Procurement Market Intelligence Report
Scientific Research & Development Services
Sourcing Guide & Market Intelligence
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Scientific Research & Development Services Global Overview
Definition
Summary
This market includes businesses involved in physical, engineering, or life sciences research and development. Services are conducted to increase a company's knowledge about a product or process, which can then be applied to developing or improving a product or process. This market includes suppliers that focus exclusively on R&D and excludes players that may undertake R&D to support other primary operations. Government entities are also excluded from this market, although these entities often contract and fund vendor research efforts. Key buyers of market services include government agencies, pharmaceutical companies, information technology providers, and aircraft, engine, and parts manufacturers.
This Report Includes:
- Scientific Research
- Tests & Trials
Not in this Report:
- Social Science Research
- Humanities Research
- Government Research
Global Scientific Research & Development Services Procurement Trends
Discover the top international trends affecting procurement in the global Scientific Research & Development Services market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
Global Scientific Research & Development Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 18,330 |
| #2 China | 16,885 |
| #3 United States | 12,000 |
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Geography Drilldown - US
Average Cost of Scientific Research & Development Services
United States
2026 Market Pricing$40.00 to $XXX.XX
per hourAverage Price
Prices in the Scientific Research & Development Services market range from $40.00 to $XXX.XX, depending on Type of Project, Complexity of Research and Equipment & Infrastructure Requirements. For example, lower prices are associated with Literature reviews and meta-analysis projects ($40.00 to $70.00 per hour), Routine or conventional scientific projects ($40.00 to $90.00 per hour) and Basic research ($40.00 to $90.00 per hour), whereas higher prices are associated with Applied research ($100 to $200 per hour), Large-scale, long-term studies, especially clinical trials ($100 to $300 per hour) and Specialized technical or experimental projects ($120 to $220 per hour).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Scientific Research & Development Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Scientific Research & Development Services market, prices in the US have grown 3.0% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Scientific Research & Development Services
Total cost of ownership is Low in the Scientific Research & Development Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.
Negotiated Before
Implementation
Billed During
Upgrades
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.3 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Laboratory Supply Wholesalers
- Chemical Wholesalers
- Computer Wholesalers
2nd
Tier Suppliers
- Medical Instrument & Supply Manufacturers
- Glass Products Manufacturers
- Organic Chemical Manufacturers
- Inorganic Chemical Manufacturers
- Computer Manufacturers
Biggest Scientific Research & Development Services Suppliers in the US by Revenue
The largest Scientific Research & Development Services vendors by revenue in the US are Laboratory Corporation Of America Holdings, Iqvia Holdings Inc. and Leidos Holdings Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Leidos Holdings Inc. | Global | RESTON | >10,000 | < 5 | ||||
| Iqvia Holdings Inc. | Global | Durham | >10,000 | < 5 | ||||
| Laboratory Corporation Of America Holdings | Global | BURLINGTON | >10,000 | < 5 | ||||
| Icon Plc | Global | Dublin 18 | >10,000 | < 5 | ||||
| Battelle Memorial Institute | International | Columbus, OH | 1,001-10,000 | < 5 | ||||
| Cargill, Incorporated | Global | Minneapolis, MN | >10,000 | < 5 | ||||
| Johns Hopkins University | National | Baltimore, MD | >10,000 | < 5 | ||||
| Charles River Laboratories International, Inc. | Global | WILMINGTON, MA | >10,000 | < 5 | ||||
| The Mitre Corporation | International | McLean, VA | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Scientific Research & Development Services market is 6.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration in the scientific R&D market is low and the top four suppliers collectively hold less than 30.0% of market revenue. The market is very fragmented outside of the top players.
Scientific R&D facilities have been experiencing a moderate level of supply chain risk due to disruptions for inputs such as chemicals and laboratory supplies.
Market vendors face high moderate risks due to strong competition in the market combined with a low level of substitute goods.
The United States is a net importer of laboratory glassware, which provides buyers with the ability to leverage foreign products in negotiations with suppliers. While buyers have access to competitively priced foreign goods, importing from abroad may also leave buyers with greater exposure to foreign currency exchange risks and overseas supply chain issues.
