The "Global Contract Development and Manufacturing Organization Market: Analysis By Type, By Product, By Sourcing, By Application, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.
The global contract development and manufacturing organization (CDMO) market was valued at US$124.38 billion in 2023, and is expected to be worth US$256.90 billion in 2029.
Post-millennium, the biopharmaceutical sector has advanced significantly, witnessing the development of novel drugs and blockbuster medications. The "contract development manufacturing organization (CDMO)" model has emerged in response to growing demand. CDMOs, third-party providers, specialize in developing and manufacturing production processes for pharmaceutical firms, offering support throughout the drug-making journey.
These entities, primarily focused on active pharmaceutical ingredient (API) manufacturing, have surged in the past decade due to mergers and acquisitions. While larger pharmaceuticals may opt for in-house capacities, smaller firms prefer CDMO outsourcing, reducing investment risks and providing access to specialized expertise. This trend enhances the efficiency and success of drug development endeavors.
The rise of innovative modalities, such as mRNA technologies, is propelling CDMOs to invest in cutting-edge manufacturing capabilities to meet evolving pharmaceutical needs. Additionally, increased outsourcing by pharmaceutical companies to streamline operations and reduce costs is boosting the CDMO sector.
The growing importance of specialized services, spanning early-stage development to commercial manufacturing, underscores the expanding role of CDMOs in the entire drug development lifecycle. Furthermore, the emphasis on flexible and scalable manufacturing processes, coupled with advancements in digital technologies and data analytics, is shaping the future landscape of the CDMO market, offering efficiency and adaptability in meeting diverse and complex pharmaceutical requirements. The global CDMO market is expected to grow at a CAGR of 12.85% over the years 2024-2029.
Asian CDMOs are strategically expanding their capacities, becoming pivotal in global pharmaceutical and biotechnology sectors. This growth responds to escalating demand for manufacturing services in drug development and production. Companies in China, India, and South Korea are fortifying their capabilities to serve clients worldwide.
Through investments in cutting-edge facilities, advanced technologies, and workforce training, the Asian CDMOs aim to augment production capacity, flexibility, and efficiency. Historically, the industry has faced excess demand, attributed to robust development pipelines and challenges in scaling capacity. More recently, Biologics CDMO companies (particularly Samsung Biologics and Wuxi Biologics) have been seen investing in massive production capacity expansion projects.
Competitive Landscape:
The CDMO market is fragmented since several vendors contribute to the market share. The existence of numerous competitors in the market has an impact on service pricing, making it a direct source of competition, particularly for small-scale providers. The vendors in the market are anticipated to concentrate on offering one-stop-shop services to gain a competitive edge.
Players in the market are adopting strategies such as partnerships, company expansions, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage. In June 2023, Catalent expanded the One Bio Suite solution, encompassing development, manufacturing, and supply for various biotechnological modalities, such as antibodies, recombinant proteins, cellular and gene therapy, and mRNA.
Impact Analysis of COVID-19 and Way Forward:
The COVID-19 pandemic significantly impacted the CDMO market. As the pharmaceutical industry raced to develop vaccines and treatments, CDMOs played a crucial role in providing manufacturing capabilities. Increased demand for vaccine production and the need for diversified supply chains elevated the importance of CDMOs. Despite challenges like supply chain disruptions, the CDMO market experienced growth, driven by accelerated research and development activities.
Vaccine development and manufacturing activity in the CDMO market has increased in the past years, owing primarily to the industry's response to the COVID-19 pandemic. This expansion is expected to continue in the coming years as well. Increased demand for new treatments, whether for COVID-19 or other critical medications, necessitates increased production. Many sponsors collaborate with contract development and manufacturing organizations (CDMOs) and contract manufacturing organizations (CMOs) to scale up and meet commercial capacity demands in order to get treatments to patients as soon as possible.
Market Segmentation Analysis:
Market Segmentation Insights
By Type:
- Chemical Drugs: Dominated the market in 2023 due to prevalence in therapeutic areas like cardiovascular diseases.
- Biologics: Expected to grow fastest, driven by increasing demand for innovative therapies.
By Product:
- API/Bulk Drugs: Highest share, witnessing growth due to demand for both generic and innovative drugs.
- Drug Product Manufacturing: Expected to exhibit fastest CAGR, driven by increasing prevalence of chronic diseases.
- Packaging: Plays a significant role in the market.
By Sourcing:
- In House: Dominated in 2023, driven by desire for control over proprietary processes and quality assurance.
- Outsourced: Anticipated to exhibit fastest CAGR, driven by cost-effectiveness and surge in outsourcing.
By Application:
- Oncology: Witnessing surge due to demand for precision medicines and innovative cancer therapies.
- Cardiovascular Disease, Diabetes, Hormonal, Glaucoma: Significant segments in the market.
By Region:
- Asia Pacific: Dominated in 2023, providing lucrative opportunities driven by rising pharmaceutical demand and skilled workforce.
- North America: Significant share, driven by stricter regulations and outsourcing trends.
- Europe: Plays a significant role in the market.
- ROW: Emerging regions contributing to market growth.
Key Insights from Regional Analysis
Asia Pacific:
- Booming market driven by rising pharmaceutical demand and skilled workforce.
- China dominates, but India and Singapore emerging as contenders.
- Bright future with continued growth and technological advancements.
North America:
- Significant share with strict regulations ensuring quality.
- Rise in biopharmaceuticals and drug development pipelines driving outsourcing.
- Executive Order on Biotechnology and Biomanufacturing Innovation supports market growth.
Market Dynamics
Growth Drivers
- Aging Population
- Rising Healthcare Expenditure
- Increasing Pharmaceutical R&D Expenses
- Escalating Demand for Active Pharmaceutical Ingredient (API)
- Surge in Outsourcing Trends
- Rising Prevalence of Genetic Disorders
Challenges
- Biotech Funding Issues
- Varying Regulatory Requirements Across Regions
- Dependence on Patents, Copyrights, Trademarks and Trade Secrets
Market Trends
- Growing Biologics Market
- Rising Development of Small Molecule Drugs
- Bringing Orphan Drugs to Market
- Emerging Markets
- Rise in Investments and Strategic Collaborations
- Technological Advancement in the CDMO
The key players of the global CDMO market are:
- Catalent Pharma Solutions Inc.
- Samsung Biologics Co. Ltd.
- WuXi AppTec
- Boehringer Ingelheim
- WuXi Biologics (Cayman) Inc.
- Jubilant Pharmova Limited
- Lonza Group AG
- Siegfried Holding AG
- Thermo Fisher Scientific Inc.
- FUJIFILM Holdings Corporation
- Recipharm AB
- Bushu Pharma
- Piramal Group (Piramal Pharma Solutions)
For more information about this report visit https://www.researchandmarkets.com/r/ksto98
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