Clinical Trial Supply And Logistics World Market to Reach $15.4BN in 2018, According to a New Study on ASDReports

Wednesday 4 March 2015, Amsterdam

A new report, now available on ASDReports, forecasts the world market for clinical trial supply and logistics services will reach $15.4bn in 2018, with strong expansion from 2015 to 2025. That sales prediction and others appear in Clinical Trial Supply and Logistics: World Industry and Market Outlook 2015-2025, published in January 2015.

The purpose of that analysis is to give business predictions that planners, influencers and leaders need.

That updated investigation finds clinical trial manufacturing services accounted for the largest proportion of service provider revenues in 2014, and will continue to be the largest expenditure throughout the forecast period. That submarket will grow with a compound annual growth rate (CAGR) of 5.8% between 2013 and 2025. Demand will be strong for complex manufacturing services in that period, driven by high-potency medicines and biological drug manufacturing. The expenditure on comparator drug sourcing will increase as more sponsors conduct clinical trials on biological therapies (biologics). Packaging and labelling will also evolve to accommodate the increasing demand for cold chain distribution technologies and services. Those demands add to the growing complexity of clinical trial manufacturing provision.

Fastest revenue growth, though, will come from the supply chain management services segment. That submarket is expected to grow with a CAGR of 7.1% between 2013 and 2025. Patient stratification and greater use of adaptive trial designs will stimulate demand for outsourced trial planning and forecasting, the new study also predicts. New technologies will stimulate the market as more clinical trial service providers collaborate with IT companies to give the best platform for integrated multi site trials. By 2025, the new report predicts that segment will account for 5.6% of the worldwide clinical trial supply and logistics market.

The report said: “The need for outsourcing becomes ever more pronounced as clinical trials become more global and companies penetrate new markets having different cultures and policies. With more pharmaceutical companies looking to conduct clinical trials in emerging markets, demand for local supply and distribution services rises.

“Other factors that will stimulate market growth include increased biopharmaceutical drug development. Clinical trials for biologics will lead to more demand for cold chain logistics in the future. This, in turn, will increase demand for new packaging and monitoring technologies that offer lower-cost solutions. And development of orphan drugs will open new opportunities for smaller service providers, as they can compete by offering specialised services such as patient recruitment, direct-to-patient distribution and phase-change materials that control more-specific temperature ranges.”

The report’s new analysis forecasts the world clinical trial supply and logistics market’s revenues to 2025. It also gives individual revenue predictions for seven clinical trial submarkets to 2025 at world level:

• Manufacturing – also with forecasts for packaging and other production
• Logistics and distribution – also with forecasts for cold chain and other services
• Supply chain management.
  

That study also discusses regulatory developments and demand for clinical trial supply and logistics services in leading developed and developing countries. The work analyses the US, Japan, Germany, France, the UK, Italy and Spain (EU5), China, India, Brazil and Russia (BRIC), with revenue forecasts to 2025. It also shows interviews with four authorities in the industry.

Developed national markets give the highest demand for clinical trial supply and logistics, with the US and Western Europe accounting for 75.2% of service revenues in 2013. Those countries will remain as leading destinations for clinical trials to 2025. However, interest in lower-cost trials in other patient populations will stimulate off-shoring of clinical trials to developing countries. Challenges in trial and import approval delays, as well as those in logistics infrastructure, need to be overcome in developing countries to increase their appeal as medical trial destinations. Anyhow overall prospects for clinical-testing logistics and supply worldwide hold promise, from 2015 giving high, rising revenues.