Asia-Pacific Preclinical CRO Market

Asia-Pacific Preclinical CRO Market Size

The preclinical CRO market size in Asia-Pacific was valued at USD 0.76 billion in 2023. The regional market is estimated to be growing at a CAGR of 8.59% from 2024 to 2032 and be worth USD 1.6 billion by 2032 from USD 0.83 billion in 2024.

MARKET DRIVERS

The Asia-Pacific preclinical CRO agents market will show lucrative growth due to increased R&D spending and growing outsourcing trends. The increasing number of new drugs entering the preclinical phase is also expected to drive the market during the analysis period. The rising cost of research is very highly developed nations such as the United Kingdom, the U.S.A, Canada, etc., compared to developing countries in the APAC region.

Factors such as strict regulations, pricing policies, and significant budget cuts for biomedical research have increased interest in outsourcing clinical trials. The APAC pharmaceutical market is growing faster than the rest of the world, but it has a sizeable skilled population. In addition, it has shown improvements in the regulatory environment, quickly making it a preferred outsourcing destination for clinical trials.

The increasing incidence of various chronic illnesses such as cancer, heart disease, neurological and infectious conditions further encourage biopharmaceutical companies to increase their investment in developing newer drugs with lesser side effects to meet the demand for preclinical CRO services. In addition, the number of recruiting centers indicates increased patient access for pharmaceutical companies. Hence, biopharmaceutical companies are adopting strategies to remain competitive and flexible in increasing knowledge and advanced technologies and sustaining an unstable economic environment.

MARKET RESTRAINTS

Cost estimates for conducting clinical trials have ranged from US $ 200 million to over US $ 2 billion in recent years and continue to rise in the future. The average increase in the cost of conducting clinical trials is 7.23% above the average inflation rate over the past 20 years. This high cost will challenge the studied market in the years to come. In addition, due to stringent regulatory policies in APAC regions, biopharmaceutical companies are facing difficulties in growing in the market.

REGIONAL ANALYSIS

China had a market revenue of over $ 25- 38 billion dollars in 2007-2017 in the pharmaceutical industry. This growth can be attributed to robust research infrastructure, skilled labor, and a lenient regulatory approval system in China. In addition, China is home to several global pharmaceutical players, which have increased reliance on CROs for market penetration.

India is expected to account for a notable share of the Asia-Pacific market over the forecast period. One of the greatest strengths of the Asia-Pacific preclinical CRO agents market is access to a large population with unmet medical treatment. Asia's emerging middle-class countries like the Philippines, Malaysia, and India are growing due to increased clinical trials in the Asia-Pacific region. Several multinational CRO agents in India have end-to-end development capabilities and partnerships with local stakeholders.

Japan has grown over the past ten years, reaching $ 4.5 billion in 2019. It has come a long way in reducing regulatory delays and increasing harmonization with the standardization of regulatory processes. The market is looking for unique and innovative drugs for acute diseases like regenerative drugs.

KEY MARKET PLAYERS

Charles River Laboratories International, Inc.; Laboratory Corporation of America; Envigo, Eurofins Scientific; PRA Health Science, Inc.; Wuxi AppTec; Medpace, Inc.; Pharmaceutical Product Development, LLC.; and Paraxel International Corporation are some of the prominent players in the Asia-Pacific preclinical CRO market.

MARKET SEGMENTATION

This research report on the Asia-Pacific preclinical CRO market is segmented and sub-segmented into the following categories.

By Service Type

• Bioanalysis And DMPK Studies
• Toxicology Testing
• Other Preclinical Services

By End User

• Biopharmaceutical Companies
• Government and Academic Institutes
• Medical Device Companies

By Country

• India
• China
• Japan
• South Korea
• Australia
• New Zealand
• Thailand
• Malaysia
• Vietnam
• Philippines
• Indonesia
• Singapore
• Rest of Asia-Pacific