The healthcare Contract Manufacturing Organization (CMO) Market is estimated to be valued at US$ 440.5 Mn or Bn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Healthcare CMO Market is a fragmented market with the presence of several international as well as regional players. Healthcare CMOs provide manufacturing services for pharmaceuticals, biologics, and medical devices to various companies across the globe. With patent expiration of blockbuster drugs and growing demand for biosimilars, pharmaceutical companies are increasingly outsourcing their manufacturing activities to CMOs. This is anticipated to openup the new avanue for healthcare CMO market.
Market Overview:
Healthcare CMOs offer end-to-end development and manufacturing services for small molecule drugs, biologics, advanced therapy medicinal products (ATMPs), and medical devices. They help pharmaceutical and biotech companies reduce capital expenditure and focus on core activities such as R&D and marketing. Emergence of biosimilar drugs and innovative biologics has boosted demand for CMO services in recent years. Additionally, the COVID-19 pandemic drew huge attention towards vaccine and therapy development, further propelling market growth.
Market Dynamics:
Two key drivers fueling the healthcare CMO market expansion are – Firstly, the patent cliff faced by many blockbuster drugs and the subsequent rise in demand for affordable biosimilar versions. Several large drug molecules will lose exclusivity between 2023-2030, prompting brand companies to increasingly outsource manufacturing of biosimilars to specialized CMOs having requisite capabilities. This has boosted revenue streams for healthcare CMOs. Secondly, the pandemic fast-tracked development of novel biologic drugs and vaccines by governments and companies worldwide. Healthcare CMOs with advanced production facilities for these classes of products have seen significant order inflows. Their expansion of existing facilities and investments in new plants will likely strengthen their position in coming years.
The emerging opportunities in biosimilar development and continued innovation in novel biologics and vaccines are thereby expected to boost the global healthcare CMO market during the forecast period.
Segment Analysis
The Global Healthcare CMO Market Size is dominated by the pharmaceutical segment which holds around 60% of the total market share. Within the pharmaceutical segment, drug development services lead as biopharmaceutical and pharmaceutical companies increasingly rely on CMOs for their clinical and commercial manufacturing needs. CMOs help reduce costs and focus internal resources on core competencies of research and development.
PEST Analysis
Political: Government regulations around drug approval and quality standards influence outsourcing decisions in the industry. Economic: A stable economy drives spending on healthcare and pharmaceutical R&D, benefiting CMO businesses. Social: Growing chronic disease prevalence and ageing populations increase demand for affordable drugs, presenting opportunities for CMOs. Technological: Advanced manufacturing technologies help CMOs boost efficiency, quality, and capacity to attract more business from biopharma companies.
Key Takeaways
The global healthcare CMO market is expected to witness high growth, exhibiting a CAGR of 16% over the forecast period, due to increasing regulatory pressures driving biopharma companies to focus on core activities and outsource manufacturing functions. Regionally, North America leads and is expected to maintain dominance due to presence of major biopharma companies and supportive government policies for the industry. Key players operating in the healthcare CMO market are Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.
The global healthcare CMO market size for 2023 is estimated at US$ 440.5 million. The market is expected to grow fastest in Asia Pacific due to rising investments from biopharma players attracted by lower costs and a large patient pool. Countries like China and India are emerging as key manufacturing hubs, supplementing capacities in traditional North American and European markets.
Key players in the market are focusing on capitalizing the growth opportunities through capacity expansions, upgrading technologies, and enabling integrated service offerings across the biopharmaceutical value chain. Consolidation is also witnessed among mid-tier CMOs to strengthen capabilities and customer base.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
