Preclinical CRO Market Forecast till 2030

The growth of the preclinical CRO market is expanding due to the R&D activities in the pharmaceutical and biotechnology sectors. As the demand for new drugs and therapies increases, pharmaceutical and biotech companies are allocating larger budgets for R&D to accelerate the drug development process. This includes outsourcing preclinical research activities to CROs, which offer specialized services and expertise in conducting preclinical studies to evaluate the safety and efficacy of new drug candidates.

Moreover, preclinical CROs provide cost-effective and time-efficient solutions for drug development compared to in-house research, as they offer access to state-of-the-art facilities, equipment, and expertise without the need for substantial investment in infrastructure and personnel. This cost-effective approach is especially appealing to smaller biotech companies and startups with limited resources, driving the demand for preclinical CRO services.

The demand for preclinical trials involving large molecules has also increased, and there is a need to reduce R&D expenses. Although the ongoing COVID-19 pandemic initially disrupted preclinical research projects, the development of lifesaving drugs has continued at a rapid pace. Additionally, the need to combat the spread of new viruses and infections and notable R&D initiatives in the healthcare sector is driving the market, globally. This industry's potential is also expected to increase due to the expected rise in the number of novel drugs entering the preclinical phase. Moreover, several pharmaceuticals and biotechnology companies are outsourcing preclinical validation programs to address medical needs, creating profitable opportunities for the market.

Segment Overview

he toxicology testing segment is expected to continue leading the growth in the preclinical CRO market, driven by the increasing demand for new drugs and chemicals. As drug development efforts continue to expand, toxicology testing plays a crucial role in evaluating the safety and potential adverse effects of new compounds, which is essential for regulatory approvals.

Additionally, the bioanalysis and DMPK segment is anticipated to grow in CAGR, as these services are essential for understanding the drug's metabolism, pharmacokinetics, and bioavailability. This information is critical in optimizing drug dosing regimens and ensuring their effectiveness in humans.

Moreover, oncology is expected to become the top segment in the near future, as cancer remains a significant global health challenge, and there is a high demand for novel oncology therapies. The increasing focus on precision medicine and targeted therapies for cancer treatment is driving the need for preclinical studies in oncology.

Furthermore, the pharmaceutical and biopharmaceutical sectors are predicted to be the key drivers of future growth in the preclinical CRO market. These sectors continue to invest in R&D to develop new drugs and therapies, and outsourcing preclinical studies to CROs allows them to streamline their drug development processes, reduce costs, and accelerate timelines.

Regional Analysis

North American region holds the biggest share of the preclinical CRO market as of 2021, mainly due to the presence of established CROs such as Charles River Laboratories and LabCorp that specialize in early drug discovery. The United States leads in outsourcing preclinical trials as many biopharmaceutical companies prefer to take advantage of the Investigational New Drug (IND) application approved by the FDA.

In the coming years, the Asia Pacific is expected to grow fastest growth in the preclinical CRO market due to changing business models of multinational corporations (MNCs) outsourcing and the increasing cost of research and development. The region is cost-efficient for outsourcing as it offers CROs located in countries such as India and China. Western European and U.S. based companies are also outsourcing analytical services, site research development, and clinical activities to the Asia Pacific region to reduce research-related costs.

Major Player

Envigo (U.S.), Eurofins Scientific (Luxembourg), Medpace (U.S.), Laboratory Corporation of America Holdings (U.S.), PRA Health Sciences (U.S.), D. Biosciences (U.S.), Charles River (U.S.), WuXi AppTec (China), and ICON PLC (Dublin), Pharmaceutical Product Development, LLC (U.S.), PAREXEL International Corporation (U.S.), IQVIA (U.S.) are among the companies operating in this market.

COVID 19, Impacts

The development of a COVID-19 vaccine and therapeutic treatments has led to a surge in demand for preclinical research services in this area, ongoing research projects have faced disruptions and delays due to compliance with social distancing regulations and temporary closures of research facilities and laboratories. Moreover, the economic uncertainty caused by the pandemic has resulted in reduced funding for some preclinical research projects, leading to a decline in demand for CRO services in certain sectors. However, demand for preclinical research in fields such as oncology, neurology, and cardiology has remained steady. In response to these challenges, the preclinical CRO market has embraced digital tools and virtual services, with remote monitoring, telemedicine, and virtual clinical trials becoming more common. This shift to digital platforms has enabled preclinical research to continue even amidst restrictions on physical laboratory access.

