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Contract Research Organizations in the US Industry Data and Analysis
Contract Research Organizations (CROs) continue to dominate the clinical research space, although broader economic volatility and competition from in-house sources is undermining large-scale growth. Revenue soared 12.5% in 2020 as high demand for COVID-19 vaccines, treatments and drugs spurred investment in CROs. CROs struggled to deal with the inflationary spike in 2022, as pharmaceutical and biotech companies pivoted to in-house solutions aimed at preserving capital in the drug development process. Higher interest rates, which peaked at 5.3% in July 2023, made it more expensive for pharmaceutical companies and local clients like universities to procure brand-name CRO providers and outsource research and development (R&D) tasks. Nonetheless, the industry benefited from continued elevation in clinical trial costs and an uptick in patent expirations, which encouraged pharmaceutical companies to outsource clinical trial management to CRO providers. Revenue grew at a CAGR of 1.4% to an estimated $24.1 billion over the past five years, including an anticipated 2.0% boost in 2025 alone.
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What's included in this industry analysis
IBISWorld's research coverage on the Contract Research Organizations industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Contract Research Organizations industry in the United States operates under the NAICS industry code OD5708. 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. Related terms covered in the Contract Research Organizations industry in the United States include cro, biopharmaceuticals and preclinical.
What's included in this industry?
Products and services covered in Contract Research Organizations industry in the United States include Clinical trials, Post-marketing surveillance and Preclinical trials.
What companies are included in this industry?
Companies covered in the Contract Research Organizations industry in the United States include Thermo Fisher Scientific Inc., Iqvia Holdings Inc. and Icon Plc.
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 Research Organizations 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 Research Organizations 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 Research Organizations 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 Research Organizations 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 Research Organizations 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 Research Organizations 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 Research Organizations 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 Research Organizations industry in the United States.
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Frequently Asked Questions
What is the market size of the Contract Research Organizations industry in the United States in 2026?
The market size of the Contract Research Organizations industry in the United States is $24.1bn in 2026.
How many businesses are there in the Contract Research Organizations industry in the United States in 2025?
There are 4,523 businesses in the Contract Research Organizations industry in the United States, which has grown at a CAGR of 3.4 % between 2020 and 2025.
How may import tariffs affect the Contract Research Organizations industry in the United States?
The Contract Research Organizations 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 Research Organizations industry in the United States?
The Contract Research Organizations 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 Research Organizations industry in the United States grown or declined over the past 5 years?
The market size of the Contract Research Organizations industry in the United States has been growing at a CAGR of 1.4 % between 2020 and 2025.
What is the forecast growth of the Contract Research Organizations industry in the United States over the next 5 years?
Over the next five years, the Contract Research Organizations industry in the United States is expected to grow.
What are the biggest companies in the Contract Research Organizations industry in the United States?
The biggest companies operating in the Contract Research Organizations industry in the United States are Thermo Fisher Scientific Inc., Iqvia Holdings Inc. and Icon Plc
What does the Contract Research Organizations industry in the United States include?
Conducting clinical trials and Conducting preclinical trials are part of the Contract Research Organizations industry in the United States.
Which companies have the highest market share in the Contract Research Organizations industry in the United States?
The company holding the most market share in the Contract Research Organizations industry in the United States is Thermo Fisher Scientific Inc..
How competitive is the Contract Research Organizations industry in the United States?
The level of competition is high and steady in the Contract Research Organizations industry in the United States.
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