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The pharmaceutical and medical device sectors are slowly transitioning from an integrated process model to an outsourcing model where companies in these sectors outsource various processes such as clinical trials, medical writing, and regulatory processes to contract research outsourcing companies.

Statistics:

The global healthcare contract research outsourcing market is estimated to account for US$ 229.2 Bn in terms of value by the end of 2027.

Global Healthcare Contract Research Outsourcing Market: Drivers

Increasing cost and time required for drug development is expected to propel growth of the global healthcare contract research outsourcing market over the forecast period. For instance, the cost of drug development was US$ 2.6 billion, which included average out-of-pocket costs of US$ 1.4 billion and time costs of US$ 1.2 billion, according to a study by the Tufts Center for the Study of Drug Development published in the Journal of Health Economics in May 2019.

Moreover, increasing number of patent expirations is also expected to aid in growth of the market. For instance, Boehringer Ingelheim’s Atrovent HFA (ipratropium hfa) used for the treatment of chronic obstructive pulmonary disease and AstraZeneca’s Bydureon (exenatide) used for the treatment of type 2 diabetes is expected to face patent expiration in May 2020 and October 2020, respectively.

 Statistics:

North America held dominant position in the global healthcare contract research outsourcing market in 2019, accounting for 57.0% share in terms of value, followed by Europe and Asia Pacific, respectively

Figure 1: Global Healthcare Contract Research Outsourcing Market Share (%) in Terms of Value, By Region, 2019

Healthcare Contract Research Outsourcing  | Coherent Market Insights

Global Healthcare Contract Research Outsourcing Market: Restraints

Variation in regulatory guidelines and approval process in different countries is expected to hinder growth of the market. Majority of the clinical trials and other research processes are outsourced to various countries simultaneously. These destination countries have different guidelines and regulatory processes related to drugs, filing and clinical trials. The conduction of multi-location trials of a single drug in different procedures in different countries poses a challenge to pharmaceutical companies as they have to follow a completely different procedure in each country. Therefore, a company prefers to restrict outsourcing to one destination country.

Although research outsourcing is a cost saving option, it may be a major threat for quality and efficacy. As the research work outsourced is related to clinical trials, regulatory functions, and medical writing, it is mandatory to ensure adequate quality of output. The research activities outsourced are still not handled up to requisite standards and hence there is an apprehension in some sections of the industry to outsource.

Global Healthcare Contract Research Outsourcing Market: Opportunities

Increasing number of clinical trials is expected to offer lucrative growth opportunities for players in the market. For instance, according to the U.S. National Library of Medicine, the number of clinical trials conducted in the U.S. increased from 30,978 in 2018 to 32,523 in 2019.

Moreover, increasing funding for R&D in various diseases is also expected to aid in growth of the market. For instance, in April 2020, the state government of Kansas (U.S) awarded The University of Kansas Cancer Center with an additional US$ 5 million grant for cancer research.

Statistics:

The global healthcare contract research outsourcing market was valued at US$ 74.7 Bn in 2019 and is forecast to reach a value of US$ 229.2 Bn by 2027 at a CAGR of 15.1% between 2020 and 2027.

Figure 2: Global Healthcare Contract Research Outsourcing Market Value (US$ Bn), 2016 - 2027

Healthcare Contract Research Outsourcing  | Coherent Market Insights

Market Trends/Key Takeaways

Contract research organizations (CROs) offer flexible price business models that allow pharmaceutical companies to choose and pay for a particular research process conveniently. This business model system is a major attractive segment of CROs and facilitates outsourcing. However, depending on the research process, location, risk, and other factors, the pricing models of CROs vary and this sometimes outweighs the budget limitation of pharmaceutical companies.

Major players in the market are focused on adopting collaboration and partnership strategies to expand their product portfolio. For instance, in February 2020, Medidata launched research partnership between the Medidata Institute and Project ALS for R&D in amyotrophic lateral sclerosis disease.

Global Healthcare Contract Research Outsourcing Market: Competitive Landscape  

Major players operating in the global healthcare contract research outsourcing market include, IQVIA, Covance, Inc., Pharmaceutical Product Development Inc., Parexel International Corporation, Charles River Laboratories International Inc., Icon, Plc, Medidata Solutions, Inc., Inventiv Health, Inc. (Pharmanet Development Group Inc.), Medpace Holdings, Inc., and Piramal Life Sciences.

