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The global Healthcare Contract Research Outsourcing Market is estimated to be valued at US$ 130.3 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Healthcare contract research outsourcing involves the process of hiring third-party organizations for clinical trials and other related services. It helps companies in reducing development costs and time to market by outsourcing certain functionalities.
Market key trends:
Growing demand for specialized testing services and rising preference for outsourcing non-core activities are major trends contributing to the market growth. Contract research outsourcing enables pharma/biotech companies to focus on core competencies while supplementing their capabilities through external service providers. It allows leveraging global clinical trial sites and patient pools for faster data generation at lower costs compared to in-house research efforts. This has increased outsourcing of various clinical research functions to specialty organizations.
Market key trends:
The healthcare contract research outsourcing market has been witnessing increased adoption of technologies such as cloud based platforms, AI and blockchain. Cloud based platforms are being used by CROs to better manage large volumes of data generated during clinical trials in a cost effective manner. AI and machine learning tools are helping in streamlining processes such as patient recruitment, monitoring and regulatory compliance. Blockchain is also gaining traction as it provides a tamper proof system to record clinical trial data and ensure privacy and security.
SWOT Analysis
Strength: Established expertise in conducting clinical trials, strong global presence, lower operational costs
Weakness: Reliance on few large clients, regulatory compliances are complex
Opportunity: Emerging markets offer scope for growth, adoption of new technologies like AI, cloud and blockchain
Threats: Data security risks, geopolitical risks, pricing pressure from clients
Key Takeaways
The global healthcare contract research outsourcing market is expected to witness high growth, exhibiting CAGR of 15.% over the forecast period, due to increasing demand for outsourcing of clinical trials and research activities from pharmaceutical and biotech companies.
North America is currently the largest and fastest growing market for healthcare CRO due to presence of large pharmaceutical companies and growing biotech industry in the region. However, Asia Pacific region is emerging as an attractive outsourcing destination supported by availability of low cost and skilled workforce in countries like China and India.
Key players operating in the healthcare contract research outsourcing market are IQVIA Inc, Covance Inc, Pharmaceutical Product Development Inc, Parexel International Corporation, Charles River Laboratories, ICON plc, Medidata, Inventiv Health, Inc., Medpace, and Piramal Enterprises Ltd. These players are focusing on expansion in emerging markets and adoption of new technologies to remain competitive in the market.
