The U.S. Contract Research Organization (CROs) market provides various clinical trial related services to biotechnology and pharmaceutical companies such as project management, data management, regulatory affairs services, medical writing, site management, patient recruitment, and laboratory testing. CROs help biotech and pharmaceutical companies in reducing costs and improving efficiency related to drug development. The U.S. CROs market has helped sponsors focus internal resources on core competencies while achieving regulatory compliance and on-time delivery.
The U.S. Contract Research Organization (Cros) Market Is Estimated To Be Valued At US$ 19.54 Billion In 2024 And Is Expected To Exhibit A CAGR Of 12.2% Over The Forecast Period 2024 To 2031
Key Takeaways
Key players operating in the U.S. Contract Research Organization (CROs) are Labcorp, IQVIA, Syneos Health, PAREXEL International Corporation, and PRA Health Sciences. These CROs help biotech and pharmaceutical companies navigate the drug development process efficiently. The growing demand for outsourcing clinical trial services and increasing research and development expenditure of biopharma companies is fueling the growth of the U.S. CROs market. Furthermore, the market is witnessing increased global expansion with CROs establishing facilities across different geographies to serve sponsor requirements better.
Market key trends
One of the key trends in the U.S. Contract Research Organization (CROs) Market Demand is the increasing outsourcing of clinical trials. Biopharma companies are outsourcing 60% of their clinical trial work to CROs. This is because CROs allow biopharma sponsors to reduce fixed costs and focus on core areas. Additionally, a trend of operational transparency has emerged with CROs and sponsors working as collaborative partners. Adoption of technologies such as telemedicine and virtual/decentralized trials is also aiding U.S. Contract Research Organization (CROs) Market Report provide seamless services to clients across geographies. This is leading to improved quality, faster patient recruitment, and reduced costs. Hence, the key trend of increasing outsourcing coupled with evolving service models are expected to drive the growth of the U.S. CROs market over the coming years.
Porter’s Analysis
Threat of new entrants: Low barriers to entry may attract new players in the industry. Existing players have stronghold in the market.
Bargaining power of buyers: Large pharmaceutical companies have high bargaining power for pricing and service offerings.
Bargaining power of suppliers: Suppliers of research tools and lab equipment have moderate bargaining power.
Threat of new substitutes: Low threat as contract research is specialized service with few substitutes.
Competitive rivalry: Intense competition among existing U.S. Contract Research Organization (CROs) Market Challenges And Opportunities on service quality, turnaround time and pricing.
Geographical Regions
North America region accounts for the largest share in the U.S. CRO market in terms value. Presence of majority pharmaceutical companies and medical device manufacturers driving outsourcing of research activities to CROs in the region.
Asia Pacific region is expected to grow at the fastest pace during the forecast period. Rising clinical trial activities in countries like China and India due to low cost and high patient volumes attracting CROs to establish presence in the region. Capabilities in various therapeutic areas and investment by global pharma companies fuelling market growth.
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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