Healthcare Contract Research Outsourcing Market - Forecast(2022 - 2027)

Report Code: HCR 0585 Report Format: PDF + Excel

Healthcare Contract Research Outsourcing Market Overview

Healthcare Contract Research Outsourcing Market size is estimated to reach $46.7 billion by 2027, growing at a CAGR of 6.4% during the forecast period 2022-2027. A contract research organization (CRO) is a firm that allocates backing to the pharmaceutical, biotechnology, and medical device sector in the form of research services rearranged on a contract basis. CROs are depicted to assist different firms to decrease the cost of establishing novel medications in niche markets. CRO targets to disconnect the entries into the Healthcare Contract Research Outsourcing Market and clarify establishment as the requirement for big pharmaceutical firms to generate everything regionally. Healthcare contract research outsourcing services are inclusive of clinical research commercialization, biologic assay development, clinical trials management, biopharmaceutical development, pharmacovigilance, and preclinical research, among others.

The proliferating contract research outsourcing collaborations providing cutting-edge services like clinical trials management causing government organizations to be inclined to assign projects to CROs are set to drive the Healthcare Contract Research Outsourcing Market. The surging privatization of clinical trials resulting in a boost in outsourcing to developed countries is set to propel the growth of the Healthcare Contract Research Outsourcing Market during the forecast period 2022-2027. This represents the Healthcare Contract Research Outsourcing Industry Outlook.

Report Coverage

The report: Healthcare Contract Research Outsourcing Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Healthcare Contract Research Outsourcing Market.

By Type: Drug Discovery, Pre-clinical, Clinical.
By Service: Clinical Monitoring, Regulatory/Medical Affairs, Medical Writing, Pharmacovigilance, Others.
By Geography: North America (U.S, Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).

Key Takeaways

  • Geographically, North America Healthcare Contract Research Outsourcing Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the extensive government backing for R&D activities by way of grants and funds to research institutes and firms for clinical research in the North American region.
  • Healthcare Contract Research Outsourcing Market growth is being driven by the surging financing in R&D programs and heightened inclination for outsourcing activities like clinical trials management owing to time and cost constraints. However, the binding regulatory guidelines and soaring costs related to clinical trials are some of the major factors hampering the growth of the Healthcare Contract Research Outsourcing Market. 
  • Healthcare Contract Research Outsourcing Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Healthcare Contract Research Outsourcing Market report

Healthcare Contract Research Outsourcing Market: Market Share (%) by Region, 2021

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Healthcare Contract Research Outsourcing Market Segment Analysis – By Type

The Healthcare Contract Research Outsourcing Market based on type can be further segmented into Drug Discovery, Pre-clinical, and Clinical. The Clinical segment held the largest market share in 2021. This growth is owing to the surging count of biologics and current pandemic events resulting in demand for novel treatments. Outsourcing of clinical research is being preferred. The soaring technological evolution coupled with the worldwide integration of clinical trials is further propelling the growth of the Clinical segment.

Furthermore, the Pre-clinical segment is estimated to grow with the fastest CAGR of 7.2% during the forecast period 2022-2027 owing to the boost in the count of preclinical trials worldwide together with the augmented requirement to control spend on R&D amidst extensive research for new therapeutics for the treatment of COVID-19 infection post-2021 apart from outsourcing of clinical research.

Healthcare Contract Research Outsourcing Market Segment Analysis – By Service

The Healthcare Contract Research Outsourcing Market based on service can be further segmented into Clinical Monitoring, Regulatory/Medical Affairs, Medical Writing, Pharmacovigilance, and Others. The Clinical Monitoring Segment held the largest market share in 2021. This growth is owing to the surging count of clinical trials and the requirement to supervise these investigations, thereby building greater demand for these services. Clinical research is being extensively outsourced. The launch of smart analytics together with real-time data acquisition devices is further propelling the growth of this segment.

Furthermore, the Regulatory/Medical Affairs segment is estimated to grow with the fastest CAGR of 7.8% during the forecast period 2022-2027 owing to the accelerated surge in R&D activities, clinical trial applications, product registration, and drug pipeline, the heightened demand to acquire authorization for novel products, keep up compliance, do more with less apart from the upsurge in outsourcing for clinical research.

