$20.8bn
$X.Xbn
62,995
4,321
$XX.Xbn
Contract Research Organizations (CROs) have performed well during the current period, but revenue has been volatile. Revenue soared in 2020 as high demand for COVID-19 vaccines, treatments and drugs spurred investment in CROs. The industry has suffered in recent years, however, as higher interest rates have made it more expensive for pharmaceutical companies and other businesses to engage in research and development (R&D). High clinical trial costs and an uptick in patent expirations have driven pharmaceutical companies to outsource the management of clinical trials, boosting downstream demand for operators' services. Overall, revenue for CROs is anticipated to creep upward at a CAGR of 1.3% during the current period, reaching $20.8 billion in 2024 and including a 2.4% jump in revenue in that year.
Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated $20.8bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Iqvia Holdings Inc. | 2,459.2 | 428.5 | 17.4 | |
Laboratory Corporation Of America Holdings | 2,413.2 | -99.5 | -4.1 | |
Pra Health Sciences, Inc. | 1,925.6 | 50.8 | 2.6 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Preclinical trials, Clinical trials and Post-marketing surveillance . Preclinical trials is the largest segment of the Contract Research Organizations in the US.
Clinical trials form the backbone of the contract research organization business
This industry includes companies that provide research services on a contract basis to the pharmaceutical and biotechnology industries. Contract research organizations (CRO) offer 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.
Purchase this report to view all 6 major companies in this industry.
NAICS 54171 - Contract Research Organizations in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Clinical trials have become more expensive amid high interest rates. Financing costs for clinical trials have spiked, with a decline in patient enrollments causing many compa...
Learn about an industry's products and services, markets and trends in international trade.
Telemedicine and decentralized clinical trials now offer at-home services. These advancements boost efficiency via virtual data collection and trialing, but require contract ...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Several states with significant saturation of educational entities boost CRO demand. Key research hubs in states such as California, Massachusetts and New Jersey support phar...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Mergers and acquisitions continue to be a staple of CROs, reinforcing the dominance of top companies. Leading CROs are leveraging their resources to find efficient research m...
Learn about the performance of the top companies in the industry.
Publicly traded companies dominate the CRO market, holding nearly a third of market share. Strategic acquisitions and key partnerships are driving this concentration, with la...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Most public assistance stems from federally funded programs. Amid the pandemic, the FDA launched CTAP to fast track treatment approval, with the broader framework applicable ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Decentralized trials create a lucrative profit accelerant. Clients are likely to make large investments if CROs can effectively cut costs and accelerate trial timelines.
Including values and annual change:
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Contract Research Organizations in the US industry in United States is $20.8bn in 2024.
There are 4,321 businesses in the Contract Research Organizations in the US industry in United States, which has grown at a CAGR of 3.0 % between 2019 and 2024.
The market size of the Contract Research Organizations in the US industry in United States has been growing at a CAGR of 1.3 % between 2019 and 2024.
Over the next five years, the Contract Research Organizations in the US industry in United States is expected to grow.
The biggest companies operating in the Contract Research Organizations market in United States are Iqvia Holdings Inc., Laboratory Corporation Of America Holdings and Pra Health Sciences, Inc.
Conducting clinical trials and Conducting preclinical trials are part of the Contract Research Organizations in the US industry.
The company holding the most market share in United States is Iqvia Holdings Inc..
The level of competition is high and steady in the Contract Research Organizations in the US industry in United States.