by Market Overview:
Biopharmaceutical contract manufacturing organizations (CMOs) and contract research organizations (CROs) provide specialized services like drug development, manufacturing and analytical testing to pharmaceutical companies. They help reduce upfront capital investment and operational costs for biopharma companies. CMOs/CROs have capabilities across preclinical and clinical development as well as commercial manufacturing of biologics including monoclonal antibodies, vaccines, cell and gene therapies.
Market Dynamics:
Increased outsourcing of drug development and manufacturing activities by pharmaceutical and biotech companies: Pharma companies are increasingly outsourcing drug development and manufacturing activities to CMOs/CROs in order to focus on their core competencies and enhance business flexibility. This is driving growth of biopharma CMO/CRO market.
Rising demand for biologics and cell & gene therapies: Growing prevalence of chronic diseases and demand for innovative biologic drugs and therapies like monoclonal antibodies, vaccines, cell and gene therapies is fueling need for specialized biomanufacturing capabilities of CMOs. This is propelling market growth.
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. \
Segment Analysis
The biopharmaceutical CMO and CRO market is dominated by the biologics segment, accounting for over 60% share. Biologics require specialized manufacturing capabilities and expertise due to their complex nature and sensitivity. Contract service providers offer end-to-end development and manufacturing services for biologics, helping biopharma companies focus on their core competencies.
PEST Analysis
Political: Regulations such as the FDA guidelines help ensure patient safety and drug quality. However, stringent norms also increase compliance costs for CMOs and CROs.
Economic: The global biopharmaceutical market is growing at a rapid pace due to rising healthcare spending and demand for innovative therapies. This drives increased outsourcing of services by biopharma firms.
Social: Aging population and growing incidence of chronic diseases are prompting demand for effective medications, benefiting the CMO and CRO industry.
Technological: Advanced technologies like single-use systems, AI, and connectivity solutions are allowing CMOs and CROs to enhance efficiency, flexibility, and data-driven decision making.
Key Takeaways
The global biopharmaceutical CMO and CRO market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period of 2023 to 2030, driven by rising drug development and production outsourcing.
North America currently dominates the market with over 35% share owing to presence of many biopharma innovators and funding support for R&D. However, Asia Pacific is emerging as the fastest growing regional market for biopharmaceutical CMO and CRO, driven by proactive government initiatives, low-cost skilled workforce and growing local pharma industry in countries like China and India.
Key players operating in the biopharmaceutical CMO and CRO market include 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
