Pharmaceutical Contract Manufacturing Industry worth $319.6 billion by 2029, with a CAGR of 9.7%
The global pharmaceutical contract manufacturing market growth forecasted to transform from USD 200.9 billion in 2024 to USD 319.6 billion by 2029, driven by a CAGR of 9.7%. Increasing use of generic drugs and funding, developments in the field of CMOs technology, the high cost of in-house drug discovery, and regulatory filing by the CMOs drive the growth of the pharmaceutical contract manufacturing market. Pharma CMOs using Al in drug development and manufacturing will bring efficiency and quality. In April 2024, Lonza launched its AI-powered Route Scouting Service: This service integrates Lonza's global expertise in the chemical supply chain with Elsevier Al technology (Reaxys) for the fast-tracking of artificial route identification for new APIs. Strict rules may limit the growth of the market. Moreover, applies AI in predictive analytics for supply chain management, planning efficient production schedules, and inventory levels. AI also optimizes clinical trials through incidental candidate identification, predictions of clinical trial results, and patient compliance monitoring4 which will lower the costs and raise success rates of clinical trials. It paves the way for further innovations and developments, as bringing Al to pharmaceutical contract manufacturing transforms the whole industry in terms of efficiency, guarantees the quality, and accelerates development processes.
Pharmaceutical Contract Manufacturing Market Dynamics
DRIVER: Expensive In-House drug development
Drug research and development is very expensive and long for
a small and medium size pharmaceutical company. Pharmaceutical companies find
another cost effective and efficient way to outsource their drug development
activities to the contract development and research organisations. Furthermore,
medication development requires compliance rigorous FDA criteria, and
maintaining standards of quality regarding formulation development. This, in
turn, adds to the internal cost of expenses on research and production of the
therapeutic formulation. As a result of the rise in costs incurred in
developing drugs, including discovery and pre-clinical development, clinical
development, capital, and the limited funding with high rates faced with the
failure of drugs in human trials, the pharmaceuticals have sought to outsource
their drug development processes to contract development and manufacturing
organizations.
RESTRAINT: Varying regulatory requirements across regions
The failure of the respective authority to adhere to
standards and regulations, as well as the production of substandard
pharmaceuticals, have significant repercussions for the business and its brand
reputation. Therefore, adherence to regulatory rules is of utmost importance in
the pharmaceutical industry. CDMOs sell the drug substance/formulation that
they manufacture on a contract basis under their own brand. The medication
development and clinical trial process necessitates the submission of substantial
quantities of data to the regulatory body. Therefore, the management of the
data and the submission of diverse formulations in different countries provide
challenges for COMOS and heighten the likelihood of errors in regulatory
filings. This aspect is expected to impede the market expansion of
pharmaceutical Contract Development and Manufacturing Organizations (CDMOs) in
the foreseeable future.
OPPORTUNITY: Emerging Markets
Emerging countries offer a trained labor and cost
advantages, hence they become hubs of bioprocess outsourcing. Furthermore, the
increasing interest of pharmaceutical companies in outsourcing medications
discovery is ascribed to the growing need for vaccines, declining availability
of antibiotics, and rising research and development costs fueling the increase
of pharmaceutical contract development and manufacturing activities in
developing countries. Moreover, the use of contemporary manufacturing technology
and the availability of low-cost manufacturing and labor in underdeveloped
nations are motivating market players to invest in Asia Pacific over the
expected horizon. Given their growth as growing economies, India and China are
expected to present significant opportunities for the near future expansion of
the pharmaceutical contract manufacturing and development market based on their
features. Furthermore, Biosecure Act seeks to limit technology transfer and
reduce the reliance on China for biopharmaceuticals. It basically forbids US
federal government agencies from purchasing goods or services from Chinese drug
businesses. Under this Act, growing nations like India would have great chances
in the pharmaceutical industry. As production moves from China to India against
present trends, India's contract manufacturing sector will expand dramatically
in the next three years. The segment of contract research in India will also
grow noticeably during the same time. US companies are already posing more
questions to Indian pharmaceutical companies. Though there is a chance that
nations like Ireland or maybe Singapore could possibly present some fierce
competition, the Act has no short-term financial advantage due of the common
contracts with China. All things considered, the Act speeds India's expansion
in the pharmaceutical industry, therefore strengthening its role as one of the
main participants in contract manufacturing and research markets.
CHALLENGE: Introduction of Serialization
Serialization—that is, coding every service or product
item—allows each one to have a distinct identity. The special identity helps to
trace and follow the feet around the supply chain. For companies all around and
regulatory authorities, counterfeiting is a major problem. For contract
manufacturing, CDMOs all over need a practical pharmaceutical serialization
solution. Software, hardware, training, implementation, manufacturing lines—all
of which the pharmaceutical sector must make a major capital investment in—all
of which need for software handling competent employees spread over multiple
locations. This is challenging for a COMO as well. One of the more challenging
tasks the pharmaceutical contract research and manufacturing company has ahead
of it.
