Pharmaceutical Contract Management Consulting in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD5846Revenue
$37.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
183k
Businesses
22,569
Wages
$XX.Xbn
Pharmaceutical Contract Management Consulting in the US industry analysis
Over the past five years, the patent cliff, an ongoing series of expiration dates for the patents on blockbuster drugs, has stimulated the volume of research and development (R&D) work outsourced by generic pharmaceutical and biotechnology companies, promoting growth for consultants. The outbreak of COVID-19 led to growth for consultants as pharmaceutical manufacturers ramped up R&D expenditures to develop new drugs and looked to consultants to sure up their operations. Industry-wide revenue has been climbing at a CAGR of 1.0% over the past five years and is expected to total $37.6 billion in 2023, when revenue will jump by an estimated 4.1%. Merger and acquisition activity by pharmaceutical manufacturers over the current period has led many manufacturers to consultants to ensure these activities go smoothly and are beneficial. The growing complexity of the pharmaceutical process has incentivized companies to outsource to consultants but created a need for skilled employees that command higher average wages, hindering consultants' profit. Through the end of 2028, consultants will continue to enjoy growth. To cut down on cost-generating operations, downstream companies will increasingly rely more on outsourcing and technologies within their operations as they face headwinds. The changing regulatory environment for developing drugs will continue to spur growth in consultants' services from pharmaceutical manufacturers. Industry revenue is forecast to grow at a CAGR of 2.1% through the end of 2028 to total $41.7 billion.
Trends and Insights
- Consultants have enjoyed growth. Merger and acquisition activity, expiring patents and the increased complexity of developing drugs have led pharmaceutical manufacturers to increasingly seek consulting services.
- Consultants have enjoyed growth from brand-name pharmaceutical manufacturers. An increasing number of new drug launches in recent years has increased brand-name pharmaceutical manufacturers’ need for consultants.
- Consultants tend to establish near downstream markets. Consultants establish near hospitals, pharmacies and other local companies to secure favorable contracts and reduce operating costs.
- Internal competition is high among consultants. Pharmaceutical contract management consultants compete based on the skills, expertise and flexibility they can provide clients.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.0 % over the past five years, to reach an estimated $37.6bn in 2023.
Trends and Insights
Consultants enjoyed growth amid the outbreak of COVID-19
- Uncertainty surrounding the outbreak of COVID-19 led pharmaceutical manufacturers to rely on consultants to sure up their operations.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
An uptick in outsourcing to promote growth
- Pressure from third-party payers to reduce drug costs will remain a significant issue for pharmaceutical manufacturers, driving manufacturers' need for consultants.
Biggest companies in the Pharmaceutical Contract Management Consulting in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Iqvia Holdings Inc. | 1,293.3 | 88.6 | 6.9 | |
Deloitte Touche Tohmatsu | 706.1 | 85.9 | 12.2 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Business strategy and planning consulting services, Marketing strategy and market development services and Technical. Business strategy and planning consulting services is the largest segment of the Pharmaceutical Contract Management Consulting in the US.
Trends and Insights
Consultants have enjoyed growth from business strategy and planning consulting services
- Pharmaceutical contract management consultants determine how contracts can assist pharmaceutical companies in achieving their short-term and long-term objectives.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Management Consulting in the US
Complementors
- IT Consulting in the US
- Scientific Research & Development in the US
- Operating Systems & Productivity Software Publishing in the US
International industries
- Global Management Consultants
- Management Consulting in Canada
- Management Consulting in Australia
- Consulting Services in New Zealand
- Management Consultants in the UK
Table of Contents
About this industry
Industry definition
This industry provides consulting to pharmaceutical companies, which includes the assessment of cost structures and client contracting processes. Firms ensure compliance and track performance. This can include the development and implementation of software for these purposes.
What's included in this industry?
Software development and salesContract analysis servicesBusiness improvement advisory servicesCompanies
Iqvia Holdings Inc.Deloitte Touche TohmatsuPurchase this report to view all 2 major companies in this industry.
Related Terms
BIOLOGICBIOSIMILARBLOCKBUSTER DRUGORPHAN DRUGOVER-THE-COUNTER (OTC) DRUGSPATENT CLIFFIndustry Code
NAICS 54161 - Pharmaceutical Contract Management Consulting in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consultants have enjoyed growth. Merger and acquisition activity, expiring patents and the increased complexity of developing drugs have led pharmaceutical manufacturers to i...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consultants have enjoyed growth from brand-name pharmaceutical manufacturers. An increasing number of new drug launches in recent years has increased brand-name pharmaceutica...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Consultants tend to establish near downstream markets. Consultants establish near hospitals, pharmacies and other local companies to secure favorable contracts and reduce ope...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
Internal competition is high among consultants. Pharmaceutical contract management consultants compete based on the skills, expertise and flexibility they can provide clients...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No company has amassed more than 5.0% of the market. The multitude of pharmaceutical contract management consultants and their services makes accumulating a considerable mark...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Iqvia Holdings Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Deloitte Touche Tohmatsu's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Iqvia Holdings Inc., and factors influencing its performance in the industry
- Description and key data for Deloitte Touche Tohmatsu, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Pharmaceutical contract management consultants enjoy light regulations. While management consultants enjoy light regulations, they must be aware of various regulations relati...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Increased wage costs have hindered profit growth. Pharmaceutical contract management consultants’ profit has dipped as regulatory hurdles have increased competition for skill...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
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.
What data sources do IBISWorld analysts use?
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:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
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.
How does IBISWorld forecast its data?
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmaceutical Contract Management Consulting in the US industry in United States in 2024?
The market size of the Pharmaceutical Contract Management Consulting in the US industry in United States is $37.6bn in 2024.
How many businesses are there in the Pharmaceutical Contract Management Consulting in the US industry in 2023?
There are 22,569 businesses in the Pharmaceutical Contract Management Consulting in the US industry in United States, which has grown at a CAGR of 4.3 % between 2018 and 2023.
Has the Pharmaceutical Contract Management Consulting in the US industry in United States grown or declined over the past 5 years?
The market size of the Pharmaceutical Contract Management Consulting in the US industry in United States has been growing at a CAGR of 1.0 % between 2018 and 2023.
What is the forecast growth of the Pharmaceutical Contract Management Consulting in the US industry in United States over the next 5 years?
Over the next five years, the Pharmaceutical Contract Management Consulting in the US industry in United States is expected to grow.
What are the biggest companies in the Pharmaceutical Contract Management Consulting in the US market in United States?
The biggest companies operating in the Pharmaceutical Contract Management Consulting market in United States are Iqvia Holdings Inc. and Deloitte Touche Tohmatsu
What does the Pharmaceutical Contract Management Consulting in the US in United States include?
Software development and sales and Contract analysis services are part of the Pharmaceutical Contract Management Consulting in the US industry.
Which companies have the highest market share in the Pharmaceutical Contract Management Consulting in the US in United States?
The company holding the most market share in United States is Iqvia Holdings Inc..
How competitive is the Pharmaceutical Contract Management Consulting in the US industry in United States?
The level of competition is high and increasing in the Pharmaceutical Contract Management Consulting in the US industry in United States.