Supplier Information
Battelle Memorial Institute
Battelle Memorial Institute is a private company operating internationally in the professional, scientific & technical services sector. The company's offerings include scientific research & development services. Founded in 1929, the company is currently headquartered in Columbus, Ohio, United States of America... Subscribe to learn more
Cargill, Incorporated
Cargill, Incorporated is a private company operating globally in the manufacturing and professional, scientific & technical services sectors. The company's offerings include ethanol, biodiesel, ice & snow surface treatments, farm products warehousing and scientific research & development services. Founded... Subscribe to learn more
Charles River Laboratories International, Inc.
Charles River Laboratories International, Inc. is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include scientific research & development services and contract research organization services. Founded in 1947, the company is currently... Subscribe to learn more
Icon Plc
ICON public limited company is a CRO (contract research organization) engaged in providing outsourced development services for the pharmaceutical, biotechnology and medical device industries. The firm delivers support the various stages of a clinical development processe including strategic development, management... Subscribe to learn more
Iqvia Holdings Inc.
IQVIA Holdings Inc. provides advanced analytics, technology solutions, and clinical research services to the global life sciences industry. It leverages its IQVIA CORE to deliver unique and actionable insights. It also offers a comprehensive collection of healthcare information, spanning sales, prescription... Subscribe to learn more
Johns Hopkins University
Johns Hopkins University is a private company operating nationally in the professional, scientific & technical services sector. The company's offerings include scientific research & development services. Founded in 1876, the company is currently headquartered in Baltimore, Maryland, United States of America... Subscribe to learn more
Laboratory Corporation Of America Holdings
LabCorp Holdings Inc. is a global provider of comprehensive clinical laboratory and end-to-end drug development services. It organizes its business into two segments: the Diagnostics segment, which offers a wide range of diagnostic tests, including, among others, blood chemistry analyses, urinalyses, blood... Subscribe to learn more
Leidos Holdings Inc.
Leidos Holdings, Inc. is the holding company for Leidos, Inc., which develops smarter technology solutions for national security and health sectors. It organizes its business into three reportable segments: the Defense Solutions segment, which focuses on digital modernization, Command, Control, Computers,... Subscribe to learn more
MIT Lincoln Laboratory
MIT Lincoln Laboratory is a private company operating internationally in the professional, scientific & technical services sector. The company's offerings include scientific research & development services. Founded in 1951, the company is currently headquartered in Lexington, Massachusetts, United States Subscribe to learn more
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Procurement Management KPIs for the Scientific Research & Development Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Customer Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Scope of Work and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time |
|
Average response to e-mail time Average response to phone time |
Buyers should procure services from a vendor with low response times as the nature of the work requires collaboration and communication. Vendors with a lower average response time are preferred to limit downtime in buyer operations. |
| Customer Retention Rate |
|
Number of lost clients Client ratings |
Suppliers with a higher customer retention rate are preferred because they indicate more satisfied customers and a higher level of quality. Buyers should look into why previous clients chose to move to another vendor as insight into possible issues that may arise. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Supply Chain Risk
Do you source materials with high exposure to market disruptions? How are you coping with these disruptions?
How diversified is your supplier base for inputs? Do you source from multiple suppliers in different global regions?
Qualifications
How have you built your company's reputation?
How do you promote and present yourself to potential clients?
Business Continuity
Who are your largest clients and what kinds of research are they interested in?
How do you cope with economic cycles?
The ultimate prep for procurement negotations
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Scientific Research & Development Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide suppliers with their organization's mission statement or an outline of their organizational values.
Buyers should detail their organizational structure.
Statement Of Need
Buyers should state the objectives of the services they are procuring.
Buyers should outline all phases of the services that detail the types of services they require the supplier to perform.
Project Budget
Buyers should inform suppliers that they are responsible for any costs related to constructing a proposal.
Buyers should inform suppliers of the currency value their proposal should be submitted in.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
