Healthcare Contract Research Outsourcing Market: Snapshot
The global healthcare contract research outsourcing market is rising with increasing complex regulatory process & growing regulatory burden. The global healthcare contract research outsourcing market was valued over US$ 30 Bn in 2016 and is projected to witness cumulative annual growth rate (CAGR) of over 6% from 2017 to 2025 to surpass the value of US$ 54 Bn by 2025. The global market is witnessing relatively higher growth owing to globalization of clnical trials, increasing efforts for optimization of costs and development time for drug development and rise in varied services and solutions offered by the CROs.
Healthcare companies often outsource drug development functions to contract research organizations to efficiently and effectively use the development capabilities internationally. The clinical, therapeutic and regulatory expertise of CROs helps to improve the complete cost of development and accelerate time to market for a new product. CROs have become larger and enormously more diversified across various therapeutic areas and functions, expanding their penetration. CROs are anticipated to expand geographically and add competencies in emerging therapeutic areas, while boosting their current services beyond traditional clinical capabilities, including post-approval, commercial, informatics, among other auxillary offerings where low outsourced penetration observed, further enhancing the demand for CROs, driving greater outsourcing demand. The healthcare contract research outsourcing market is projected to witness strong growth during the forecast period driven by increase in funding of small to midsized pharmaceutical, biotechnology, and medical devices companies leading the companies to opt for CRO services with focus on niche market. Small pharmaceutical companies are also looking for advancement in product development through CRO services due to rise in demand for innovative products and patent expiration. Also outsourcing improves the global reach with respect to drug development with minimum maintenance cost, as CROs are well-versed with regulatory requirements of various regions to fuelling the expansion of healthcare contract research outsourcing market.
The global healthcare contract research outsourcing market is broadly segmented into four categories based on service, therapeutic area and end user and by region. In terms of services, the global market is categorized into on clinical trial services, regulatory services, clinical data management & biometrics (electronica data management, electronic patient report outcomes and others), medical writing, pharmacovigilance, site management protocol and others. The clinical trial services is further segmented into preclinical & clinical. The clinical data management & biometrics is further segmented into electronica data management, electronic patient report outcomes and others. The market for clinical trial services accounted for key share (in terms of revenue) in global market in 2016, the regulatory services in healthcare contract research outsourcing is estimated to grow at exponential growth rate during the forecast period and the segment is estimated to report significant gain in its market share by the end of 2025. The regulatory services outsourcing is anticipated to increase due to increased scrutiny by regulatory bodies such as the FDA and EMA at every stage of clinical trial and changing regulatory requirements as per the region.
In terms of therapeutic area, the global healthcare contract research outsourcing is segmented into oncology/hematology, CNS, CV/metabolic, respiratory, infectious diseases, immunology, rare diseases, medical devices and others. The oncology/hematology segment dominated the global market and is likely to maintain its dominance by the end of 2025 with marginal decline in its market share. A robust pipeline of more than 600 molecules for oncology in late-stage development and the emergence of oncology therapy as a personalized medicine has led to prominent share of the segment in global market. By end-user, the global healthcare contract research outsourcing market has been segmented into pharmaceutical companies, biotechnology companies, medical devices and academic institutes & government organizations.
Geographically, the global dental practice management market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. North America dominated the global market and is projected to slightly lose its market share by the end of 2025. The Market in the North America is primarily driven by the advanced infrastructure of clinical research sites, and effective government incentive programs in United States. Moreover increased access to specialized technologies and therapeutics expertise is projected to fuel the expansion of clinical trial services in the United States during the forecast period. Asia Pacific region is projected to be fastest growing region in global healthcare contract research outsourcing market during the forecast period. In Asia Pacific region, China and India dominated the Healthcare CRO market and India is estimated to grow at exponential CAGR during the forecast period.
The companies like Syneos Health, IQVIA, PRA Health Sciences, Inc., ICON PLC, and Laboratory Corporation of America Holdings etc. accounted for the major share in global healthcare contract research outsourcing market in 2016. The IQVIA Company has presence in more than 100 countries with domain expertise, institutional knowledge across scientific methods, diseases and geographies. Other global players operating in the market PAREXEL International, Charles River, Medpace and Pharmaceutical Product Development, LLC are adopting the strategy acquisition and collaboration with parallel companies to expand its service and strengthen its geographic presence in international market.
