Asia Pacific Drug Development Market Growth & Trends
The Asia Pacific drug development market is expected to reach USD 62.46 billion by 2026 and is projected to expand at a CAGR of 6.54%, according to a new report by Grand View Research, Inc. Challenges pertaining to the escalating research costs and shrinking revenue faced by major pharma companies have led to the significant expansion of Asian drug development sector. A rapidly expanding healthcare infrastructure, low operating costs, and a growing patient population have contributed to the recognition of Asian countries as an ideal site for low-cost drug development.
Furthermore, the growing acceptance of clinical trial data generated in Asia by Western drug regulators, including the EMA and U.S. FDA, is one of the key market drivers. This is primarily because of the increasing similarities of Asian disease demographics to that of the Western nations.
Various government policies have been formulated to promote implementation of digital and advanced analytics, such as artificial intelligence, in the region. Moreover, the pharma companies are collaborating with AI-based companies to leverage algorithms and cloud computing to transform their drug development process.
The contract research organizations are experiencing increasing levels of interest in Asian countries from their U.S. –based client base. This is a testament to the lucrative growth of Asia Pacific market, driving its growth in the coming years.
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Asia Pacific Drug Development Market Report Highlights
- Outsourced mode of pharmaceutical development led the market and is expected to maintain its dominance throughout the forecast period, due to the fact that the companies are investing or redirecting their significant investments from already existing R&D centers in Europe and U.S. to emerging centers in Asia
- Analytical & stability studies captured the largest revenue share in the market, due to the high usage of advanced and relative expensive technologies such as Electron Paramagnetic Resonance (EPR) spectroscopy
- Oncology is estimated to be the highest revenue generating segment, due to the presence of a substantial number of cancer targeting therapeutics in clinical development phase. This segment is expected to maintain a fast CAGR during the forecast period owing to wide acceptance of personalized therapy in cancer treatment
- Strong government support for innovation and large and diverse domestic pharma industry of China has led to the dominance of China over other countries in the Asia Pacific drug development market
- Furthermore, the launch of several start-ups in India is expected to serve as a significant source of revenue to the Indian pharmaceutical industry
- Some key contract service providers operating in the Asia Pacific drug development market are Eurofins Advinus; Covance Inc.; Celerion; and Parexel International Corporation. With the rising trend of outsourcing pharmaceutical manufacturing, these CROs are expected to witness great organic revenue growth
- In house global pharmaceutical manufacturers such as Pfizer and AstraZeneca are also striving to gain competitive ground in the Asian market