March 1, 2024
U.S. Contract Research Organization (CROs) Market

Rising Demand For Specialized Testing Services To Accelerate Growth Of The U.S. Contract Research Organization (Cros) Market

The global U.S. Contract Research Organization (CROs) Market is estimated to be valued at US$ 17,446.79 Mn in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The U.S. contract research organization (CROs) market size consists of various contract research organizations that offer outsourced drug discovery and clinical development services to pharmaceutical, biotechnology, medical device companies and government academic institutions. CROs help companies by conducting preclinical and clinical studies, study monitoring, data management, project management, biostatistics, pharmacovigilance/drug safety, regulatory/medical affairs, medical writing and other clinical trial related services. The growing demand for outsourcing of R&D activities and specialized testing services are major factors driving the growth of the U.S. CROs market.

Market key trends:

Rising demand for specialized testing services: There is increasing demand for specialized testing services such as toxicology testing, central lab services, bioanalytical analysis and biomarker development from biopharmaceutical and medical device companies. This is a key growth driver for full-service CROs that provide such specialized testing capabilities.
Growing clinical trial activities in the U.S.: The U.S. is one of the largest markets for conducting clinical trials driven by presence of target patient populations, strong regulatory environment and financial support for research. Increasing R&D investments by pharmaceutical companies and expansion of clinical trial sites are contributing to the growth of clinical trial volumes in the country. This in turn is fueling the demand for CRO services.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the U.S. CRO Market is moderate due to the high costs associated with R&D, regulatory compliance and building customer network.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of various alternatives and contract flexibility from small service providers.
Bargaining power of suppliers: The bargaining power of suppliers is low as the markets have several scientific expertise and service providers at their disposal.
Threat of new substitutes: The threat of new substitutes is low as the core offerings of CROs are unique in nature and cannot be easily replaced.
Competitive rivalry: high as major players compete for clients and talent.

Key Takeaways

The U.S. contract research organization (CROs) market is expected to witness high growth, exhibiting a CAGR of 9.6% over the forecast period, due to increasing demand for outsourcing research activities and cost containment in pharmaceutical development.

Regional analysis: The North American region dominates the global CRO outsourcing market and is expected to continue its dominance over the forecast period, owing to huge investments by pharmaceutical and biotechnology companies in R&D. The presence of major pharmaceutical companies and robust pipeline of drugs under development will also contribute to the largest share of the North American region in the CRO market.

Key players: Key players operating in the U.S. CRO market are Laboratory Corporation of America Holdings (Covance), IQVIA, Paraxel International Corporation, Syneos Health, PRA Health Sciences, Charles River Laboratoires International Inc. (CRL), Pharmaceutical Product Development (PPD), ICON Public Limited Corporation, Wuxi Apptec, Medpace Holdings, Inc, Medidata Solutions, Inc., Theorem Clinical Research, Pharmaron, Envigo, and Clinipace. Laboratory Corporation of America Holdings (Covance) dominates the U.S. CRO market owing to its wide geographic reach and therapeutic expertise.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it