Clinical Research Services to Bolster Contract Research Organization Market Growth During 2024-2031

According to our new research study on "Contract Research Organization Market Forecast to 2031 - Global Analysis - by Service Type, Product Type, Type, Application and End User" the market is expected to grow from US$ 113.79 Bn by 2031 from US$ 65.39 Bn in 2024; it is estimated to grow at a CAGR of 8.2% during 2024-2031. The report highlights trends prevailing in the market, and drivers and restraints pertaining to the market growth.

The Contract Research Organization (CRO) industry is growing strongly across the globe, owing to rising outsourcing of research and development (R&D) operations in pharmaceutical, biotechnology, and medical device firms. With the healthcare sector becoming increasingly competitive and innovation-driven, firms are under tremendous pressure to speed up drug discovery. Contracting R&D to CROs enables companies to access their specialized expertise, sophisticated infrastructure, and global connectivity without significant investments. CROs offer full-service solutions, from preclinical research to clinical trials, regulatory affairs, and post-marketing surveillance, and thus help sponsors concentrate on their core competencies. In addition, the increasing complexity of clinical trials due to the commonality of chronic diseases, orphan diseases, and personalized medicine has raised the demand for niche CROs with specialized knowledge and technological capacities. Syngene has a dedicated research facilities name BBRC for Amgen, Baxter, and Bristol-Myers Squibb for specialist discovery, development, and manufacturing facilities in Bangalore.

Discovery CROs are forming long-term strategic partnerships with pharmaceutical and biotechnology companies, academic institutions, and other CROs. These collaborations can involve co-developing drugs, joint ventures, or preferred provider agreements, allowing both parties to leverage each other's strengths. In November 2024, Novotech, a global full-service clinical CRO, formed a long-term partnership with Beijing Biostar Pharmaceuticals Co., Ltd. This collaboration was aimed to advance clinical research by utilizing Novotech's expertise to support Biostar's clinical development plans for novel therapeutics.

Such partnerships can significantly reduce the time required to bring a drug to market, accelerating the process by months compared to traditional outsourcing. In the US, it typically takes 10 to 15 years and over US$ 2.5 billion to develop a single drug, with most costs arising from the discovery and development phases. By sharing expertise, resources, and technologies, these collaborations foster innovation, help mitigate risks, and distribute research costs.

Therefore, the market is well positioned for continued growth due to rising dependence on R&D outsourcing to achieve efficiency, save costs, and get life-saving drugs to patients more quickly.

Rising Demand for Clinical Trials Is Propelling The Growth of Contract Research Organization Market

According to the data provided by the National Library of Medicine (NLM), ~52,000 new studies were registered with NLM (ClinicalTrials.gov) in 2020, which increased to ~58,000 in 2023. In January 2023, the NLM reported 38,837 active clinical trials in the US and 105,172 active trials worldwide. According to the European Medicine Agency, in the European Union (EU), ~4,000 clinical trials are authorized annually, of which about 60% of clinical trials are associated with the pharmaceutical industry. An increasing number of clinical trials for developing different effective treatments due to the rising prevalence of chronic diseases globally is fueling the growth of the global CRO market. With bigger sample sizes, diversified patient demographics, and multiple study sites, clinical trials are becoming more complex.

Managing the various aspects of trials, from oncology research to vaccine development, can overwhelm sponsors. CROs enhance trial efficiency and productivity while handling day-to-day research activities that may be impractical or costly for drug developers to conduct in-house, including trial design, bioanalytical testing, and regulatory consultation. The growing investments and collaborations by market players to enhance clinical trials is fueling the growth of the market. In February 2025, the Society for Clinical Research Sites (SCRS) and Fortrea, a leading CRO, announced that Fortrea will sponsor the SCRS Collaborate Forward working group to enhance collaboration in clinical research. This group, made up of 16 global impact partner organizations, aims to reduce administrative burdens in clinical research by developing best practices. Their focus is on enhancing transparency and collaboration to improve site sustainability and trial efficiency, ultimately benefiting patients.