Global Healthcare Contract Research Outsourcing Market: Key Developments   

Major players in the market are focused on adopting collaboration and partnership strategies to expand their product portfolio. For instance, in March 2020, Medpace Holdings, Inc., a healthcare CRO, partnered with Medidata Solutions, a software-as-a service company, to integrate its imaging systems and workflow with Medidata Rave imaging for clinical trials.

Major players in the market are also focused on launching new products and services to expand their product portfolio. For instance, in April 2020, IQVIA launched its new technology-enabled COVID-19 Trial Matching Tool at c19trials.com, which is an online platforms that matches individuals with specific COVID-19 studies to accelerate clinical research projects.

Healthcare Contract Research Outsourcing Market  Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: US$ 74.7 Bn
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 15.1% 2027 Value Projection: US$ 229.2 Bn
Geographies covered:
  • North America: U.S.,Canada.
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Europe: Germany, UK, Spain, France, Italy, Russia, Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Africa: South Africa, North Africa, Central Africa
Segments covered:
  • Service Type: Clinical Trials, Regulatory services, Medical writing, Clinical data management, Others
  • End User: CROs, Clinical Trial Laboratories, AMCs
Companies covered (10):

IQVIA, Covance, Inc., Pharmaceutical Product Development Inc., Parexel International Corporation, Charles River Laboratories International Inc., Icon Plc, Medidata Solutions, Inc., Inventiv Health, Inc. (Pharmanet Development Group Inc.), Medpace Holdings, Inc., and Piramal Life Sciences.

Growth Drivers:
  • Increasing prevalence of chronic diseases
  • The increasing research and development of novel drug product
Restraints & Challenges:
  • Stringent regulations for drug development
Infoimg

Healthcare Contract Research Outsourcing is conducted by pharmaceutical and medical device sectors for development of new drugs and medical devices. Clinical trials form the key part of pharmaceutical drug and medical device development and in the current scenario clinical trials are conducted across multiple locations in various geographies. Increasing cost and time required for drug development is expected to propel growth of the global healthcare contract research outsourcing market over the forecast period. Furthermore, increasing number of patent expirations of leading drugs is also expected to aid in growth of the market.

Key features of the study:

  • This report provides in-depth analysis of the Healthcare Contract Research Outsourcing market  and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2020–2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategy adopted by key players
  • It profiles key players in the global Healthcare Contract Research Outsourcing market  based on the following parameters – company overview, financial performance, product portfolio, market presence, distribution strategies, key developments, strategies, and future plans
  • Key companies covered as a part of this study include, IQVIA, Covance, Inc., Pharmaceutical Product Development Inc., Parexel International Corporation, Charles River Laboratories International Inc., Icon, Plc, Medidata Solutions, Inc., Inventiv Health, Inc. (Pharmanet Development Group Inc.), Medpace Holdings, Inc., and Piramal Life Sciences.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global Healthcare Contract Research Outsourcing market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global Healthcare Contract Research Outsourcing market

Detailed Segmentation:

