The Turnover of Global Clinical Trial Supplies Market to surpass the mark of USD 3,000 Million by 2026 at CAGR of 7.4%

Published | July 2020

Global Clinical Trial Supplies Market is anticipated to reach USD 3078.06 million by 2026 from USD 1867.44 million in 2019, at a CAGR of 7.40 % during the forecast period 2020-2026. Globalization, advancements in supply chain management technology, the increasing number of clinical trials, and several biologics and biosimilar drugs in trials propel the development of the Global Clinical Trial supplies market. The market primarily depends on the proportion of therapeutic and biopharmaceutical R&D expenses and the volume of clinical trials.


Clinical trial supplies are gaining more significance due to increasing costs of drug development and the implementation of stringent administration conditions (for various biopharmaceutical products entering clinical trials). A good supply chain management of the trial drugs ensures the optimum use of available infrastructure and compliances concerning several local and global practices for a safe clinical trial. It helps avoid overproduction, inventory expiration, and oversupply. Besides, it necessitates continuous improvement in clinical trial supplies strategy, often calling for assimilation of various third-party vendors across all phases of clinical growth.


Biopharmaceutical companies increasingly opt for the supply chain management system to reduce cost, increase functional efficiency, and save burden on R&D. The new enterprises are focusing on new technologies and the introduction of new products in the market. They outsource their supply provisions to cut down the costs of supplies and focus more on the trial procedure. However, the shortage of well-trained professionals and lack of infrastructure may restrict the market's development. Besides, the effect of coronavirus can limit market development during the prediction period.


“Storage and Distribution segment plays a significant role in the Clinical Trial Supplies Market.”


The storage and distribution segment of Clinical Trial Supplies is likely to record robust growth due to the demand for outsourced storage and delivery facility. As part of logistics, supply chain management is gaining importance and, in turn, is anticipated to witness growth given the technological progressions and pressure to curb R&D costs. Cold chain distribution is predicted to record the accelerated growth due to a mounting number of biologic and temperature-sensitive drugs. However, non-cold chain distribution seems to maintain its share on the segment over the forecast period.


“Phase III dominates all the phases in clinical trial supplies market.”


Phase I clinical trial supplies market is likely to register robust growth due to rising clinical trials. Lesser sample populace and high capital investment are the major factors leading to outsourcing primary capacity of these trials. At present, approximately 54.0% of Phase I trials are outsourced, and the number is estimated to increase due to the globalization of these trials.


Phase III trials pass through the highest level of testing standards compared to all other phases. The failure rate is highest due to the large sample size and complicated research design requiring critical administration of dosage in phase III. A large number of molecules are present to enter the Phase III trials by 2020, increasing their dominance during the prediction period.


“Increasing Pharmaceutical and Biopharmaceutical R&D Expenditures and rising chronic diseases are key drivers of the clinical Supplies Market.”

Research and development (R&D) is an essential and vital part of medicines and biopharmaceuticals companies. The companies allocate increasing outlay for R&D, which enables them to develop new molecules for various therapeutic applications, carrying considerable medical and profitable potential. They are increasingly adopting the innovative supply chain management system to improve operational efficiencies and save for more investment in R&D. Moreover, they outsource their supply provisions to global and regional supply players to focus more on the trial procedure.


The critical diseases such as cancer, epilepsy, and HIV, drive demand for drug trials laying great emphasis on determining toxicity level in early stages of drug development. It, in turn, induces the need for outsourcing clinical trial supplies. Furthermore, a rising number of life sciences research in several countries finance the development of new drugs giving a significant boost to the clinical trials and their supply market.


“The Asia Pacific is projected to register significant growth in the market during the forecast period.”


North America and Europe are the prime contributors to the global clinical trial supplies market due to the highest number of clinical trials conducted in this region. Many companies with the most progressive technology are engaged in clinical trial supply in the region. The clinical trials in the Asia Pacific entail high costs due to insufficient development. However, it is likely to register high growth due to its varied population, easy access to patients, nearness to North America, and low conversion cost. Latin America and MEA are also anticipated to see significant growth due to an increase in the number of clinical trials initiated in this region.


The leading companies engaged in this market are Alamc Group (UK), Catalent, Inc. (US), PCI Services (US), Parexel International Corporation (US), Sharp Packaging Services (US), Biocair (UK), O&M Movianto (US), KLIFO A/S (Denmark), and Thermo Fisher Scientific, Inc. (US) and others are prominent players in the market. They are primarily concentrated in developed nations of the world.