by The global Healthcare Cmo Market is estimated to be valued at US$ 440.5 Mn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The healthcare CMO market involves contract manufacturing organizations that provide customized manufacturing services to the pharmaceutical and biotechnology industries. These services include managing drug substance production, drug product manufacturing and packaging, and other related activities. CMOs help pharmaceutical companies to outsource their manufacturing needs, enabling them to focus on drug development. This brings operational efficiency and reduces manufacturing costs for pharmaceutical companies.
Market key trends:
One of the key trends in the healthcare CMO market is the increasing outsourcing of vaccine production. With the COVID-19 pandemic highlighting the importance of vaccines, many pharmaceutical companies are collaborating with CMOs to ramp up their vaccine manufacturing capabilities. Another major trend is the growth in demand for specialized biologics manufacturing services. Biologics require complex production processes and specialized facilities. Many big pharmaceutical firms rely on healthcare CMOs’ expertise in biologics drug substance and drug product manufacturing. Increased focus on specialized biomanufacturing will continue driving growth of the healthcare CMO market over the forecast period.
Porter’s Analysis
Threat of new entrants: The healthcare CMO market requires significant investments and expertise to operate at a large scale. Regulatory compliance is also complex which poses high barriers for new players.
Bargaining power of buyers: The presence of many global contract manufacturers provides buyers with choices and price negotiation power to some extent. However, switching costs and risks create dependence on existing relationships.
Bargaining power of suppliers: There is a steady supply of raw materials, equipment, and technologies. However, suppliers have less influence since contract manufacturers buy in bulk and have alternative sourcing options.
Threat of new substitutes: There are limited alternatives for outsourcing drug manufacturing needs. However, additional services provided by CMOs prevent viability of substitutes to a large degree.
Competitive rivalry: The market is highly consolidated with top players accounting for a major share. Intense competition on pricing and services keeps rivalry high in the industry.
Key Takeaways
The Global Healthcare CMO Market Size is expected to witness high growth, exhibiting CAGR of 16.% over the forecast period, due to increasing demand for generic and biologic drugs globally.
Regional analysis: North America dominates the market and is expected to maintain its lead position during the forecast period, owing to presence of many pharmaceutical companies in the US and rising emphasis on outsourcing of drug manufacturing. Asia Pacific is projected to witness the fastest growth due to low-cost manufacturing facilities and expanding healthcare infrastructure in countries such as India and China.
Key players: Key players operating in the healthcare Cmo market are Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc. Accellent and Patheon captured a major share of the market due to their ability to offer integrated drug development and manufacturing solutions on a global scale.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
