The global preclinical CRO market is experiencing substantial growth, projected to reach a value of USD 5.72 billion in 2023 and is anticipated to expand at a CAGR of 8.7% from 2024 to 2030. This growth is primarily driven by increased R&D budgets allocated to drug development, leading to a surge in demand for preclinical CRO services. Additionally, the rising number of preclinical trials involving large molecules and the imperative to curtail R&D expenses are further contributing to the growing demand for high-quality preclinical CRO services.
The COVID-19 pandemic has significantly accelerated the pace of preclinical studies, underscoring the pivotal role of CROs in expediting vaccine development. The increasing investment in CRO services is expected to fuel market growth considerably during the forecast period. Furthermore, the post-COVID-19 era has witnessed a surge in demand for drugs, further bolstering market growth. Various organizations worldwide have allocated substantial funding to the development of therapeutics and medical devices in response to the pandemic. For instance, the U.S. federal government invested approximately USD 2.3 billion in R&D for mRNA COVID-19 vaccines from the onset of the pandemic in 2020 through March 2022.
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Over time, there has been a notable shift in the FDA's drug approval process. The recent passage of the 21st Century Cures Act in the U.S. has expedited the approval process for groundbreaking drugs and medical devices. These regulatory changes are expected to stimulate innovation and consequently increase the demand for preclinical services, thereby contributing to market growth.
Model Segmentation Insights
The Patient Derived Organoid (PDO) Model segment held the largest share of 80.6% in 2023. This significant share is driven by the increasing utilization of patient-derived cells and tissues in the PDO model. This approach offers personalized healthcare solutions by providing a direct representation of the patient's specific condition. Additionally, the ability to cryopreserve these specimens enhances their utility in preclinical studies, facilitating quicker diagnosis and prognosis of malignancies. These factors collectively position PDO models as an indispensable tool in modern medical research.
The Patient-Derived Xenograft (PDX) model market is projected to grow at a Compound Annual Growth Rate (CAGR) of 8.4% during the forecast period. This growth is primarily attributed to the expanding number of Contract Research Organizations (CROs) maintaining in-house inventories of immunodeficient mice implanted with patient-derived xenografts. PDX models offer a unique advantage by enabling researchers to correlate laboratory findings with human responses. This is possible due to the preservation of the original genetic makeup of the tumor cells within the PDX model. Moreover, the observed responses in clinical trials have been shown to correlate with those in PDX models, contributing to a better safety profile and accelerating the approval process for New Drug Investigations (NDAs).
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