The in vivo CRO market provides preclinical research services including toxicology testing, pharmacokinetics testing, and other biological and analytical testing through animal models for determining safety, efficacy, and potential risks of the testing product. These services help minimize risks associated with clinical trials and obtain regulatory approvals. The growing prevalence of chronic diseases such as cancer, cardiovascular diseases, neurological disorders, and other lifestyle-related illnesses is increasing the R&D activities in pharmaceutical and biopharmaceutical industries which is driving the demand for in vivo CRO services.
The Global in vivo CRO Market is estimated to be valued at US$ 8.31 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the in vivo CRO market are IQVIA Inc., Crown Bioscience, Taconic Biosciences, Inc., PsychoGenics Inc., Evotec, Janvier Labs, Biocytogen Boston Corp, GemPharmatech, Charles River Laboratories, Icon Plc, Labcorp Drug Development, Parexel International Corporation, SMO Clinical Research (I) Pvt Ltd., WuXi AppTec, ICON plc, and Syneos Health. These players are focusing on expanding their service offerings and global footprint to capitalize on the market potential.
The increasing prevalence of chronic diseases and focus on development of innovative treatments is fueling the R&D spending of pharmaceutical and biotech companies. The rising demand for effective therapeutics is driving these companies to outsource in vivo research activities to CROs. This is increasing the In Vivo CRO Market Demand services globally.
Europe and North America collectively hold the major share of the global in vivo CRO market due to presence of large number of pharmaceutical companies and growing biotech industry in these regions. However, Asia Pacific market is expected to witness highest growth owing to increasing economic conditions, expanding biopharmaceutical industry, and low operational costs. The market players are focusing on strengthening their presence in Asia Pacific through partnerships and acquisitions.
Market Drivers
The increasing R&D investments by pharmaceutical and biotech companies is a major factor driving the growth of in vivo CRO market. The rising demand for effective drugs for treatment of chronic diseases is prompting companies to allocate higher budgets for research and development activities. This is increasing the outsourcing of preclinical research to CROs, thereby fueling the market growth. Further, the growing complexity of drug molecules and truncated research timelines are pushing pharmaceutical companies to rely on professional capabilities of CROs for preclinical development. This is expected to contribute significantly to the in vivo CRO market during the forecast period.
The current geopolitical situation is having a significant impact on the growth of the In Vivo CRO Market Challenges and Opportunities. Political tensions and conflicts between major economies have disrupted global supply chains and made it more difficult for CROs to conduct drug research and testing internationally. Tariffs and trade barriers have increased costs for companies and restricted the flow of goods, materials and test subjects needed for preclinical research using animals. Geopolitical uncertainty has also weakened economic growth in many parts of the world, reducing the profitability of pharmaceutical firms and leading them to cut research budgets or move operations to regions with more stable political conditions. CROs must adapt their strategies to these new geopolitical realities by diversifying their global footprint, building local partnerships, and finding ways to minimize dependencies on trade relationships that have become volatile or unreliable. Having presences in multiple regions will help mitigate political and economic risks.
North America remains the most concentrated region for the In Vivo CRO market in terms of value currently. Countries like the US and Canada have long been global leaders in pharmaceutical R&D spending and biotech innovation. Abundant financial resources from public and private investors continue to pour into drug development activities utilizing animal testing in North America. However, the Asia Pacific region is poised to become the fastest growing market for in vivo CROs through 2031. Rising wealth in major Asian nations is funding greater investment in healthcare and life sciences industries. Countries want to develop their own capabilities rather than outsource all clinical research overseas. In vivo CROs that establish operations in strategic locations across Asia will be well-positioned to capitalize on the rapidly expanding biopharma sector and favorable government policies promoting insourcing of early stage drug research and development.
The Southeast Asian region in particular presents considerable opportunities for growth, as biotech hubs like Singapore work to attract international CROs and clinical trial sponsors. Lower costs for animal research compared to mature markets appeals to cost-conscious sponsors. Significant unmet medical needs across Asia represent large addressable patient populations for pharmaceutical companies. CROs able to serve this region can achieve faster revenue growth rates than relying solely on more saturated Western markets. Expansion of presence and service offerings across Asia will prove important for in vivo CROs targeting the fastest gains over the next decade.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
