The global healthcarecontract research market was valued at USD 39.6 billion in 2020, and it ispredicted to increase at a CAGR of 6.6 percent between 2021 and 2028. Theprimary drivers expected to drive the healthcare CRO market in the coming yearsare increased investment in R&D projects, a preference for outsourcingactivities due to time and cost restrictions, and patent expiration in thehealthcare industry.
Contract research outsourcing collaborations providecutting-edge services, thus government agencies prefer to delegate projects tocontract research organisations (CROs), allowing the market to develop. Thedemand for contract research companies in the healthcare sector is likely torise as drug developers face increasing pressures related to clinical datamanagement, regulatory settings, and demanding safety standards. In thisindustry, models like transactional relationships, FSP/Multi-FSP, andpartnerships are common, and drug makers are using them.
The demand for contract research companies in the healthcaresector is expected to rise due to increasing pressure on drug developersregarding clinical data management, regulatory settings, and demanding safetystandards. Drug developers are embracing transactional agreements, FSP/MultiFSP, and partnerships as some of the models that are common in this marketarea. Not only do healthcare and pharmaceutical firms outsource medicineproduction, but they also outsource clinical studies. With an increase inclinical trial privatisations, there is a boom in outsourcing to poorercountries.
Service Insights
In 2020, the clinical monitoring segment dominated themarket, accounting for more than 18.0 percent of worldwide revenue. It is alsoexpected to keep its dominance throughout the projection period. This could bedue to an increase in the number of clinical trials and the need to monitorthose trials, which is driving up demand for services.
Insights into KeyCompanies and Market Share
Healthcare contractresearch organisations are working to sell their services on a globalscale, in addition to improving their services.
· ICON Plc
· Charles River Laboratories (CRL)
· Syneos Health
· IQVIA
· GVK Biosciences Private Limited
· Covance
· Pharmaceutical Product Development, LLC (PPD)
By 2028, the global healthcarecontract research outsourcing market is estimated to reach USD 66.1billion. From 2021 to 2028, it is predicted to grow at a CAGR of 6.6 percent.Over the projected period, the market is likely to be driven by the rising costof drug development. Furthermore, escalating clinical trial costs and patientrecruitment issues have prompted biopharmaceutical companies to seek costreductions and speedy patient recruitment in regions such as Central andEastern Europe, Asia Pacific, Latin America, and the Middle East.
In 2020, the global healthcarecontract research outsourcing market was worth USD 36.9 billion, and it isexpected to increase at a CAGR of 6.4 percent from 2020 to 2030. Not only dopharmaceutical and healthcare firms outsource medication production, but theyalso outsource clinical trials. Outsourcing to developed countries is becomingmore common as clinical trials become more privatised. Pharmaceutical companieshave begun outsourcing sophisticated R&D activities that require constantmonitoring. Healthcare CROs function and manage the procedures of bringing newgoods to market in accordance with the timelines set out by the customer.Business is outsourced to emerging economies such as Japan, India, and China.
Many healthcarecontract research businesses are now developing alliances in order tobroaden their market reach by providing services over a broad market sector andenhancing client-contractor relationships. In 2018, IQVIA and Box, for example,struck a collaboration. This collaboration will help the company provide cloud-basedcontent management solutions for healthcare and life science businesses. Togain leverage, key actors are in the process of purchasing other contractresearch businesses in addition to forming partnerships.
