February 16, 2025
Biopharmaceutical CMO And CRO Market

The Outsourcing Of Biopharmaceutical Development Drives The Biopharmaceutical CMO And CRO Market Growth

The rising need for speedy drug development and cost reduction has led biopharmaceutical companies to outsource their product development activities to contract manufacturing organizations (CMOs) and contract research organizations (CROs). CMOs help develop biologics, vaccines, and biosimilars through cell line development, process development, and commercial manufacturing. CROs offer a wide range of services including drug discovery, preclinical and clinical research, and regulatory services to support new drug applications.

The global biopharmaceutical CMO and CRO market is estimated to be valued at US$ 36.2 Bn in 2023 and is expected to exhibit a CAGR of 5.9% 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 observed in the biopharmaceutical CMO and CRO market is the increased outsourcing of development activities by large biopharma companies. Large biopharma companies are increasingly focusing on their core activities and outsourcing non-core functions to CMOs and CROs. This allows them to reduce costs and enhance efficiencies. According to a report by GlobalData, over 70% of the drug development processes of large pharma companies are now outsourced. This high outsourcing rate is expected to drive significant growth of CMOs and CROs during the forecast period. Another important trend is the increasing complexity of biologics requiring specialized expertise and technologies at each phase of development. This is prompting biopharma companies to rely more on expertise of CMOs and CROs to ensure seamless development of novel and niche biologics. Advanced therapies utilizing cell and gene therapies also present significant outsourcing opportunities for service providers with relevant experience and capabilities.

Porter’s Analysis

Threat of new entrants: The biopharmaceutical CMO and CRO market requires high capital investment and stringent regulatory compliances which pose significant barriers for new entrants.

Bargaining power of buyers: Large pharmaceutical companies have strong bargaining power being major buyers in this market. However, the specialized services attract small biotech companies.

Bargaining power of suppliers: The availability of specialized raw material and equipment suppliers gives them moderate bargaining power in this market.

Threat of new substitutes: There exists a low threat of substitution as biopharmaceutical products have distinct advantages over traditional small-molecule drugs.

Competitive rivalry: The market is highly consolidated with top players capturing major market share. Intense competition exists based on service portfolio, quality, and pricing.

Key Takeaways

The Global Biopharmaceutical CMO and CRO market size is expected to witness high growth over the forecast period. North America currently dominates the market due to presence of major pharmaceutical companies and growing biologics industry in the region.

Regional analysis: North America is the fastest growing region in the biopharmaceutical CMO and CRO market supported by increasing pharmaceutical R&D expenditure and growing adoption of outsourcing activities. Europe and Asia Pacific also offer lucrative opportunities for market players.

Key players: Key players operating in the biopharmaceutical CMO and CRO market are Allphase Clinical Research, AlcheraBio, Alcami, Akos Urgent Care, Agilent, AGC Biologics, Affinity Life Sciences, Inc., Actimus Bio, ACI Clinical, Accumedix, Inc., Absorption Systems, A10 Clinical Solutions, Albuquerque Clinical Trials (ACT), Ajinomoto Bio-Pharma Services, Advanced Clinical Services LLC, ACM Global Laboratories, Accelerated Enrollment Solutions, AbbVie Contract Manufacturing, Advanced BioScience Laboratories, Advanced Clinical Research Institute, and Alliance for Clinical Trials in Oncology, among others. Large players are focusing on service expansion and M&A for business growth.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it 
Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

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