NEW YORK, June 11, 2024 /PRNewswire/ — The global contract development and manufacturing organization outsourcing market size is estimated to grow by USD 136.9 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 17.01% during the forecast period. Growing pharmaceutical industry is driving market growth, with a trend towards growing use of analytics by CDMOs. However, threat of infringement of intellectual property (IP) rights poses a challenge. Key market players include Aenova Holding GmbH, Alcami Corp., Almac Group Ltd., Boehringer Ingelheim International GmbH, Catalent Inc., Celonic AG, Corden Pharma International GmbH, Curia Global Inc., Eurofins Scientific SE, FAMAR Health Care Services, FUJIFILM Holdings Corp., Laboratory Corp. of America Holdings, Lonza Group Ltd., NextPharma GmbH, Piramal Enterprises Ltd., Recipharm AB, Siegfried Holding AG, The Lubrizol Corp., Thermo Fisher Scientific Inc., and Vetter Pharma Fertigung GmbH and Co. KG.
Technavio has announced its latest market research report titled Global contract development and manufacturing organization outsourcing market 2024-2028
Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report
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Contract Development and Manufacturing Organization Outsourcing Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 – 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.01% |
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Market growth 2024-2028 |
USD 136.9 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
13.43 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, UK, Germany, and India |
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Key companies profiled |
Aenova Holding GmbH, Alcami Corp., Almac Group Ltd., Boehringer Ingelheim International GmbH, Catalent Inc., Celonic AG, Corden Pharma International GmbH, Curia Global Inc., Eurofins Scientific SE, FAMAR Health Care Services, FUJIFILM Holdings Corp., Laboratory Corp. of America Holdings, Lonza Group Ltd., NextPharma GmbH, Piramal Enterprises Ltd., Recipharm AB, Siegfried Holding AG, The Lubrizol Corp., Thermo Fisher Scientific Inc., and Vetter Pharma Fertigung GmbH and Co. KG |
Market Driver
Contract Development and Manufacturing Organizations (CDMOs) utilize various analytical tools and techniques to enhance productivity and efficiency for enterprises. Real-time forecast analytics, charts, percentage change analytics, and numerical analytics help CDMOs discover meaningful patterns in data. Implementing solutions like OEE Tracker by Supply Chain Wizard LLC improves overall equipment effectiveness and communication between teams. Apollo 5 GmbH validates and develops analytical methods for drug product characterization and raw material testing. The growing use of analytics by CDMOs contributes to the expansion of the global CDMO outsourcing market.
The Contract Development and Manufacturing Organization (CDMO) outsourcing market is experiencing significant growth, driven by the increasing trend towards outsourcing pharmaceutical and biotech development and manufacturing. Big pharma companies are outsourcing custom manufacturing to CMOs and CROs for cost savings and to focus on core competencies.
The outsourcing market includes services like drug development, clinical trials, regulatory compliance, and commercialization. The convergence of technology and outsourcing, such as digitalization and automation, is also driving innovation in the CDMO market. The outsourcing trend is expected to continue, with a growing number of companies adopting this business model for their R&D and manufacturing needs.
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Market Challenges
Pharma and biotech enterprises heavily invest in research and development to create innovative drugs and medicines. Protecting these intellectual properties (IP) is crucial for their success. Bringing a new drug to market is a lengthy and costly process, taking up to 13.5 years and over USD700 million. Only one in 7,500 compounds tested will make it through clinical trials.
To speed up production and market availability, enterprises outsource manufacturing to Contract Development and Manufacturing Organizations (CDMOs). However, CDMOs must effectively preserve and protect IPs to prevent infringement and maintain enterprise trust. Failure to do so could negatively impact the growth of the CDMO outsourcing market.
The Contract Development and Manufacturing Organization (CDMO) outsourcing market is experiencing significant growth, with firms seeking to outsource various pharmaceutical and biologic manufacturing processes. However, challenges persist in this sector. Drugs and devices require complex manufacturing processes, and ensuring quality control in outsourced production can be difficult.
Additionally, intellectual property protection is a concern, as well as the need for effective communication and coordination between the outsourcing firm and the CDMO. Costs, timelines, and regulatory compliance are also key challenges that must be addressed to ensure successful outsourcing relationships. Overall, the CDMO outsourcing market presents opportunities for innovation and cost savings, but requires careful consideration and management to overcome these challenges.
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Segment Overview
Product
1.1 Small molecules
1.2 Biologics
Service
2.1 API/bulk drugs
2.2 Drug product manufacturing
2.3 Packaging
Geography
3.1 North America
3.2 Europe
3.3 APAC
3.4 South America
3.5 Middle East and Africa
1.1 Small molecules- Contract Development and Manufacturing Organizations (CDMOs) outsourcing market is growing significantly. Companies outsource production to CDMOs to reduce costs, improve efficiency, and focus on core competencies. CDMOs offer expertise, resources, and capabilities that help businesses bring products to market faster. This partnership model benefits both parties, enabling innovation and competitiveness in the industry.
For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2017-2021) – Download a Sample Report
Research Analysis
The Contract Development and Manufacturing Organization (CDMO) outsourcing market in the pharmaceutical industry is a significant revenue stream for firms specializing in drug development. CDMOs offer custom solutions for small molecules and biologics, including contract research, contract manufacturing, and prefilled syringes for autoinjectors. The production of biosimilars and monoclonal antibodies is also a growing area of focus.
Pharmaceutical innovators often partner with CDMOs for funding and outsourcing during various stages of clinical trials, from research and development to production. Big pharma and biotechnology companies also outsource chronic disease treatments, such as insulin and vaccinations, to CDMOs for manufacturing and development. CDMOs provide essential services for the pharmaceutical sector, enabling the production of a wide range of products, from microcaps to advanced therapeutics like Aflibercept.
Market Research Overview
The Contract Development and Manufacturing Organization (CDMO) outsourcing market refers to the engagement of external service providers for the development and manufacturing of pharmaceutical and biologic products. Firms turn to CDMOs for their expertise and capabilities in various areas such as analytical services, formulation development, manufacturing, and packaging. The market is driven by factors like increasing R&D costs, regulatory requirements, and the need for faster time-to-market.
The use of advanced technologies like automation and artificial intelligence in CDMO services further enhances their value proposition. The market is segmented based on technology, application, and region. The Asia Pacific region is expected to dominate the market due to its large pool of skilled labor and lower production costs. The market is highly competitive, with numerous players offering a range of services and capabilities.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Product
Small Molecules
Biologics
Service
API/bulk Drugs
Drug Product Manufacturing
Packaging
Geography
North America
Europe
APAC
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio