The contract pharmaceutical manufacturing market involves outsourcing of pharmaceutical manufacturing activities such as sterile production, tablet manufacturing, oral liquid production, parenteral manufacturing and packaging to contract service providers. This offers advantages like reduced capital investment and operational costs to pharmaceutical companies. The need for cost-effective drugs has led to an increase in generic drug production globally, thereby propelling the contract pharmaceutical manufacturing market.
The global Contract Pharmaceutical Manufacturing Market is estimated to be valued at US$ 101.45 Mn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends propelling the growth of the contract pharmaceutical manufacturing market is the increasing generic drug production globally. As the patents of many blockbuster drugs expire, there is an increase in production of low-cost generic drugs. Contract pharmaceutical manufacturing helps drug makers to focus on their core competencies and outsource non-core activities like manufacturing to specialized contract service providers. This has resulted in significant growth of the generic drug sector worldwide which in turn is driving the demand for contract pharmaceutical manufacturing services. Moreover, contract manufacturing offers significant capital investment savings for small pharmaceutical companies thereby further fueling the market growth.
SWOT Analysis
Strength: The contract pharmaceutical manufacturing market is growing with the increasing demand for generic drugs worldwide. Pharmaceutical companies are outsourcing their manufacturing needs to contract manufacturers to reduce costs.
Weakness: Quality assurance and maintaining regulatory standards are key challenges for contract manufacturers due to lack of in-house oversight. Intellectual property issues related to drug formulations is also a concern.
Opportunity: Technological advancements in continuous manufacturing and digital connectivity provide opportunities for contract manufacturers to improve efficiencies. Growing biosimilars market also offers scope for growth.
Threats: Stringent regulatory norms require huge investments to upgrade facilities. Intense competition and pricing pressures from other contract manufacturers are key threats.
Key Takeaways
The Global Contract Pharmaceutical Manufacturing Market Size is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: North America accounted for the largest market share in 2024 owing to presence of major pharmaceutical companies outsourcing production. The region is estimated to grow at a CAGR of 6.5% during the forecast period due to growing generics market. Asia Pacific is expected to be the fastest growing region during the forecast period with a CAGR of around 9%. Countries like India, China, South Korea provide cost competitive manufacturing for contract manufacturing.
Key players operating in the contract pharmaceutical manufacturing market are Accenture plc, Belden Inc., Cisco Systems, Inc., Claroty Ltd., CyberX, Cyberbit, Darktrace, Deloitte Touche Tohmatsu Limited, Bayshore Networks, Hitachi Systems Security Inc., Fortinet, Inc., OTORIO Ltd., IBM Corporation, Dragos, Inc., Indegy, IOActive Inc., Kaspersky Lab, Leidos, Thales Group, TÜV SÜD, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group. Top players are focusing on expansions, M&A, and technology advancements to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