Healthcare Contract Research Outsourcing Market Segment Analysis – By Geography

The Healthcare Contract Research Outsourcing Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. North America (Healthcare Contract Research Outsourcing Market) held the largest share with 40% of the overall market in 2021. The growth of this region is owing to the soaring count of trials undertaken and outsourced in the North American region. Outsourcing of clinical research is widely noted. The proliferating government backing for R&D activities by way of grants and funds to research institutes and firms are further propelling the growth of the Healthcare Contract Research Outsourcing Market in the North American region.

Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like the increasing predominance of incessant ailments and the accessibility of distinct populations in the Asia-Pacific region. The boost in outsourcing of clinical research and the effortless patient recruitment and retention is further fueling the progress of the Healthcare Contract Research Outsourcing Market in the Asia-Pacific region.

Healthcare Contract Research Outsourcing Market - Drivers

Most Recent Trends In Clinical Research Outsourcing Are Projected To Drive The Growth Of Healthcare Contract Research Outsourcing Market:

As per data maintained by World Health Organization (WHO), the number of trials in the U.S. in the High Income Region of the Americas is 157,618 which constitutes 23.48% of the total trials for the period: 1999 to 2021. Clinical research, a vital sub-process in pharmaceutical R&D, not only guarantees faster returns on investments made for the pharma firm but also fuels access to superior and more secure patient care. Pharmaceutical R&D has two goals, namely novel medications and novel markets. Outsourcing clinical research has become a novel trend. The costs of medication establishment have increased in the past decade, compelling pharmaceutical firms to await innovations and smarter methods of performing business. One of the principal trends that have followed soaring costs is firms outsourcing their clinical research actions. By outsourcing their R&D operations, pharmaceutical firms are reforming the drug development services industry. These service providers have developed from just a few firms offering restricted clinical trial services to large multinationals providing an extensive series of services like preclinical assessments, study design, clinical trial planning, and management, independent safety data supervising, bio-statistical analysts, and more. CROs already offered preclinical and clinical trial services. However, they are presently extending into project management, Sponsor networking, and regulatory consulting. The most recent trends in clinical research outsourcing are therefore fuelling the growth of the Healthcare Contract Research Outsourcing Market during the forecast period 2022-2027.

Surging Benefits Of IT Outsourcing Are Expected To Boost The Demand Of Healthcare Contract Research Outsourcing:

As per facts and figures pertaining to the significance of IT Outsourcing for the Healthcare Industry, outsourcing IT healthcare decreases costs by 30% to 60%. Further updates indicate that as per Jonathan Clarke, the Assistant Professor of Health Policy And Administration, Penn State University, greater than 90% of the hospitals in the U.S. have outsourced at least one IT service to make perfect their procedures. Outsourcing is preferred when it is required to possess short-term added resources. Outsourcing offers a routine team of skilled and competent resources. When there is a requirement to respond to changeable workloads, outsourcing provides the answer. Outsourcing technique of “pay as you go” permits to completely respond to regulatory responsibilities without the requirement of clinging onto a complete pharmacovigilance team on the payroll. Further advantages of outsourcing are inclusive of decreased costs owing to the reduced effort required for staff recruitment, administration, and coaching. Outsourcing of clinical research is being preferred owing to cost-effectiveness and technical competence. The surging benefits of outsourcing are therefore driving the growth of the Healthcare Contract Research Outsourcing Market during the forecast period 2022-2027.

Healthcare Contract Research Outsourcing Market – Challenges

Data Breaches And Issues With Patient Privacy Are Hampering The Growth Of The Healthcare Contract Research Outsourcing Market:

One of the largest hazards of outsourcing includes data breaches and issues with patient privacy. There were 2013 data breaches recorded from 86 nations in the year 2019. The total count of healthcare records that were disclosed, embezzled or illegally revealed in the year 2019 was 41.2 million in 505 healthcare data breaches. Hackers and data breaches can impose a hazard for health care providers that outsource, making it vital to put in place risk management programs to safeguard patient data. If outsourcing is done, one should also consider the feasibility of quality issues. Poor quality can arise from miscomprehensions about the scope of work being offered and the costs of those services. The time and effort that is required to establish a fruitful partnership must not be underestimated. Providers and vendors are required to clearly define the scope of work, the standards, and the objectives that will be evaluated. Vendors are required to be held responsible for their performance and that the work does not extend beyond a predefined scope. Only vendors who have wide experience in the industry, need to be chosen to work with and they must adhere to industry best practices to guarantee high-quality work. These issues are thus hampering the growth of the Healthcare Contract Research Outsourcing Market.

