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The clinical trials market size was valued at USD 54.24 billion in 2022 and is projected to grow from USD 57.76 billion in 2023 to USD 92.45 billion by 2030, exhibiting a CAGR of 6.9% during the forecast period. Clinical trials are an important process in developing new therapeutics or medical devices.
These studies are performed to analyze novel pharmaceuticals, medical devices, or any other therapeutics. These studies provide a scientific foundation for guiding and treating patients and evaluating novel medications and equipment. Increasing R&D by pharmaceutical and biotechnological companies globally has fueled the number of clinical trials being conducted globally.
Furthermore, increased companies' focus on the development of novel treatments for chronic diseases and rising demand for outsourcing R&D activities have also been fueling the market’s growth. For instance, in July 2021, the Beijing Illness Challenge Foundation (ICF) in China formed a strategic relationship with Parexel. This ground-breaking collaboration aimed to obtain direct feedback from individuals with rare diseases to improve their access to and participation in these studies.
COVID-19 Slowed the Growth of the Market due to Lockdown Restrictions
The impact of COVID-19 pandemic resulted in the slow growth of the market during the pandemic. Many clinical studies were put on hold after the sudden outbreak of COVID-19 due to lockdown restrictions and the low presence of resources.
However, many pharmaceutical and biotechnological companies increased their focus on the development of drugs, test kits, and vaccines against the SARS-CoV-2 virus. These companies increased their focus on collaboration and partnership with CRO service providers for R&D and clinical studies.
However, the market experienced a significant recovery in 2021 compared to the prior year, due to the release of lockdown restrictions, mass vaccination, and increased demand for clinical trials to develop novel treatments.
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Pharmaceutical and Biotechnological Companies Increased their Investments in R&D
Many medical device, pharmaceutical, and biopharmaceutical companies continue to put significant resources into the development of technologies and new medications.
The pharmaceutical sector, in particular, has been majorly making investments in R&D initiatives for the development of novel therapeutics.
Pharmaceutical and biotechnology companies have increased their focus on expanding their R&D efficiencies by investing in R&D.
Furthermore, these companies also initiated outsourcing of their R&D activities to CRO companies for time efficient and smooth conduction of these trials.
Increasing Prevalence of Chronic Diseases to Increase the Demand for the Development of Efficient Therapeutics
The burden of chronic diseases, such as a wide range of cancers and neurological disorders, has been increasing at a significant pace globally. This is expected to fuel the demand for the development of more effective therapeutics.
People worldwide are affected by chronic diseases. Compared to developing countries, emerging countries are more prone to chronic disease-related public health problems. According to the World Health Organization (WHO), in five out of six regions, chronic disease is the major reason for mortality. Infectious diseases, such as malaria, TB, HIV/AIDS, and other conditions, are still predominant in Sub-Saharan Africa and are expected to prevail in the coming years.
The global market is anticipated to grow significantly due to the high prevalence of chronic diseases during the forecast period.
Rising Number of Clinical Trials Globally has been Fueling the Market Growth
Registration of trials has been growing at a significant rate annually to meet the increasing demand to treat chronic diseases.
These study trials conducted in the U.S. are comparatively fewer than in other countries worldwide. Due to its cost-effectiveness and easy process, many of the trials are conducted outside of the U.S. and the European Union. Clinical trial success rates are majorly dependent on the stage of the study and the treatments or items being developed.
In recent years, the number of registered trials has increased significantly.
The increase in development of new drugs & medical devices is expected to drive the clinical trials market growth during the forecast period.
Limited Availability of Skilled Workforce and High Costs of Study Trials Limit the Market Growth
Increasing globalization has been fueling the adoption of advanced technology. New opportunities are emerging in terms of occupation. Furthermore, rising industrialization and the requirement for new amenities have fueled the need for new skills. This factor has also enhanced competency in job opportunities.
Contract Research Organization (CRO) services face issues in drawing and maintaining vastly proficient experts as they require qualified as well as experienced scientists from the field of pharmaceutical, biotechnology, academic & research institutes, and medical device businesses. Companies must give high rewards and other such recognitions to compete efficiently, impacting other players’ capitals and operational outcomes, majorly small-scale analytical testing providers. This limited availability of experienced specialists could limit the adoption of advanced technologies and processes, limiting the market’s growth in the coming years.
