The global Healthcare CMO Market is estimated to be valued at US$ 326.8 million in 2022 and is expected to exhibit a CAGR of 16.1 % over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The healthcare CMO market involves outsourcing of specific healthcare related functions or processes like manufacturing, supply chain management, or quality control by pharmaceutical and biotech companies to specialized contract service providers. This allows core companies to focus on drug development while benefiting from advanced manufacturing and regulatory expertise of CMOs.
Market key trends:
One of the major trend witnessed in the healthcare CMO market is the rising preference among pharmaceutical companies towards multi-country outsourcing. This is because larger CMOs have manufacturing sites in different regions allowing flexible manufacturing capacity along with inherent advantage of mitigating regional supply chain risks. Another key trend is the shift towards development of complex specialty drugs and cell and gene therapies which require advanced technologies and expertise pushing pharmaceutical companies to outsource such specialized production activities.
Segment Analysis
Content: The global healthcare CMO market is dominated by the pharmaceutical manufacturing segment. This segment accounted for over 60% of the total market share in 2020 owing to the high demand for outsourced drug manufacturing services from pharmaceutical companies. Within pharmaceutical manufacturing, small molecule manufacturing dominates over biologics due to lower production costs and more established manufacturing processes for small molecules.
Key Takeaways
The global Healthcare CMO Market is expected to witness high growth, exhibiting a CAGR of 16.1% over the forecast period from 2021 to 2028, due to increasing demand for reduced capital expenditure and operational costs.
Regional Analysis
The US dominates the global healthcare CMO market owning over 40% share in 2020. This is attributed to presence of many pharmaceutical companies in the country that outsource their manufacturing needs. Europe is the second largest market mainly due to stringent regulations that influence outsourcing from pharmaceutical companies. The Asia Pacific region is expected to witness the highest growth during the forecast period owing to increasing investments by major players and shifting of production bases by western companies to APAC countries like India and China due to low costs.
Key Players
Key players operating in the healthcare CMO market are Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc., Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.
Market Insights A globally growing population and a gradually transforming healthcare sector are witnessing the growth in the healthcare contract manufacturing market.
Subsequently, the increased competition has compelled leading market players to reform their existing business strategies in order to perpetuate further market growth.
In response to growing expenses on R & D and the increased focus of major player on various other core strategies, have boosted the market for healthcare contract manufacturing organizations (CMOs).
These countries offer lower operating costs, comparatively cheap, experienced labor and supportive government bodies that aim to improve the regional healthcare sector.
The growing cost of R and the complexity of the supply chain combined with difficulties regarding control of 3rd parties may hinder market growth during the forecast period.
However, the need for product innovation, the growing outsourcing of various other activities such as design, feasibility tests, and validation are expected to provide ample opportunity for growth of the market in the coming years.Market SegmentationThe global healthcare contract manufacturing market is segmented on the basis of type, service type, industry, and region.
