The global biopharmaceutical contract manufacturing market is set for substantial growth, with a projected Compound Annual Growth Rate (CAGR) of 8.8% during the forecast period from 2024 to 2034. The market value, currently estimated at USD 10.7 billion in 2024, is expected to reach an impressive USD 25.1 billion by 2034.
This robust growth is primarily driven by increasing demand for biologics, advancements in manufacturing technologies, and the growing trend of outsourcing production processes by pharmaceutical companies.
Biopharmaceutical Contract Manufacturing Market Size, Analysis, and Insights
- Biopharmaceutical companies are increasingly outsourcing their manufacturing processes to contract manufacturing organizations (CMOs) due to cost reduction initiatives and focus on core competencies.
- The increasing demand for biopharmaceutical contract manufacturing is due to the complexity of biologic drugs that are difficult to manufacture and require specialized knowledge and expertise.
- Many small and mid-sized biopharmaceutical companies lack the resources and expertise to manufacture biologics in-house, so they turn to contract manufacturing organizations (CMOs) to help them.
- The market is expanding due to the rising demand for efficient and effective manufacturing processes are needed. These factors, along with technological advancements and the regulatory environment, have contributed to the increasing demand for biopharmaceutical contract manufacturing.
- The trend driving the growth of biopharmaceutical contract manufacturing is the increasing use of cell and gene therapies. These therapies involve using living cells, which require specialized manufacturing processes.
- Contract manufacturing organizations (CMOs) can provide the expertise and facilities needed to manufacture these complex therapies, which can be challenging for companies to do in-house.
Key Takeaways from the Report:
- Rising Demand for Biologics
The increasing prevalence of chronic diseases, along with advancements in personalized medicine and biologics, is driving the demand for biopharmaceutical contract manufacturing services. Biologics, including monoclonal antibodies, vaccines, and gene therapies, require specialized manufacturing capabilities, further boosting the market. - Outsourcing Trend in the Biopharmaceutical Industry
Pharmaceutical companies are increasingly outsourcing their manufacturing processes to Contract Development and Manufacturing Organizations (CDMOs) to reduce costs, improve efficiency, and focus on core competencies. This trend is accelerating the demand for contract manufacturing services in the biopharmaceutical sector. - Technological Advancements
Innovations in manufacturing technologies, such as continuous manufacturing, single-use technologies, and advancements in cell line development, are transforming the biopharmaceutical manufacturing process. These technologies not only increase production efficiency but also improve product quality and scalability. - Emerging Markets Fueling Growth
The biopharmaceutical contract manufacturing market is seeing increased growth in emerging markets, particularly in Asia-Pacific, due to lower production costs, favorable regulatory environments, and growing investments in the healthcare and biotechnology sectors. - Market Expansion in Developed Regions
Developed regions, including North America and Europe, continue to dominate the market due to the presence of established pharmaceutical companies and a strong pipeline of biologics and vaccines. However, increasing collaborations between biopharma companies and contract manufacturers are expected to boost market dynamics across both developed and emerging markets.
Challenges for Biopharmaceutical Contract Manufacturers
- The increasing complexity of biologics, the need for specialized facilities and equipment, and regulatory compliance act as restraints in the market.
- Supply chain disruptions, high manufacturing costs, and the lack of skilled personnel restrict the market’s progress. Additionally, as demand for biologics continues to grow, manufacturers must balance the need for increased production, maintaining high-quality standards.
- The risk of intellectual property theft is another challenge encountered by manufacturers. As contract manufacturers often work with multiple clients, there is a risk that confidential information could be shared or stolen. This can lead to legal disputes and damage to the reputation of the contract manufacturer.
- The industry constantly evolves, with new technologies and processes emerging regularly. Contract manufacturers must stay current with the latest developments to remain competitive.
Competitive Landscape
The biopharmaceutical contract manufacturing market is becoming increasingly competitive due to the growing demand for biologics and biosimilars.
Companies have a strong reputation for providing high-quality contract manufacturing services to the biopharmaceutical industry. However, there are also several smaller players in the market that are gaining traction and competing with these larger companies by offering specialized services and innovative technologies.
Recent Developments
- In 2021, Lonza Group Ag announced its largest sale of Lonza Speciality Ingredients to Bain Capital Private Equity for US$ 4.4 billion.
- In 2021, bzena Limited, a partner research organization for the integrated discovery of cGMP and a manufacturer of biopharmaceuticals solutions, worked with BiVictriX Therapeutics plc, a biotechnology business, to manufacture BiVictriX’s antibody-drug conjugates (ADC).
- In 2021, Novasep Company formed an exclusive cooperation with PharmaZell. The cooperation aims to develop, manufacture, and expand complicated small compounds and ADCs on a worldwide scale.
Key Market Players
- Catalent Inc.
- Lonza Group Ag
- Patheon N.V. (Thermo Fisher Scientific Inc.)
- Abzena Plc.
- Sandoz International GmbH (Novartis AG)
- Fujifilm Diosynth Biotechnologies (FUJIFILM Holdings)
- Baxter Pharmaceutical Solutions LLC (Baxter Inc.)
- AbbVie Contract Manufacturing (AbbVie Inc.)
- Samsung Biologics Co. Ltd.
- ProBioGen AG
- Pfizer Centre Source Ltd (Pfizer Inc.)
- Novasep
- Biomeva GmbH
- Kbi Biopharma Inc
- Rentschler Biotechnologie GmbH
- Ajinomoto Althea Inc. (Ajinomoto Co., Inc.)
A Detailed Full Report
Key Market Segments
By Platform Type:
- Mammalian Based
- Microbial Based
By Product Type:
- Monoclonal Antibodies
- Recombinant Protein
- Vaccine
- Insulin
- Growth factor
- Interferons
- Others
By Application Type:
- Clinical
- Commercial
By Therapeutic Area Type:
- Autoimmune Diseases
- Oncology
- Metabolic Diseases
- Ophthalmology
- Cardiovascular Diseases
- Infectious Diseases
- Neurology
- Respiratory Disorders
- Others
By Region:
- North America
- Latin America
- East Asia
- South Asia
- Europe
- Oceania
- MEA
Author By:
Sabyasachi Ghosh (Associate Vice President at Future Market Insights, Inc.) holds over 12 years of experience in the Healthcare, Medical Devices, and Pharmaceutical industries. His curious and analytical nature helped him shape his career as a researcher.
Identifying key challenges faced by clients and devising robust, hypothesis-based solutions to empower them with strategic decision-making capabilities come naturally to him. His primary expertise lies in areas such as Market Entry and Expansion Strategy, Feasibility Studies, Competitive Intelligence, and Strategic Transformation.
Holding a degree in Microbiology, Sabyasachi has authored numerous publications and has been cited in journals, including The Journal of mHealth, ITN Online, and Spinal Surgery News.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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