Dermatology CRO Market Size, Share & Trends Analysis Report By Type (Preclinical, Clinical), By Service Type (Laboratory, Regulatory/Medical Affairs), By Region (North America, Asia Pacific), And Segment Forecasts, 2023 - 2030

Dermatology CRO Market Size & Trends

The global dermatology CRO market size was valued at USD 4737.7 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.8 % from 2023 to 2030. The high burden of various dermatological conditions, such as alopecia areata, atopic dermatitis, and acne, contributing to the demand for research, is one of the major factors driving the market growth. Furthermore, dermatological contract research organizations (CROs) are gaining traction owing to the growing interest of dermatological companies to focus on their core competencies, such as marketing and sales, which is further contributing to the market growth. A significant number of people worldwide suffer from various skin conditions.

For instance, in 2022, the Asthma and Allergy Foundation of America stated that around 16.5 million people in America suffer from atopic dermatitis. Similarly, according to the WHO, over 1.2 million people worldwide had non-melanoma skin cancer in 2020. The high burden of skin disorders across the globe is anticipated to improve the demand for dermatological clinical trials, thus creating growth opportunities for the market. The public organization is actively providing funding to conduct dermatological research efficiently. For instance, in 2023, The National Psoriasis Foundation Funds announced USD 3.2 million as funding in the research awards. Such funding by the public organization is expected to promote the number of CRO activities in the foreseeable future.

The outbreak of the COVID-19 pandemic had a damaging effect on the overall pharmaceutical industry. Supply chain disruption and delays in conducting clinical research in the area of dermatology have slowed market growth. However, the COVID-19 pandemic has highlighted the importance of virtual trials and the use of technology and software solutions. In the future years, the dermatology CRO environment is expected to be transformed by the increasing usage of Machine Learning (ML)-based platforms, Artificial Intelligence (AI), and innovative trial designs. This is expected to support the market in the forecasted period.

Type Insights

The clinical type segment dominated the market in 2022 with a revenue share of over 76.1%. The high cost associated with clinical research is a major factor for the largest segment share. Clinical trials are more expensive as compared to preclinical and drug discovery studies. The high cost associated with clinical studies is creating demand for outsourcing dermatological clinical trials. People living in developed and developing economies have high disposable income, due to which there is high adoption of new dermatological treatments among them. This supports the demand for new treatment options and hence supports the demand for clinical studies in dermatology, thus promoting segment growth. In the case of rare dermatological disorders, it is difficult to find a potential treatment for a small population; in such cases, outsourcing such trials will be more convenient for the company to reduce the cost and time incurred in conducting trials and enrolling such patients for studies.

All the aforementioned factors support the growth of the clinical segment. The preclinical segment is expected to register the highest CAGR of 6.7% over the forecast period. The rising number of preclinical trials involving large molecules and the growing need to reduce R&D costs are likely to drive the demand for dermatology CRO services, resulting in market expansion. A significant number of pharmaceutical companies lack suitable laboratories for conducting preclinical trials; thus, outsourcing these studies could be helpful for them to reduce the cost and time associated with conducting research; also, outsourcing will help them obtain quality preclinical study results. These factors are expected to further support the growth of the preclinical type segment.

Service Type Insights

The clinical monitoring segment accounted for the largest revenue share of more than 20% in 2022 and is expected to maintain its position during the forecast period. This could be due to an increase in the number of clinical trials and the need to monitor those trials, which is driving up demand for services. Over the last decade, dermatology clinical research has been outsourced to CROs for a variety of reasons, including cost-effectiveness and technical knowledge. The use of smart analytics and real-time data capture technologies in the healthcare sector is expected to improve clinical monitoring data. Real-time data collection on medication safety and toxicity allows for early detection of trial flaws and prompt corrections, such as trial re-design or termination, propelling the segment growth.

The regulatory/medical affairs segment is expected to grow at the fastest CAGR of 8.8% during the forecast period. The globalization of clinical trials, differences in drug regulations globally, increasing demand to obtain approval for new products, and maintaining compliance are the major factors boosting segment growth. Apart from this, the significant number of investments in clinical research for skin cancer, dermatitis, and psoriasis promoting the demand for product registration and clinical trial applications are other factors supporting segment growth.

Regional Insight

In 2022, Asia Pacific dominated the market with a revenue share of over 43% and is expected to grow rapidly in the forecast period. This is due to the diversity in population, high prevalence of chronic illnesses, such as eczema, melasma, psoriasis, and melanoma, in the region; and the ease with which patients may be recruited and retained. Furthermore, the cost of conducting clinical research in the region is comparatively less as compared to developed countries, and the region also has advanced infrastructure for conducting dermatological studies. All the above-mentioned factors are boosting the market growth in the region. The North America region is expected to grow with a CAGR of 5.2% during the forecast period.

The growth of this regional market has also been fueled by the increasing public organization support for R&D activities through investments and grants to research institutes and corporations. For instance, as of 2023, the National Psoriasis Foundation in the U.S. has provided over 30 million in funding for conducting research for the treatment, prevention, and cure of psoriasis. Such funding is likely to support market growth. Apart from this, the region also spends a significant amount on aesthetic surgeries. For instance, the Aesthetic Society in 2021 stated that Americans spent over USD 8.7 billion on aesthetic plastic surgeries. The high spending to look more appealing is expected to improve researchers' interest in developing new treatments. This is further supporting the regional market growth.

Key Companies & Market Share Insights

The major players are focused on the adoption of in-organic strategic initiatives, such as mergers, partnerships, acquisitions, etc. For instance, in March 2023, medical dermatology company, LEO Pharma, partnered with ICON plc, and as per the partnership, ICON supported LEO Pharma to conduct clinical trials in dermatology. This partnership was made by LEO Pharma to reduce the cost associated with conducting dermatological clinical trials. In April 2021, Thermo Fisher Scientific acquired the PPD for USD 17.4 billion. With this acquisition, Thermo Fisher is expected to significantly increase its market share in the clinical research services sector, particularly in the early phase clinical trials market. Some of the prominent players in the global dermatology CRO market are:

• IQVIA Inc.

• Labcorp Drug Development

• Pharmaceutical Product Development, LLC (PPD) (Thermo Fisher Scientific Inc.)

• Parexel International Corp.

• Charles River Laboratories

• Icon, Plc

• Medidata

• Syneos Health

• Pharmaron

• Aragen Life Sciences Ltd.

• Wuxi AppTec

• MEDPACE

• CTI Clinical Trial & Consulting

• Bioskin

• Proinnovera GmbH

• Biorasi, LLC

• Javara

• TFS

Dermatology CRO Market Report Scope

Global Dermatology CRO Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the dermatology CRO market based on type, service type, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Drug Discovery

    • Target Validation

    • Lead Identification

    • Lead optimization

  • Preclinical

  • Clinical

    • Phase I

    • Phase II

    • Phase III

    • Phase IV

• Service Outlook (Revenue, USD Million, 2018 - 2030)

  • Project Management/Clinical Supply Management

  • Data Management

  • Regulatory/Medical Affairs

  • Medical Writing

  • Clinical Monitoring

  • Quality Management/Assurance

  • Bio-statistics

  • Investigator Payments

  • Laboratory

  • Patient and Site Recruitment

  • Technology

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

    • Chile

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Israel

    • Iran

    • Kuwait