Healthcare CMO Market Is Estimated To Witness High Growth Owing To Increasing Demand For Outsourcing & Government Initiatives
The Healthcare CMO Market is estimated to be valued at US$ 326.8 million in 2022 and is expected to exhibit a CAGR of 16.1 % over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Healthcare contract manufacturing organizations (CMOs) provide contract development and manufacturing services to pharmaceutical and medical device companies. They offer services such as drug development, clinical trials, manufacturing, packaging, and supply chain management. CMOs help reduce costs and focus resources on core competencies for pharmaceutical companies.
Market Dynamics:
The healthcare CMO market is witnessing significant growth owing to increasing demand for outsourcing manufacturing activities from pharmaceutical companies. Large pharmaceutical companies are outsourcing around 40-50% of their manufacturing operations to CMOs to reduce costs and improve efficiencies. Furthermore, growing government initiatives to promote local drug manufacturing are also boosting the market growth. For instance, the 'Make in India' campaign by Government of India aims to promote domestic manufacturing of pharmaceutical drugs and medical devices. This is expected to increase investment in local healthcare manufacturing facilities and in turn drive the demand for CMO services.
SWOT Analysis
Strength: The healthcare CMO market offers specialized capabilities with regulatory compliance. Many CMOs provide end-to-end services from development to commercial manufacturing. They have strong expertise in fields like biologics, sterile injectables, and cell and gene therapies.
Weakness: Outsourcing all manufacturing can reduce control and visibility over critical processes. Dependence on third-party manufacturers also increases compliance risks. High switching costs make it difficult to change CMOs.
Opportunity: The market is driven by the biopharmaceutical industry's need to reduce costs and speed up development timelines. Many new biological therapies also require specialized manufacturing capabilities. Rapid growth of generics and biosimilars open more opportunities.
Threats: Pricing pressures can reduce CMO profit margins. Regulatory issues or quality failures at CMOs can disrupt a client's product supplies. Intense competition increases the bargaining power of biopharma companies.
Key Takeaways
The global Healthcare CMO Market is expected to witness high growth, exhibiting CAGR of 16.1% over the forecast period, due to increasing demand for affordable biologics and biosimilars. The market size is projected to reach US$ 326.8 million in 2021 from US$ 207.1 million in 2019.
Regional analysis: North America dominates the healthcare CMO market accounting for over 40% revenue share in 2019 due to presence of majority key players and high adoption of biologic therapies. However, Asia Pacific is anticipated to witness the fastest growth over the forecast period driven by expanding biotechnology industry and growing biopharmaceutical investment in India and China.
Key players: Key players operating in the healthcare CMO market are Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc.
Read More : https://marketinsightsminds.blogspot.com/2023/11/healthcare-cmo-market-forecasts-high.html
English
Arabic
Français
Español
Português
Türkçe
Dutch
Italiano
Russian
Romaian