As more pharmaceutical companies begin to use contract research organizations, it looks as though more devicemakers are also getting in on the action. Over the next 6 years, the global medical devices CRO market should grow at a compound annual growth rate (CAGR) of 12.5%, reaching around $7.4 billion by 2018, according to a new study from GlobalData. Last year, the medical device CRO market generated a respectable $3.2 billion.
And while the pharma and med device fields are separate, they share similar motives in regard to outsourcing shifts. The study also reveals that device companies are outsourcing research and development to CROs overseas to save time and money.
The United States contributes around 50% of the current global medical devices CRO market, but other locations are seeing a boom, like China, India, Latin America and Europe, according to the study. And while there is no doubt that China, India and Brazil will continue to draw more outsourcing, these countries need to address the lapses within their national regulatory practices. Notably, intellectual property protection is an issue governments need to remedy, the statement on the study says.
Still, the large med device market and "favorable conditions for clinical research" in the U.S. will harbor growth there: It will hit $3.4 billion by 2018, after generating $1.6 billion last year.
- read more about the study