Healthcare CRO Market Size & Trends

The global healthcare contract research organization (CRO) market size was valued at USD 50.55 billion in 2023 and is anticipated to grow at a CAGR of 7.0% from 2024 to 2030. Increasing investment in R&D programs, preference for outsourcing activities due to time & cost constraints, and patent expiration of blockbuster drugs are key factors anticipated to drive the market in the coming years. Contract research organization (CRO) collaborations offer advanced services, and thus pharmaceutical and biopharmaceutical companies mostly prefer assigning projects to CROs, facilitating market growth.

Increasing pressure on drug developers pertaining to clinical data management, regulatory environments, and stringent safety standards are expected to drive demand for contract research organizations within a healthcare sector. Healthcare and pharmaceutical companies are outsourcing the production of medicines and their clinical trials. With increasing clinical trial privatization, there is a surge in outsourcing to developing countries. Many healthcare contract research organizations (CRO) are enhancing their global research network to provide better customer services. For instance, in February 2023, MMS, a CRO specializing in data, announced a collaboration with the Institute for Advanced Clinical Trials (I-ACT) to expedite advancement of critical therapeutics such as medications, vaccines, and medical devices specifically tailored for pediatric use. As part of its commitment, MMS is sponsoring I-ACT's Spin Challenge, a unique initiative to generate funds to propel and hasten clinical trials focused on children's healthcare.

Gather more insights about the market drivers, restrains and growth of the Global Healthcare Contract Research Organization Market

U.S. healthcare contract research organization market size and growth rate, 2024 - 2030

Detailed Segmentation:

Type Insights

Clinical services segment accounted for the largest revenue share of 75.9% in 2023. This growth is owing to a rising number of biologics, recent epidemic events leading to demand for new treatments, need for personalized medicines and orphan drugs, and the demand for advanced technologies. Factors such as technological evolution, globalization of clinical trials, and demand for a contract research organization to conduct clinical trials are further projected to drive growth. Outsourcing of Phase III clinical trials to healthcare contract research organizations generated the highest revenue in 2023 due to fact that they are one of the most expensive stages of a clinical trial; approximately 90.0% of the expenses occurring during the clinical development of a drug stem from this phase.

Services Insights

Clinical monitoring segment dominated the market for healthcare contract research organizations and accounted for the largest revenue share of 20.23% in 2023. This may be attributed to increasing number of clinical trials & the need to monitor those studies that are creating more demand for these services. Clinical research has been outsourced to CROs over the past decade due to various reasons, such as cost-effectiveness and technical expertise. Introduction of smart analytics along with real-time data acquisition devices is estimated to improve clinical monitoring data in a healthcare sector.

Regional Insights

Asia Pacific dominated the market for healthcare contract research organizations and held largest revenue share of 44.8% in 2023. The region is also anticipated to grow at a rapid pace over a forecast period. This may be attributed to high prevalence of chronic conditions, availability of diverse populations, easy patient recruitment and retention, and establishment of regulations as per accepted standards. Besides this, favorable initiatives by public organizations to reduce time for drug approval are also contributing to market growth. 

Key Companies & Market Share Insights

The competition in the healthcare Contract Research Organization (CRO) market is intense, driven by an increasing demand for outsourcing clinical trial services globally. CRO healthcare companies are vying for market share through strategic collaborations, acquisitions, and technological advancements to enhance their service offerings and expand geographic reach. The market is characterized by a diverse range of CRO healthcare companies, varying in size and specialization, catering to pharmaceutical, biotechnology, and medical device companies. With a focus on providing end-to-end solutions, CROs are continuously innovating to streamline the drug development process, improve efficiency, and deliver high-quality outcomes, ultimately positioning themselves competitively in the dynamic healthcare CRO landscape.

Key Healthcare Contract Research Organization Companies:

  • ICON Plc
  • Charles River Laboratories
  • Syneos Health
  • IQVIA Inc.
  • GVK Biosciences Private Limited
  • Laboratory Corporation of America Holdings
  • Thermo Fisher Scientific Inc.
  • Parexel International Corporation
  • Medidata Solutions, Inc.
  • Pharmaron GMBH
  • SGS SA
  • KCR S.A.
  • CTI Clinical Trial & Consulting
  • PSI
  • Worldwide Clinical Trials
  • Wuxi AppTec
  • Advanced Clinical
  • Pharm-Olam, LLC
  • Caidy

Browse through Grand View Research's Medical Devices Industry Research Reports.

Healthcare Contract Research Organization Market Segmentation

Grand View Research has segmented the global healthcare contract research organization market on the basis of type, services, and region:

Healthcare Contract Research Organization Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Drug Discovery
  • Pre-clinical
  • Clinical

Healthcare Contract Research Organization Services Outlook (Revenue, USD Billion, 2018 - 2030)

  • Project Management/Clinical Supply Management
  • Data Management
  • Regulatory/Medical Affairs
  • Medical Writing
  • Clinical Monitoring
  • Quality Management/ Assurance
  • Bio-statistics
  • Investigator Payments
  • Laboratory
  • Patient And Site Recruitment
  • Technology
  • Others

Healthcare Contract Research Organization Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Sweden
    • Norway
    • Denmark
    • Switzerland
    • Belgium
    • Netherlands
    • Austria
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Australia
    • Thailand
    • Taiwan
    • Indonesia
    • Malaysia
    • Singapore
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Kuwait
    • Egypt
    • Iran
    • Israel

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Recent Developments

  • In May 2023, Charles River Laboratories International, Inc. and Wheeler Bio, Inc. agreed to introduce RightSourceSM at Wheeler Bio's manufacturing facility in Oklahoma City. RightSource, situated at a client location, represents a versatile biologics testing laboratory overseen and supervised by Charles River. This initiative aims to enhance the accessibility of swift, dependable quality control services to a more extensive spectrum of companies.
  • In January 2023, Bruker Corporation and Switzerland-based biopharma CRO Biognosys AG announced a strategic partnership for biologics-based clinical research. This partnership helped Biognosys AG plan to open its first laboratory for advanced proteomics outsourcing services in the U.S.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

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