17 September, 2019
RALEIGH, North Carolina, September 17, 2019 - The global market for clinical research organizations (CRO) is currently growing at a CAGR of 6.9 percent, according to Beroe Inc., a procurement intelligence firm. The high demand is due to the increased outsourcing adopted by the pharmaceutical and biotechnology companies with 85 percent covered by the clinical segment.
North America and Europe hold more than 80 percent of the CRO market as the pharmaceutical industry spends 70 percent and 18 percent of their clinical trial R&D in these regions, respectively. APAC contributes to 10 - 15 percent of the overall CRO revenue, which makes this region the third largest market share holder with increased efforts being taken in China and South Korea.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
One of the major market drivers in the CRO industry is cost containment prepared by the pharmaceutical industry. The pharma companies can reduce costs by lowering their internal capacities in manufacturing and R&D, which leads to expenses being diverted toward outsourcing. This works as a golden opportunity for CROs, wherein it helps increase their productivity, obtain new capabilities, shifts fixed to variable costs, and improves their global reach.
Nearly 60 percent of the pharma companies have shown greater dependency on CROs mainly due to the lack of in-house expertise. Analyzing the type of CROs involved, the big CROs at 34 percent are the preferred choice for exclusive partnerships compared to smaller ones. This course demonstrates that the largest CROs continue to expand their market share.
The research methodology adopted for the report included:
Big pharma companies favor global CROs for outsourcing of fully integrated services (phase II-IV) globally. Such companies prefer players from emerging markets such as China & India for FSP (functional service provider) deals to get benefits of the administrative experience of local CROs. Ease in vendor management and scale of economies are the major benefits of engaging with a global supplier, whereas low subcontracting risk and lesser management costs are the advantages of engaging with a regional player.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com