Global CRO market anticipated to reach $63 billion by 2027, says Beroe
Source: PR Newswire
Mar 15, Raleigh, NC - The Clinical Trials CRO (Contract Research Organization) market is expected to grow in the coming years due to the increasing outsourcing of clinical trials by pharmaceutical and biotechnology companies and the need for cost-effective and efficient drug development. In 2022E, the global CRO market was anticipated to reach $43.7 billion, and it is estimated to grow at a 7.2-2.5% CAGR to $63 billion by 2027F.
Additionally, the market's growth is driven by the increasing number of clinical trials, the growing importance of data management and analysis, and the need for specialized services such as regulatory affairs and pharmacovigilance. However, the market may need to be improved by factors such as the high cost of clinical trials and the complexity of regulatory requirements.
Clinical Trial CRO: Market Scope
A CRO (a.k.a Contract Research Organization) is a company that helps organizations like the pharmaceutical, biotech, and medical device industries in the medical trials and complex medical testing responsibilities. Contract Research Organizations reduce the cost of research and development to help businesses and institutions meet the needs of the evolving medical device and pharma industry.
Clinical Trial CROs provide a wide range of services connected to the conduct of clinical trials. Among these services are:
- Design and planning of the study
- Patient-centric solutions
- Management and analysis of data
- Regulatory compliance and submissions
- Quality control and compliance
- Data analysis and biostatistics
- New areas of research and regulations
CROs can also provide services in many regions and therapeutic areas like oncology, CNS, cardiovascular, and more.
Overall, the Clinical Trial CRO market is vast and includes a wide range of services that support the entire drug development process, from early-stage research through late-stage clinical trials.
CRO Market Drivers
Clinical trials are increasingly being outsourced: Pharmaceutical and biotechnology businesses are increasingly outsourcing clinical trials to CROs to save time and money while gaining access to specialized expertise and resources. Due to the high expense of clinical trials and the necessity for speed to market, pharmaceutical and biotechnology companies are turning to CROs to help them develop medications more cost-effectively and quickly.
Data management and analysis are becoming increasingly important: As the volume of data created by clinical trials grows, the demand for CROs that can provide data management and analysis services increases.
A growing number of clinical trials: The growing number of clinical trials being undertaken internationally is also propelling the CRO market forward. For example, the global pandemic has increased demand for quick, scalable, and cost-effective solutions, fueling expansion in virtual trials, AI-based technology, and adopting newer research paradigms.
Technological advancements, such as electronic data capture and analytics, make clinical trials easier to execute, increasing demand for CROs.
Regulatory needs: The complexity of regulatory regulations and the demand for specialist services such as regulatory affairs and pharmacovigilance propel the CRO industry forward.
Emerging markets: North America and Europe hold almost 77% of the CRO market, with pharmaceutical companies spending 65% and 15%of their clinical trial R&D budgets on these markets.
CRO Market Threats
CRO (Contract Research Organizations) companies need more research and development funds. It may limit the growth of CROs because they rely on pharmaceutical and biotech businesses for funding to conduct research and clinical trials. Furthermore, CROs are subject to stringent regulations, which can raise expenses and slow down the R&D process.
With new organizations joining the market and existing companies expanding their offerings, the CRO industry is becoming increasingly saturated. It can result in increased contract competition and decreased profit margins. Furthermore, CROs may need to rely more on a small number of significant customers, rendering them vulnerable to changes in their business methods or financial performance.
Furthermore, because CROs handle sensitive patient data, companies must adhere to stringent data protection and security standards, which can raise costs and create operational difficulties.
Key CRO Market Trends to Continue in 2023
CRO Market will keep growing in forecast years. The CRO market in emerging economies such as North America, Europe, Asia Pacific and Row is expected to grow, driven by increasing investment in R&D and a growing number of clinical trials being conducted in these countries.
CROs are expected to continue providing specialized services, such as bioanalytical testing, pharmacovigilance, and regulatory affairs, to differentiate themselves from their competitors and increase revenue. In addition, Large companies will do mergers and acquisitions with CRO companies.
Furthermore, Morden technologies like AI technologies such as machine learning and natural language processing can automate various aspects of clinical trials, including patient recruitment, data collection, and analysis. It can fast-forward the research and development process and reduce costs.
For more such market data, insights, and intelligence check out Beroe LiVE.Ai™.
Beroe is a global SaaS-based procurement intelligence and analytics provider. We deliver intelligence, data, and insights that enable companies to make smarter sourcing decisions – leading to lower costs, reduced risk, and greater profits. Beroe has been a trusted intelligence source for more than 15 years and partners with 10,000 companies worldwide, including 400 Fortune 500 companies.
Learn more about Beroe - at https://www.beroeinc.com/
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