The Europe healthcare contract research organizations (CRO) services market is expected to reach US$ 26,094.15 million by 2027 from US$ 13,776.13 million in 2019.
The market is estimated to grow at a CAGR of 8.5% during 2020–2027. The growth of the healthcare contract research organizations (CRO) services market is primarily attributed to the growing number of clinical trials and increasing expenditure in R&D and outsourcing activities in the European region. Factors such as stringent regulations for approval of drugs hamper the growth of the market. Additionally, rising biosimilars and biologics market and advancement of technology in research field are likely to fuel the growth of the healthcare contract research organizations (CRO) services market during the forecast period.
Contract research organization (CRO) provides support services to the pharmaceutical, biotechnology, and medical device companies throughout the development of the product. Pharmaceutical & biotechnology companies and the medical device industry require various testing services such as preclinical services, clinical research services, analytical testing services, bio analytical testing services, and regulatory services. CROs are specifically designed to perform these testing services to reduce the in-house cost and time of the companies, required to conduct the extensive range of testing services to comply with the national and international regulatory standards.
Clinical trials play a determinant role in drug approvals and its efficacy over diseases. The studies help in understanding best medical approaches in certain therapeutic areas. The healthcare systems are observing rapid increase in the number of clinical trials. Factors such as growing demand for novel drugs and medical equipment, increasing prevalence of chronic conditions, and growth in funding programs to conduct clinical trials are responsible to increase the number of clinical trials.
The management of these clinical trials requires extended research facilities, dedicated resources, and sufficient financial requirements. These prerequisites of clinical trials generate a lucrative environment to prefer contract research organization for the execution of clinical studies. Additionally, various companies focus on establishing partnerships with contract research organizations for carrying out clinical studies in an efficient way. For instance, Lipidor has signed an agreement with Cadila Pharmaceuticals to conduct a Phase III trial of the former’s psoriasis drug candidate, AKP-02. Such growing number of collaborations will eventually increase the contribution of contract research organizations in the execution of clinical studies, which will eventually drive the market growth.
The COVID-19 pandemic effect on oncology patients is high in terms of fear, anxiety, and psychological distress. In Europe, many sponsors, collaborator, or CRO, have announced disruptions in their planned and ongoing clinical trials in their SEC filings, press releases, and clinical trial registries and also on social media. There are globally 826 organizations those have reported specific disrupted clinical trials in the public domain of which 8.2% located in the UK, 5% at France, and 3.7% at Switzerland. This is likely to have a negative impact on healthcare contract research organizations (CRO) services market in Europe.
Based on service type, the healthcare contract research organizations (CRO) services market is segmented into early phase development, laboratory services, consulting services, and clinical research services. The early phase development segment is further categorized into discovery studies, chemistry, marketing & manufacturing, and preclinical market. The laboratory services segment is further sub segmented as bio-analytical testing and analytical testing. The clinical research services segment is further divided into phase I, phase II, phase III, and phase IV. In 2019, the clinical research segment accounted for the largest share of the market. Growth of this segment is attributed to the increasing clinical trials and growing R&D investment.
World Health Organization (WHO), National Health Service (NHS), European Federation of Pharmaceutical Industries and Associations (EFPIA), and National Institute for Health Research (NIHR) are among the significant secondary sources associated with the Europe Healthcare contract research organizations (CRO) services market report.