Key Trends in the Contract Research Organization Services Market

Contract Research Organization Services (CROs) Market by Type (Discovery, CMC, Preclinical, Clinical Research, Laboratory Services), Therapeutic Area (Oncology, CNS, Cardiovascular), End User (Pharmaceuticals & Medical Device)

Contract research organizations (CROs) offer testing and consulting services for every stage of the drug R&D process for commercial manufacturers such as pharmaceutical and biopharmaceutical companies and medical device firms. The CRO services market is valued at USD 36.27 Billion in 2017 and projected to reach to USD 56.34 Billion by 2023, at a CAGR of 7.6%. Base year considered for the report is 2017 and forecast period includes 2018–2023. 

Growing R&D expenditures, increased outsourcing of R&D activities, and increasing number of clinical trials are the major factors driving the growth of the CRO services market. 

The global CRO services market, by end user, is segmented into pharmaceutical and biopharmaceutical companies, medical device companies, and academic institutes. In 2017, the pharmaceutical and biopharmaceutical companies segment accounted for the largest share of the contract research organization services market. The large share of this segment can be attributed to the increased outsourcing of early phase development services and clinical and laboratory testing services by pharmaceutical companies to boost profit margins, avoid high capital expenditure, and reduce the time duration to validate the process and product.

Geographically, the global CRO services market has been segmented into five major regional segments North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2017, North America accounted for the largest share of the CRO services market in 2017, followed by Europe and Asia Pacific. North America’s leading position in contract research organization services market is primarily attributed to the high-quality standards in the pharmaceutical industry, rapid growth in its biosimilars and biologics market, and increase in clinical trial activity.