Market Research Services Market Definition
The market research services market consists of the sales of market research services and related goods by entities (organizations, sole traders and partnerships) that plan, develop, create and manage activities for studying and analyzing markets according to the end user’s need. Market research establishments undertake processes where human capital is the major input. They make available the knowledge and skills of their employees, often on an assignment basis, where an individual or team is responsible for the delivery of services to the client. The market research companies provide data, data analysis and consumer analysis based on the end user’s need through primary and secondary research. The data often contains both qualitative and quantitative information, and can be tailored to meet the client’s need. Market research firms offer both standard products and customized solutions as part of their offerings.
Market Research Services Market Size
The global market research services market reached a value of nearly $75.76 billion in 2019, having increased at a compound annual growth rate (CAGR) of 2.6% since 2015. The market is expected to decline from $75.76 billion in 2019 to $73.94 billion in 2020 at a compound annual growth rate (CAGR) of -2.4%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and resulting economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 4.1% from 2021 ad reach $82.87 billion in 2023.
Growth in the historic period resulted from rise in research and development (R&D) investments, increase in political opinion polls, and strong economic growth in emerging markets. Factors that negatively affected growth in the historic period were privacy and security issues, shortage of skilled workers, and opinion polls losing credibility.
Going forward, increasing focus on customer satisfaction, outsourcing back end operations to low cost economies, and demand for opinion polls will drive the growth. Factors that could hinder the growth of the market research services market in the future include Big Data Analytics, and COVID-19 pandemic.
Market Research Services Market Drivers
The key drivers of the market research services market during 2019-2023 are expected to include:
Increasing Focus On Customer Satisfaction
The market research services market is expected to benefit from rising focus on customer satisfaction and experience surveys. The rise of competition among companies is forcing them to find new ways to retain their customers and attract new ones. To accomplish this goal, many companies are looking for continuous feedback from customers to deliver high quality goods or services. For example, according to Gartner, going forward, 89% of businesses will compete on customer experience.i The increasing focus on customer satisfaction of goods and services provided by companies is expected to drive the growth of the market research services market during 2019-2023.
Market Research Services Market Restraints
The key restraints on the market research services market during 2019-2023 are expected to include:
Big Data Analytics
The expected shift of end users of market research service providers to technology companies offering big data analytics is expected to restrain the growth of the market research services market during the forecast period. Many companies in industries such as fast-moving consumer goods (FMCG), telecom and retail are increasingly seeking services of analytics companies to derive customer insights. Analytics companies are known to provide better quality of data, high flexibility and they usually minimize risk associated with data management. Big data analytics solutions offer more precise actionable insights than solutions offered by traditional market research companies in a fast manner. They are also perceived to offer a better and more comprehensive picture of customers. Clients’ perception of market surveys overloading customers leading to incomplete and uncertain responses that negatively affect the quality of insights also encourage clients to use services of analytics companies since analytics is mainly drawn from real customer activity and is seen as more accurate and informative. Therefore, big data analytics solutions are likely to be a major restraint on the market research industry going forward.
Market Research Services Market Trends
Major trends shaping the market research services market include the following –
Micro Surveys Replacing Lengthy Surveys
Companies are increasingly replacing traditional lengthy surveys with micro surveys to garner quick, real-time insights from respondents. Micro surveys offer real-time data with a scope to customize future insights. Micro survey companies also enable their end-users to quickly interpret and generate trends and patterns. For instance, Customer Thermometer, a UK-based opinion polling company, offers their micro survey tools to generate critical customer insights to organizations looking to identify consumer behavior trends and to enhance customer satisfaction and brand loyalty. ii Many companies are implementing this strategy to improve their feedback system internally and externally. Some of such companies include Skype, Uber, Selfridges and Scan’s email survey.iii
Adoption Of Advanced Technologies
Market research companies are increasingly using advanced research technologies such as eye-tracking technology to generate consumer insights. Market research companies are increasingly focusing on scrutinizing the emotional connection of customers with products. Market researchers are collecting and analyzing unconscious reactions of the customers’ brain through neuromarketing tools, such as emotion measurement, eye tracking, and other implicit priming testsiv. Eye-tracking technology is helpful for gauging consumer reaction towards products, without any bias or errors.v This technology is used in studying consumer behavior during shopping, where researchers can capture actual reaction and time spent gazing at a particular product or a group, which allows researchers to provide unbiased insights. An example of a successful implementation of eye-tracking technology includes Tobii Pro Glasses that help understand consumer behavior during shopping and give an understanding of consumer actions.vi
Opportunities And Recommendations In The Market Research Services Market
Opportunities – The top opportunities in the market research services market will arise in the marketing research and analysis services market segment, which will gain $5.9 billion of global annual sales by 2023. The market research services market size will gain the most in the UK at $1.78 billion. Market-trend-based strategies for the market research services market include replacing traditional surveys with micro surveys, using advanced technologies such as eye-tracking technology to capture critical consumer behavior trends, adopting agile market research, utilizing experimental research tools to generate accurate results on consumer behavior, investing in virtual technologies, adopting artificial intelligence technologies, automating research processes, and implementing blockchain technology. Player-adopted strategies in the market research services market include expanding in emerging markets, improving research capabilities by adopting newer ways to reach out to larger number of respondents, enhancing research and data analytics capabilities through strategic acquisitions, and transforming business through partnerships.
Recommendations – To take advantage of the opportunities, the business research company recommends the market research services companies to focus on new technology, target niche markets, launch virtual firms, expand in emerging markets, focus on mergers and acquisitions, offer competitive prices, project-based pricing, leveraging social media to maximize reach, increase visibility through a high-performance website and offer services to startups.
Market Research Services Market Segmentation
The Market Research Services market is segmented by type, by end-use industry and by geography.?
By Type -
The market research services market can be segmented by type
The marketing research and analysis services market was the largest segment of the market research services market segmented by type, accounting for 89.0% of the total in 2019. Going forward, the public opinion and election polling segment is expected to be the fastest growing segment in the market research services market, at a CAGR of 3.3% during 2019-2023.
- a. Marketing Research and Analysis services
- b. Public Opinion And Election Polling
By End Use Industry –?
The market research services market can be segmented by end use industry
The FMCG market research services market was the largest segment of the market research services market segmented by end use, accounting for 29.9% of the total in 2019. Going forward, the healthcare and life science segment is expected to be the fastest growing segment in the market research services market, at a CAGR of 5.2% during 2019-2023.
- a. FMCG
- b. Media
- c. Professional Services
- d. Healthcare
- e. Others
The market research services market is segmented into
- o North America
- o Western Europe
- o Asia Pacific
- Hong Kong
- New Zealand
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Market Research Services Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Nielsen Holdings plc
- • Kantar Group
- • IQVIA Holdings Inc.
- • Ipsos Group S.A.
- • GfK SE
- • Information Resources, Inc. (IRI)
- • Verisk Analytics, Inc.
- • Westat, Inc.
- • INTAGE Holdings Inc.
- • Dunnhumby
- • Global Vox Populi
- • RNB Research
- • Market Xcel Data Matrix Private Limited
- • Philips Healthcare
- • Market Xcel Data Matrix Private Limited
- • Majestic MRSS
- • Hub of China
- • SIS International Research,
- • Escalent (formerly Morpace)
- • CIPMR
- • INTAGE Inc
- • Consumer Behavior Research Co., Ltd (CBR Shenzhen Aeon Technology Co., Ltd.
- • Euromonitor International
- • IFF Research
- • Pharma Intelligence
- • Mintel
- • SIS International Research
- • Dunnhumby
- • Wood Mackenzie Masimo Corporation
- • VCIOM (Russian Public Opinion Research Center)
- • Ipsos Comcon
- • Business Analytica
- • MAGRAM Market Research
- • Nielsen
- • Gartner
- • Prodege LLC
- • Westat
- • the NPD Group, Incvii, IQVIA (formerly IMS Health and Quintiles)
- • Information Resources, Inc (IRI
- • Comscore
- • Criba Research SA
- • Fine Research
- • AG3 Consulting
- • OnTarget
- • Arellano
- • Datum Internacional S.A
- • StatMark Group S.A
- • Eksen Research
- • C&O Marketing
- • Insight Scouts Research & Consultancy
- • Research & Consulting House (REACH)
- • 4sight
- • Amass Market Research
- • Brandman Research
- • Geocartography Knowledge Group
- • ERA Research & Consultancy
- • IVC Research Center
- • Nagy Research MEACRO
- • Acnielsen Marketing & Media (Pty) Ltd.
- • NOI Polls Limited
- • George Klein and Associates (GK&A)
- • BMi Research (Pty) Ltd
- • Plus 94 Research
- • African Response