November 2024
The global pharmaceutical CDMO market size was estimated at US$ 146.05 billion in 2023 and is projected to grow to US$ 315.08 billion by 2034, rising at a compound annual growth rate (CAGR) of 7.24% from 2024 to 2034. The pharmaceutical CDMOs are growing due to the growing demand for pharmaceutical products.
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During the lengthy and intricate procedures required to research and manufacture novel therapeutic ingredients, pharmaceutical businesses encounter several hurdles. Bringing novel pharmaceutical products to market can be facilitated by partnering with the appropriate contract development and manufacturing organization (CDMO), which can save costs and offer scalability and expertise. Because pharmaceutical businesses need access to capacity or technological skills beyond what they have in-house and want to reduce risk by outsourcing to a secondary supplier, they contract drug manufacturers to CDMOs or CMOs.
In the upcoming years, the market is anticipated to be driven by the growing need for customized treatment. However, this need cannot be satisfied by traditional production methods. Consequently, it is crucial to collaborate with a contract manufacturing organization (CMO) that possesses sufficient knowledge to intentionally carry out small-scale complicated projects while preserving efficacy, safety, and reliability.
The fierce competition in the pharmaceutical CDMO sector is anticipated to provide a challenge to the worldwide business. Because several competitors are fighting for the same pool of possible customers. Additionally, because medication researchers must also consider making money in the long term, pharmaceutical corporations are looking for solution suppliers who give the best prices. Price wars between CDMOs result from this, which restricts the industry's ability to develop.
Asia Pacific dominated the pharmaceutical CDMO market in 2023.
This increase may be ascribed to a number of variables, including better insurance plans and better regional economic situations that enable individuals to cover their own prescription drug expenses. Countries like China, India, and Japan have emerged as significant participants in the pharmaceutical sector in recent years due to their growing production capacities. In 2023, the pharmaceutical CDMO market in China held the highest share because of the expanding collaboration agreements between pharmaceutical firms and CDMO, which complemented the expansion of the Chinese pharmaceutical CDMO market.
North America is expected to grow at the fastest rate during the forecast period.
The demand for pharmaceutical contract development and manufacturing services has increased as a result of pharmaceutical firms' increasing expenditure on the research and development of new pharmaceuticals. One of the main drivers of market expansion is the expansion of the pharmaceutical industries in the United States and Canada. Clinical trials and the significant presence of major market competitors are also expected to propel market expansion. Furthermore, CDMOs are a desirable alternative for overcoming regulatory obstacles because of the strict regulatory standards, especially in the U.S. and Canada, which call for specific knowledge and compliance skills.
In 2023, the biggest share was held by the pharmaceutical CDMO market in the United States. In order to cut expenses, shorten time-to-market, and get access to specialist knowledge, pharmaceutical firms are increasingly contracting with CDMOs to handle their research and manufacturing tasks. As CDMOs develop to accommodate the rising demand for outsourced services, this trend is driving market expansion in the U.S.
By product, the API segment held the largest share of the pharmaceutical CDMO market in 2023 and is anticipated to grow at the fastest CAGR during the forecast period. Pharmaceutical businesses can benefit from a strategic advantage in API contract manufacturing, which enables them to focus on their core business operations, save costs, and make use of specialized knowledge. API contract manufacturing is expected to become more and more important in determining the direction of the pharmaceutical business as it develops.
By workflow, the commercial segment dominated the market in 2023. CDMOs play a crucial role in the commercial production of pharmaceuticals. Large, medium, and small companies use CDMO services to ensure that the resources needed for the production of final products are provided on time and of high quality. The commercial segment is growing strongly due to the growing demand for generic medicine and personalized medicines.
By application, the oncology segment led the pharmaceutical CDMO market in 2023. The development of effective cancer treatments is just the beginning of the quickly evolving discipline of oncology. CDMOs are essential because they provide a connection that guarantees the safe, effective, and scalable manufacture of cancer medications. From the initial stages to large-scale production, Oncology CDMO services are responsible for a variety of tasks.
By end-use, the large pharmaceutical companies segment held the largest share of the market and is anticipated to grow at the fastest rate during the forecast period. Size has always been important in the CDMO industry, with bigger businesses controlling the market thanks to their greater margins, first dibs on new ideas, and strong resources to keep rivals at bay. Businesses may better plan for the changes and difficulties that will occur in 2024 and beyond by comprehending and using these important trends.
In October 2023, the whole pharmaceutical supply chain and more than 40,000 executives are expected to attend CPHI Barcelona, which will be held at Fira Barcelona from October 24 to 26. In addition to being a top business show, this event, which is essential to the pharmaceutical industry, has developed into a crucial forum for conversations on outsourcing and the pharmaceutical and biotech sectors.
By Product
By Workflow
By Application
By End-use
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November 2024
November 2024
November 2024
November 2024
Deepa has certified the degree of Master’s in Pharmacy in the Pharmaceutical Quality Assurance department from Dr D.Y. Patil College of Pharmacy. Her research is focused on the healthcare industry. She is the author or co-author of four Review Articles, which include Solid dispersion a strategic method for poorly soluble drugs and solubility improvement techniques for poorly soluble drugs, Herbal Drugs Used In Treatment Of Cataracts, Nano sponges And Their Application in Cancer Prevention and Ayurvedic Remedies of Peptic ulcer. She has also published a Research Article on the Formulation and Evaluation of Mucoadhesive Tablets of Miconazole cocrystal which was published in GIS Science Journal Volume 9 Issue 8. Her passion for secondary research and desire to take on the challenge of solving unresolved issues is making her flourish is the in the research sector.
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