Healthcare Contract Research Outsourcing Industry Outlook:

Adoption of collaborations and partnership strategies are key strategies adopted by players in this market. Healthcare Contract Research Outsourcing top 10 companies include:

  1. IQVIA
  2. Syneos Health
  3. ICON PLC
  4. PAREXEL International
  5. Charles River Laboratories
  6. Laboratory Corporation of America Holdings
  7. PRA Health Sciences, Inc.
  8. Thermo Fisher Scientific
  9. Medidata Solutions, Inc.
  10. Pharmaron

Recent Developments

  • In September 2021, it was reported that Syneos pronounced that it has gained StudyKIK, a tech-enabled clinical trial recruitment and retention company that was kicked off in 2014 and is based in Irvine, California. The firm handles over 1,000 indication-specific patient community groups and operates with over 3,800 research sites across the world. The financial details of the deal were not announced.
  • In July 2021, it was reported that ICON has finished the formerly declared gain of contract research company PRA Health Sciences for a total consideration of nearly $12bn. The firms signed a merger agreement in February 2021, under which ICON compensated $80 in cash per share and 0.4125 shares of its stock to PRA shareholders. As per the deal, PRA Health Sciences evolved into a wholly-owned unit of ICON.
  • In October 2020, Syneos Health launched Kinetic, a contemporary customer engagement capacity that makes completely combined omnichannel solutions available to biopharmaceutical organizations. Mechanized by a group of data scientists, behavioral experts, and channel strategists, Kinetic conveys “the right message, to the right person, at the right moment” to make a perfect performance. This progressive capacity is already being redistributed for biopharmaceutical firms of all sizes.

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1. Healthcare Contract Research Outsourcing Market - Overview
    1.1 Definitions and Scope
2. Healthcare Contract Research Outsourcing Market - Executive Summary
3. Healthcare Contract Research Outsourcing Market – Market Landscape
    3.1 Company Benchmarking- Key Companies
    3.2 Key Company Financial Analysis
    3.3 Market Share Analysis
    3.4 Patent Analysis
    3.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Healthcare Contract Research Outsourcing Market – Startup Company Scenario (Premium)
    4.1 Investment
    4.2 Revenue
    4.3 Venture Capital and Funding Scenario
5. Healthcare Contract Research Outsourcing Market – Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Scenario
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of Successful Ventures
6. Healthcare Contract Research Outsourcing Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Healthcare Contract Research Outsourcing Market – By Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle Analysis
8. Healthcare Contract Research Outsourcing Market - By Type (Market Size –$Million/$Billion) 
    8.1 Drug Discovery
    8.2 Pre-clinical
    8.3 Clinical
9. Healthcare Contract Research Outsourcing Market - By Service (Market Size –$Million/$Billion) 
    9.1 Clinical Monitoring
    9.2 Regulatory/Medical Affairs
    9.3 Medical Writing
    9.4 Pharmacovigilance
    9.5 Others
10. Healthcare Contract Research Outsourcing Market - By Geography (Market Size -$Million/Billion)
    10.1 North America
        10.1.1 U.S
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1 Germany
        10.2.2 France
        10.2.3 UK
        10.2.4 Italy
        10.2.5 Spain
        10.2.6 Russia
        10.2.7 Rest of Europe
    10.3 Asia-Pacific
        10.3.1 China
        10.3.2 Japan
        10.3.3 South Korea
        10.3.4 India
        10.3.5 Australia & New Zealand
        10.3.6 Rest of Asia-Pacific
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Chile
        10.4.4 Colombia
        10.4.5 Rest of South America
    10.5 Rest Of The World
        10.5.1 Middle East
        10.5.2 Africa
11. Healthcare Contract Research Outsourcing Market - Market Entropy
    11.1 New product launches
    11.2 M&A's, collaborations, JVs and partnerships
12. Healthcare Contract Research Outsourcing Market – Industry Competition Landscape (Premium)
    12.1 Market Share Analysis
        12.1.1 Global Market Share – Key Companies
        12.1.2 Market Share by Region – Key Companies
        12.1.3 Market Share by Countries – Key Companies
    12.2 Competition Matrix
    12.3 Best Practices for Companies
13. Healthcare Contract Research Outsourcing Market – Key Company List by Country Premium (Premium)
14. Healthcare Contract Research Outsourcing Market - Company Analysis
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10
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