Asia Pacific Contract Research Organization (CRO) Market By Type (Early Phase Development Services, Clinical Research Services, Laboratory Services, Post-approval Services), By End-use (Pharmaceutical and Biotechnology Companies and Medical Device Companies): Asia Pacific Opportunity Analysis and Industry Forecast, 2022-2031

The Asia Pacific Contract Research Organization (CRO) market was valued at $9.1 billion in 2022. It is projected to grow at a CAGR of 11.3% from 2023 to 2031 and reach more than $19.2 billion by the end of 2031. 

 

Analysts’ Viewpoint by Cognate Lifesciences

 

 

Industry analysts predict that the Asia Pacific Contract Research Organization (CRO) market is poised for substantial growth in the forthcoming years, fueled by a convergence of compelling factors that are transforming the pharmaceutical and healthcare industries in the region. The Asia Pacific region is experiencing a rapid surge in the pharmaceutical and biotechnology industries, driven by factors such as increasing research and development (R&D) investments, rising healthcare expenditure, and a growing aging population. This expansion is creating a burgeoning demand for CRO services to support the clinical development of new drugs and therapies. The regulatory landscape in Asia Pacific is becoming increasingly favorable for clinical trials, with governments streamlining approval processes and harmonizing regulations across countries. This regulatory friendliness is attracting multinational pharmaceutical companies to conduct clinical trials in the region, further boosting the demand for CRO services. These factors, coupled with the increasing adoption of outsourcing strategies by pharmaceutical companies, are expected to propel the growth of the Asia Pacific CRO market. The region is poised to become a global hub for clinical research, offering cost-effective, high-quality CRO services that meet the evolving needs of the pharmaceutical and healthcare industries.

 

 

 

Asia Pacific Contract Research Organization (CRO) Overview 

 

 

The Asia Pacific (APAC) region has emerged as a pivotal hub for the Contract Research Organization (CRO) industry, witnessing robust growth and playing a crucial role in the global pharmaceutical and biotechnology sectors. The APAC CRO market is characterized by a diverse range of services, including clinical trials, drug development, regulatory support, and data management. The region's prominence is attributed to several factors, such as a large patient pool for clinical trials, a cost-effective and skilled workforce, and an increasingly favorable regulatory environment. Countries like India, China, Japan, and South Korea are key players in this landscape, offering a strategic combination of scientific expertise and operational efficiency. Pharmaceutical and biotech companies worldwide are increasingly outsourcing their research and development activities to APAC-based CROs to capitalize on these advantages. The COVID-19 pandemic has further underscored the region's significance, with accelerated clinical trials for vaccines and treatments. As APAC continues to invest in healthcare infrastructure and research capabilities, the CRO market is poised for sustained growth, fostering innovation and contributing significantly to the global advancements in the life sciences industry.

 

 

 

The high prevalence of diseases such as hepatitis, stroke, and lung cancer makes Asia-Pacific a prime location for conducting clinical trials. This is evident in the World Health Organization (WHO) database study, which found that the total number of registered clinical trials in the Asia Pacific between 2009 and 2018 exceeded 125,000, representing a seven-fold increase. Japan led the region with approximately 30.8% of all clinical trials conducted. Additionally, the annual average increase in clinical trials in Asia-Pacific surpasses that of the US, Canada, and EU countries. A report published by PubMed in September 2019 highlighted Iran's remarkable growth, with a 41% increase in clinical trials in 2019 compared to 2018. This surge in clinical trials translates into a growing demand for outsourcing research and development activities, fueling the expansion of the contract research organization (CROs) market in Asia-Pacific throughout the forecast period.

 

 

New product launches to flourish in the market

 

 

The Asia Pacific Contract Research Organization (CRO) market is expected to see several new product launches in the coming years. Some of the key product launches expected in the Asia Pacific Contract Research Organization (CRO) market are:

 

• IQVIA Lighthouse AI-Powered Clinical Trial Optimization Solution - IQVIA Lighthouse AI-Powered Clinical Trial Optimization Solution is a revolutionary AI-powered platform that helps clinical trial sponsors optimize their study designs and improve patient outcomes. This innovative solution leverages IQVIA's vast clinical trial data and expertise to provide sponsors with actionable insights throughout the drug development process.


• Parexel® Patient Compass- Parexel® Patient Compass is a comprehensive patient engagement platform that helps clinical trial sponsors connect with and support patients throughout their clinical trial journey. This innovative platform utilizes a variety of features to enhance patient engagement, improve patient outcomes, and accelerate clinical trial enrollment and completion.

