by The contract pharmaceutical manufacturing market has been witnessing significant growth over the past few years. Contract manufacturing organizations (CMOs) provide pharmaceutical and biotech companies various services such as pharmaceutical manufacturing, analytical development, quality management, and clinical trial services. CMOs help drug developers reduce their operational costs and focus more on core competencies such as R&D. The outsourcing trend has been a major factor driving growth in the contract pharmaceutical manufacturing market.
The global contract pharmaceutical manufacturing market is estimated to be valued at US$ 116.88 million in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period from 2024 to 2030.
Key Takeaways
Key players: 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, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group.
Key opportunities: Growing biosimilars and biologics markets present significant opportunities for CMOs. Increasing R&D expenditure of big pharma companies on development of novel drug delivery systems will also drive higher outsourcing.
Global expansion: Leading CMOs are focusing on expanding their geographic footprint to capitalize on the opportunities in emerging markets like Asia Pacific, Latin America, and Middle East & Africa. Partnerships and acquisitions remain key strategies of market players for global market expansion.
Market drivers
The key driver for the Contract Pharmaceutical Manufacturing Market Growth is the increasing outsourcing trends across the pharmaceutical industry. Pharma companies are outsourcing manufacturing operations to cut costs and focus on core activities like R&D. Growing biosimilars market is also leading to higher demand for pharma contract manufacturing services. Patent expiries of blockbuster drugs continue to exert cost pressures on pharma firms, driving outsourcing of manufacturing activities.
PEST Analysis
Political: The Contract Pharmaceutical Manufacturing Market is regulated by stringent regulations set by various regulatory bodies such as FDA, EMA etc. Any changes made to the existing guidelines can impact the overall market growth.
Economic: Rising income levels globally has increased the healthcare spending which is positively impacting the market. However, increasing manufacturing costs can hamper the profit margins of players operating in the market.
Social: Rising awareness about diseases and availability of many treatment options has increased the demand for pharmaceutical drugs. The aging population globally is also creating demand for drugs to treat age-related diseases.
Technological: Advent of technologically advanced equipment for research, development, and large-scale manufacturing is helping pharmaceutical manufacturers to reduce costs and improve efficiency. Advancements in areas of analytics and automation is also supporting market growth.
The geographical regions where the Contract Pharmaceutical Manufacturing Market is concentrated in terms of value are North America and Europe. This is mainly attributed to presence of many pharmaceutical manufacturing facilities and research centers in countries like US, Germany, UK etc.
Asia Pacific region is considered as the fastest growing market for contract pharmaceutical manufacturing. This growth can be attributed to factors like rising generics market, growing biosimilars industry, low manufacturing costs and availability of skilled workforce in countries like India and China.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