Product Code: MRFR/HC/5807-CR

1 EXECUTIVE SUMMARY

2 MARKET INTRODUCTION

2.1 DEFINITION 16
2.2 SCOPE OF THE STUDY 16
2.3 MARKET STRUCTURE 16

3 RESEARCH METHODOLOGY

3.1 RESEARCH PROCESS 17
3.2 PRIMARY RESEARCH 18
3.3 SECONDARY RESEARCH 18
3.4 MARKET SIZE ESTIMATION 19
3.5 FORECAST MODEL 20

4 MARKET DYNAMICS

4.1 OVERVIEW 21
4.2 DRIVERS 22
- 4.2.1 GROWTH IN OUTSOURCING OF NON-CORE FUNCTIONS 22
- 4.2.2 ENHANCED ABILITIES OF PRECLINICAL CROS TO OFFER ADDITIONAL VALUE-ADDED SERVICES 22
- 4.2.3 SURGING NUMBER OF DRUGS IN THE PRECLINICAL PHASE 22
- 4.2.4 ECONOMIES OF PRODUCTION AND SCALE 22
- 4.2.5 MUTUAL BENEFIT TO THE CONTRACTOR AS WELL AS THE CLIENT 22
- 4.2.6 HIGH R&D EXPENDITURE 23
4.3 RESTRAINTS 24
- 4.3.1 SCARCITY OF LABOUR AND HIGH LABOUR COST 24
- 4.3.2 STRUCTURAL CHANGES IN THE INDUSTRY 24
4.4 OPPORTUNITY 24
- 4.4.1 OPPORTUNITY FOR MEDICAL DEVICE COMPANIES TO OUTSOURCE PRECLINICAL TRIALS TO CROS 24
4.5 CHALLENGES 25
- 4.5.1 SUPPLY CHAIN COMPLEXITY AND THIRD-PARTY CONTROL 25
- 4.5.2 OUTDATED CLINICAL TRIAL ACTIVITIES 25
4.6 MACROECONOMIC INDICATORS 25
4.7 TRENDS 25

5 MARKET FACTOR ANALYSIS

5.1 VALUE CHAIN ANALYSIS 26
- 5.1.1 R&D 26
- 5.1.2 GOOD LABORATORY PRACTICES (GLP) 26
- 5.1.3 PRE-CLINICAL CRO TESTING 26
5.2 PORTER'S FIVE FORCES ANALYSIS 27
- 5.2.1 BARGAINING POWER OF SUPPLIERS 27
- 5.2.2 BARGAINING POWER OF BUYERS 27
- 5.2.3 THREAT OF NEW ENTRANTS 28
- 5.2.4 THREAT OF SUBSTITUTES 28
- 5.2.5 INTENSITY OF RIVALRY 28
5.3 INVESTMENT OPPORTUNITIES 28
5.4 PRICING ANALYSIS 28

6 PRECLINICAL CRO MARKET, BY SERVICE

6.1 OVERVIEW 29
6.2 TOXICOLOGY TESTING 31
6.3 BIOANALYSIS AND DRUG METABOLISM AND PHARMACOKINETICS (DMPK) STUDIES 32
6.4 OTHERS 33

7 PRECLINICAL CRO MARKET, BY THERAPEUTIC AREA

7.1 OVERVIEW 34
7.2 ONCOLOGY 36
7.3 CENTRAL NERVOUS SYSTEM (CNS) DISORDERS 37
7.4 CARDIOVASCULAR DISEASES 38
7.5 IMMUNOLOGICAL DISORDERS 39
7.6 RESPIRATORY DISEASES 40
7.7 INFECTIOUS DISEASES 41
7.8 DIABETES 42
7.9 OTHERS 43

8 PRECLINICAL CRO MARKET, BY END USER

8.1 OVERVIEW 44
8.2 PHARMACEUTICAL AND BIOPHARMACEUTICAL INDUSTRIES 46
8.3 MEDICAL DEVICE COMPANIES 47
8.4 ACADEMIC INSTITUTES 48