Insights

Market Research Sector Update

Date:

Key Takeaways

Sizable global market at $40B

Increasing to $80B with addition of analytics meaning ample addressable market to chase and capture.

M&A activity in the sector is increasing

Consolidation from existing players and increasing appetite from Private Equity is driving activity in the space.

Spend on research is recovering quickly

Companies need a better understanding of post-2020 markets and how consumers now think and feel.

Marketplace winners will optimize core market research while positioning for success in digital and data

Companies that can provide business leaders with agile, data-backed market analysis across media platforms are expected to be the most successful.

There is a sizable opportunity at the convergence of traditional research advisory, user experience, customer experience, experience management, and digital transformation.


M&A playing an active role

Large scale consolidation is reshaping the landscape as digital agencies, consultancies and SaaS vendors encroach on market research budgets.

Recent sector transactions

As vendors vie for scale, growth, and wallet share – advertising agencies have increasingly acquired market research companies to pursue value added services and new capabilities.


The existing sector landscape is evolving as market players focus on new opportunities

Global agencies and measurement companies are exposed

  • Businesses with flat and declining revenues are looking at cutting costs and resources leading to vulnerable accounts and talent drain.
  • M&A activity is increasing as a result with businesses looking to divest, restructure or hold for sale.

CX technology vendors are taking mind and wallet share

  • SaaS vendors are seeking access to enterprise client relationships and channel partners.
  • These vendors are also able to turn up the M&A where others cannot compete on price.

Large scale consolidation reshaping the landscape

  • Firms looking to return to growth through scale as well as bridging the current gap between research, insights, and marketing.
  • Service set expansion pursued as a way to increase mind and wallet share.

Large cap Private Equity active in the sector

  • Private Equity are being attracted by the sizable, fragmented, and disrupted market.
  • They understand the value of research and are recapitalizing to help re-define the market for a digital era.

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