The global U.S. Contract Research Organization (CROs) Market is estimated to be valued at US$ 17446.79 Mn or Bn in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Contract research organizations (CROs) provide clinical trial and clinical study design, data management, regulatory support services, and other pharmaceutical services to pharmaceutical, biotechnology, medical device, and government organizations worldwide. They help accelerate clinical development and marketing application approval. The demand for CRO services has increased significantly over the years owing to increasing research and development investments by biopharmaceutical companies.
Market key trends:
One of the major trends in the U.S. CRO market is increasing outsourcing of clinical trials and other services by biopharmaceutical companies. Growing R&D expenditures and focus on core competencies has made outsourcing an attractive option for sponsors. For instance, according to a report by PhRMA, biopharmaceutical companies spent ~US$ 102 billion on R&D in 2021, prompting greater reliance on CROs for various services. In addition, rising popularity of specialized or niche CROs is another key trend. Companies are outsourcing specific functional areas or disease indications to CROs with relevant expertise to optimize costs and expertise. Advancements in technologies such as artificial intelligence and blockchain are further enabling higher data accuracy and management by CROs in clinical trials. This is expected to drive the market growth over the forecast period.
SWOT Analysis
Strength: The CRO industry in the US benefits from strong expertise in clinical research and development. Companies have vast experience across different therapy areas and phases of drug development.
Weakness: High operational costs associated with conducting clinical trials in the US make it less cost-effective compared to other regions. Significant regulatory compliance requirements also increase the complexities.
Opportunity: Growing R&D investment in pharmaceutical and biotech industry is fueling the demand for outsourced clinical research services. Rising prevalence of chronic diseases also creates opportunities for drug development.
Threats: Stringent regulations and delays in approval process pose challenges for timely drug development. Increasing competition from low-cost regions like Asia Pacific threatens market share of US CROs.
Key Takeaways
The global U.S. Contract Research Organization (CROs) market is expected to witness high growth, exhibiting CAGR of 9.6% over the forecast period, due to increasing R&D investment in pharmaceutical industry.
Regional analysis: North America dominates the global CRO market, with the US accounting for the major share. Availability of advanced healthcare infrastructure, expertise in clinical research and presence of top pharmaceutical companies drive the US CRO market. Asia Pacific is expected to be the fastest growing region due to availability of low-cost skilled resources and growing clinical trial participant pool.
Key players operating in the U.S. Contract Research Organization (CROs) market are Laboratory Corporation of America Holdings (Covance), IQVIA, Paraxel International Corporation, Syneos Health, PRA Health Sciences, Charles River Laboratoires International Inc. (CRL), Pharmaceutical Product Development (PPD), ICON Public Limited Corporation, Wuxi Apptec, Medpace Holdings, Inc, Medidata Solutions, Inc., Theorem Clinical Research, Pharmaron, Envigo, and Clinipace. The market is highly competitive with top players focusing on service expansion and geographic footprint to strengthen their market position.
