by: Sarah Joson
Thursday, March 12, 2015 | Outsourcing News |
WhaTech.com recently revealed the highlights of a study in the world of global healthcare contract research outsourcing (HCRO) market. “Healthcare Contract Research Outsourcing Market - Global Industry Analysis, Size, Share, Trends And Forecast 2012 - 2018” was done by US-based market intelligence firm Transparency Market Research. The report covers not only the current contracts within the global healthcare contract research outsourcing market, but previous data as well. Data from the report are used to create predictions on the market’s development up until 2018.
Back in 2011, the HCRO market was valued at US$25.08 billion. It has been steadily growing at a compound annual growth rate (CAGR) of 14.7 percent, and with the same growth rate, it could be valued at US$65.03 billion by 2018.
The global healthcare contract research outsourcing market is composed of four categories on the basis of services: clinical trial services, clinical data management services, regulatory services, and medical writing services. The clinical trial outsourcing segment took the lead in the global healthcare contract research outsourcing market, accounting for US$14.21 billion in 2010. As for the location, North America accounted for majority of the market share with 64.1 percent. Looking back on the statistics, Europe and Asia follow the North American market for HCRO.
The report also stated that the HCRO market in Asia will continue to grow due to the increasing number of contract research service providers. As for the recent upward trend in the global HCRO market, it was found that the increasing cost and reduced productivity of healthcare research are driving growth. Another factor that’s seen driving the growth of the HCRO market is the expired patent for in-house healthcare research amongst healthcare providers. Moreover, the declining research and development activity for new drug formulations, as well as globalization of drug development, help in the growth of the market.
However, quality issues, varying regulations, and approval processes for drug research are cited as threats to the growth of the HCRO market. According to the report, drug research, which is done remotely or does not have on-site supervision from the client company, is at risk for quality issues relating to methodology, equipment, and hygiene protocol.