  • Healthcare Contract Research Outsourcing Market, By Service Type:
    • Safety Syringes
      • Clinical Trials
        • Drug Discovery
        • Preclinical
        • Phase I
        • Phase II
        • Phase III
        • Phase IV
      • Regulatory services
      • Medical writing
      • Clinical data management
      • Others
  • Healthcare Contract Research Outsourcing Market, By End User:
    • CROs
    • Clinical Trial Laboratories
    • AMCs
  • Healthcare Contract Research Outsourcing Market, By Region:
    • North America
      • By Service Type:
        • Clinical Trials
          • Drug Discovery
          • Preclinical
          • Phase I
          • Phase II
          • Phase III
          • Phase IV
        • Regulatory services
        • Medical writing
        • Clinical data management
        • Others
      • By End User
        • CROs
        • Clinical Trial Laboratories
        • AMCs
      • By Country:
        • U.S.
        • Canada
    • Latin America
      • By Service Type:
        • Clinical Trials
          • Drug Discovery
          • Preclinical
          • Phase I
          • Phase II
          • Phase III
          • Phase IV
        • Regulatory services
        • Medical writing
        • Clinical data management
        • Others
      • By End User
        • CROs
        • Clinical Trial Laboratories
        • AMCs
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • By Service Type:
        • Clinical Trials
          • Drug Discovery
          • Preclinical
          • Phase I
          • Phase II
          • Phase III
          • Phase IV
        • Regulatory services
        • Medical writing
        • Clinical data management
        • Others
      • By End User
        • CROs
        • Clinical Trial Laboratories
        • AMCs
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Service Type:
        • Clinical Trials
          • Drug Discovery
          • Preclinical
          • Phase I
          • Phase II
          • Phase III
          • Phase IV
        • Regulatory services
        • Medical writing
        • Clinical data management
        • Others
      • By End User
        • CROs
        • Clinical Trial Laboratories
        • AMCs
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Middle East
      • By Service Type:
        • Clinical Trials
          • Drug Discovery
          • Preclinical
          • Phase I
          • Phase II
          • Phase III
          • Phase IV
        • Regulatory services
        • Medical writing
        • Clinical data management
        • Others
      • By End User
        • CROs
        • Clinical Trial Laboratories
        • AMCs
      • By Country:
        • GCC
        • Israel
        • Rest of Middle East
    • Africa
      • By Service Type:
        • Clinical Trials
          • Drug Discovery
          • Preclinical
          • Phase I
          • Phase II
          • Phase III
          • Phase IV
        • Regulatory services
        • Medical writing
        • Clinical data management
        • Others
      • By End User
        • CROs
        • Clinical Trial Laboratories
        • AMCs
      • By Country:
        • South Africa
        • Central Africa
        • North Africa
  • Company Profiles
    • IQVIA *
      • Company Overview
      • Product Portfolio
      • Key Highlights
      • Financial Overview
      • Strategies
    • Covance, Inc.
    • Pharmaceutical Product Development Inc.
    • Parexel International Corporation
    • Charles River Laboratories International Inc.
    • Icon, Plc
    • Medidata Solutions, Inc.
    • Inventiv Health, Inc. (Pharmanet Development Group Inc.)
    • Medpace Holdings, Inc.
    • Piramal Life Sciences
  • “*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Service Type
      • Market Snippet, By End User
      • Market Snippet, By Region
      • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Impact Analysis
    • Key Highlights
    • PEST Analysis
    • Technological Advancements
    • Regulatory Scenario
    • Mergers and Acquisitions
  4. Healthcare Contract Research Outsourcing Market, By Service Type, 2019 – 2027, (US$ Mn)
    • Introduction
      • Market Share Analysis, 2020 and 2027 (%)
      • Y-o-Y Growth Analysis, 2017 – 2027
      • Segment Trends
    • Clinical Trials
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
        • Drug Discovery
        • Preclinical
        • Phase I
        • Phase II
        • Phase III
        • Phase IV
    • Regulatory services
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Medical writing
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Clinical data management
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
  5. Healthcare Contract Research Outsourcing Market, By End User, 2019 – 2027, (US$ Mn)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2027 (%)
      • Y-o-Y Growth Analysis, For Regions, 2017–2026
    • CROs
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • Clinical Trial Laboratories
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
    • AMCs
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2016 – 2027, (US$ Mn)
  6. Healthcare Contract Research Outsourcing Market, By Region, 2019 – 2027, (US$ Mn)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2027 (%)
      • Y-o-Y Growth Analysis, For Regions, 2017–2026
    • North America
      • Market Size and Forecast, By Service Type, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By End User, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By Country, 2016 – 2027, (US$ Mn)
        • U.S.
        • Canada
    • Latin America
      • Market Size and Forecast, By Service Type, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By End User, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By Country, 2016 – 2027, (US$ Mn)
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • Market Size and Forecast, By Service Type, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By End User, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By Country, 2016 – 2027, (US$ Mn)
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Market Size and Forecast, By Service Type, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By End User, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By Country, 2016 – 2027, (US$ Mn)
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of APAC
    • Middle East
      • Market Size and Forecast, By Service Type, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By End User, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By Country, 2016 – 2027, (US$ Mn)
        • GCC
        • Israel
        • Rest of Middle East
    • Africa
      • Market Size and Forecast, By Service Type, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By End User, 2016 – 2027, (US$ Mn)
      • Market Size and Forecast, By Country, 2016 – 2027, (US$ Mn)
        • South Africa
        • Central Africa
        • North Africa
  7. Competitive Landscape
    • Company Profiles
      • IQVIA
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Covance, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Pharmaceutical Product Development Inc.
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Parexel International Corporation
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Charles River Laboratories International Inc.
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Icon, Plc
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Medidata Solutions, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Inventiv Health, Inc. (Pharmanet Development Group Inc.)
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Medpace Holdings, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
      • Piramal Life Sciences
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Key Highlights
        • Market Strategies
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 22 market data tables and 14 figures on “Healthcare Contract Research Outsourcing Market - Global forecast to 2027”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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