by The global Healthcare CMO Market is estimated to be valued at US$ 440.5 Mn or Mn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The healthcare CMO market consists of contract manufacturing organizations that provide development and manufacturing services for pharmaceutical, biologics, and medical devices companies. These organizations assist healthcare companies in reducing costs by outsourcing product manufacturing activities. Various CMO services include pharmaceutical manufacturing, product development and design, validation services, and packaging among others. The market is driven by the need for pharmaceutical and biotech companies to reduce manufacturing complexities and focus on core activities. CMOs help in improving efficiency, reducing time to market, and gaining expertise in manufacturing of respective products.
Market key trends:
One of the key trends in the Global Healthcare CMO Market Size is the rapid growth of CMO services in the Asia Pacific region. Several large pharmaceutical companies are outsourcing drug manufacturing activities to CMOs based in China, India, and Southeast Asia due to low cost of operations. Countries like China and India offer large talent pool of scientists and production facilities at competitive prices. Furthermore, investments by CMOs in expanding production facilities in Asia Pacific are supporting pharmaceutical outsourcing to the region. For instance, Piramal Enterprises expanded its sterile injectable drug manufacturing plant in Morpeth, North Carolina, US to cater to the growing demand.
Porter’s Analysis
Threat of new entrants: The healthcare CMO market requires large investments in R&D, manufacturing facilities, and regulatory approvals. This acts as a barrier for new entrants.
Bargaining power of buyers: Pharmaceutical companies have significant bargaining power as buyers due to the consolidation in the industry. They can negotiate on pricing and contract terms.
Bargaining power of suppliers: Specialized capabilities and technologies required for CMO services limits the number of potential suppliers. However, increasing capacities among CMOs has reduced individual suppliers’ bargaining power.
Threat of new substitutes: There are no significant substitute services for healthcare CMOs currently. Customers rely on CMOs to reduce costs and access new technologies.
Competitive rivalry: The healthcare CMO market is highly fragmented with the top 10 players accounting for less than 50% share. Fierce competition exists based on pricing, capabilities, quality, and regulatory compliance.
Key Takeaways
The global healthcare CMO market is expected to witness high growth, exhibiting a CAGR of 16% over the forecast period, due to increasing demand for outsourcing of pharmaceutical and biologics manufacturing.
The North American region currently dominates the market, with the US accounting for the largest share. However, the Asia Pacific region is expected to witness the fastest growth over the forecast period driven by expanding pharmaceutical production in India and China.
Key players operating in the healthcare CMO market are Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions Inc., MilliporeSigma, Symbiosis Pharmaceutical Services, Albany Molecular Research Inc., Samsung Biologics, and Symmetry Medical, Inc. Boehringer Ingelheim GmbH and Patheon, Inc. are identified as the largest players based on production capabilities and capacities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
