North America Contract Research Organization (CRO) Market Outlook
The North America contract research organization (CRO) market is projected to grow from US$ 16.3 billion in 2017 to US$ 30.7 billion by 2025, registering a compound annual growth rate (CAGR) of 8.4% during the forecast period from 2018 to 2025.
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Market Drivers
This growth is primarily fueled by rising R&D expenditures, an increasing trend of outsourcing research activities, and a surge in the number of clinical trials. Pharmaceutical and biotechnology companies are investing significantly in research and development to create innovative therapies with high medical and commercial potential. To manage costs and expedite timelines, many of these companies are outsourcing their research functions to CROs.
According to the Pharmaceutical Research and Manufacturers of America (PhRMA), R&D spending by biopharmaceutical companies rose from US$ 49.6 billion in 2012 to US$ 58.8 billion in 2015. This spending supports a wide array of activities, including the discovery and testing of new products, regulatory compliance, and improvement of existing treatments. Similarly, data from the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) indicates that global R&D investments in pharmaceuticals and biotechnology increased by 8.7% in 2014 compared to 2013.
The United States, Japan, and the European Union demonstrated strong R&D intensity, with R&D expenditures accounting for approximately 17%, 13.3%, and 13% of total industry revenue, respectively, in 2014. In the United States, pharmaceutical R&D investments have consistently increased over the past 15 years, underscoring the country’s leadership in the sector.
Regional Insights
The United States is expected to dominate the North American CRO market during the forecast period. This leadership is driven by high R&D spending and the strategic efforts of pharmaceutical and biotechnology companies to reduce drug development costs through outsourcing. The presence of several top-performing pharmaceutical firms with the financial capacity to invest heavily in R&D further strengthens the CRO market in the U.S.
Market Challenges
Despite strong growth prospects, the CRO market in North America may face challenges, such as a shortage of skilled professionals and intensifying regional competition among CRO service providers. Addressing these issues will be essential for sustaining long-term market expansion.
Strategic Insights: North America Contract Research Organization (CRO) Market
Strategic insights into the North America Contract Research Organization (CRO) market deliver a data-driven analysis of the evolving industry landscape, highlighting emerging trends, key players, and regional dynamics. These insights provide actionable guidance for stakeholders—whether investors, service providers, or sponsors—seeking to gain a competitive edge by uncovering underserved market segments or crafting distinct value propositions. By leveraging advanced data analytics, these insights help market participants anticipate changes, adapt to evolving client demands, and seize growth opportunities. A forward-looking perspective is critical, enabling businesses to navigate market complexities and position themselves for sustainable success. Ultimately, these strategic insights empower informed decision-making, driving profitability and long-term impact across the North American CRO ecosystem.
Market leaders and key company profiles
ï‚· IQVIA
ï‚· Laboratory Corporation of America Holdings
ï‚· PAREXEL International Corporation
ï‚· ICON plc
ï‚· Syneos Health
ï‚· PRA Health Sciences
ï‚· Charles River
ï‚· Pharmaceutical Product Development, LLC
ï‚· WuXi AppTec
ï‚· Medpace
North America Contract Research Organization (CRO) Regional Insights
The geographic scope of the North America Contract Research Organization (CRO) refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.
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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights
