CROs set to grow

Huge growth is on the cards for the CRO industry in the coming years, according to projections which estimate a CAGR of 9.6% by 2028.

In 2021, Global CRO in Clinical Trials Market Size was estimated at $43027.28 million. It’s forecast to reach $81710.73 million by 2028.

There are many reasons for the predicted growth — let’s take a closer look at some of those factors here:

RISING DEMAND AND INVESTMENT

Ongoing investment in R&D, growing demand for biopharmaceuticals and increased healthcare needs for the aging population are all factors that have create a need for efficient clinical trials. The development of genomics and the introduction of medications with specifically patient/disease-tailored genetic profiles are also contributing factors to the growth of the clinical trial services market.

The introduction of novel treatments based on biologics will offer lucrative growth prospects for CROs. Over 200 biologics have received FDA approval in the last ten years — a figure which is set to increase in the coming years.

Drug development is, of course, a lengthy and costly business with a high risk of sunken capital investment at each stage of the trial. Increase in demand, however, has led to an increase in finance and investment as well as merger and acquisition activity.

TECHNOLOGY

The continual explosion of new technology on the market, including AI and digitisation of patient data gathering and processing, has meant unimagined advances in the clinical trial process. Artificial Intelligence could mean faster, safer, less expensive trials. New data processing technologies are also in constant development and could lead to a complete re-evaluation of existing processes. Advanced data analytics means more information can be gathered and used more effectively.

NEW MARKETS

Geopolitical factors such as the Russia/Ukraine war have had a serious effect on clinical trials already underway in both countries. It has led, however to neighbouring territories such as Georgia and Kazakhstan revealing their potential as suitable clinical trial hubs with merits such as location, healthcare systems and favourable regulatory environments.

COVID-19

While the COVID-19 pandemic closed most of the world down, the world of healthcare had to open up, reach further and act faster than ever before. Clinical Trial practitioners had to alter their methods of participant treatment, monitoring and care in the absence of physical access. New data collection techniques were rapidly implemented. The pandemic hastened the widespread acceptance of new strategies, technologies and models and the industry gained insight into how to use these strategies going forward which will change clinical trial methodologies for the future.

COMPETITIVE LANDSCAPE

Major players operating in the market such as Labcorp, Parexel, Wuxi AppTec and others have adopted various strategies including those outlined above to expand their reach in the global market.

INCREASED COLLABORATION

A good partnership between a biotech or pharmaceutical business and a CRO can be extremely advantageous. An experienced, full-service CRO will give support in many ways — access to a vast network or experts, for example, along with support through preclinical and clinical research, pharmacovigilance, biopharmaceutical and bioassay development and data management. Biotech companies typically have technical skill, but lack constantly evolving regulatory knowledge which is where a CRO can contribute expertise. Working together through a long, convoluted process can ultimately yield results and give a biotech firm that competitive edge in the market.

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Huge growth is on the cards for the CRO industry in the coming years, according to projections which estimate a CAGR of 9.6% by 2028.

In 2021, Global CRO in Clinical Trials Market Size was estimated at $43027.28 million. It’s forecast to reach $81710.73 million by 2028.

There are many reasons for the predicted growth:

• Rising Demand — as the world grows, healthcare needs change and populations age, there’s a need for more drugs and therapies to meet global requirements.
• Increased Investment - increase in demand needs to be met with more resources, more financial outlay and more time;
• Advances in Technology, changing how information is gathered, analysed and processed;
• New Markets — more territories all over the world are working to attract and establish increase Clinical Research facilities;
• A Competitive Landscape. Many major players are keen to have a piece of the expanding pie;
• Increased collaboration. Good partnerships between pharma and CRO’s can streamline services and provide a valuable exchange of knowledge, producing effective and advantageous results.

Exciting times ahead in an industry which can be slow and complicated but which can yield some of the most important results of all — benefits to the lives and health of the global population.