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The global healthcare contract research organization market size is estimated to reach USD 74.7 billion by 2030, registering a CAGR of 6.5% from 2022 to 2030. Factors including the upsurge in investments in R&D activities, growing preference for outsourcing services owing to cost & time constraints, and the expiration of patents in the healthcare arena are significantly driving the market growth. The collaborations in contract research outsourcing provide state-of-the-art services that are widely preferred by government organizations, thereby supplementing the market demand.
Based on type, the clinical service segment held the largest market share, accounting for over 76.4% in 2021. The growth is attributable to the increase in the number of biologics, current epidemic events that steer the need for new treatments, the rising demand for orphan drugs and personalized medicines, and the proliferation of technological advancements. Furthermore, factors including technological progress and globalization of clinical trials are further expected to boost market growth. Phase III clinical trials outsourcing to healthcare CROs dominated the market in 2021 owing to the fact that it is among the priciest phases of a clinical trial. Around 90% of the costs occur in the drug stem clinical development from this phase.
Based on service, the clinical monitoring segment accounted for the largest market share of over 20.6% in 2021. The growing number of clinical trials and the rising need for monitoring the studies are generating immense demand for these services. Over the past decade, clinical research is being incrementally outsourced to the CROs owing to the increasing need for attaining technical expertise and cost-effectiveness. The emergence of advanced technologies including real-time data acquisition devices and smart analytics is anticipated to enhance clinical monitoring data analysis in the healthcare industry. Real-time data acquisition associated with drug toxicity supports the early detection of trial errors and allows timely alterations including trial re-designing or termination, thereby fueling the segment growth.
Asia Pacific dominated the global healthcare CRO market and accounted for the largest revenue share of around 42.7% in 2021. The region is also expected to expand at the fastest pace during the forecast period. This can be attributable to the increasing incidences of chronic health conditions, the existence of a diverse population, and the development of favorable regulations as per recognized standards. Furthermore, the favorable initiatives undertaken by public organizations to lessen the time for drug approval are also supplementing the market growth. For instance, India’s Department of Pharmaceuticals enlisted new rules in October 2021 to lessen the time needed for the approval of advanced products by over 50% in two years, in order to enhance the R&D activities in the country. These initiatives are projected to further fuel regional growth.
The global market players enter into strategic collaborations for promoting their services at an international level. For instance, IQVIA collaborated with Servier, an international pharmaceutical company, in December 2020, to redevelop their R&D clinical development processes. Besides, these players are innovating their offerings by implementing virtual connectivity during the pandemic. Such developments are opportunistic for the growth of the market.
Research Support Specialist, USA