With an overall R&D expenditure of $167 billion in 2018, the global healthcare industry is investing heavily in the development of novel therapies to meet future precision medicine needs. Pharma and biopharma companies continue to externalize their R&D activities to contract research organizations (CROs), which have created a position for offering best-of-breed R&D services and innovative engagement models to optimize the R&D productivity and reduce the cost burden levied on pharmaceutical companies. Driven by the increased acceptance of outsourcing, the global CRO market, valued at $45.8 billion in 2018, is expected to grow at a CAGR of 7.9%, reaching $71.7 billion by 2024.

A rising prevalence of cancer and other chronic illnesses is promoting the need for outsourcing the requisite specialty trials, as a majority of the pharma players in this segment are either small or medium-sized organizations," said Kamaljit Behera, Senior Industry Analyst, Transformational Health at Frost & Sullivan. "Specialty CROs can support these companies by providing cost-effective R&D options to develop these specialty therapies."

Frost & Sullivan's latest research, Global Contract Research Organization (CRO) Market, Forecast to 2024, offers an in-depth analysis of the global clinical trials and research outsourcing market. The analysis addresses the sector's major issues and challenges, unmet needs, and emerging trends and business models. Key market drivers, restraints, and R&D trends are also outlined in this research.

Europe has emerged as a prime location for clinical trial activity, surpassing North America. The region presently is conducting over 7,000 trials across different countries. However, Asia-Pacific is expected to be the strongest growing market. Countries such as India, China, and Korea not only offer a cost advantage as high as 50%, they are also home to a large genetically diverse population base, making the region an ideal location for cost-effective clinical research activities and novel drug trials.

"Eastern and Southern European countries such as Lithuania, Bosnia, and Poland are expected to lead clinical research in this region. Furthermore, higher patient populations in these regions support easy patient recruitment, hence making them conducive for conducting clinical trials," noted Behera. "Digitization will play a critical role in transforming the clinical trials model. In the future, more than competing for customers, it is critical for CROs to identify and establish partnerships with the right stakeholders to complement capabilities in evolving digitally led patient-centric clinical trial designs."

Organizations operating in this sector should explore the growth opportunities in:

Integrating technologies such as artificial intelligence and blockchain to promote collaborative research models and optimize the drug discovery process.
Adopting eClinical solutions, virtual clinical trials, and adaptive trial designs for better efficiency.
Collaborating with specialized vendors to manage supply chains across trial locations.
Venturing into therapy areas such as rare diseases and neurology to gain a competitive edge.
Global Contract Research Organization (CRO) Market, Forecast to 2024, is a part of Frost & Sullivan's Transformational Health Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.