North America Contract Research Organization Market size surpassed USD 22,579.9 million in 2021 and is predicted to exhibit a CAGR of 6.3% from 2022 to 2028.
Contract Research Organization (CRO) is also known as clinical research organization that provide research services to biotechnology, pharmaceutical and medical device companies outsourced on contract basis. CROs offers services ranging from drug discovery to commercialization, pharmacovigilance to post-approval services.
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Increasing R&D expenditure will boost the market growth in North America. Increasing demand for novel technologies for diagnosis and treatment for various disease is propelling the demand for R&D activities in the region. Research and development (R&D) play a major role in advanced economies in areas such technology and healthcare. Therefore, several organizations, governments, academic & nonprofit organizations, research institutes, and others have made substantial R&D investments in the region. Additionally, owing to ageing population base, rising prevalence of chronic diseases, surging demand for cost effective digital health have also boosted R&D investment in recent years.
Furthermore, the COVID-19 pandemic has brought life sciences into the spotlight for investors, as R&D is core of any innovation. Also, due to increasing number of potential innovative medication candidates that have entered the development pipeline in recent years, new drug consents have increased.
North America Contract Research Organization Market, By Service Type
The clinical research services segment held over USD 13,279.9 million revenue in 2021, attributed to rising geriatric population and increasing prevalence of chronic disease is creating huge demand for novel drug development. Moreover, various products development in multiple therapeutic categories, increasing demand for effective therapies and rising R&D by biotechnology and pharmaceutical companies are likely to augment the demand for clinical trials. Furthermore, clinical services market is expected to boost the market growth owing to early access to cost effective treatments to patients during the clinical trial service.
North America Market, By Therapeutic Area
The oncology segment accounted for 54.1% North America contract research organization market share in 2021, due to increasing prevalence of cancer cases in the region. Moreover, CROs such as Linical Accelovance is involved in oncology clinical trials and has experience in conducting all phases trials of oncology.
North America Market, By End-use
The pharmaceutical & biopharmaceutical segment size in CRO market exceeded USD 12,620.9 million in 2021, on account of rising prevalence of various chronic disease such as cardiac disease, diabetes, cancer, neurological and infectious disease. Rising investment of pharmaceutical & biopharmaceutical companies for developing novel drugs will fuel the demand for CRO services. Also, with increasing government support pharmaceutical & biopharmaceutical firms are outsourcing clinical trials to develop novel medicines and vaccines.
North America Market, By Country
U.S contract research organization (CRO) market dominated around 87% revenue share in 2021, owing to increasing focus of biotech and pharma companies to outsource clinical trials for diagnosis and treatment of various disease. Moreover, The U.S. FDA, under the authority of the Federal Food, Drug and Cosmetic Act regulates clinical trials to seek approval and market, sell novel drugs, medical devices, and clinical interventions in U.S. Furthermore, large number pharma and biotech firms and presence of CROs in the U.S. adds and advantage for increasing the industry revenue.
Competitive Industry Landscape
Some of the leading companies involved in the North America CRO market are Charles River Laboratories, Clinipace, CMIC Holding Co., LTD, ICON plc, IQVIA, Laboratory Corporation of American Holding (Covance Inc), Medpace, Inc, Parexel International Corporation, PPD inc. (a part of Thermo Fisher Scientific), Syneos Health, Synteract, Worldwide Clinical Trials, and WuXi AppTec.
Companies undertake various strategies such as mergers, new product launch, acquisitions, collaborations, geographic expansions to consolidate their market position. For instance, in January 2022, Charles River Laboratories International, Inc. announced strategic partnership with SAMDI Tech, Inc. This strategic agreement makes Charles River an exclusive partner for the marketing SAMDI Tech’s technology. This partnership will offer Charles River’s clients access to the unique, advanced, and label-free high-throughput screening platform in drug discovery, further driving client base.