Contract Research Organization Market Report by Trends, Drivers, and Challenges - 2025

The market for Contract Research Organizations (CROs) is projected to reach approximately US$ 68,198.36 million by the conclusion of 2025, reflecting a compound annual growth rate (CAGR) of 8.6% from 2018 to 2025, up from US$ 35,818.9 million in 2017. This growth is primarily driven by an increase in research and development (R&D) spending, a rise in outsourcing activities, and a growing number of clinical trials. According to a report from the Pharmaceutical Research and Manufacturers of America (PhRMA), R&D investments by biopharmaceutical firms rose from US$ 49.6 billion in 2012 to US$ 58.8 billion in 2015.

Within the CROs sector, the laboratory services segment is anticipated to be the fastest-growing category during the forecast period. This segment is crucial as it meticulously gathers, integrates, and reports data from various clinical trial sites. These laboratories are involved in performing both analytical and bio-analytical tests on samples collected during clinical trial phases and large-scale manufacturing processes. The analytical testing for clinical trial samples encompasses primary endpoint assessments, safety evaluations, and secondary endpoint analyses. The central laboratory's primary objective is to unify test results and data derived from multiple clinical trials.

Pharmaceutical and biotechnology firms dominate the CROs market in terms of market share. CROs specialize in conducting research, unlike pharmaceutical companies, which are more engaged in other revenue-generating activities such as drug production, sales, and marketing. Consequently, CROs provide significant value to pharmaceutical and biotechnology companies by minimizing infrastructure and R&D costs, as well as shortening the duration required to complete clinical trials. Furthermore, emerging pharmaceutical companies that may lack comprehensive knowledge of regulatory matters benefit from CROs, which assist them in establishing a legal foothold in the industry through various services. The increasing number of pharmaceutical and biotechnology enterprises, the shortage of skilled professionals, and the rising demand for innovative therapeutics to address diverse medical conditions are expected to propel the growth of this segment within the CROs market throughout the forecast period.

The estimation of the CROs market was conducted through thorough primary and secondary research, utilizing a wide range of government-authorized resources, including the World Health Organization (WHO), Centers for Disease Control and Prevention (CDC), Food and Drug Administration (FDA), United Nations (UN), International Diabetes Federation (IDF), and the National Institutes of Health (NIH), among others. Primary data was gathered from key stakeholders, including chairpersons and representatives from both the demand and supply sides of the healthcare industry, as well as medical professionals working in various biopharmaceutical companies and research institutions.