Visiongain’s 305-page report provides 116 tables and 181 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses of the Global Contract Research Organizations (CROs) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Contract Research Organizations (CROs). Get the financial analysis of the overall market and different segments including services, end-users, drug type, and company size, and capture a higher market share. We believe that there are strong opportunities in this fast-growing contract research organizations (CROs) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximize the productivity of the company.
What are the Current Market Drivers?
Rising Demand for Clinical Trials Globally
Due to ongoing investment in R&D, growing demand for biopharmaceuticals, and increased healthcare needs for the aging population, biotech, pharmaceutical, and medical device firms continue to grow quickly. The need for efficient clinical trials has grown in response to this in order to guarantee the efficacy and safety of products. Almost 266 thousand open clinical trials are currently taking place worldwide. There are now more than 105 thousand open clinical studies running alone in the U.S.
These trials are primarily looking at biologics and other pharmaceutical drugs. The market for clinical trial services is expanding positively, which has resulted in an increase in finance and investment as well as M&A (merger and acquisition) activity, the usage of CROs (contract research organizations), and functional service providers. The FDA's (Food and Drug Administration) recent simplification of the approval adoption process, the development of genomics, and the introduction of medications with genetic profiles specifically tailored to patients or diseases are other factors contributing to the growth of the clinical trial services market.
Rising R&D Investments by Pharmaceutical and Biotech Companies to Boost CROs Market Growth
The extensive process of creating a new drug involves risk at each stage and often takes around 10 years before it is available for official use. One successful drug requires a significant financial investment to be released onto the market for patients. There is a risk of sunken capital investment in each stage of the clinical trial. In the United States, the government, businesses, non-profit groups, medical professionals, academic institutions, and universities all play significant roles in helping patients access new medical advancements and medications. Out of all of these organizations, the biopharmaceutical sector is responsible for a large number of clinical trial investments in the US.
The worldwide pharmaceutical sector is heavily invested in research, with cutting-edge businesses spending roughly 15% of their sales on research activities. Some of the largest pharmaceutical corporations have raised their R&D spending to support the development of new products and medications. For instance, R&D expenses for 2020 include US$2.2 billion from Incyte, US$2.7 billion from Regeneron Pharmaceuticals, US$3.9 billion from Biogen, and US$11.1 billion from Bristol-Myers Squibb.
Where are the Market Opportunities?
Applications of Artificial Intelligence (AI) Could Assist in Faster, Safer & Significantly Less Expensive Clinical Trials
It is believed that effective patient data is typically used to create remarkable medications. Today, data is being created at an unmatched rate, and the pharmaceutical industry is becoming more aware of the opportunities that can be created by effectively utilizing data throughout the lifecycle of a medicine. New technologies are being developed, commercialized, and used, prompting businesses, researchers, and medical professionals to re-evaluate some of their more traditional procedures.
Clinical trials are one area that has enormous potential. Although AI has not been generally embraced and applied to clinical trials, it has the power to change how they are developed. Clinical trials might be conducted more quickly, safely, and much less expensively thanks to AI technologies. Considering AI and advanced data analytics, AI can give the pharmaceutical industry more information to guide their decisions.
AI can execute complicated analysis far more quickly than a human can, which helps researchers sift through large amounts of data to define new drug combinations, find new applications for current pharmaceuticals, or locate potential for individualized, focused treatments. The COVID-19 pandemic is being addressed with this capability. AI is being used in a variety of research initiatives to find medications that were once created to treat different illnesses but could now be repurposed to combat coronavirus. Companies seek to determine which existing medications could interfere with COVID-19's function by using AI to analyze the molecular structures of those medications.
Increasing Demand for Biological Therapies to Offer Lucrative Growth Prospects for CROs
The introduction of novel treatments based on biologics and rising sales of current biologics are projected to increase the shares of biologics, biosimilars, and large-molecule medications in the upcoming years. Over 200 biologics have received FDA approval in the previous ten years. In addition, 27 percent of all medications approved between 2018 and 2021 were biologics, while 65 to 75 percent of medications in clinical research now are biopharmaceuticals. 46 novel pharmaceuticals and biologics received FDA approval in 2021 in the U.S. FDA. These products (mostly parenteral drugs) necessitate more focus on dosage form stability along with original strategies to get beyond biological delivery obstacles. Biologics manufacturing outsourcing has increased as a result of the complexity of manufacturing such formulations.
The major players operating in the contract research organizations (CROs) market are Charles River Laboratories, Clinipace, CMIC HOLDING Co., LTD., EPS Corporation, ICON plc, IQVIA HOLDINGS INC., Labcorp Drug Development, MedPace, Parexel, PPD (Thermofisher Scientific Inc.), Syneos Health, Worldwide Clinical Trials, and Wuxi AppTec. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product/service offerings among other strategies to expand their reach in the global market.
• In April 2022, LabCorp made an announcement that it is collaborating with Xcell Biosciences, Inc. (Xcellbio), to advance critical work that helps its clients in offering innovative cell and gene therapies to the global market.
• In December 2021, Optimapharm acquired SSS International Clinical Research GmbH. Optimapharm is an international contract research organization (CRO) that primarily conducts clinical studies for pharmaceutical, biotechnology, and medical technology firms.
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