Furthermore, from research to the final drug approval, the drug development process is quite costly. According to the Tufts Center for the Study of Drug Development, on average, the complete drug development process costs USD 2.60 billion to develop a new medicine, including the cost of failures. Moreover, only 12.0% of new drug candidates that enter study trials get the U.S. FDA approval.
These factors are expected to restrict the market growth during the forecast period.
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Increased Registration of Clinical Trials along with the Emergence of CRO Services has been Fueling the Segment’s Growth
Based on phase, the market is segregated into phase I, phase II, phase III, and phase IV.
Phase III segment generated the highest revenue in 2022. The market players’ increased initiative to outsource their R&D activities is responsible for the segment’s dominance in the market.
Furthermore, the phase II segment is expected to grow at the fastest CAGR over the forecast period. The segment's growth is attributed to the increasing prevalence of chronic diseases and increasing investment by pharmaceutical companies in the R&D of novel treatments.
Limited Presence for Effective Treatment of Cancer has been Fueling the Segment’s Growth
Based on application, the market is segmented into renal/nephrology, cardiology, metabolic disorder, infectious disease, CNS disorder, oncology, and others.
The oncology segment dominated the market by generating the highest revenue in 2021. The segment's growth is due to the growing demand for effective cancer treatment therapies and the rising number of drug approvals for cancer treatment.
Furthermore, CNS disorder is expected to grow at a significant CAGR during the forecast period. The increase in the prevalence of CNS disorders is expected to accelerate the segment's growth. For instance, in 2019, neurological conditions accounted for 47.39 per 100,000 among the American population.
Moreover, the metabolic disorder segment is expected to grow substantially during the forecast period. This is due to the rise in prevalence of chronic diseases, such as diabetes, globally. For instance, according to a published article in 2020 by OECD-iLibrary, in Asia Pacific, around 227 million people are living with type 2 diabetes; half of them are undiagnosed, and thus could develop long-term complications. These factors are propelling CRO services for the metabolic disorder segment.
North America Clinical Trials Market Size, 2022 (USD Billion)
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North America accounted for a major clinical trials market share, generating a revenue of USD 26.13 billion in 2022. Pharmaceutical companies have increased their spending on R&D to improve their drug development. This has been fueling the market growth during the forecast period in the region.
The market in Europe accounted for a substantial market share in 2021 and is expected to witness stagnant growth during the forecast period. The market growth in the region is attributed to increased R&D expenditure by leading pharmaceutical, biotechnology, and MedTech companies.
Moreover, the market across the Asia Pacific region is expected to expand at the fastest CAGR during the forecast. The increasing prevalence of infectious and chronic diseases across Asia Pacific is expected to propel the demand for new drugs, thereby increasing the overall market in Asia Pacific.
Pharmaceutical Companies with a Strong Focus on the Expansion of Product Portfolios to Hold Key Market Share
IQVIA, Laboratory Corporation of America Holdings, and Pfizer, Inc. are among the prominent players in the market and captured a considerable global market share in 2022.
IQVIA and Laboratory Corporation of America Holdings accounted for significant market share in 2022. This is due to their strong emphasis on R&D to introduce solutions and to upskill their offerings.
Similarly, Pfizer, Inc. held a considerable share of the market in 2022. This was due to the company’s strong brand presence with a strong pipeline of products. Moreover, the company strongly focuses on developing advanced and highly efficient therapeutics for chronic disease treatment.
Other significant players operating in the market, such as Icon PLC, Syneos Health, and Pharmaceutical Product Development, LLC (Thermo Fisher Scientific), emphasize various strategic developments such as service expansion, partnerships, and collaborations.
An Infographic Representation of Clinical Trials Market
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The research report provides a detailed competitive landscape. It includes the number of clinical trials and key industry developments such as partnerships, mergers, and acquisitions. Additionally, it focuses on key points such as new product launches in the market. Furthermore, the report covers regional analysis of different segments, company profiles of key players, market trends, and the impact of COVID-19 on the market. The report consists of quantitative and qualitative insights that contribute to the market growth.
CAGR of 6.9%
Value (USD Billion)
By Phase, Application, and Region
Fortune Business Insights says that the global market stood at USD 54.24 billion in 2022 and is projected to reach USD 92.45 billion by 2030.
The market is expected to exhibit a CAGR of 6.9% during the forecast period (2023-2030).
The phase III segment is set to lead the market by phase.
The key factors driving the market are increasing prevalence of chronic diseases and rising number of clinical trials.
IQVIA, Laboratory Corporation of America Holdings, and Pfizer, Inc. are the top players in the market.
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