Healthcare CRO Market is Projected to Register 6.6% CAGR till 2028

The global healthcare contract research organization market size was valued at USD 39.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2021 to 2028.

The global Healthcare Contract Research Organization Market size is expected to reach USD 66.1 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.6% from 2021 to 2028. The increasing cost of drug development is expected to drive the market over the forecast period. Moreover, rising clinical trial cost and challenges pertaining to patient recruitment have led biopharmaceutical companies to turn to regions like Central and Eastern Europe, Asia Pacific, Latin America, and the Middle East for cost savings and quick patient recruitment.

In addition, growing pressure on industry players to follow stringent timelines has increased the demand for outsourcing research activities to contract research organizations (CROs). Some government organizations are also outsourcing their clinical trial activities so that they can carry out clinical trials with the required infrastructure and expertise and minimize their cost and timelines.

However, the CRO market has been significantly impacted by the ongoing pandemic. The worldwide focus on finding a vaccine against coronavirus has had a significant impact on the development of other vaccines and drugs. At the peak of the pandemic, vaccines and treatments for COVID-19 accounted for 30% of all the trials in the U.S. This resulted in other trials being put on hold.

The CRO market is recovering slowly through a hybrid approach. They are playing a significant role in helping sponsors and sites to start clinical trials. Market players have already built powerful tools to support virtual clinical trials. They are ready to rapidly assist sponsors to shift to this new environment and leverage the available tools.

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Healthcare CRO Market Report Highlights

• Based on type, clinical trial services dominated the global market in 2020 and held a share of 76.7% owing to the fact that it comprises four elaborate phases, including human subjects
• By service, the clinical monitoring segment held the largest revenue share in 2020
• North America held a significant share in 2020 due to the presence of several global players, who invest a major part of their revenue in research activities
• Asia Pacific is anticipated to register the fastest CAGR over the forecast period due to the reduced cost it offers in comparison to the U.S. and other developed economies. China, Japan, and India are projected to witness tremendous growth in the contract research organization market owing to high disease prevalence