April 22, 2024
Healthcare CMO Market

Healthcare CMO Market to Witness High Growth Owing to Increasing Demand for Outsourcing Various Pharmaceutical Services

The healthcare CMO market provides various contract manufacturing services such as pharmaceutical contract manufacturing, medical device contract manufacturing, and packaging services for pharmaceutical and medical devices. CMOs help pharmaceutical and medical device companies focus on their core competencies by outsourcing non-core functions such as manufacturing and packaging.

The global healthcare CMO market size is estimated to be valued at US$ 507.46 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031.

Key Takeaways

Key players in the healthcare CMO market:

Key players operating in the Healthcare CMO Market Size  include FMC Corporation, BASF SE, Bayer AG, Sumitomo Chemical Co., Ltd., Syngenta AG, Adama Agricultural Solutions Ltd., UPL Limited (previously United Phosphorus Limited), Nufarm Limited, Tagros Chemicals India Ltd., Heranba Industries Limited.

Key opportunities:

The increasing demand for outsourcing various pharmaceutical services such as manufacturing, packaging, and testing provides major opportunities for healthcare CMOs. Further, increasing demand for generic drugs and biosimilars also opens growth avenues.

Global expansion:

Leading CMOs are expanding their presence globally especially in emerging markets of Asia Pacific and Latin America to benefit from low-cost manufacturing and tap into the increasing demand. Furthermore, collaborations and acquisitions are allowing CMOs achieve global scale and service portfolios.

Market drivers:

The growing need to reduce manufacturing costs and focus on core competencies of pharmaceutical and medical device companies is a key driver for the outsourcing of various services to CMOs. Further, the patent cliff faced by many blockbuster drugs and increasing regulatory pressures on quality and compliance are compelling companies to partner with CMOs.

PEST Analysis

Political: The healthcare CMO market is regulated by various government agencies and regulations related to drug development and manufacturing. Drug approval processes and standards influence the activities of CMOs.

Economic: Rising healthcare expenditures, increasing demand for generics and biologics, and growing R&D investments by pharmaceutical companies are fueling demand for outsourced manufacturing services in this market.

Social: Aging population, increasing incidence of chronic diseases, rising affordability for medications are some of the key social factors spurring market growth. Growing acceptance of outsourcing non-core activities by pharmaceutical firms also supports market expansion.

Technological: Advancements in technologies for large-scale manufacturing, process automation, quality control systems etc. allow CMOs to improve efficiencies and handle complex projects. Adoption of digital technologies like AI, IoT are expected to transform operations in coming years.

Geographical concentration

North America region currently accounts for the largest share in the global healthcare CMO market. This is attributed to presence of majority of large pharmaceutical companies who outsource a significant portion of their manufacturing needs.

Fastest growing region

The Asia Pacific region is poised to be the fastest growing regional market during the forecast period. This is mainly due to expanding pharmaceutical manufacturing capacities in various countries like China, India, Singapore etc. along with growing pharmaceutical outsourcing trends in these markets.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it