Growing demand for technology advancement, outsourcing of clinical trials, and increasing globalization of clinical trials drive the clinical research organization market growth

Clinical Research Organization Procurement Intelligence

Clinical research organization procurement has become pivotal to fostering clinical trials and R&D activities across major economies. The global market size was valued at USD 90.4 billion in 2023. Meanwhile, North America accounted for 40% share of the market in 2023. The growth is attributed to the presence of leading pharmaceutical companies, which have upped their efforts in extensive drug development efforts and first-rate healthcare systems. 

In addition, due to changes in the market and reimbursement from generic pharmaceuticals, a number of significant pharmaceutical businesses in this region are outsourcing R&D and clinical trials. 

Clinical trials are complex and require many resources. Outsourcing clinical trials to CROs can help pharmaceutical and biotech companies reduce costs, streamline business operations, and increase productivity. As more pharmaceutical companies outsource their clinical studies, the demand for CROs is growing.

Companies are continuously focusing on collaborating or developing their own technology. For instance,

• In January 2023, a partnership between ICON plc and Google Cloud was announced to expedite the creation and distribution of clinical studies. Through the cooperation, ICON will be able to increase the effectiveness and efficiency of clinical trials by utilizing Google Cloud's artificial intelligence (AI) and machine learning (ML) capabilities.

• In 2021, Charles River Laboratories agreed to purchase Cognate BioServices Inc., a contract development and manufacturing organization (CDMO) that specializes in cell and gene therapy. This acquisition is intended to help Charles River expand its scientific capabilities in the rapidly growing cell and gene therapy sector.

Procurement activities could pick pace on the back of globalization of clinical trials and the demand for specialized services. Prominently, the demand for specialized services has gained ground due to the prevalence of rare diseases. These diseases affect a small number of patients, making it difficult to conduct clinical trials in traditional settings. CROs that can provide specialized services for rare diseases are well-positioned to capitalize on this growing market. 

Request a free sample copy or view report summary: Clinical Research Organization Procurement Intelligence Report

Clinical Research Organization Sourcing Intelligence Highlights

• The global clinical research organization market is fragmented, with the presence of several players. To grow their market share, firms in the industry are adopting strategies, including research and development, acquisitions, partnerships, and regional expansion.

• The cost of hiring staff, purchasing equipment, developing software, cost of data management, site monitoring, and regulatory compliance are the major cost component in clinical research organizations.

• Most of the service providers offer study design and planning, clinical monitoring, biostatistics, and others.

Clinical Research Organization Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence, along with emerging technology and the regulatory landscape

• Market estimates and forecasts from 2024 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, PPT, and online dashboard versions

Cost Intelligence Highlights

As part of the clinical research organization procurement intelligence report, Grand View Research has identified the following key cost components:

• Hiring staff

• Purchasing equipment

• Developing software

• Cost of data management

• Site monitoring

• Regulatory compliance

Cost of hiring staff, purchasing equipment, and developing software form the largest cost components of the clinical research organization. 

Clinical Research Organization - Key Suppliers

• Asymchem Laboratories (Tianjin) Co Ltd

• Charles River Laboratories

• Dalton Pharma Services

• ICON plc

• IQVIA Inc

• Pharmaron Beijing Co Ltd

• Piramal Enterprises Ltd

• Sun Pharmaceutical Industries Ltd

• Syneos Health

• Thermo Fisher Scientific Inc.

• Parexel International (MA) Corporation

• WuXi AppTec Co., Ltd.