The global U.S. Contract Research Organization (CROs) Market is estimated to be valued at US$ 17446.79 Mn in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:-
The U.S. Contract Research Organization (CROs) market consists of various organizations that offer drug discovery and clinical research outsourcing services to pharmaceutical, biotechnology and medical device companies. They help their client companies in various phases of clinical research such as preclinical testing, clinical trial management, clinical data management, post marketing surveillance, and other various services. CROs provide cost effective and time efficient drug development process to biopharmaceutical companies. They also help companies to focus their resources on their core business areas.
Market key trends:-
The key trend in the U.S. CROs market is the growing pharmaceutical R&D expenditure. Pharmaceutical companies are increasingly outsourcing their R&D activities to CROs to reduce costs and improve efficiency. As per estimates, global spending on pharmaceutical R&D is expected to grow from US$ 179 billion in 2020 to US$ 235 billion by 2025. This increase in R&D activities is expected to boost the demand for CRO services in drug development and clinical research. Another trend is outsourcing of late phase clinical trials. Large pharmaceutical companies are outsourcing Phase III clinical trials to CROs to leverage their therapeutic expertise and divest development risks.
Porter’s Analysis:-
- Threat of new entrants: The CRO market requires large upfront investments and has high regulatory compliance costs which act as entry barriers for new players.
- Bargaining power of buyers: Pharmaceutical and biotechnology companies have significant bargaining power due to the fragmented nature of the CRO industry. They can play CROs against each other to negotiate better prices.
- Bargaining power of suppliers: CROs rely on qualified medical professionals and highly skilled workforce as key suppliers. The availability of specialized talent impacts their operations.
- Threat of new substitutes: Customized services and end-to-end integration provided by CROs make substitution difficult. However, in-housing of clinical trials by biopharma companies remains a challenge.
- Competitive rivalry: The US CRO market is highly competitive due to many global and local players. Intense competition keeps pricing pressures and drives consolidation in the industry.
Key Takeaways:-
The Global U.S. Contract Research Organization (Cros) Market Size is expected to witness high growth, exhibiting CAGR of 9.6% over the forecast period, due to increasing R&D investments in drug development by pharma firms. The market size for U.S. CROs was valued at US$ 17446.79 Mn in 2023.
Regional analysis indicates that North America dominates the global CRO market owing to presence of majority of leading global pharmaceutical companies. However, Asia Pacific region is emerging as the fastest growing market due to low costs and abundant skilled workforce.
Key players operating in the U.S. Contract Research Organization (CROs) market are Laboratory Corporation of America Holdings (Covance), IQVIA, Paraxel International Corporation, Syneos Health, PRA Health Sciences, Charles River Laboratoires International Inc. (CRL), Pharmaceutical Product Development (PPD), ICON Public Limited Corporation, Wuxi Apptec, Medpace Holdings, Inc, Medidata Solutions, Inc., Theorem Clinical Research, Pharmaron, Envigo, and Clinipace. The market is experiencing increasing consolidation with large players acquiring smaller players to expand their service offerings.
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