North America Clinical Trials Market size exceeded USD 23.4 billion in 2020 and is expected to witness 3.5% CAGR from 2021 to 2027.
The regional market revenue is driven by a rising number of biologics, the need for personalized medicines and orphan drugs, and demand for advanced technologies. For instance, as per the World Health Organization (WHO), the burden of chronic diseases is increasing. Therefore, it is expected to increase the demand for the development of new drugs and further raise the demand for clinical trials.
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Furthermore, the current COVID-19 pandemic is changing the way of conducting ongoing or upcoming clinical trials. Regulatory agencies such as the U.S. FDA and National Institutes of Health (NIH) have issued guidelines related to the conduct of clinical trials during the outbreak of coronavirus, which is in complete support of incorporating virtual services. However, complex regulatory framework may lower the market growth trajectory in the region.
Phase III segment accounted for more than USD 11.3 billion revenue in 2020. Increasing demand to evaluate the new treatment with existing treatment in this phase will fuel the market expansion. Moreover, phase III clinical trials are performed to study the comparative effect of the new medication over the previous medications. These clinical trials remain a comparatively higher need for outsourcing services than Phase II and Phase I trials owing to their greater complexity and need for a larger patient pool.
Interventional study segment size is set to reach USD 23.3 billion by 2027. Interventional study is one of the most prominent methods used in a clinical trial. For instance, according to the clinicaltrials.gov, there are over 7,000 interventional studies related to autoimmune/inflammation. Also, the interventional studies comprise more than 75% of total registered studies. Among those studies, most studies were for drug or biologics followed by behavioral, clinical procedure, and device intervention studies.
Oncology segment revenue was over USD 8.8 billion by 2020. Growing incidence of cancer will ultimately increase the new drug development and clinical trials activities for disease treatment. For instance, as per the U.S. FDA, more than USD 38 billion is currently spent by the pharmaceutical industry towards the preclinical and clinical development of oncology therapy products. Furthermore, rise in the number of oncology CRO services is another contributing factor in the segment revenue.
U.S. clinical trials market size will likely showcase 3.6% growth rate during the forecast timeframe. Favorable government initiatives regarding clinical trials in the United States will boost the market growth. For instance, in March 2020, the FDA launched a Coronavirus Treatment Acceleration Program (CTAP) for possible therapies to speed up the development of treatment for the global disease caused by the coronavirus. Similarly, pharmaceutical companies in U.S. are found spending more on R&D than most other organizations.
Major players involved in the market include Laboratory Corporation of America Holdings, IQVIA, Pharmaceutical Product Development, and PRA Health Science, among others.
Companies undertake various strategies such as mergers, collaborations, acquisitions, and geographic expansions to strengthen their market share. For instance, in January 2020, LabCorp and Covance launched extensive preclinical, clinical, and post-approval cell and gene therapy development solutions. The solutions are designed to reduce risk and time for sponsors at each phase and across the full continuum of therapy development.