by Market Overview:
The biopharmaceutical CMO and CRO market comprises contract manufacturing organizations (CMOs) and contract research organizations (CROs) that offer outsourcing services to biopharmaceutical companies. CMOs provide manufacturing services such as drug substance production, drug product manufacturing, and packaging for biological and biosimilar drugs. CROs offer clinical trial-related services such as clinical research, consulting, data management, and regulatory support. Outsourcing to CMOs and CROs helps biopharmaceutical companies to reduce fixed operational costs and focus on core activities like research and development. This is driving increased outsourcing and market growth.
Market key trends:
The key trend driving growth in the biopharmaceutical CMO and CRO market is increasing outsourcing of clinical trials and manufacturing operations by biopharmaceutical companies. Due to high costs associated with in-house operations, companies are outsourcing non-core functions to lower costs and improve efficiency. The market is also driven by strong R&D investments in cell and gene therapies, vaccines, and biologics, which require specialized manufacturing capabilities provided by CMOs. Furthermore, expansion of clinical trial sites globally by CROs is increasing access to diverse patient populations and faster patient recruitment, accelerating clinical trials. Such developments are supporting market growth over the forecast period.
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.
Porter’s Analysis
Threat of new entrants: High capital requirements and stringent regulatory norms for biomedicine manufacturing act as a deterrent for new players to enter the market. However, outsourcing services offer lower entry barriers.
Bargaining power of buyers: Large pharmaceutical companies have strong bargaining power due to their volume and scale of operations. However, mid-sized companies have moderate bargaining power.
Bargaining power of suppliers: Contract manufacturers and CROs have moderate bargaining power due to their specialized expertise and capabilities.
Threat of new substitutes: Limited threat of substitution exists as Biopharmaceutical CMOs and CROs provide specialized ancillary services to pharmaceutical companies.
Competitive rivalry: The market is highly competitive with the presence of several global and local players. However, scale and a broad service portfolio allow large players to gain major market share.
Key Takeaways
The global Biopharmaceutical CMO and CRO Market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing demand for outsourcing of non-core activities from big pharmaceutical companies.
North America dominated the market in 2023, accounting for over 40% share. Strategic investments by leading CMOs and expansions by pharmaceutical companies are fueling the regional market growth. Asia Pacific is expected to be the fastest growing market, led by China and India, owing to strong government support, increasing R&D spending by pharma companies, and low-cost operations.
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. Major players are focusing on geographic expansion and strategic collaborations with pharmaceutical companies to gain higher market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
