Global CMO/CDMO Market to Reach US$ 42.4 Bn by 2034, Anticipated to Experience CAGR of 6.5% during 2024 – 2034
Wilmington, Delaware, April 29, 2024 (GLOBE NEWSWIRE) — Contract Manufacturing Organization/Contract Development and Manufacturing Organization (CMO/CDMO) market plays a crucial role in the pharmaceutical and biotechnology industries by providing outsourced services for drug development, manufacturing, and packaging. The CMO/CDMO market has experienced significant growth due to various factors. Firstly, pharmaceutical companies increasingly outsource manufacturing processes to CMOs/CDMOs to reduce costs, mitigate risks, and gain access to specialized expertise and technologies.
The rise in complex biologics and personalized medicine has driven demand for CMO/CDMO market services capable of handling intricate manufacturing processes and ensuring product quality and compliance with regulatory standards. Additionally, the global expansion of pharmaceutical markets, coupled with the need for flexible manufacturing capacities, has further fueled the growth of the CMO/CDMO market. Overall, CMOs/CDMOs play a vital role in supporting the pharmaceutical industry’s innovation and efficiency while meeting evolving healthcare needs worldwide.
Global CMO/CDMO Market Key Dynamics
Increasing Demand for Biopharmaceuticals: The global CMO/CDMO market is experiencing significant growth due to the expanding demand for biopharmaceuticals. Biologics, including monoclonal antibodies, recombinant proteins, and cell and gene therapies, are gaining prominence in treating various diseases. Pharmaceutical companies are increasingly outsourcing the manufacturing of these complex biologics to CMO/CDMOs with specialized expertise and advanced manufacturing capabilities. This trend is driven by the need for flexible manufacturing capacities and specialized technologies required for bioprocessing, purification, and formulation. As the biopharmaceutical pipeline continues to expand, the demand for CMO/CDMO services is expected to rise, thereby driving CMO/CDMO market growth.
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Regulatory Compliance Requirements: Stringent regulatory standards governing the pharmaceutical industry necessitate strict adherence to quality, safety, and compliance measures throughout the drug development and manufacturing process. Pharmaceutical companies often seek the expertise of CMO/CDMO partners with a proven track record of regulatory compliance. CMO/CDMOs with robust quality management systems, adherence to current Good Manufacturing Practices (cGMP), and regulatory certifications provide assurance of product quality and regulatory compliance. As regulatory requirements evolve and become more stringent, the demand for CMO/CDMO services from companies looking to ensure compliance with regulatory standards is expected to increase, which in turn will propel CMO/CDMO market.
Based on the Service Type Segment, Which is the Fastest Growing Segment in the Global CMO/CDMO Market During The Forecast Period?
The development services segment in the service type is anticipated to be the fastest-growing segment in the global market during 2024 – 2034. Pharmaceutical companies increasingly rely on CMO/CDMO partners to access specialized expertise and capabilities for early-stage drug development, including formulation, analytical method development, and process optimization. Also, the growing complexity of drug candidates, particularly in biologics and personalized medicine, necessitates extensive preclinical and clinical development support, driving demand for development services from CMO/CDMOs.
Additionally, outsourcing development activities allows pharmaceutical companies to mitigate risks, accelerate timelines, and optimize resource allocation. Moreover, the trend towards outsourcing non-core activities to focus on innovation and commercialization further propels the growth of the development services segment in the global CMO/CDMO market during the forecast period.
Which Therapeutic Area Segment dominated the Global CMO/CDMO Market?
The oncology segment by therapeutic area dominated the global CMO/CDMO market in 2023. Increasing prevalence of cancer worldwide has led to a surge in demand for oncology therapeutics, driving pharmaceutical companies to prioritize oncology drug development. As oncology drugs typically require specialized expertise and manufacturing capabilities, pharmaceutical firms often seek the services of CMO/CDMO partners with specific oncology expertise.
Additionally, the complex nature of oncology drugs, including biologics and targeted therapies, necessitates extensive development and manufacturing support, further driving demand for CMO/CDMO market services in this segment. Rapid pace of innovation in oncology, with the emergence of novel treatment modalities and personalized medicine approaches, requires flexible and scalable manufacturing solutions provided by CMO/CDMOs, solidifying oncology segment’s dominance in the global CMO/CDMO market.
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Based on the End Use Industry Segment, Which is the Fastest Growing Segment in the Global CMO/CDMO Market During The Forecast Period?
Biotechnology segment in the end use industry is anticipated to be the fastest-growing segment in the global CMO/CDMO market during the forecast period. The rapid expansion of the biotechnology industry, driven by advances in genomics, proteomics, and synthetic biology, has led to a surge in demand for outsourced manufacturing and development services. Biotechnology companies often require specialized expertise and infrastructure for the production of complex biologics, gene therapies, and biosimilars, making them reliant on CMO/CDMO partners with such capabilities. Furthermore, the increasing focus on personalized medicine and precision therapeutics within the biotechnology sector necessitates tailored manufacturing solutions, further driving demand for CMO/CDMO market. Flexibility and scalability offered by outsourcing enable biotechnology firms to accelerate product development timelines and efficiently navigate regulatory pathways, contributing for the anticipated growth of the biotechnology segment in the CMO/CDMO market.
Based on Region Segment, Which Region had the Highest Share in the CMO/CDMO Market in 2023?
North America secured the highest share in the CMO/CDMO market in 2023, primarily due the region’s robust pharmaceutical and biotechnology industry is home to numerous innovative companies with high demand for outsourcing services. Mainly, North America offers a favorable business environment with well-established regulatory frameworks, intellectual property protection, and access to advanced manufacturing technologies. In addition, presence of a skilled workforce and world-class research institutions further enhances the region’s attractiveness for CMO/CDMO partnerships. Strategic collaborations between pharmaceutical companies and CMO/CDMOs in North America drive innovation, efficiency, and cost-effectiveness in drug development and manufacturing processes, solidifying the region’s position as a leader in the global CMO/CDMO market.
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Global CMO/CDMO Market Companies:
- AXXELENT
- BDR Pharmaceuticals Internationals Pvt. Ltd.
- Catalent
- CoreRx
- Eurofins Scientific
- HIKAL Ltd.
- Idifarma
- KBI Biopharma.
- Laurus Synthesis
- Lonza
- mAbxience
- Piramal Pharma Solutions
- QuayPharma
- Sai Life Sciences
- Thermo Fisher Scientific
- Other Industry Participants
Global CMO/CDMO Market
By Service Type
- Development Services
- Formulation Development
- Process Development
- Analytical Development
- Preclinical and Clinical Manufacturing
- Manufacturing Services
- API Manufacturing
- Drug Product Manufacturing
- Biologics Manufacturing
- Medical Device Manufacturing
- Packaging and Labelling
- Supply Chain Management
- Regulatory and Compliance Services
- Regulatory Consulting
- Quality Assurance and Control
- Validation Services
- Technology Transfer Services
- Others
By Therapeutic Area
- Oncology
- Neurology
- Cardiovascular
- Infectious Diseases
- Autoimmune Disorders
- Others
By End Use Industry
- Pharmaceuticals
- Biotechnology
- Medical Devices
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
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