Among the services offered by CROs, Preclinical CRO services are expected to grow the fastest over the next five years. This is a positive sign for the industry as it will be better positioned to meet the demand for clinical trials. However, there are challenges to be met in attracting and retaining highly skilled professionals.
North America accounted for the largest share of the global CRO services market in 2021
During the forecast period, North America is expected to dominate the global CRO services market. The increased government spending on healthcare is expected to drive the market in the region. In addition, a growing demand for effective therapies is expected to boost sales. The industry has gained prominence as a result of the increasing focus on research and the growing number of clinical trials being conducted. Moreover, pharmaceutical companies are also outsourcing their research and development activities.
As a result, the global cro services san diego market reached USD 42 billion in 2020. This market is expected to grow at a CAGR of 7% from 2023-2028. The growth of the market is primarily driven by the increasing number of clinical trials. In addition, technological advancements such as big data and mHealth are also expected to contribute to the market.
In addition, the increase in the number of clinical sites in Asia Pacific is expected to drive the growth of the CRO services market in the region. In fact, the number of clinical sites in China has increased by 79% during the past two years. Moreover, the region is projected to witness rapid growth in the prevalence of chronic and therapeutic diseases. Moreover, favorable regulatory policies and government initiatives are expected to boost the growth of the industry in the region.
In addition, the growth of the CRO services market is also attributed to the increasing demand for novel drugs and the need for specialized testing services. Moreover, the growth of the market is also driven by the increasing number of clinical trials conducted by pharmaceutical companies. In addition, the market is also expected to expand at a rapid rate during the forecast period.
Challenges of attracting and retaining highly skilled professionals
Identifying and attracting highly skilled professionals is an uphill battle for contract research organizations (CROs) due to the competitive nature of the pharmaceutical and biotechnology industries. With more than three to four million employees leaving their current employer each month, companies are grappling with recruitment efforts.
The shortage of highly skilled employees is hampering the growth of the CRO services industry. Companies need to offer higher compensation and incentives to attract top talent. It is also important to offer a positive applicant experience. Companies that have high turnover rates drain their resources and make it difficult to attract the best and brightest.
Employers can offer attractive compensation packages, global relocation opportunities, and professional development initiatives. The best CROs also provide training programs and mentorship-focused cultures. They also maintain a positive and collaborative environment to encourage employees to stay motivated.
However, these incentives can have an adverse effect on the health care system. Employee turnover rates are at all-time highs. The shortage of skilled workers may also hinder the adoption of new technologies.
The pharmaceutical and biotechnology industries are driving CRO growth. However, pharma companies have not been providing sufficient training and skills development. This may hinder the hiring of top talent.
In 2006, 61 percent of American companies reported difficulty finding highly skilled workers. Today, 59 percent of employers report the same.
The most in-demand position is the clinical research associate. This role involves conducting various studies, working on a wide range of indications, and interacting with external partners. It also requires interpersonal communication skills, executive functioning skills, and the ability to balance relationships.
The Joint Task Force for Clinical Trial Competency, an industry-led collaboration, identified eight competency domains that are important in clinical research. They include medicines development, scientific concepts, leadership, study management, site management, ethics and participant safety, regulations, and data management.
Mergers & acquisitions among CROs
Despite recent M&A activity, mergers and acquisitions among CRO services remain a relatively new phenomenon. This is because the majority of CROs are founded by former pharmaceutical industry employees. However, the CRO market is expected to see more consolidation in the future, according to a recent report by GlobalData.
Mergers and acquisitions among CRO services have the potential to drive innovation, lower costs, and offer new services. However, they also create challenges. This is because new competitors have less knowledge than the incumbents, making them more susceptible to disruptions.
Acquisitions can create a wider product offering and build stronger relationships with existing customers. However, this can lead to service downsizing. Economies of scale are also an advantage, as they enable CROs to invest in new technologies and better operational efficiencies.
Mergers and acquisitions among services can be a good strategy for pharma companies. A new CRO can create a ripple effect within an existing CRO, resulting in a wider service offering and increased revenues. However, they can also lead to increased costs.
A recent merger between two of the largest CROs, Quintiles Transnational and IMS Health, is an example of how consolidation can benefit pharma companies. The two companies combined global data competencies and aimed to improve the efficiency of clinical trials. The merger was completed in late 2016 and expected to generate $200 million in annual revenue.
Recent acquisitions of CROs by private equity investors have also played an important role in the consolidation of the CRO industry. The Carlyle Group, for example, acquired Albany Molecular Research Inc. The Carlyle Group also played a role in the acquisition of GTCR.
The emergence of complex gene therapies has also fueled the rise of smaller CROs. These companies specialize in a specific disease or drug class.
Preclinical CRO’s are growing the fastest
During the last few years, the preclinical CRO market has been growing rapidly. This is primarily due to the rapid growth of the pharmaceutical and biopharmaceutical industries. The growth of these industries is expected to continue in the future. The demand for new innovative medicines is also increasing. The growing number of medical devices companies is also driving the growth of the global preclinical CRO market.
The market is expected to reach USD 9.6 billion by 2030. The market is expected to grow at an average rate of 7.5% during the forecast period. The key driving factors for the growth of the preclinical CRO market include the rising demand for medical devices and the growing burden of chronic diseases.
The use of Artificial Intelligence (AI) in the preclinical phase will help to improve the accuracy and speed up the workflow of the study. The use of AI in the preclinical phase will also help to eliminate human error and bias. The use of AI will also help to increase the speed of image analysis.
The preclinical CRO market is segmented by therapeutic areas, therapeutic areas, clinical trial studies, and noncore preclinical CRO studies. The therapeutic areas segment is expected to account for the largest share of the market in the future. The therapeutic areas segment includes DMPK studies, Bioanalysis studies, Toxicology testing, and Investigational New Drug (IND)-enabling studies.
The Americas region is the largest contributor to the global preclinical CRO market. The region holds a majority of the market share in 2020. The Americas region is expected to continue to dominate the market during the forecast period.
Asia Pacific is estimated to be the opportunistic market during the forecast period. The presence of big CROs in countries such as South Korea, China, and India will help the growth of the market in this region.