The global clinical trial supplies market size was valued at USD 1.7 billion in 2016 and is expected to grow at a CAGR of 7.3% over the forecast period. Globalization and rise in number of clinical trials, increasing complexities and rising number of biologics and biosimilar drugs in trials are expected to be the major driver for the growth of this market. Advancement in supply chain management technology is also expected to be the major driver for growth of the supplies market.
Rising adoption of supply chain management system is due to rising pressure to cut down R&D cost and increase the operational efficiency as the supplies contribute significantly to the total R&D expense of biopharmaceutical companies.To cut down the cost of supplies, biopharmaceutical companies are outsourcing their supplies to global and regional supply players, which in turn is helping them to focus more on trial process.
U.S. clinical trial supplies market, by phase, 2014 - 2025 (USD Million)
The geographical distribution of these trials is slowly shifting from developed nations to emerging countries. The rising cost and difficulty in patient recruitment has led biopharmaceutical companies to shift towards regions such as central and eastern Europe, Asia Pacific, Latin America and Middle East for cost efficiency and quick patient recruitment.
Emerging countries also possess greater disease variation compared to the west, where traditional diseases are growing. The greater disease variation among the developing countries helps biopharmaceutical companies to perform clinical trials from rare diseases. Asia Pacific also provides greater economic benefits to biopharmaceutical companies as government in Singapore and China allocate funds to promote biomedical research in the region.
Phase I is expected to be the fastest growing segment due to rise in number of outsourced Phase I trials. Lesser sample population and high capital investment are the major factors responsible for outsourcing the major volume of these trials. It has been identified that about 54.0% of Phase I trials are outsourced and the number is expected to increase owing to globalization of these trials.
Phase III trials process are characterized to possess a high level of complexity compared to all others. Although, the number of drugs in this phase are comparatively low, the complexity associated with this phase is the highest. Failure rate in this phase is the highest as the sample size and study design requires complex dosing at optimum level.
Based on product and services, storage and distribution is expected to be the fastest growing segment owing to rising number of outsourced storage and distribution facility. Supply chain management is expected to dominate the market due to rising pressure to curb R&D cost and advancement in technology. Cold chain distribution is expected to witness the fastest growth due to rising number of biologics and temperature sensitive drugs while non-cold chain distribution is expected to dominate this segment over the forecast period.
As of 2016, supply chain management forms the largest segment with all the industry players paying high emphasis on maintaining experienced personnel clinical trial supply managers. This scenario is true for most of the regions across the globe, except in the U.S., wherein manufacturing is also expected to gain momentum at a lucrative rate. Over the forecast period, manufacturing is anticipated to witness the fastest growth at CAGR over 7.0%.
Biologics is expected to be the fastest growing segment based on end-use while pharmaceutical is expected to be the largest segment over the forecast period. The demand for biosimilar in both emerging and developed countries is also expected to fuel the growth of the industry.
Pharmaceuticals contributed for about 40.0% of the market share in 2016 and is expected to witness growth at a CAGR of 7.3% during the forecast period. Steady decrease in R&D pipeline for pharmaceutical drugs has been observed and it is being substituted by biological drugs, which is expected to impact the segment over the next eight years.
In terms of therapeutic area, oncology is expected to be the fastest growing and also the dominating segment owing to tremendous R&D pipeline of oncology drugs as majority of oncology drugs require temperature sensitive distribution which is further anticipated to fuel the growth of cold chain distribution.
Clinical trial supplies in oncology include primary and secondary packaging. The main objective of the packaging is to improve the patient compliance. Packaging must prevent the vials from leakage and other gases to aerosolize. The packaging should be done in accordance with the dosage. For instance, the hospitals in the U.S are disposing millions of cancer vials due to improper dosage, according to the United Press International. In 2016, Intensity Therapeutics Inc. funded USD 10 million towards clinical supplies for cancer based research.
Global clinical trial supplies market, by end-use, 2016 (USD Million)
North America and Europe are the leading contributors to the global clinical trial supplies market owing to high share of clinical trials conducted in this region and greater number of clinical trial supply players with most advanced technology. High cost of conducting clinical trial is expected to be the reason for relatively less growth compared to Asia pacific region.
Asia Pacific is expected to witness the fastest growth owing to its diverse population, easy access to patient, proximity to North America and low translation cost. Latin America and MEA are also expected to witness significant growth owing to rise in number of clinical trials conducted in this region.
Key players analyzed in the clinical trial supplies market study are KLIFO A/S, PAREXEL International Corporation, Almac Group Ltd, Movianto GmbH, Patheon Inc., Biocair International Ltd., PCI Services, Thermo Fischer Scientific, Sharp Packaging Services, and Catalent Pharma Solutions. Other players present in the market space include Clinigen Group Plc, Merck Serono, and Chimerix.
Expansion of geographic presence and development of niche business units catering to the industry are being currently performed by various players. For instance, Almac Group expanded their supply facility in Singapore as the regional headquarters in July 2015.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Million & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, UK, Germany, China, Japan, Brazil, Mexico, South Africa, Saudi Arabia
Revenue, company share, competitive landscape, growth factors, trends
15% free customization scope (equivalent to 5 analysts working days)
If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the clinical trial supplies market on the basis of product, end-use and region:
Clinical Phase Outlook (Revenue, USD Million; 2014 - 2025)
Product & Services Outlook (Revenue, USD Million; 2014 - 2025)
Storage & Distribution
Cold chain distribution
Supply chain management
End-Use Outlook (Revenue, USD Million; 2014 - 2025)
Therapeutic Use Outlook (Revenue, USD Million; 2014 - 2025)
Regional Outlook (Revenue, USD Million; 2014 - 2025)
b. The global clinical trial supplies market size was estimated at USD 2.1 billion in 2019 and is expected to reach USD 2.3 billion in 2020.
b. The global clinical trial supplies market is expected to grow at a compound annual growth rate of 7.3% from 2017 to 2025 to reach USD 3.3 billion by 2025.
b. North America dominated the clinical trial supplies market with a share of 51.1% in 2019. This is attributable to the high share of clinical trials conducted in this region and a greater number of clinical trials supply players with the most advanced technology.
b. Some key players operating in the clinical trial supplies market include KLIFO A/S, PAREXEL International Corporation, Almac Group Ltd, Movianto GmbH, Patheon Inc., Biocair International Ltd., PCI Services, and Thermo Fischer Scientific.
b. Key factors that are driving the market growth include globalization and a rise in the number of clinical trials, increasing complexities, and rising number of biologics and biosimilar drugs in trials.
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Multiple therapeutic regimens are being followed across the globe in attempts to come up with a reliable treatment for Covid-19. One line of treatment includes the use of hydroxychloroquine, while a second treatment line focuses to use antiviral drugs used in the disease management of HIV. Both these approaches have surged demand from advanced antivirals and antimalarial drugs. This impacts the drug manufacturers as an off label indication for these drug classes has to be worked upon. At the moment, the WHO has not prescribed any of these approaches, neither they have commented if one is better than the other. The report will account for Covid19 as a key market contributor.