The global Contract Research Organization Market is expected to grow at a robust 11.48% CAGR over the forecast period from 2017 to 2023, according to the latest research report from Market Research Future (MRFR). The global contract research organization market’s historical growth trajectory is explained in great detail in the report, which provides a solid foundation for studied growth forecasts for the market’s progression over the forecast period. The major drivers and restraints affecting the global contract research organization market are also profiled in the report, providing the readers with a clear idea of what is making the market tick and what is holding the market back. Major regional entities in the global contract research organization market are also profiled in the report and leading players in the market are also analyzed.
Contract research organizations (CROs) are organizations that carry out various operations in the life sciences sector on an outsourcing basis. The changing economical conditions around the world have driven the demand for contract research organizations, as large pharma players find it more convenient and economical to outsource many operations to CROs. Research as well as manufacturing operations are outsources to contract research organizations, according to the needs of the specific pharma company. Government institutions and companies also often outsource their operations to contract research organizations.
Contract research organizations bundle orders from multiple clients, thus achieving an economy of scale that allows them to bring down the costs of the operations. This reduction in the costs of research and manufacturing processes can then be carried forward to the final end user. This confers the benefit of cost efficiency. This has been the major driver for the global contract research organization market. On the other hand, structural changes in industry and employment, exchange rate volatility, and high labor costs are the major restraints acting on the global contract research organization market.
Leading players in the global contract research organization market include ICON plc, PRA Health Sciences Inc., INC Research LLC, Pharmaceutical Product Development LLC, PAREXEL International Corporation, QuintilesIMS, and Laboratory Corporation of America Holdings. Major players in the contract research organization market are focusing on reducing the costs of their services. Outsourcing to companies in emerging economies has emerged as a major way of achieving this goal.
The global contract research organization market is segmented on the basis of segment, clinical trial phase, and end users.
On the basis of segment, the market is segmented drug discovery, clinical development, post marketing services, and others.
On the basis of clinical trial, the market is categorized into preclinical trials, phase I, phase II, phase III, phase IV, and others.
On the basis of end users, the contract research organization market is segmented into pharmaceutical/biotechnology companies, medical devices companies, academic institutes and others. Pharmaceutical/biotechnology companies hold the largest share in the global contract research organization market.
The Americas dominate the global contract research organization market due to the strong position of the healthcare sector in the region. The growing patient population in North America is also a major driver for the Americas market for contract research organizations. Changing lifestyles are leading to an increase in the prevalence of lifestyle diseases in North America, which has led to a growing demand for pharmaceutical products in the region. This has led to a growing demand for contract research organizations in the region. The presence of the U.S. and Canada in the Americas region is the major driver for the Americas region, as these countries are home to large populations of patients of lifestyle diseases.
Europe also holds a major share in the global contract research organization market and is likely to remain the second largest regional market over the forecast period.
Asia Pacific is likely to be an important regional market for contract research organizations over the forecast period due to the low labor costs in the region, which allow for further reductions in cost.