Contract Research Organization Market revenue to hit USD 108 Billion by 2035, says Research Nester

Key contract research organization market players include IQVIA, Inc., ICON plc, Abbott Laboratories, Apple, Inc., Dexcom, Inc., Fitbit, Inc., F. Hoffmann-La-Roche Ltd., Johnson & Johnson, Medtronic plc, NeuroMetric, Inc.

New York , Jan. 15, 2024 (GLOBE NEWSWIRE) -- The global contract research organization market size is slated to expand at 7% CAGR between 2023 and 2035. The market is poised to garner a revenue of USD 108 billion by the end of 2035, up from a revenue of USD 57 billion in the year 2022. The increasing outsourcing of research and development (R&D) activities by pharmaceutical and biotechnology companies is a major factor driving the growth of the market.

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By outsourcing these activities, companies are able to focus on their core competencies and reduce costs. It is estimated that 82% of pharmaceutical companies are open to outsourcing new services as long as these services help them reduce costs. This is especially beneficial in countries with high labor costs, such as the US, where companies can easily outsource their R&D activities to countries with significantly lower labor costs. This allows them to take advantage of lower labor costs while still having access to the same quality of research and development.

Contract Research Organization Market: Key Takeaways

  • Market in North America to propel highest growth
  • Oncology segment to garner the highest growth
  • Market in Asia Pacific to grow at a significant rate

Growing Demand for Clinical Trials to Boost Market Growth

The development of new medical technologies has led to an increase in the number of clinical trials being conducted. These technologies include advanced imaging techniques, gene editing, and personalized medicine, among others. As a result, there is a growing need for clinical trials to test the safety and efficacy of these new technologies. The number of clinical trials registered on Clinical Trials has reached 450,600 as of May 2023. Clinical trials play a crucial role in the development and approval of new drugs and medical devices. They are essential for testing the safety and efficacy of these products before they can be made available to the public.

As the demand for clinical trials increases, so does the need for contract research organizations (CROs) to manage and oversee them. CROs provide a range of services such as study design, clinical operations, regulatory compliance, and data analysis, which are essential for the success of a clinical trial. As a result, demand for CROs is expected to increase significantly in the coming years.

Contract Research Organization Industry: Regional Overview

The global contract research organization market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region. 

High Healthcare Expenditure, Rising Prevalence of Chronic Diseases to Drive the Growth in the North America Region

The contract research organization market in North America region is estimated to garner the largest revenue by the end of 2035. This is largely attributed to the region's high healthcare expenditure, rising prevalence of chronic diseases, and the presence of a large number of contract research organizations. In 2022 the United States identified, over 2 million cancer cases and it is anticipated that approximately 600,000 deaths will be attributed to cancer related causes. Healthcare expenditure in the United States increased by 2.7% in 2021 amounting to $4.3 trillion or $12,914, per individual. Additionally, the region's increasing focus on research and development activities is also driving the market growth. Furthermore Pfizer Inc., a pharmaceutical company based in the United States announced in 2019 its plan to allocate a significant investment of $500 million, towards the expansion of their gene therapy production facility located in Sanford, North Carolina.

Increasing Demand for Healthcare Services and Technological Advancements to Drive the Growth in the Asia Pacific Region

The Asia Pacific contract research organization market is estimated to garner the largest revenue by the end of 2035. This growth is due to the increasing demand for healthcare services, technological advancements, and the growing focus on research and development activities in the region. Additionally, China's growing economy and increasing disposable income have enabled more people to access healthcare services, leading to a greater demand for contract research organizations. For instance, Medicilon, a Chinese-founded CRO, participated in several innovative drug research projects funded by the Chinese government and run by local pharmaceutical companies. Moreover, China's government has implemented policies to support the growth of the contract research industry, such as tax incentives and funding for research facilities.

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Contract Research Organization Segmentation by Therapeutic Area

  • Immunology
  • Hematology
  • Oncology
  • Infectious Diseases
  • Neurology
  • Cell & Gene Therapy
  • Vaccines

The oncology segment is anticipated to hold the largest revenue by the end of 2035. The rising demand for drugs and the progress in medical technology have resulted in new treatments being developed for cancer. This has further increased the need for contract research organizations to provide expertise, resources, and infrastructure for conducting clinical trials and other research studies. This has led to the growth of the oncology segment in Contract Research Organization market. The World Health Organization has reported that breast cancer and lung cancer had 2.26 million and 2.21 million cases, respectively. Among the common types of cancer are breast, lung, colon, rectum and prostate cancers. Furthermore, 10 million individuals were projected to lose their lives to cancer in 2020 accounting for roughly one, in six deaths worldwide and making it the leading cause of death globally.

Contract Research Organization Segmentation by End User

  • Pharma & Biopharma Companies
  • Academic Institutes
  • Medical Device Companies

The pharma & biopharma companies segment is anticipated to hold the largest revenue by the end of 2035. This is largely due to the fact that pharmaceutical companies are spending an increasing amount of money on research and development of new drugs, as well as on the release of new medications. In 2019, the pharmaceutical industry in the United States dedicated USD 83 billion to research and development. Furthermore, when compared to the decade there was a significant increase of approximately 60% in the number of newly licensed pharmaceutical products between 2010 and 2019. In 2018, around 60 drugs were approved for sale. Additionally, pharmaceutical companies are increasingly outsourcing their research and development needs to Contract Research Organizations, which are expected to account for a larger portion of the market in the coming years.

Contract Research Organization Segmentation by Type

  • Early Phase
  • Consulting
  • Clinical Lab

A few of the well-known market leaders in the global contract research organization market that are profiled by Research Nester are IQVIA, Inc., ICON plc, Abbott Laboratories, Apple, Inc., Dexcom, Inc., Fitbit, Inc., F. Hoffmann-La-Roche Ltd., Johnson & Johnson, Medtronic plc, NeuroMetric, Inc., and other key market players.

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Recent Development in the Contract Research Organization Market

  • IQVIA, Inc. has recently entered into a year partnership with Argenx SR by signing an extensive contract, aimed to explore therapeutic applications for VYVGARTTM, an FDA approved medication that acts as a neonatal Fc receptor blocker. Specifically, it focuses on its potential in treating myasthenia gravis, in individuals who are 18 years old and above.
  • ICON plc and PRA Health Sciences, Inc. have reached an agreement for a complete acquisition. The acquisition was completed through a combination of stock and cash USD 12 Billion. The primary objective of this merger is to conduct trials of exceptional quality and efficiency spanning from Phase 1, to post approval studies.

About Research Nester

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