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Published Date: 2013-01-17Number of Pages: 94

Healthcare Contract Research Outsourcing Market - Global Industry Analysis, Size, Share, Trends And Forecast 2012-2018

Healthcare Contract Research Outsourcing Market: Snapshot 

Given the shortage of resources for administrative operations, among healthcare providers, it becomes very difficult to deliver high quality patient care. The high cost of having an in-house healthcare research facility not only takes effort, but also time and money. This is creating a demand for healthcare contract research outsourcing so as to enable high level of patient care as with improved drugs and diagnostics. Various healthcare organizations have identified the long-term benefits of using healthcare research outsourcing solutions and services around the world and this is increasing the partnerships with contract research organizations to outsource research activities so as to cut down on production costs without affecting or compromising with the quality of products. 

The global healthcare contract research outsourcing market is expected to rise from US$25.08 bn in 2011 to be worth US$65.03 bn by 2018, expanding at a healthy CAGR of 14.70% from 2012 to 2018. A reduction in productivity coupled with huge healthcare research costs are behind the growth of the healthcare contract research outsourcing market. A decrease in the development projects of new drug formulations is another important reason, boosting the global healthcare contract research outsourcing market. Additionally, the globalization of drug development processes is also pushing the market’s development. However, quality issues within the performed research and long duration of approval process will challenge the market’s growth. 

Clinical Trial Services to Continue Leading in Global Healthcare Contract Research Outsourcing Market 

By service type, the healthcare contract research outsourcing market is segmented into clinical trial services, drug discovery, and preclinical studies. Of these, the clinical trial services led the market and was worth US$14.21 bn in 2010. It is expected that this segment will continue to retain its leading position. By destination research group, the market is segmented into contract research organization (CROs), academic medical centers, and clinical trial laboratories. In terms of geography, North America led in the market and is expected to do so in the coming years, trailed by Europe. The Asia Pacific market for healthcare contract research outsourcing is expected to grow remarkably in the coming years. The availability of diverse population is creating ease in patient recruitment and this is one of the major reasons behind the estimated growth of the Asia Pacific healthcare contract research outsourcing market.   

Drug-makers Show Apprehension Regarding Partnering with Healthcare Contract Research Outsourcing Providers 

It has been observed that owing to data security, drug makers as well as other enterprises functioning with the biotechnology, pharmaceutical, and medical devices are showing apprehension regarding partnerships with healthcare contract research outsourcing providers. This is one of the key factors impeding the growth of the market. The lack of supervision of data research processes is the reason behind their apprehension. 

Some of the key players operating in the healthcare contract research outsourcing, which are profiled in the report are Quintiles, Covance, PPD, Icon, Plc. Parexel, CRL, Medidata Solutions, InVentiv Health, and Theorem Clinical research. Players in the market are forming alliances to enhance the market presence by providing services over an extensive market space. This is helping them to improve their client-contractor relationship.

The global healthcare contract research outsourcing market is gaining significantly from the increased outsourcing of research activities to contract research organizations. The high amount of time and cost incurred in healthcare research is encouraging pharmaceutical and biotechnology companies to outsource these activities. The rise in clinical data management, medical writing, and regulatory services is also projected to provide a considerable boost to this market in the coming years. 

Broadly, the global market for healthcare contract research outsourcing is studied on the basis of the service, the destination research group, and the geography. Based on service, the market is classified into clinical trials, medical writing, clinical data management (CDM), and regulatory services. By destination research group, contract research organizations, academic medical centers (AMCs), and clinical trial laboratories are identified as the key segments of this market. Geographically, the market registers a presence across North America, Asia, Europe, and the Rest of the World.

The research report provides a complete overview of the global market for healthcare contract research outsourcing taking its current as well as historical performance in consideration. Key trends, driving forces, challenges, opportunities, and growth potential of this market have also been examined in this study.

Overview of Global Healthcare Contract Research Outsourcing Market

Contract research outsourcing has been a defining trend in the global medical and healthcare industry. A number of medical devices manufacturers and companies functioning in the pharmaceutical and the biotechnology industries are increasingly entering into partnerships with contract research organizations to outsource research activities in a bid to cut production costs without decreasing the quality of products.

Clinical trials have been registering a higher demand among the services provided through healthcare contract research outsourcing. The trend is expected to remain the same over the next few years. Within the clinical trial segment, drug discovery and preclinical trials are reporting widespread adoption worldwide.

North America has emerged as the leading regional market for healthcare contract research outsourcing across the world. In 2011, it acquired a share of nearly 65% in the overall market. Over the forecast period, Asia, although currently in the nascent stage, is likely to present promising growth opportunities, thanks to the rising number of contract research organizations in this region.

Despite all the advantages of healthcare contract research outsourcing, drugmakers and other enterprises operating in the pharmaceutical, biotechnology, and medical devices show apprehension about partnering with healthcare contract research outsourcing providers due to concerns over data security. This factor may impact the growth of the healthcare contract research outsourcing market negatively in the coming years.

Companies Mentioned in the Research Report

The leading players in the global market for healthcare contract research outsourcing are Covance Inc., Icon Plc., Parexel International Corp., Inventiv Health Inc., Pharmaceutical Product Development Inc., Medidata Solutions Inc., Charles River Laboratories International Inc., Piramal Life Sciences, and Quintiles Transnational Corp.

Key Segments of Global Healthcare Contract Research Outsourcing Market

By Service

  • Clinical trial services
    • Drug discovery services
    • Preclinical services
    • Phase I trial services
    • Phase II trial services
    • Phase III trial services
    • Phase IV trial (post marketing surveillance) services
  • Regulatory services
  • Medical writing services
  • Clinical data management (CDM) services
  • Other 

By Destination Research Group

  • Contract Research Organizations (CROs)
  • Clinical Trial Laboratories
  • Academic Medical Centers (AMCs)

By Geography

  • North America
  • Europe
  • Asia
  • Rest of the World

This report gives you access to decisive data such as:

  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments

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