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Contract Pharmaceutical Research Services in the US Industry Data and Analysis
Demand for contract pharmaceutical research services has strengthened over the current period, driven by rising demand from pharmaceutical manufacturers navigating patent cliffs and replenishing drug pipelines. The pharmaceutical industry faces revenue losses because of patent expirations, compelling companies to accelerate R&D investments and early-stage acquisitions, with preclinical through Phase II deals representing nearly half of biopharma M&A value. The Asia-Pacific region emerged as the fastest-growing clinical trials market in 2025, as pharmaceutical contract research organizations (CROs) leverage cost advantages and government incentives, such as Australia's 43.5% R&D Tax Incentive, to expand their geographic reach. Rising consolidation and vertical integration have enabled researchers to become a one-stop shop for all client needs, with private equity-backed pharmaceutical (pharma) CROs demonstrating market strength, with revenue expected to climb at a CAGR of 2.6% to $12.4 billion through 2026, including a 3.0% jump in 2026.
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What's included in this industry analysis
IBISWorld's research coverage on the Contract Pharmaceutical Research Services industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.
About this industry
What's this industry report about?
The Contract Pharmaceutical Research Services industry in the United States operates under the NAICS industry code OD4176. The industry provides a range of research and development services to pharmaceutical manufacturers, including laboratory testing, preclinical and clinical trials, commercialization and post-market surveillance. Related terms covered in the Contract Pharmaceutical Research Services industry in the United States include cro, biosimilar, pharmacovigilance, patent cliff, new molecular entity and active pharmaceutical ingredient (api).
What's included in this industry?
Products and services covered in Contract Pharmaceutical Research Services industry in the United States include Discovery and early-stage development, Phase I-II and Phase III-IV.
What companies are included in this industry?
Companies covered in the Contract Pharmaceutical Research Services industry in the United States include Laboratory Corporation Of America Holdings.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Contract Pharmaceutical Research Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Contract Pharmaceutical Research Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Contract Pharmaceutical Research Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Contract Pharmaceutical Research Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Contract Pharmaceutical Research Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Contract Pharmaceutical Research Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Contract Pharmaceutical Research Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Contract Pharmaceutical Research Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Contract Pharmaceutical Research Services industry in the United States in 2026?
The market size of the Contract Pharmaceutical Research Services industry in the United States is $12.4bn in 2026.
How many businesses are there in the Contract Pharmaceutical Research Services industry in the United States in 2026?
There are 2,267 businesses in the Contract Pharmaceutical Research Services industry in the United States, which has grown at a CAGR of 2.9 % between 2021 and 2026.
How may import tariffs affect the Contract Pharmaceutical Research Services industry in the United States?
The Contract Pharmaceutical Research Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Contract Pharmaceutical Research Services industry in the United States?
The Contract Pharmaceutical Research Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Contract Pharmaceutical Research Services industry in the United States grown or declined over the past 5 years?
The market size of the Contract Pharmaceutical Research Services industry in the United States has been growing at a CAGR of 2.6 % between 2021 and 2026.
What is the forecast growth of the Contract Pharmaceutical Research Services industry in the United States over the next 5 years?
Over the next five years, the Contract Pharmaceutical Research Services industry in the United States is expected to grow.
What are the biggest companies in the Contract Pharmaceutical Research Services industry in the United States?
The biggest company operating in the Contract Pharmaceutical Research Services industry in the United States is Laboratory Corporation Of America Holdings
What does the Contract Pharmaceutical Research Services industry in the United States include?
Discovery and early-stage development and Phase I-II trials are part of the Contract Pharmaceutical Research Services industry in the United States.
Which companies have the highest market share in the Contract Pharmaceutical Research Services industry in the United States?
The company holding the most market share in the Contract Pharmaceutical Research Services industry in the United States is Laboratory Corporation Of America Holdings.
How competitive is the Contract Pharmaceutical Research Services industry in the United States?
The level of competition is high and steady in the Contract Pharmaceutical Research Services industry in the United States.
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