The pharmaceutical manufacturing services segment
dominated pharmaceutical contract manufacturing industry in 2023.
Based on service the pharmaceutical contract manufacturing
market is segmented into drug development services, pharmaceutical
manufacturing services, biologics manufacturing services, packaging &
labelling services, fill-finish services, and other services. Rising demand for
biologics and biosimilars in the region and variables such the growing
biopharmaceuticals and pharmaceutical markets worldwide help to attain the
dominating share that pharmaceutical manufacturing services account for in
2023. Moreover, important participants in the market are funding drug
development, which would probably help the growth of segment.
The big pharmaceutical companies segment of the
pharmaceutical contract manufacturing industry is expected to grow at the
highest CAGR during the forecast period.
Based on end user, the pharmaceutical contract manufacturing
market is segmented into big pharmaceutical companies, small & mid-sized
pharmaceutical companies, generic pharmaceutical companies, and other end users
(Academic Institutes, Small CDMOs, and CROs). Over the projected period, the
big pharmaceutical companies segment is expected to show the highest CAGR.
Rising demand for targeted medication therapies, more biologics now under
pipeline research, and more investment in the development of cell and gene
therapies are responsible for this significant growth of the segment.
North America was the largest regional market for the
pharmaceutical contract manufacturing industry in 2023.
The global pharmaceutical contract manufacturing market is
segmented into six major regions—North America, Europe, the Asia Pacific, Latin
America, Middle East, and Africa. North America was the largest segment in 2023
in the pharmaceutical contract manufacturing market, followed by Europe and the
Asia Pacific. Factors such as the presence of a large number of pharmaceutical
companies and the growing demand for generics, increased research funding for
pharmaceutical contract manufacturing and thus supporting the pharmaceutical
contract manufacturing growth.
Key players in the pharmaceutical contract manufacturing
market include Thermo Fisher Scientific, Inc. (US), Lonza Group
(Switzerland), WuXi Apptec (China), WuXi Biologics (China), AbbVie, Inc. (US),
Catalent, Inc. (US), Samsung Biologics (South Korea), Evonik Industries AG
(Germany), FUJIFILM Holding Corporation (Japan), Siegfried Holding AG
(Switzerland), Boehringer Ingelheim International (Germany), Merck KGaA
(Germany), Almac Group (UK), Charles River Laboratories (US), Asychem Inc.
(China), Vetter Pharma (Germany), and Alcami Corporation (US).
Recent Developments of Pharmaceutical Contract
Manufacturing Industry:
·
In May 2024, Siren Biotechnology and Catalent,
Inc. entered in partnership for manufacturing of AAV Gene Therapies for cancer.
·
In March 2024, Lonza has signed an agreement to
acquire the Genentech manufacturing facility in Vacaville (US) from Roche for
USD 1.2 billion in cash.
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America's
best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth
consulting and program management, leveraging a man-machine offering to drive
supernormal growth for progressive organizations in the B2B space. We have the
widest lens on emerging technologies, making us proficient in co-creating
supernormal growth for clients.
Earlier this year, we made a formal transformation into one
of America's best management consulting firms as per a survey conducted by
Forbes.
The B2B economy is witnessing the emergence of $25 trillion
of new revenue streams that are substituting existing revenue streams in this
decade alone. We work with clients on growth programs, helping them monetize
this $25 trillion opportunity through our service lines - TAM Expansion,
Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account
Enablement, and Thought Leadership Marketing.
Built on the 'GIVE Growth' principle, we work with several
Forbes Global 2000 B2B companies - helping them stay relevant in a disruptive
ecosystem. Our insights and strategies are molded by our industry experts,
cutting-edge AI-powered Market Intelligence Cloud, and years of research. The
KnowledgeStore™ (our Market Intelligence Cloud) integrates our research,
facilitates an analysis of interconnections through a set of applications,
helping clients look at the entire ecosystem and understand the revenue shifts
happening in their industry.
Contact:
Mr. Rohan Salgarkar
MarketsandMarkets Inc.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA : 1-888-600-6441
UK +44-800-368-9399
Email: sales@marketsandmarkets.com
Visit Our Website: https://www.marketsandmarkets.com/
Content Source:
https://www.marketsandmarkets.com/PressReleases/pharmaceutical-contract-manufacturing.asp
https://www.marketsandmarkets.com/ResearchInsight/pharmaceutical-contract-manufacturing-market.asp
Comments
Post a Comment