Yearn to learn: High demand from drug and medical device manufacturers will boost industry revenue

The Contract Research Organizations industry experienced a period of aggressive growth over the past five years to 2018, benefiting from rapidly increasing research and development (R&D) expenditures. Many pharmaceutical companies have also lost revenue due to increasing patent expirations, spurring manufacturers to outsource aspects of the drug manufacturing process to CROs to reduce costs. As a result, CROs are experiencing significant growth. Over the next five years to 2023, the industry is expected to continue to benefit from increased R&D spending and high demand from drug and medical device manufacturers...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry is expected to benefit from increased R&D spending and high demand from drug and medical device manufacturers
  • High demand for CRO services has contributed to a high number of industry entrants
  • The biomedical field is likely to play an important role in the continued success of CROs
  • Industry Report - Industry Key Buyers Chapter

    The Contract Research Organizations (CROs) industry is highly fragmented, despite the participation of several high-profile companies in many of its segments. According to research by KPMG, an estimated 43.0% of industry enterprises each comprise less than 2.0% of total global industry market share. The low level of market share concentration is attributed both to the breadth of services provided within the industry and to the existence of many small, successful companies within each service area. CROs can range from large, international full-service organizations to small, niche specialty operators. In 2018, the top four players are expected to account for nearly 45.0%% of total US industry revenue, according to IBISWorld estimates. Glo...purchase to read more.

    Additional Insights for the Contract Research Organizations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Contract Research Organizations Industry are

  • Ensuring pricing policy is appropriate
  • Having a good reputation
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Research and development expenditure and Number of adults aged 65 and older in the Contract Research Organizations industry impact industry performance..

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    What's in this report

    What is the Contract Research Organizations Industry?

    This industry includes companies that provide research services on a contract basis to the pharmaceutical and biotechnology industries. Contract research organizations (CRO) provide biopharmaceutical development, preclinical research, clinical research and clinical trial management. Many CROs specifically provide clinical study and clinical trial support for drugs or medical devices.

    Industry Products
  • Preclinical trials
  • Clinical trials
  • Post-marketing surveillance
  • Industry Activities
  • Performing clinical research for pharmaceutical, biomedical and biotechnology companies
  • Performing clinical research for medical device manufacturers
  • Data management and regulation adherence services
  • Development, advancement and formulation of devices and medications
  • 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
  • Number of adults aged 65 and older
  • Demand from brand name pharmaceutical manufacturing
  • Demand from generic pharmaceutical manufacturing
  • Demand from biotechnology
  • Demand from medical device manufacturing
  • Prime rate

  • Current Performance
  • Keeping pace with a changing marketplace
  • Partnerships and consolidation
  • Globalization weighs on profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Biopharmaceuticals to drive growth
  • Contracts, consolidation and profit
  • Regulatory effects
  • Table: Contract Research Organizations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Contract Research Organizations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Medical Device Manufacturing

  • Key Selling Industries
  • Chemical Wholesaling
  • Commercial Leasing
  • Computer & Packaged Software Wholesaling
  • Computer Stores
  • Laboratory Supply Wholesaling
  • Medical Supplies Wholesaling
  • Office Supply Stores

  • Products & Services
  • Clinical trials
  • Other
  • Preclinical trials
  • Post-marketing surveillance
  • Chart: Contract Research Organizations Industry Products and Services Segmentation

  • Demand Determinants
  • Demographics and health
  • Research and development spending

  • Major Markets
  • Pharmaceutical companies
  • Biotechnology companies
  • Medical device companies
  • Other
  • Chart: Major Market Segmentation for the Contract Research Organizations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Contract Research Organizations

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Contract Research Organizations Industry

  • Industry Globalization
    IQVIA, Laboratory Corporation of America Holdings,
  • Table: IQVIA - financial performance
  • Table: Laboratory Corporation of America Holdings - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Contract Research Organizations 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 Contract Research Organizations Industry
  • 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
  • The growing medicinal field resulting from increasing use of biotechnologies and living systems and organisms.
  • Comparative Effectiveness Research (Cer)
  • Research that requires medicines to be evaluated against one another.
  • Cro
  • An abbreviation for contract research organization.
  • Preclinical
  • The stage of research in drug development before clinical trials in humans can begin.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Contract Research Organizations Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
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    This report on Contract Research Organizations:
    • 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 Contract Research Organizations 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 Contract Research Organizations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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