Scientific breakthrough: Improving private investment from major industries will help long-term growth

Operators in the Scientific Research and Development industry undertake physical, engineering or life sciences research and development; over the five years to 2018, industry revenue grew in line with an expanding economy. Though budget sequestration and further governmental funding declines harmed operators by reducing revenue from an important source of demand, the industry performed well as a result of its transition toward private funding sources. Additionally, the industry's revenue streams are expected to stabilize over the next five years. Improving private investment from major industries, such as from the life sciences and health sectors, will bolster long-term growth. Additionally, investment in new technologies, such as nanotechnology, will benefit industry operators...purchase to read more.

Industry Statistics & Market Size
Revenue
$137bn
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
700,641
Businesses
29,819
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The government is a source for more than half total industry revenue, so changes in federal funding levels greatly affect revenue
  • Private funders are more risk-tolerant and are open to funding startup ventures and small research teams
  • Federal government R&D defense spending is one of the industry’s largest sources of revenue
  • Industry Report - Industry Locations Chapter

    Factors affecting establishment location include federal and state funding, tax laws, proximity to large private enterprises and proximity to subject of research (e.g. farms for agricultural studies and oceans for oceanographic studies). Many large companies in the industry operate several locations due to the technical expertise that each location can provide. For instance, laboratories and supercomputers, medical testing and weapons development may all be located at different places in the United States, or even across the globe.On a per capita basis, there are disproportionately more establishments located in the West and New England (9.0%) regions, as there are major universities and related research institutions in these areas. In particular, the West has 25.5% o...purchase to read more.

    Additional Insights for the Scientific Research & Development Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Scientific Research & Development Industry are

  • Having a good reputation
  • Provision of appropriate facilities
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Research and development expenditure and Demand from healthcare and social assistance in the Scientific Research & Development industry impact industry performance..

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    What's in this report

    What is the Scientific Research & Development Industry?

    This industry includes companies and organizations that are involved in physical, engineering or life sciences research and development (R&D). The industry only includes operators whose primary purpose is R&D and excludes players such as pharmaceutical or manufacturing companies that may undertake R&D to support their primary operations. Government entities are also excluded from this industry, though these entities may contract and fund the research this industry undertakes.

    Industry Products
  • Physical and engineering sciences R&D
  • Life sciences R&D
  • Pharmaceutical R&D
  • Biotechnology R&D
  • Medical and health sciences R&D
  • Licensing of intellectual property rights
  • Industry Activities
  • Agriculture research and development laboratories or services
  • Biotechnology research and development laboratories or services
  • Cancer research laboratories or services
  • Computer and related hardware research and development laboratories or services
  • Environmental research and development laboratories or services
  • Genetics research and development laboratories or services
  • Health research and development laboratories or services
  • Mathematics research and development laboratories or services
  • Medical research and development laboratories or services
  • Physics research and development laboratories or services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Research and development expenditure
  • Demand from healthcare and social assistance
  • Demand from biotechnology
  • Yield on 10-year Treasury note

  • Current Performance
  • Funding lapse slows development
  • Private funding leads to fragmentation
  • Going green
  • Chart: Revenue Growth

  • Industry Outlook
  • Federal funding steadies
  • Increasing private expenditure fuels long-term growth
  • Geopolitics and demographics boost demand
  • New technologies on the horizon
  • Table: Scientific Research & Development Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Scientific Research & Development Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Baking Mix & Prepared Food Production
  • Generic Pharmaceutical Manufacturing
  • Semiconductor Machinery Manufacturing
  • Printing, Paper, Food, Textile & Other Machinery Manufacturing
  • Computer Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Space Vehicle & Missile Manufacturing
  • Geophysical Services

  • Key Selling Industries
  • Chemical Wholesaling
  • Electrical Equipment Manufacturing
  • Glass Product Manufacturing
  • Glasses & Contact Lens Manufacturing
  • Inorganic Chemical Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Organic Chemical Manufacturing
  • Plastic Pipe & Parts Manufacturing

  • Products & Services
  • Life sciences R&D
  • Physical and engineering sciences R&D
  • Medical and health sciences R&D
  • Pharmaceutical R&D
  • Biotechnology R&D
  • Other
  • Licensing of intellectual property rights
  • Chart: Scientific Research & Development Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Federal government
  • Institutions funds
  • Nonprofit organizations
  • Business
  • State and local government
  • Other
  • Chart: Major Market Segmentation for the Scientific Research & Development Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases and depreciation
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Scientific Research & Development

  • Basis of Competition
  • Internal competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Scientific Research & Development Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Scientific Research & Development Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Scientific Research & Development Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Research and development expenditure (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Life Sciences
  • A category in R&D that comprises biotechnology, biological sciences and medical sciences.
  • Materials Technology
  • A category that deals with the development of materials that can survive hostile environments, have greater strength-to-weight ratios or offer energy-saving applications.
  • Medical Diagnostic Imaging
  • A category in R&D related to the development of speedy, cost-effective and noninvasive medical equipment.
  • Nanotechnology
  • The study of controlling matter on an atomic and molecular scale.
  • Physical And Engineering Sector
  • An R&D category that comprises earth and environmental sciences and chemistry and chemical engineering.
  • Synchrotron
  • Also known as the atom-smasher. It is used in quantum-mechanics research by sending atoms along an underground circuit in order to break the atoms apart and study the results.
  • What Our Customers Say

    Why buy this report?

    The Scientific Research & Development industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Scientific Research & Development:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Scientific Research & Development market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Scientific Research & Development, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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