Global Healthcare Contract Research Outsourcing Market: Overview
Now-a-days the drug development process is characterized by large clinical trials, rapid changes in trials protocols for efficient management of data generated and complex procedures, with the growing price of in-house research, the demand for contract research outsourcing is also increasing. These trends have formed pressure on healthcare companies to develop efficient drug development and product commercialization process. Along with the drug development efficiency, healthcare companies are looking to merge and simplify the supply chain, directing sourcing among a preferred number of multiple service providers. In response, large CROs are actively expanding their offerings beyond core clinical research services. Contract research organizations work closely with healthcare companies to conduct clinical research programs and support marketing activities for them. An increasing number of healthcare companies are outsourcing their clinical trials and other services to the contract research organizations.
This report on the healthcare contract research outsourcing market analyzes the current and future prospects of the market. The report comprises an elaborate executive summary, including a market snapshot that provides overall information of various segments and sub-segments. The research is a combination of primary and secondary research. Detailed qualitative analysis of factors responsible for driving and restraining market growth and opportunities has been provided in the market overview section. Market revenue in terms of US$ Mn for the period between 2015 and 2025 along with the compound annual growth rate (CAGR %) from 2017 to 2025 are provided for all the segments, considering 2016 as the base year.
Market related factors such as technological developments, product innovation, services offered, infrastructure facilities around the world, and historical year-on-year growth have been taken into consideration while estimating the market size. Growth rates for each segment within the healthcare contract research outsourcing market have been determined after a thorough analysis of past trends, demographics, future trends, technological developments, product development life cycle, and regulatory requirements. These factors would help the market players to take strategic decisions in order to strengthen their positions and expand their share in the global market.
Global Healthcare Contract Research Outsourcing Market: Key Segments
On the basis of services, the healthcare contract research outsourcing market is categorized into clinical trial services, regulatory services, clinical data management & biometrics, medical writing, pharmacovigilance, site management protocol and others. On the basis of therapeutic area the healthcare contract research outsourcing market is categorized into oncology/hematology, CNS, CV/metabolic, respiratory, infectious diseases, immunology, rare diseases, medical devices and others. In terms of end users, the healthcare contract research outsourcing market is segmented into hospitals, home care and clinics.
On the basis of geography, the healthcare contract research outsourcing market is segmented into North America, Europe, Asia Pacific and Rest of the world. North America comprises the U.S. and Canada. Europe comprises Germany, France, U.K., Spain, Italy and Rest of Europe. Asia-Pacific comprises China, India, Japan, Australia and New Zealand and Rest of Asia Pacific. The competition matrix section included in the report is likely to assist the existing players to increase their market shares and new companies to establish their presence in the healthcare contract research outsourcing market.
Companies Mentioned in Report
The report also profiles major players in the healthcare contract research outsourcing market based on various attributes such as company overview, financial overview, SWOT analysis, key business strategies, product portfolio, and recent developments. Key companies profiled in the report include Syneos Health, PAREXEL International, ICON PLC, PRA Health Sciences, Inc., Charles River, Laboratory Corporation of America Holdings (Covance), IQVIA, Medpace, Pharmaceutical Product Development, LLC.
The Global Healthcare Contract Research Outsourcing market has been segmented as follows:
- Global Healthcare Contract Research Outsourcings Market, by Service
- Clinical Trial Service
- Regulatory Service
- Clinical Data Management & Biometrics
- Electronic data capture
- Electronic Patient Recorded Outcomes
- Medical Writing
- Site Management Protocol
- Clinical Trial Service
- Global Healthcare Contract Research Outsourcings Market, by Therapeutic Area
- Infectious Diseases
- Rare Diseases
- Medical Devices
- Global Healthcare Contract Research Outsourcings Market, by End User
- Pharmaceutical Companies
- Biotechnology Companies
- Medical Device Companies
- Academic Institutes & Government organizations
- Global Healthcare Contract Research Outsourcings Market, by Geography
- North America
- Rest of Europe
- Asia Pacific
- Australia & New Zealand
- Rest of Asia Pacific
- Rest of the World
- North America