Market Characteristics/ Description of the CRO Market
A Contract Research Organization (CRO) is a service provider, which offers end-to-end solutions in conducting clinical trials for biopharmaceutical and medical device companies. The core services offered by CROs to biopharmaceutical companies include initial drug discovery solutions, toxicology studies, bio-analytical services, central laboratory, site monitoring, data management services, vigilance, bio-statistics, study and development program design and consulting, regulatory affairs and a variety of post-marketing surveillance services.
Competitive Landscape in the CRO Market
Historically, the CRO market was fragmented but increasing M&A activity has led to the consolidation of the market, with a few CROs holding a considerable share of the market. Major players in the CRO market include IQVIA, Laboratory Corporation Of America Holdings, ICON Plc, PAREXEL International Corporation and Pharmaceutical Product Development (PPD), Inc.
CRO Market Size
CRO research shows that the global CRO market is expected to reach $70 billion by 2021, growing at a CAGR higher than 10%. Growth in the CRO market is mainly due to the rising cost of drug development, increasing patent expirations of drugs and increasing investments in the pharmaceutical and biologics industry in emerging economies.
However, the CRO market is expected to face restraints from several factors such as stringent government regulations, clinical trial failures and data safety concerns.
CRO Market Segmentation
The global CRO industry can be segmented on the basis of service type, therapeutic area and by geography.
Based on the service type, the CRO market can be segmented into drug discovery, phase III, phase II, preclinical studies, phase IV, phase I and others.
Among these segments, the drug discovery segment accounted for the largest segment in the global CRO market, followed by Phase III.
Based on the therapeutic area, the CRO market can be segmented into oncology, CNS disorder, cardiovascular disease, metabolic disease, infectious disease and other therapeutic area.
Among these segments, the oncology CRO services segment accounted for the largest share in the CRO market by therapeutic area, followed by CNS disorder. The high share of oncology segment was mainly due to the large number of cancer compounds in the stage of clinical development as well as new medicines introduced in the market.
Based on the geography, the global CRO market is segmented into North America, South America, Western Europe, Eastern Europe, Asia Pacific, Middle East and Africa. Among these regions, the North American CRO market accounted for the largest global CRO market share, followed by Asia Pacific.
Contract Research Organization Industry Trends Major trends in the global CRO market include increasing focus on emerging markets, strategic partnerships to benefit the CROs, and increasing consolidation in the market.
Potential Opportunities in the CRO Market
CRO analysis shows that the growing biologics market, increasing demand for outsourcing, investments in emerging economies and technological advancements, is expected to increase the potential and scope for the global CRO market.