U.S. CONTRACT RESEARCH ORGANIZATION (CROS) MARKET ANALYSIS

U.S. Contract Research Organization (CROs) Market Size and Trends

The U.S. contract research organization (CROs) market is estimated to be valued at USD 19.44 Bn in 2024 and is expected to reach USD 43.61 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 12.2% from 2024 to 2031.

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The U.S. contract research organization (CROs) market has been witnessing positive growth over the past few years. Rising R&D expenditure of pharmaceutical and biopharmaceutical companies and the emergence of new drug pipelines with complex molecules are expected to drive the market growth during the forecast period. In addition, the growing demand for specialized testing services and strategic partnerships between pharmaceutical companies and CROs to maximize outsourcing and reduce development costs are further expected to support the market expansion. However, pricing pressures, intense competition, and lack of harmonization of regulations globally may challenge market players over the next few years. Overall, increased R&D spending and outsourcing activities indicate a promising outlook for the U.S. contract research organization (CROs) market during the forecast years.

Market Driver – Increasing Number of Clinical Trials

Pharmaceutical and biotechnology companies are investing heavily in research and development (R&D) to bring new drugs and therapies to the market. As a result, there is a greater need for conducting clinical trials to test the safety and efficacy of these products. This increased research and development (R&D) expenditure boosts the demand for contract clinical research organization services. Increasing number of clinical trials globally is a key driver propelling the growth and expansion of the global contract clinical research organization market. For instance, according to the data published by Honeycomb Worldwide Inc., a company that operates in the pharmaceuticals industry, on May 17, 2023, there were 452,604 registered clinical trials globally on ClinicalTrials.gov. Out of the total registered studies, 64,838 are actively recruiting participants. This represents a significant increase from the over 365,000 registered trials reported in early 2021. It is clear that the clinical research landscape continues to expand at a substantial rate.

Pharmaceutical and biotechnology industries have been continuously increasing their expenditure on research and development activities, in order to introduce new drugs in the market. Companies invest huge amounts in R&D to develop advanced healthcare solutions through clinical research. However, conducting clinical trials requires specialized infrastructure and expertise that most companies may not have in-house. This boosts the global contract clinical research organization market growth. For instance, Merck & Co., Inc., a multinational pharmaceutical company, announced that its R&D expenses were US$ 9.6 billion in the fourth quarter of 2023 as compared to US$ 3.8 billion in the fourth quarter of 2022. R&D expenses were US$ 30.5 billion for 2023 as compared to US$ 13.5 billion for 2022.