World News: 13:53 GMT Wednesday 12th June 2019. [Market Research Future via Globe Newswire via SPi World News]
Pune, India, June 12, 2019 (GLOBE NEWSWIRE) -- The extensive studies conducted by Market Research Future (MRFR) reveal that the global preclinical contract research organization (CRO) market can project a CAGR of 8.14% during the forecast period (2019-2024). MRFR states that the market is expected to touch the valuation of USD 5,234.7 million by 2024.
The top players shaping the worldwide preclinical CRO market include Laboratory Corporation of America Holdings (US), MD Biosciences (US), Envigo (US), Charles River (US), ICON PLC (Dublin), Eurofins Scientific (Luxembourg), IQVIA (US), PRA Health Sciences (US), PAREXEL International Corporation (US), WuXi AppTec (China), Medpace (US), Pharmaceutical Product Development, LLC (US), and others.
The growing need, as well as the demand for outsourcing, is supposed to have a lucrative effect on the business growth in the coming years. The contract research firms are now offering quicker research and development (R&D) to the companies, with various emerging nations employing CROs to carry out their R&D activities along with clinical trials. Therefore, a number of companies are progressively depending on outsourcing to develop drugs. To illustrate, the American Pharmaceutical Review states that the emerging companies outsource close to 55% of the services in the first phase of the clinical trials, meanwhile about 69% of the medium-sized biotech, as well as pharmaceutical companies, outsource in the second phase of the clinical trials. Ergo, the boost in demand for outsourcing is believed to be a critical factor backing market growth.
The hike in need to curb the R&D cost is expected to have a positive effect on the preclinical CRO market growth in the subsequent years. The increasing frequency of innovations in technology along with product development results in considerable cost in R&D. Moreover, there has been an increase in the R&D cost for every approved new molecular entity, which is proving to be highly inconvenient for the companies operating in the market. As a result, the enhanced efficiency, as well as the need to reduce costs, is noted to accelerate the demand for outsourcing or contract research organizations, expanding the market share in the process.
The lack of standardized regulatory policies could act as an impendent in market growth during the review period. With the decline in the sale of medications owing to their side-effects, the outsourcing of preclinical examinations to CROs will take a substantial leap in the near future, as it offers end-to-end services such as toxicology testing. On that note, the biopharmaceutical organizations are expected to be the prime customers for preclinical companies in the years ahead.
Service-wise, the market is considered for toxicology testing, bioanalysis & bioanalysis, and drug metabolism and pharmacokinetics (DMPK) studies and others. Out of these, the toxicological testing segment is poised to garner the leading position in the market, demonstrating a significant CAGR of 8.79% to touch the valuation of USD 2,476.28 Million by 2024. The segmental dominance is the result of the rising demand for testing of new drugs as well as chemicals coupled with the aggressive growth of the pharmaceutical and biopharmaceutical industries across the globe. At the same time, the bioanalysis and drug metabolism and pharmacokinetics (DMPK) studies segment will be depicting the highest growth rate of 8.96% during the review period. Growth in technological innovations by several companies to offer quality services to the pharmaceutical vendors are the essential factors responsible for the growth of this segment.
The biopharmaceutical companies segment among the end-users will be grabbing the lion’s share of the global market since the focus of the firms on reducing the R&D expenditure is increasing. Furthermore, the hike in the number of drug entities based on the rising competition as well as disease burden is expected to speed up the growth of the biopharmaceutical companies around the world.
In 2018, the Americas grabbed the bulk of the global market, which is around 40.7%, and the regional market is presumed to display a growth rate of 7.49% in the subsequent years. The region has managed to bag the top spot as a result of the presence of several well-known vendors of CROs, like better nature of work; Charles River Laboratories and LabCorp; financial security; strategic points of interest, logical experience and astuteness and life science enterprise. The preclinical CROs market in the United States is expected to demonstrate a tremendous growth trajectory based on the strong demand for toxicology testing as well as their high success rate. In addition, the quick rate of development of biosimilars in the U.S. is predicted to expand the preclinical CROs market size over the conjectured time frame.
The preclinical CRO market in Europe has been evaluated to cross the value of USD 1,670.19 million by 2024. The region is reckoned to be the holder of a considerable market share while garnering the second position among the regions in the global market. The increase in the outsourcing activities in the region is touted to be the main driving force behind the growth of the preclinical CRO market in the region. Also, in 2018, Germany held the biggest share of 24.7% of the regional market, with the country-level market predicted to exhibit a CAGR of 6.69% from 2019 to 2024.
The trade pundits are of the view that the Asia Pacific is set to demonstrate the fastest growth rate, with the market in India poised to display the highest growth rate of 9.44% in the following years. The evolving trends of outsourcing of multinational companies along with the surge in the expense of R&D are the critical factors contributing towards the market expansion. As mentioned, the preclinical CROs market in India is projected to develop at a healthy growth rate over the projected time frame. The country is known to offer various preclinical services at a much lower price compared to the price offered by the developed economies, fostering customer preference. Plus, the initiatives by the government in India with the aim of expanding the CRO potential is expected to provide numerous attractive growth opportunities to the market. On top of this, with the scientific expertise at hand, the market growth in India is expected to get a kick in the upcoming years.
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Globe Newswire: 13:53 GMT Wednesday 12th June 2019
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