 

 

 

 

 

 

 

 

 

Segment Overview:

 

 

By Type: The Asia Pacific Contract Research Organization (CRO) market is divided into early phase development services, clinical research services, laboratory services, and post-approval services. Clinical research services are the dominating segment in the Asia Pacific Contract Research Organization (CRO) market, accounting for approximately 45% of the global revenue in 2022. This dominance stems from several factors, including the increasing complexity of clinical trials, which requires the expertise of CROs to design, manage, and execute these studies, the growing prevalence of chronic diseases, which is driving the demand for new treatments and therapies, and the rising cost of clinical trials, which is leading pharmaceutical companies to outsource more of their clinical research activities to CROs.

 

 

By End-use: The Asia Pacific Contract Research Organization (CRO) market is segmented into pharmaceutical and biotechnology companies and medical device companies. The pharmaceutical and biotechnology companies segment holds the dominant position within the Asia Pacific Contract Research Organization (CRO) market, accounting for approximately 75% of the total revenue in 2022. Pharmaceutical and biotechnology companies are at the forefront of drug discovery and development, continuously seeking novel therapies and treatments to address unmet medical needs. CROs play a crucial role in supporting these endeavors, providing expertise in clinical trial design, execution, and regulatory compliance to bring new drugs to market safely and effectively. The growing emphasis on biologics and specialty drugs, which require specialized expertise and facilities, further bolsters the demand for CRO services in the pharmaceutical and biotechnology sector. CROs with specialized capabilities in handling biologics and specialty drugs are highly sought after by pharmaceutical and biotechnology companies seeking to bring these innovative therapies to market. The pharmaceutical and biotechnology companies segment dominates the Asia Pacific CRO market, while the medical device companies segment is poised for the fastest growth, reflecting the evolving landscape of healthcare and the increasing demand for specialized CRO services.

 

 

 

 

By Region:

 

 

 

 

 

 

 

 

 

 

China is the dominating country in the Asia Pacific Contract Research Organization (CRO) market, accounting for approximately 45% of the total revenue in 2022. This dominance is attributed to several factors, including large and growing pharmaceutical industry, favorable regulatory environment, and abundant talent pool. China boasts a large and rapidly growing pharmaceutical industry, with numerous domestic and international pharmaceutical companies conducting clinical trials and research activities in the country. The Chinese government has implemented policies that encourage clinical trial development and outsourcing, making it an attractive destination for CROs.

 

 

Japan is the second-largest market for CRO services in the Asia Pacific region, accounting for approximately 25% of the total revenue in 2022. Japan's well-established healthcare infrastructure, strong regulatory framework, and large patient population make it an attractive destination for clinical trials. South Korea is another major player in the Asia Pacific CRO market, with a strong focus on biotechnology and innovation. South Korea's government is committed to supporting the growth of the CRO industry, making it an attractive destination for investment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Competitive analysis and profiles of the major players in the Asia Pacific Contract Research Organization (CRO) market, such as IQVIA Inc., Parexel International Corporation, Charles River Laboratories, Inc., ACM Global Laboratories, Merck KGaA (Bio Reliance Corporation), Celerion, Clinitude, Laboratory Corporation of America Holdings (Covance Inc.), Novotech, Icon PLCMajor players have adopted product launch and acquisition as key developmental strategies to improve the product portfolio of the Asia Pacific Contract Research Organization (CRO) market. 

 

 

 

 

Market Scope and Structure Analysis

 

 

 

 

 

 

 

 

 

 

 

Report Metric	Details
Market Size Available for Years	2021–2031
Base Year Considered	2022
Forecast Period	2023–2031
Forecast Unit	Value (USD)
Segments Covered	By Type, end-user, and Region
Regions Covered	Asia-Pacific
Companies Covered	IQVIA Inc.   Parexel International Corporation   Charles River Laboratories, Inc.   ACM Global Laboratories   Merck KGaA (Bio Reliance Corporation)   Celerion   Clinitude   Laboratory Corporation of America Holdings (Covance Inc.)   Novotech   Icon PLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Segments Covered

 

 

Type

 

 

• Early Phase Development Services
• Clinical Research Services
• Laboratory Services
• Post-approval Services

 

 

End-use

 

 

• Pharmaceutical and Biotechnology Companies
• Medical Device Companies

Region

 

 

• Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia 
  
   
• Rest of Asia-Pacific