Money spent annually on primary and secondary research (Research Paper Sample)

ASKWONDER QUESTION How much money is spent every year globally on primary and secondary research? INSIGHTS The global market size for Market Research is $44.35 billion for 2015, growing at a CAGR of 4.92% since 2013. The market size for Primary Research is an estimated $33.71 billion (76% of the total market). The market size for Secondary Research is an estimated $10.64 billion (24% of the total market). 1/5 askwonder.com ASKWONDER OVERVIEW Hello! Thank you for your request to determine how much money globally is spent annually on primary and secondary research. The short version is that the global market size for Market Research is $44.35 billion for 2015, growing at a CAGR of 4.92% since 2013. The market size for Primary Research is an estimated $33.71 billion (76% of the total market). The market size for Secondary Research is an estimated $10.64 billion (24% of the total market). METHODOLOGY I have scoured the Internet for articles, papers and statistics related to this subject. Firstly I familiarized myself with the concept of primary (1) and secondary (1) research. From here I determined that primary research is research conducted to serve the needs of a certain client, and adheres to that client's specific needs. Secondary research is research conducted from sources that are already in existence, such as reports, white papers and studies performed by third-parties, prior to the client's engagement. During the research conducted I came across a report on the state of the global market research industry from ESOMAR. The report is available for purchase from their online store (4) and is priced at EUR 299. There is, however, a preview available for this report, for each year, dating back to 2011, that states the market sizes. FINDINGS According to statista, the 2015 market value for all market research amounted to $44.35 billion. The report compiled by ESOMAR, however puts the market size for 2015 at $67.9 (3) billion (previous reports report similar values to that stated on statista, but since ESOMAR expressly focus on this type of research their findings should be more valid). Even though the only freely available information from this report is from the preview, it does however state that this reported market size is adjusted for discrepancies in exchange rates and inflation rates. The preview does also provide a breakdown of the revenue into 'new' and 'traditional' research. From this data we see the current and historic market size to be (adjusted for inflation and exchange rates): 2013 2014 2015 New 38.2 (3) 38.3 (3) 39.7 (3) Traditional 24.4 (4) 26.5 (3) 28.2 (3) total 67.9 62.6 64.8 These numbers, however do not represent the market size, but will instead serve to provide a percentage breakdown of revenue towards each type of research. Here follows 2/5 askwonder.com ASKWONDER such a breakdown of percentages: 2013 2014 2015 New 61.02 59.1 58.47 Traditional 38.08 40.9 41.53 total 100 100 100 If we adjust for historic values we see: 2013 2014 2015 New 24.58 25.41 25.93 Traditional 15.71 17.59 18.42 total 40.29 (5) 43 (5) 44.35 (5) If we run these numbers through a CAGR (7) calculator, we get a CAGR of 4.92 (7)% for the period 2013-2015. Statista provides a breakdown of the cost of global research distribution by type of research: Market Measurement 15 (6)% New Product development 11 (6) % Media audience 10 (6) % Usage studies 9 (6) % Advertising tracking 5 (6) % Opinion polling 4 (6) % CRM systems 4 (6) % Advertising pre-testing 4 (6) % B2B studies 4 (6)% Market Modeling 3 (6) % Employee satisfaction 3 (6) % Omnibus cost survey 2 (6)% Mystery shopping 1 (6) % Non-profit research 1 (6) % Other % 24 (6) From this we can see that these types all fall under the primary research category, therefore we can assume that the 'o...