New York, United States, Jan. 15, 2024 (GLOBE NEWSWIRE) -- Most pharmaceutical and biotechnology companies require more knowledge, time, and resources to perform significant clinical trials. Consequently, most clinical trials are outsourced to contract research organizations (CROs) and third-party vendors with well-established protocols, extensive operational and therapeutic area experience, and global reach. Contract research organizations specialize in delivering research services to the pharmaceutical, biotechnology, and medical device sectors on a contractual basis. By outsourcing clinical trials, small and medium-sized businesses can conserve their limited resources, improve productivity, minimize R&D expenses, shorten schedules, and guarantee the highest quality outcomes.
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Rising Initiatives to Improve Efficiency in Clinical Trials Drives the Global Market
Biopharmaceutical businesses face a significant financial burden when conducting clinical trials because of limited patient recruitment and retention and incomplete or unsuccessful studies. The proliferation of CROs conducting clinical trials and providing research support services has eliminated these issues. Remote clinical trials, adaptive clinical trials, AI to cut costs, and outsourcing of supply chain activities all contribute to the cost reduction of clinical trials. Remote trials can cut clinical trial expenditures by 25%–30%, reduce patient travel expenses, and necessitate staff at the clinical trial location. In addition, AI helps make each clinical trial phase more efficient through practical design, patient recruiting, and patient retention in contract research businesses' outsourcing services.
Entry of Start-Ups Specializing in Drug Discovery Creates Tremendous Opportunities
According to Straits Research, “The global clinical trials outsourcing market was valued at USD 40.77 billion in 2022. It is estimated to reach USD 74.38 billion by 2031, growing at a CAGR of 6.91% during the forecast period (2023–2031).” The increased frequency of numerous communicable and non-communicable diseases has fueled the desire for innovative cures and medications. As a result, countless pharmaceutical firms conduct clinical trials for multiple indications. Most small and medium-sized biotechnology and pharmaceutical firms require a development infrastructure and in-house competence to perform clinical trials. Consequently, many businesses rely heavily on clinical research outsourcing to CROs. Small biopharmaceutical businesses are striving toward the introduction of new pharmaceuticals to the market compared to their larger counterparts.
Although small pharmaceutical startups are intensely focused on drug discovery, a lack of development infrastructure and funding has forced small biopharmaceutical companies to rely on clinical research outsourcing partners. In recent years, the increase in R&D spending by startups and small biopharmaceutical businesses has increased the demand for clinical trial outsourcing services.
Regional Analysis
North America clinical trials outsourcing market share is anticipated to grow at a CAGR of 6.67% during the forecast period. The increasing number of large biopharmaceutical companies and the rapid development of clinical trials drive the market growth in the country; however, most clinical trials are outsourced to the North American region due to the region's stringent regulations and high costs associated with clinical trials. According to the initial presentation, they considerably increased clinical trials in North America, creating several market expansion prospects. The adoption of clinical trial outsourcing in this region is driven by the market's stringent drug approval rules and the expanding demand for biosimilars and biologics. Cost optimization, patient recruiting, and government regulations contribute considerably to the movement of clinical trial outsourcing from the United States to other nations.
Europe is projected to have a CAGR of 7.26% over the forecast period. The cheaper cost of clinical trials in Europe compared to the United States is one of the critical reasons for the rising demand for outsourcing clinical trials in Europe. Most important pharmaceutical businesses seek outsourcing services from regional to international markets in the region. In the 20th century, clinical trials declined in Western Europe, allowing Eastern Europe to capitalize on the opportunity. In addition, several Eastern European nations have created infrastructures for clinical trials. The vast, centralized healthcare system is the driving force behind the rapid expansion of clinical trial outsourcing in numerous regions. On the other hand, many patient populations were available for vendors to conduct clinical studies based on the patient population.
Key Highlights
- By phase, the global clinical trials outsourcing market is divided into phase I, phase II, phase III, and phase IV. The phase III segment is the highest contributor to the market and is anticipated to grow at a CAGR of 7.37% over the forecast period.
- By application, the global clinical trials outsourcing market is segmented into cancer, cardiovascular diseases, nervous system diseases, infectious diseases, musculoskeletal diseases, gastroenterology diseases, and others. The cancer segment owns the market and is expected to grow at a CAGR of 6.69% over the forecast period.
- By end-user, the global clinical trials outsourcing market is segmented into small and mid-size enterprises and large enterprises. The small and mid-size enterprises segment is the highest contributor to the market and is anticipated to grow at a CAGR of 7.09% for the forecast period.
- North America is the most significant global clinical trials outsourcing market shareholder and is anticipated to grow at a CAGR of 6.67% during the forecast period.
Competitive Players
The key players in the global clinical trials outsourcing market are IQVIA, Labcorp, Charles River Laboratory, Wuxi AppTec, Syneos Health, PPD (Thermo Fisher Scientific), Icon Plc., Paraxel, Advanced Clinical, Bioanalytix, Curia Global, Cromos Pharma, Cmed, Criterium, Medpace, QPS, Protrials Research, Quality Data Services, Worldwide Clinical Trials.
Market News
- In December 2022, Labcorp announced that it had begun operations at a new, more extensive anatomic pathology and histology (APH) laboratory in Los Angeles, expanding its global central laboratory capabilities. The new laboratory is a dedicated Center of Excellence focused on APH laboratory testing solutions.
- In October 2022, Labcorp announced the fulfillment of transactions establishing a long-term laboratory agreement with Ascension, one of the nation's leading non-profit and Catholic health systems. Labcorp purchased select assets of Ascension’s outreach laboratory business and will manage the health system’s hospital-based laboratories in Alabama, Florida, Kansas, Maryland, Michigan, New York, Oklahoma, Tennessee, Texas, and Wisconsin.
Global Clinical Trials Outsourcing Market: Segmentation
By Phase
- Phase I
- Phase II
- Phase III
- Phase IV
By Applications
- Cancer
- Cardiovascular Diseases
- Nervous System Diseases
- Infectious Diseases
- Musculoskeletal Disease
- Gastroenterology Diseases
- Others
By End-User
- Small and Mid-Size Enterprises
- Large Enterprises
By Regions
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
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