Therefore, the growing number of clinical trials are expected to boost the demand of CRO services to carry out complex studies at lower costs during the forecast period.

The contract research organization market is segmented on the basis of service type, product type, type, application, end user and geography. The contract research organization market, based on service type, is segmented into early phase development services, clinical research services, laboratory services, and post-approval services. The clinical research services segment held the largest share of the contract research organization market in 2024. product type, the market is segmented into cell and gene therapy, biosimilars, antibody drug conjugates, and others. The biosimilars segment held the largest share of the contract research organization market in 2024. In terms of type, the contract research organization market is bifurcated into in-house and outsource. The outsource segment held a larger share of the contract research organization market in 2024. Based on application, the market is segmented into oncology, neurology, cardiology, infectious diseases, metabolic disorders, nephrology, respiratory, dermatology, ophthalmology, hematology, and others. The oncology segment held the largest share of the contract research organization market in 2024. By end user, the contract research organization market is divided into pharmaceutical and biotech companies, medical device companies, and academic and research institutes. The pharmaceutical and biotech companies segment held the largest share of the contract research organization market in 2024

In terms of geography, the contract research organization market is segmented into North America (US, Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia Pacific (China, Japan, India, Australia, South Korea, and Rest of Asia Pacific), the Middle East & Africa (UAE, Saudi Arabia, Africa, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). The US holds the largest market share, followed by Canada. The growth in North America is characterized by growing demand for contract research organizations by the healthcare market players, growing support from the government to provide cost-effective healthcare service, increasing strategic developments by the contract research organization players to enhance services, and a growing healthcare industry that demands frameworks and guidelines based on the real-world data for their business models. The US is the largest market for contract research organizations and is estimated to continue its dominancy owing to the presence of leading contract research organizations , a well-established healthcare industry that provides a broader scope for contract research organizations, and a growing shift toward outsourcing R&D and clinical trial services.

Contract research organizations are crucial to the biotechnology, pharmaceutical, and medical device industries owing to their offering of outsourced research services that help accelerate the typically prolonged and complicated drug development process. Due to the need for quicker drug development and technical developments, the landscape for contract research organizations in the US is evolving quickly. The regulatory environment heavily impacts the operation of contract research organizations. Initiatives such as real-time assessment, which permits simultaneous data assessment during clinical trials, have been established by the US FDA. Contract research organizations manage and evaluate data in real time related to this change.

There are a growing number of clinical trials with increasing investments in research and development in the country. According to an article published in the United States National Library of Medicine in May 2023, 437,533 clinical trials were registered in 221 countries in 2023, an increase from 399,499 in 2022, among which 140,492 (31%) were registered in the US. Contract research organizations help lower the risks of trial delays and regulatory obstacles by assisting pharmaceutical businesses in navigating this environment.

Therefore, above-mentioned benefits offered by contract research organizations are contributing to the growth of the market in the US.

Parexel International Corp, Thermo Fisher Scientific, Precision Medicine Group, LLC, ProPharma Group, Medpace Holdings Inc, 04 Research Ltd, Julius Clinical, Siron Clinical, Clinmark sp. z.o.o, Pharmaxi LLC, Aurigon GmBH, Smerud Medical Research Group, Syneos Health Inc, IQVIA Holdings Inc are among the key players in the market.

Companies operating in the contract research organization market adopt various organic and inorganic strategies. Organic strategies mainly include product launches and product approvals. Acquisitions, collaborations, and partnerships are among the inorganic growth strategies witnessed in the contract research organization market. These growth strategies allow the market players to expand their businesses and enhance their geographic presence, thereby contributing to the overall market growth. Further, acquisition and partnership strategies help them strengthen their customer base and expand their product portfolios.

A few of the developments made by the companies operating in contract research organization market are as follows: