Industry firms are facing increasing pressure to generate external private funding.
Melbourne, Australia (PRWEB) June 09, 2014
The Scientific Research Services industry encompasses a broad range of government and private sector organisations spanning many fields of scientific research and study. The industry continues to rely heavily on public sector funding, despite increasing calls for self-funding. IBISWorld industry analyst Alen Allday states, “Industry firms are facing increasing pressure to generate own-source revenue by raising funds through donations and co-investment with other corporations and governments, and by royalty and licence revenue on intellectual property.” These pressures will mount in future years, while industry profit and surplus levels remain low. The largest organisations in the industry are predominantly government funded. The leading scientific research organisations include the CSIRO, Australian Nuclear Science and Technology Organisation and Geoscience Australia.
Industry revenue is projected to total $4.6 billion in 2013-14, up 0.4% on the previous year. However, with reduced funding levels and mixed demand, industry revenue is estimated to decrease at an annualised 0.6% over the five years through 2013-14. According to Allday, “Slower economic growth and the tighter allocation of public sector funding to scientific research have also contributed to industry declines.” Although industry performance had generally been strong since the early-2000s, revenue contracted sharply during 2009-10 due to slower cyclical growth in the economy and the drying up of CSIRO own-source revenue. CSIRO revenue declined by 10.6% in 2009-10, including a slump by 27.7% in revenue from external sources. Industry performance is expected to slightly improve over the next five years, underpinned by the flow of funding into environmental fields given the national and international focus on green technology. However, reduced funding from the Federal Government is expected over the next five years.
The Scientific Research Services industry has a low level of market share concentration. The industry concentration level has decreased in the past five years with low growth in government funding and increases in small firms operating in the industry. This trend is expected to continue over the five years through 2018-19 as existing operators seek to expand their operations either by the acquisition of a complementary or rival business, or entering into a joint venture. The CSIRO dominates the industry, while other government agencies are also major players. Despite the dominance of the three large commonwealth government agencies, CSIRO, ANSTO and Geoscience Australia, the industry comprises a large number of small-scale research companies. For more information, visit IBISWorld’s Scientific Research Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Organisations in this industry undertake research in the agricultural, biological, physical and social sciences. This research may be undertaken for themselves or for other organisations. The majority of funding for scientific research is provided by federal, state and territory governments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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