Clinical Services Segment Dominates

The clinical services segment accounted for the largest revenue share of 75.9% in 2023. This significant growth can be attributed to several factors:

• Rising number of biologics: The increasing development and use of biological therapies have driven demand for clinical services.
• Recent epidemic events: Outbreaks like COVID-19 have accelerated the need for new treatments, bolstering the clinical services market.
• Personalized medicines and orphan drugs: The focus on tailored therapies and treatments for rare diseases has increased demand for specialized clinical trials.
• Advanced technologies: The adoption of innovative technologies in clinical research has expanded the scope of clinical services.

Furthermore, factors like technological evolution, globalization of clinical trials, and the need for contract research organizations (CROs) are expected to fuel continued growth in this segment.

Outsourcing of Phase III Clinical Trials

Phase III clinical trials have been the most lucrative area for CROs, generating the highest revenue in 2023. This is primarily due to the substantial costs associated with this phase, which accounts for approximately 90.0% of drug development expenses.

Preclinical Studies Segment's Rapid Growth

The preclinical studies segment is anticipated to experience a rapid growth rate of 8.6% during the forecast period. Several factors are contributing to this expansion:

• Increase in preclinical trials: The rising number of preclinical studies conducted globally is driving demand for CRO services.
• Curbing R&D expenses: Organizations are increasingly outsourcing preclinical activities to reduce costs and improve efficiency.
• Pipeline of novel therapeutics: The development of new drugs, as highlighted by the WHO's report on antibacterial drugs, is fueling demand for preclinical services.