Market Size of Preclinical CRO Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 7.10 Billion |
| Market Size (2029) | USD 10.10 Billion |
| CAGR (2024 - 2029) | 7.44 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Preclinical CRO Market Analysis
The Preclinical CRO Market size is estimated at USD 7.10 billion in 2024, and is expected to reach USD 10.10 billion by 2029, growing at a CAGR of 7.44% during the forecast period (2024-2029).
The studied market growth is primarily attributed to increasing research and development (R&D) expenditure worldwide, increasing the number of drugs in preclinical trials, and high demand for medicines uptake by chronically ill patients between 2024 and 2029.
The increasing research and development expenditure in life sciences and substantial public and private funding spending in the sector boosts market growth. For instance, the Indian Ministry of Science and Technology allocated a budget of INR 40 billion (USD 427.20 million) for the Department of Biotechnology (DBT) of India in the Union Budget for the year 2023-2024. The significant increase in funding is primarily due to the increasing R&D expenditure in the country. Hence, the rising research and development expenditure is expected to increase the adoption of preclinical CRO services to decrease the overall cost of the drug development process.
Similarly, the European Federation of Pharmaceutical Industries and Association (EFPIA) pharmaceutical research and development expenditure in 2022 reached USD 44 billion, which grew by 4.6% compared to the 2021 expenditure. Hence, the increasing R&D expenditure in Europe is expected to increase the demand for preclinical CRO services to reduce the expenditure from 2024 to 2029.
Additionally, the increasing number of drugs in preclinical stages is also expected to increase the demand for outsourcing preclinical services to reduce the cost of development and increase the chances of drug approval for conducting clinical trials. For instance, according to the ClinicalTrials.gov 2024 updated data, as of January 2024, nearly 479 thousand clinical studies were registered globally. This significant increase in clinical trials reflects the number of therapeutics and medical devices that have undergone preclinical trials and received New Drug Application Approval (NDA). Hence, the increasing number of drugs in the preclinical trials is expected to drive the studied market between 2024 and 2029.
However, a lack of standardization, monitoring issues, and stringent regulatory policies are expected to hamper the market's growth.
