Contract Research Organization (CRO) Services Market Sizeto Witness Exponential Growth by 2027

Rise in Number of Drug Development Projects to Propel Demand for CRO Services

CRO services have gradually penetrated the healthcare sector in the past few years. With significant developments in the healthcare sector in terms of research, medications, drug delivery, etc., CROs are increasingly gaining prominence. As healthcare providers continue to recognize the benefits and advantages of consulting and opting for CRO services, the demand for such services is expected to grow at a significant pace during the forecast period (2019-2027). In the past few years, instead of outsourcing the entire project, biotech companies are leaning toward outsourcing part of clinical trials to CROs. In addition, stakeholders in the current contract research organization (CRO) services market are focusing their attention toward catering to niche and customized requirements of clinical trials.

In recent times, CRO services are assisting companies in the early phase development of new drugs and medications. Clinical research, consulting, and laboratory CRO services are increasingly being used by pharmaceutical companies, a factor expected to propel the growth of the contract research organization (CRO) services market during the assessment period. In addition, stakeholders involved in the current contract research organization (CRO) services market are expected to collaborate with each other to formulate open technology standards that are likely to revolutionize the future of clinical trial operations. Due to these factors and positive outlook of the healthcare sector, the global contract research organization (CRO) services market is expected to reach a value of ~US$ 96.4 Bn by 2027.

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Focus on R&D in Pharmaceuticals Offers Growth Opportunities for Stakeholders

In the past decade, research and development in the pharmaceutical sector has experienced considerable increase. Established companies in the pharmaceutical sector are leaning toward leaner business models wherein dependence on external entities, such as CROs, is high. The significant growth of the biotech sector in the past decade has played an important role in resulting in rise in the number of companies involved in research and drug development. The exponential rise in the number of active and upcoming drug development companies and research projects created a huge window of opportunity for stakeholders involved in the contract research organization (CRO) services market. In the past decade, outsourcing of large or complex aspects of the drug development process has become imperative for the development of new drugs effectively and cost-effectively.

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Although drug developers are increasingly leveraging CROs services, they are continually seeking solutions to address a host of challenges involved with this approach, such as high R&D cost, obtaining access and tracking the operations that are outsourced, and capacity constraints, among others. At present, stakeholders in the contract research organization (CRO) services market are increasingly adapting to the evolving research & development requirements and are expected to manage contracted work in several modalities. The number of outsourced projects in the last decade has transformed the overall structure of the drug development industry.

Adoption of CROs Services to Accelerate Early Phase Drug Development

The lack of horizontal integration in the contract research organization (CRO) services market has largely been responsible for the inefficiencies in the operations and workflows. Furthermore, this has also isolated drug development processes, which has thus, encouraged the formulation of integrated CRO services models. The growing adoption of integrated model across the pharmaceutical sector has played an integral role in improving efficiency and minimizing the make-test cycle. While the horizontal integration model offered significant benefits and efficiencies in the drug development phase, its adoption in the U.S. was relatively slower than European countries such as the U.K. The demand for CROs services for early phase drug development and clinical research is expected to grow in the coming decade, due to a range of factors, including improved efficiency, streamlined management of R&D costs, low risk of repeat studies, accelerated drug development, and lowered operational costs, among others. Apart from offering monetary benefits, integrated contract organization services are likely to simply the supply chain and efficient management of clinical data.

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