Outside knowledge: The industry will thrive as research and development budgets rise

IBISWorld’s Contract Research Organizations Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Contract Research Organizations industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.


Industry Threats & Opportunities

  • The industry will continue to benefit from increased R&D spending
  • The growth of a few dominant operators has led to an increasing level of concentration
  • The expansion of the biomedical field is likely to play an important role in the success of CROs

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    Industry Analysis & Industry Trends

    The industry experienced a period of aggressive growth over the past five years, benefiting from an aging US population and an expansion in private health-related research and development (R&D) expenditures. As a result, industry revenue is expected to grow in the five years to 2016. Over the next five years, the industry will continue to benefit from increased R&D spending and an aging US population in increasing need of disease treatment. The industry will also benefit from rising demand from biopharmaceutical companies. IBISWorld forecasts that industry revenue will increase over the five years to 2021...

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    Industry Report - Starting a New Business Chapter

    Barriers to entry into the Contract Research Organizations industry are moderate; significant impediments exist for new entrants, particularly in the areas that require substantial capital investments in addition to highly trained and specialized personnel. New entrants must compete with well-established and often sizeable companies. The cost of establishing a new business can be high when setting up production facilities. Regulation accreditation and compliance can also be costly and take time. These requirements include assessment of an establishment to determine competence, impartiality and consistency, as well as qualifications and competency of personnel, equipment, accommodation and supplies.


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    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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    Look under the hood?

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Business model and demographics
  • Partnerships and consolidation
  • Globalization weighs on profit
  • Chart: Revenue Growth

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

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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    Major Companies
    Laboratory Corporation of America HoldingsQuintiles IMS Holdings Inc.
  • Table: Laboratory Corporation of America Holdings - financial performance
  • Table: Quintiles IMS Holdings Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Contract Research Organizations Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Research and development expenditure (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • 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.
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    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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