by The global Biologics Outsourcing Market is estimated to be valued at US$ 19.67 Billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Biologics are medicines made from living cells which are helpful in treating complex diseases such as cancer, autoimmune disorders, and other diseases. Biologics outsourcing involves transferring certain steps of biologics drug production to contract manufacturing organizations in order to reduce operating costs and enhance manufacturing capacity.
The need for outsourcing the manufacturing of biologics is growing owing to the complexity of biologics production and stringent regulatory environment. Biologics manufacturing involves biology-based techniques of producing therapeutic substances from living cells and organisms. This complex manufacturing process increases operating costs for pharmaceutical companies. Outsourcing non-core activities like manufacturing to contract service providers allows core R&D functions to remain in-house while benefiting from specialized expertise of contract organizations. This helps lower manufacturing costs and ensures product availability through increased capacity.
The global Biologics Outsourcing Market is estimated to be valued at US$ 19.67 Billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in Global Biologics Outsourcing Market Size is the shift towards development and manufacturing of biosimilars. Biosimilars are increasingly being considered as the future of biologics development due to their lower production costs and potential for being more affordable options for patients as compared to innovative biologics. Many pharmaceutical companies are outsourcing biosimilar development to contract service providers to take advantage of their expertise in development and manufacturing. This trend is expected to gain more momentum over the forecast period. Another key trend is the growing popularity of end-to-end outsourcing, wherein the company outsources discovery to commercial manufacturing stages of drug development. This helps focus internal resources on core competencies and maintain strategic flexibility.
Porter’s Analysis
Threat of new entrants: The biologics outsourcing market requires high capital investment at initial level which acts as a barrier for new players.
Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power over contract manufacturers due to their high demand capacity.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes in the market.
Threat of new substitutes: Moderate threat from novel technologies like gene therapy which could replace conventional monoclonal antibody products.
Competitive rivalry: Intense competition exists among existing contract manufacturers owing to their increased capabilities and service offerings.
Key Takeaways
The global biologics outsourcing market is expected to witness high growth. Regional analysis related content comprises fastest growing and dominating region are North America and Asia Pacific. North America currently dominates due to presence of many contract manufacturing organizations and research facilities. Asia Pacific is fastest growing region owing to low manufacturing costs and increasing investments by pharmaceutical players.
Key players related content comprises Key players operating in the biologics outsourcing market are Thermo Fisher Scientific Inc., Abzena Ltd., Fujifilm Diosynth Biotechnologies, KBI Biopharma, EirGenix, Inc., Curia Global, Inc., Bionova Scientific, Inc., Boehringer Ingelheim International GmbH., STC Biologics., Abbvie Inc., Avid Bioservices, Inc., Catalent Inc., Emergent, Eurofins Scientific, Genentech, Inc., Genscript Biotech Corporation, and JSR Corporation. These players are focusing on expanding their manufacturing facilities to meet rising demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
