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Benefit Administration Services in the US Industry Data and Analysis
Since 2020, benefit administration services companies have faced significant volatility driven by various economic conditions. The pandemic led to a sharp drop in business sales and employment, constraining demand for benefit administration services. However, a surge in investments in health plans helped the industry maintain stability, enabling revenue to rise markedly in 2020. The post-pandemic recovery brought increased employment and corporate profit, providing a temporary boost to revenue. Regardless, concerns about viruses waned, investment in health plans decreased and inflation pushed providers to reduce spending, driving some businesses to manage benefits in-house and ultimately slowing demand for the industry’s services in 2021 and 2022. Despite this restrained growth, high corporate profit enabled the boom of the tech and finance sectors, fueled by AI advancements, which drove strong revenue gains in 2023 and 2024 and pushed up profit’s revenue share over the past five years.
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What's included in this industry analysis
IBISWorld's research coverage on the Benefit Administration Services industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released June 2025.
About this industry
What's this industry report about?
The Benefit Administration Services industry in the United States operates under the NAICS industry code OD5533. Benefit administration services in the US involve managing and administering employee benefits programs such as health insurance, retirement plans, disability insurance and other perks provided by companies to their employees. Related terms covered in the Benefit Administration Services industry in the United States include defined benefit plan, workers' compensation and cobra.
What's included in this industry?
Products and services covered in Benefit Administration Services industry in the United States include Administration and management of pension plan , Administration and management of self-funded health/welfare plans and Administration and management of other health/welfare plans.
What companies are included in this industry?
The Benefit Administration Services industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Benefit Administration Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Benefit Administration Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Benefit Administration Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Benefit Administration Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Benefit Administration Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Benefit Administration Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Benefit Administration Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Benefit Administration Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Benefit Administration Services industry in the United States in 2026?
The market size of the Benefit Administration Services industry in the United States is $308.3bn in 2026.
How many businesses are there in the Benefit Administration Services industry in the United States in 2025?
There are 95,532 businesses in the Benefit Administration Services industry in the United States, which has grown at a CAGR of 9.5 % between 2020 and 2025.
How may import tariffs affect the Benefit Administration Services industry in the United States?
The Benefit Administration Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Benefit Administration Services industry in the United States?
The Benefit Administration Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Benefit Administration Services industry in the United States grown or declined over the past 5 years?
The market size of the Benefit Administration Services industry in the United States has been growing at a CAGR of 3.6 % between 2020 and 2025.
What is the forecast growth of the Benefit Administration Services industry in the United States over the next 5 years?
Over the next five years, the Benefit Administration Services industry in the United States is expected to grow.
What does the Benefit Administration Services industry in the United States include?
Pension plan third-party administration and management and Health/welfare plan third-party administration and management are part of the Benefit Administration Services industry in the United States.
How competitive is the Benefit Administration Services industry in the United States?
The level of competition is high and increasing in the Benefit Administration Services industry in the United States.
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