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The preclinical CRO market size is estimated to grow by USD 2.54 billion at a CAGR of 8.09% between 2023 and 2028. The market's expansion hinges on several factors, such as the rising incidence of chronic diseases, advancements in healthcare infrastructure and technology, and the increasing outsourcing of non-core functions related to preclinical CROs, which present significant growth prospects for the growth of Contract Research Organizations (CROs). With the prevalence of chronic diseases on the rise, there is a growing need for advanced healthcare solutions and infrastructure. This trend is further fueled by the outsourcing of non-core functions by healthcare organizations, which allows them to focus on their core competencies. These factors together create a conducive environment for market growth, offering numerous opportunities for expansion and development in the healthcare sector. Increasing detection of prevalent chronic diseases is driving the market growth. These include cardiovascular diseases (CVDs), cancer, and type-2 diabetes and are the result of high blood pressure (BP), blood cholesterol, and obesity. As per the Centers for Disease Control and Prevention (CDC) 2022 statistics, around 60% of adult Americans have one chronic disease or more due to a sedentary lifestyle, unhealthy diet habits, and consumption of tobacco, which are likely to increase. Additionally, most chronic diseases require long-term health management using drugs such as preclinical CROs, hence advancing the growth of the market during the forecast period.
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The market share growth by the pharmaceutical and biopharmaceutical companies segment will be significant during the forecast period. These companies provide resources and then outsource the research effort to CROs in both clinical and commercial-stage manufacturing. This is due to recognizing the benefits of collaboration such as meeting the ever-increasing demand for generic drugs and biologics as well as biosimilars while also ensuring to not compromise on the capital-intensive nature of the industry.
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The pharmaceutical and biopharmaceutical companies segment was valued at USD 2.59 billion in 2018. In this segment, the big pharmaceutical companies have prioritized their efforts to meet cutting-edge production methods and adhere to regulatory guidelines by expanding collaboration with preclinical CRO. Hence, the demand for advanced services and drugs demands an increasing number of clinical trials which will boost the growth of the global preclinical market during the forecast period.
The toxicology testing segment held the largest share of the market in 2022. The greater number of toxicology tests and increase in outsourcing of noncore preclinical studies to CROs help ensure additional value-added services. The increasing prevalence of cancer and other such chronic diseases and conditions has increased demand for new drugs and personalized medicines that require toxicology testing. This is often met by CROs post-drug manufacture by pharmaceutical industries and is likely to further increase the growth of this segment of the global preclinical CRO market during the forecast period.
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North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that will shape the market during the forecast period. North America had the largest share of the global preclinical CRO market in 2022 due to its advanced healthcare infrastructure, with IQVIA, the world's largest CRO, being headquartered in the US. They provide contract research solutions and innovative technology services. Another example is a major CRO Parexel, which partnered with Neogenomics to aid in applying Neogenomics' real-world genomics data in oncology clinical trials. This helped ensure increased efficiency in patient matching and optimizing trial design, site selection, clinical development, and translational research. Hence, the growing demand for clinical trials to ensure the safety, efficacy, and acceptance of the product is expected to result in regional market growth during the market forecasting period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Altasciences - The company offers preclinical CRO, such as in vivo GLP and non-GLP preclinical services.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is crucial for organizations developing therapeutics, especially for large molecules. These CROs conduct preclinical trials to assess drug safety and efficacy, crucial for drug approval. They play a pivotal role in identifying breakthrough drugs and advancing personalized healthcare through techniques like Derived Organoid and patient-derived organoid models. CROs often provide cryopreserved samples for diagnosis and prognosis in conditions like malignancy. They maintain in-house inventory of resources, including immunodeficient mice for laboratory research. Major players like Vertex Pharmaceuticals rely on preclinical CROs for drug metabolism studies across various therapeutic areas, including Neurology, Infectious diseases, Metabolic disorders, and Cardiology. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges.
The increasing number of clinical trials is a key trend in the market. There is an increasingly pressing requirement for drug development and research through more effective funding of clinical trials. Often, pharmaceutical companies meet this by outsourcing preclinical trial processes to CRO, particularly in the US, Canada, and the UK. Companies in this market have also expanded the scope of their services to offer optimized logistics and supply chain management, warehousing, and cold storage facilities for clinical trial processes.
Moreover, government initiatives, including funding clinical trials of drug manufacturers and training of clinical trial staff are conducted in regional markets. This helps ensure the reduction of errors and the safety and efficacy of products such as drugs and biologics used in clinical trials. Hence, all these factors are likely to contribute to the growth of the global preclinical CRO market during the forecast period.
Intellectual property issues hampering CRO industry growth are challenging market growth. CROs provide the option for pharmaceutical, biotechnology, and medical device industries to outsource medical research, but intellectual property issues are hindering the growth of the market. Most medical devices and medications are patented by regulatory bodies and, if outsourced to a CRO could cause data leakage.
In addition, pharmaceutical companies that manufacture new drugs and medications must also provide data on the safety and efficacy as per the relevant government and regulatory agency-framed rules and regulations. Hence, this emphasizes the importance of CROs adhering to such guidelines, or else they might face damage to their reputation. The above factors will slow down the growth of the market during the market forecast period.
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The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the market, cost containment is critical for organizations like Syneos Health, offering pharmacokinetic services. These CROs play a pivotal role in evaluating Drug candidate through Animal testing before entering the Clinical phase. Their expertise in Preclinical research extends to conducting Bioequivalence studies and exploring innovative therapies like Immuneoncology and treatments for Infectious disease. They navigate complex Regulatory policies to ensure compliance and quality in their Service segment. Collaborating with a preclinical CRO helps pharmaceutical companies optimize costs, reduce risks, and accelerate the development of life-saving therapies.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
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Market growth 2024-2028 |
USD 2.54 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.32 |
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Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
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Performing market contribution |
North America at 45% |
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Key countries |
US, Germany, UK, Canada, and China |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Altasciences, AmplifyBio, BioEmission Technology Solutions, Charles River Laboratories International Inc., CYNBIOSE, Eurofins Scientific SE, Gempharmatech Co. Ltd., Global Center for Medical Innovation, ICON plc, Imavita S.A.S., IQVIA Holdings Inc., JSR Corp., Kunming Biomed International Ltd., Laboratory Corp. of America Holdings, Medpace Holdings Inc., Parexel International Corp., Thermo Fisher Scientific Inc., Veeda Clinical Research Ltd., Vivotecnia, and WuXi AppTec Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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