Market Overview:
The biopharmaceutical CMO and CRO market offers contract manufacturing and development services for large molecules such as biologics and biosimilars. CMOs help biopharmaceutical companies optimize manufacturing processes and reduce costs by contracting out production.
Market key trends:
One of the key trends in the biopharmaceutical CMO and CRO market is the rising preference for biologics over traditional small-molecule drugs. Biologics offer targeted treatments for complex diseases like cancer and are seeing strong growth. This is driving increased demand for CMO services specialized in manufacturing biologics. Another major trend is the shift towards personalized medicines which has led to increased R&D in cell and gene therapies. CMOs are expanding capacities and capabilities to support the development and manufacturing of these next-gen complex modalities.
The global Biopharmaceutical CMO and CRO Market Demand is estimated to be valued at US$ 36.2 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: The biopharmaceutical CMO and CRO market benefits from increasing R&D investment in drug development by pharmaceutical companies. Additionally, cost advantages of outsourcing non-core functions to specialized CMOs and CROs is also a major strength.
Weakness: Heavy reliance on few big pharmaceutical players for major revenue makes the market vulnerable to changing dynamics in partnerships. Additionally, regulatory compliance and quality management can pose operational challenges for some players.
Opportunity: Increasing demand for outsourcing of clinical trials and manufacturing functions from biotech startups presents significant growth opportunity. Additionally, shift towards specialized services like cell and gene therapy contract manufacturing also provides new avenues for growth.
Threats: Pricing pressures due to intense competition can squeeze margins for players. Additionally, consolidation in the industry results in loss of clients for some smaller players.
Key Takeaways
The global biopharmaceutical CMO and CRO market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing R&D investment in cell and gene therapies by biopharmaceutical companies.
North America is expected to dominate the biopharmaceutical CMO and CRO market over the forecast period owing to presence of majority of big pharma companies and biotech startups actively outsourcing their R&D and manufacturing requirements. Asia Pacific is anticipated to exhibit fastest growth supported by improving healthcare infrastructure and growing biotech industry in the region.
Key players operating in the biopharmaceutical CMO and CRO market are Allphase Clinical Research, AlcheraBio, Alcami, Akos Urgent Care, Agilent, AGC Biologics, Affinity Life Sciences, Inc., Actimus Bio, ACI Clinical, Accumedix, Inc., Absorption Systems, A10 Clinical Solutions, Albuquerque Clinical Trials (ACT), Ajinomoto Bio-Pharma Services, Advanced Clinical Services LLC, ACM Global Laboratories, Accelerated Enrollment Solutions, AbbVie Contract Manufacturing, Advanced BioScience Laboratories, Advanced Clinical Research Institute, and Alliance for Clinical Trials in Oncology, among others.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it