PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565721
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565721
Preclinical CRO Market size was evaluated at USD 5,754.2 million in 2023, rising at a CAGR of 8.90% between 2024 and 2032.
Preclinical CROs (contract research organizations) are support organizations that provide the knowledge in research and development required to guide a drug candidate through animal testing and into clinical trials. A preclinical CRO helps innovative medical product producers demonstrate safety and efficacy in animals that closely resemble human anatomy before entering clinical trials or being employed in human care.
Preclinical CRO Market- Market Dynamics
Surge In Preclinical CRO Market Growth Through Outsourcing Services
Growing demand for outsourcing services is projected to drive future growth in the preclinical CRO market. Outsourcing services is the practice of contracting with a third-party provider to handle specific business tasks or operations. Preclinical research is getting more sophisticated, necessitating specialized skills and experience that not all pharmaceutical and biotechnology companies possess in-house. Outsourcing to preclinical CROs enables businesses to gain access to the knowledge they require without investing in capability development, allowing them to focus on core business while still conducting preclinical research. For instance, according to a survey of 207 biopharma respondents and 138 suppliers conducted by BioPlan Associates Inc., a US-based provider of independent strategic information and analysis, approximately 84.6% of biomanufacturers outsource analytical testing and 74.5% outsource toxicity testing in April 2023. As a result, increasing demand for outsourcing services is propelling the preclinical CRO market forward.
Preclinical CRO Market- Key Insights
Our research analyst predicts an 8.90% CAGR for the global market from 2024 to 2032.
In 2023, In 2023, the toxicology testing category accounted for the biggest revenue share of the worldwide preclinical CRO market, according to Service segmentation research.
In 2023, the Patient Derived Organoid (PDO) model sector dominated the worldwide Preclinical CRO market by Model Type segmentation.
According to region, North America had the most revenue in 2023.
The global Preclinical CRO Market is divided into four groups: Service, Model Type, End Uses, and geography.
The market is segmented into six divisions based on the Service: Toxicology Testing, Bioanalysis & DMPK Studies, Chemistry, Compound Management, Safety Pharmacology, and Others. In 2023, the toxicology testing category had the highest revenue share of the worldwide preclinical CRO market, owing to increased outsourcing of noncore preclinical CRO studies and widespread utilization of toxicology tests. toxicology is one of the primary services being outsourced to CROs due to their enhanced ability to conduct toxicological tests. The increasing rate of outsourcing noncore preclinical investigations to CROs, as well as CROs' rising ability to provide additional value-added services, are likely to drive expansion in this category during the projection period.
The market is classified into two segments depending on the Model Type: The patient-Derived Organoid (PDO) Model and the Patient-derived xenograft model. In 2023, the Patient-Derived Organoid (PDO) Model segment had the most market share. The patient-derived organoid (PDO) model is gaining popularity due to the utilization of directly derived cells and tissues from the patient. This aids in individualized healthcare, and specimens can be cryopreserved. For these reasons, they are becoming an important aspect of preclinical investigations since they aid in the faster detection and prognosis of cancer.
Preclinical CRO Market- Geographical Insights
This market is geographically diversified across Europe, the Middle East, North America, Asia Pacific, and Africa, Latin America. The regions are further divided by the nations that bring commerce.
North America had the highest proportion in 2023 because to the presence of established CROs focusing in early drug discovery, such as Charles River Laboratories and LabCorp. The United States is the largest market for preclinical trial outsourcing, as several biopharmaceutical companies prefer to outsource their preclinical trials to CROs situated in the United States in order to benefit from FDA-approved Investigational New Drug (IND) applications.
Asia Pacific is likewise expected to increase at the quickest rate over the projection period. Preclinical outsourcing in Asia Pacific is predicted to expand because to the shifting business model of MNC outsourcing and rising R&D costs, as well as the cost efficiency offered by CROs in countries such as India and China. Established corporations from Western Europe and the United States pursue analytical services, site research development, and clinical activities in the Asia Pacific region to cut research costs.
The Preclinical Contract Research Organization (CRO) Market is highly diversified concerning the competition, with both large companies and emerging players operating with their preclinical services platforms. The key profiled players in the market are Eurofins Scientific, LABCOR, PRA Health Sciences, Inc., and others. It features an excellent preclinical portfolio service range, and Covance boasts vast experience in drug development. Major players in this space include WuXi AppTec, which offers the integrated solutions of all the drugs' development process, and PPD, known for its global reach and capabilities. Smaller niche CROs are also emerging that target specific therapeutic areas where they have their specialties, further fueling preclinical research with a thus intensified competition.
In March 2023, Crown Bioscience and JSR Life Sciences Company have announced the opening of a new location in Singapore, which will help the company increase its capacity for local and worldwide biotech and pharmaceutical companies. The website will help companies involved in preclinical and translational oncology medication research and development.