Clinical Trial Supplies Market Analysis By Phase (Phase I, Phase II, Phase III), By Product & Services (Manufacturing, Storage & Distribution, Supply Chain Management), By End-Use, By Therapeutic Use, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

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.

Clinical Phase Insights

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.

Product & Services Insights

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%.

End-Use Insights

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.

Therapeutic Use Insights

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)

Regional Insights

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.

Competitive Insights

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.

Report Scope

Segments Covered in the Report

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)

  • Phase I

  • Phase II

  • Phase III

  • Other

• Product & Services Outlook (Revenue, USD Million; 2014 - 2025)

  • Manufacturing

  • Storage & Distribution

    • Cold chain distribution

    • Non-cold chain

  • Supply chain management

• End-Use Outlook (Revenue, USD Million; 2014 - 2025)

  • Pharmaceutical

  • Biologics

  • Medical device

  • Others

• Therapeutic Use Outlook (Revenue, USD Million; 2014 - 2025)

  • Oncology

  • CNS

  • Cardiovascular

  • Infectious disease

  • Metabolic disorders

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

  • Latin America

    • Mexico

    • Brazil

  • MEA

    • South Africa

    • Saudi Arabia