by Contract pharmaceutical manufacturing involves outsourcing of manufacturing activities related to pharmaceutical drugs and medicinal products to third-party service providers known as contract manufacturing organizations (CMOs). CMOs assist pharmaceutical and biotechnology companies at various stages of drug development and commercial manufacturing. They undertake key activities such as active pharmaceutical ingredient (API) manufacturing, clinical trial material production, finished dosage formulation such as tablets, capsules, oral liquids, and sterile products manufacturing. The global contract pharmaceutical manufacturing market has witnessed significant growth owing to rising demand for generic drugs due to patent cliffs of blockbuster drugs and cost efficiency of outsourcing drug manufacturing to specialized CMOs.
The global Contract Pharmaceutical Manufacturing Market is estimated to be valued at US$ 101.45 Mn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the contract pharmaceutical manufacturing market is the growing demand for specialized services. Pharmaceutical companies are increasingly outsourcing research-intensive services such as analytical testing, clinical trials material production, process development, and project management to CMOs. The capabilities of CMOs have expanded over the years to offer specialized services throughout the drug development lifecycle from preclinical to commercial stage. This allows pharmaceutical companies to focus on their core competencies of drug discovery and marketing while leveraging specialized expertise of CMOs. Specialized services offer cost advantages and help expedite drug development. This trend is expected to continue driving growth of contract pharmaceutical manufacturing market during the forecast period.
Porter’s Analysis
Threat of new entrants: The contract pharmaceutical manufacturing market requires high capital investments and regulatory compliance which creates significant barriers for new players.
Bargaining power of buyers: Large pharmaceutical companies have strong bargaining power as buyers due to their high volume needs and ability to threaten forward integration.
Bargaining power of suppliers: Suppliers of raw materials and components have moderate bargaining power due to availability of substitutes.
Threat of new substitutes: Threat of substitution is low as contract manufacturing helps meet specialized needs that in-house manufacturing cannot address cost-effectively.
Competitive rivalry: The market is highly competitive due to presence of global players and regional specialty manufacturers.
Key Takeaways
The Global Contract Pharmaceutical Manufacturing Market Size is expected to witness high growth. North America dominated the market during the forecast period due to presence of large pharmaceutical companies in the region. The region accounts for over 40% of the global market share.
Regional Analysis: Europe is expected to be the second largest and fastest growing market during the forecast period. This is attributed to factors such as rising outsourcing of manufacturing in the region. The region accounts for around 30% of the global market share.
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, TÃœV SÃœD, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group. Large players are focusing on new product development and partnerships to gain dominance in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
