The latest market report published by Credence Research, Inc. “Contract Research Organization Services Market, By Service Type, Research Type and Client Type – Growth, Future Prospects and Competitive Analysis, 2016 – 2023,” the global contract research organization (CRO) services market was valued at US$ 25.9 Bn in 2015, and is expected to reach US$ 44.8 Bn by 2023, expanding at a CAGR of 7.1% from 2016 to 2023.
Browse the full report Contract Research Organization (CRO) Services Market – Growth, Future Prospects and Competitive Analysis, 2016 – 2023 at https://www.credenceresearch.com/report/contract-research-organization-services-market
The global CRO market has witnessed a significant rise in strategic mergers and collaborations among CRO vendors. Such growth strategies are focused at augmenting their service portfolio or develop their niche in select countries. Large scale pharmaceutical companies in countries such as North America, Europe and Asia Pacific are increasingly indulging in CRO activities due to availability of large pool of trial eligible patients, desire to reduce costs and growing need to focus on core competencies. With further expansion and consolidation activities taking place in the CRO industry, the strong growth of the global CRO services market is anticipated to continue through the forecast.
The demand for CRO services is anticipated to remain steady in early stage development phases such as clinical pharmacology and preclinical trials. Early stage development phases have a potential market opportunity of over US$ 5.5 Bn. The moderate growth of this space is due to the limited pricing power since several drug sponsors still prefer to outsource their late-stage pipelines only. However, this scenario is anticipated in the later stage of forecast period with a strong possibility of containment of service prices. On the other hand, late-stage development services have the largest market share and will experience the fastest growth during the forecast period. The of late-stage development services is anticipated to continue through 2023 due to prime influencers such as greater interest of pharma companies in investigational drugs in late-stage trials that experience the least project delays and cancellations, and greater volumes that profit central laboratory operations.
Considering the competition, this market is characterized by presence of over 1000 market players, of which small-scale players are the largest in number. The top ten companies currently capture over 50% of the global CRO services market. However, to tackle such fierce competition, is observed that lately the mid-sized and small-sized corporations are adopting growth strategies such as consolidation activities and entering in long-term contracts with client companies. In addition, emerging CROs are rapidly attracting limelight, as sourcing of patients, emerging need for conducting home trials in large countries such as China and growing cost friendly contracts.