The healthcare CMO market was valued at US$ 80,479.4 million in 2018 and it is projected to reach US$ 223,355.6 million in 2027; it is expected to grow at a CAGR of 12.2% from 2019 to 2027.
Contract manufacturing organization (CMO) also known as contract development and manufacturing organization is a company that serves several other companies in the medical devices as well as pharmaceutical and biopharmaceutical sector with comprehensive services from development, manufacturing to packaging. These services are outsourced by various OEM players in the business in order to help with the scalability, and save marginally on production costs. The growth of the global healthcare CMO market is attributed to the increasing inclination of pharmaceutical and medical device manufacturers towards outsourcing, increasing patent cliffs, rising geriatric population coupled with the increasing production of drugs & medical device. However, lack of skilled professionals is the major factor hindering the market growth.
The global healthcare CMO market is expected to witness substantial growth. The COVID-19 has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The COVID-19 crisis has overburdened public health systems in many countries and highlighted the strong need for sustainable investment in health systems. As the COVID-19 pandemic progresses, the healthcare industry is expected to see a drop in growth. The life sciences segment thrives due to increased demand for invitro diagnostic products and rising research and development activities worldwide. However, the medical technologies and imaging segment is witnessing drop in sales due to a smaller number of surgeries being carried out and delayed or prolonged equipment procurement. Additionally, virtual consultations by healthcare professionals are expected to become the mainstream care delivery model post-pandemic. With telehealth transforming care delivery, digital health will continue to thrive in coming years. In addition, disrupted clinical trials and the subsequent delay in drug launches is also expected to pave the way for entirely virtual trials in the future. New technologies such as mRNA is expected to emerge and shift the pharmaceutical industry and market is also expected to witness more vertical integration and joint ventures in coming years.
Lucrative Regions for Global Healthcare CMO Market
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Market Insights
Increasing Patent Cliffs to Drive Global Healthcare CMO Market Growth
The growth of the healthcare CMO market is majorly driven by the pharmaceutical industry, the increase in the production of the generic medicinal products across the world. The production of the generic drugs is increased due to the expiry of the patented drugs. The expiry of the patents create a huge scope for the generic manufacturer to produce generic drugs for various therapeutic areas. The production of the generic drugs are manufactured with the low cost compared to the innovative drugs. Each year the pharmaceutical industry gets distressed by patent expirations that threaten the sales of innovative medications.
The healthcare CMO market is likely to grow in the developing regions such as Europe and Asia Pacific, among which Asia Pacific is estimated to be the fastest growing market. The regions is consolidated with the various generic drug manufacturers. The demands for the therapeutics drugs are higher from countries such Italy, Germany, China and India among the other countries. The competition for the manufacturing of the generic drugs is much higher and the closer government support for the manufacturing are likely to fuel the growth of the market.
The rising numbers of the contract manufacturing across the globe are entering in the production of the generic drugs as the legislation encouraged competition to benefit consumers. The CMOs help in the manufacturing the drug with the bioequivalence testing and the drugs are produced with the current good manufacturing practices. The CMO allows to reduce the cost of manufacturing and enhance the production in bulk quantities. Additionally as per the EvaluatePharma statistics it is stated that approximately US$ 194 billion in the innovative drugs sales are at risk during the 2017- 2020. Also an estimate of nearly US$ 31 billion could be lost due to the expiry of patents alone in 2018. Therefore, owing to the above mentioned factors the market for the healthcare CMO is likely to propel during the forecast period.
Service-Based Insights
In terms of service, the global healthcare CMO market is segmented into pharmaceutical contract manufacturing services and medical device contract manufacturing services. In 2018, pharmaceutical contract manufacturing services segment held largest share of the market. Also, the same segment is estimated to register the highest CAGR during the forecast period.
Global Healthcare CMO Market, by Service – 2018 and 2027
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Healthcare CMO Market: Strategic Insights
Market Size Value in US$ 80,479.4 Million in 2018 Market Size Value by US$ 223,355.6 Million by 2027 Growth rate CAGR of 12.2% from 2019-2027 Forecast Period 2019-2027 Base Year 2018
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Healthcare CMO Market: Strategic Insights
Market Size Value in | US$ 80,479.4 Million in 2018 |
Market Size Value by | US$ 223,355.6 Million by 2027 |
Growth rate | CAGR of 12.2% from 2019-2027 |
Forecast Period | 2019-2027 |
Base Year | 2018 |
Akshay
Have a question?
Akshay will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to AnalystThe global healthcare CMO market players are adopting the product launch and expansion strategies to cater to changing customer demands worldwide, which also allows them to maintain their brand name globally.
Global Healthcare CMO Market – by Service
- Pharmaceutical Contract Manufacturing Services
- Active Pharmaceutical Ingredients (API) Manufacturing
- Final Dosage Form Manufacturing
- Packaging
- Medical Device Contract Manufacturing Services
- Outsourcing Design
- Device Manufacturing
- Final Goods Assembly
Global Healthcare CMO Market – by Geography
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- UK
- Spain
- Rest of Europe
Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
South America and Central America (SCAM)
- Brazil
- Argentina
- Rest of SCAM
Company Profiles
- Royal DSM
- Catalent, Inc
- Boehringer Ingelheim International GmbH
- Recipharm AB (publ)
- Fareva
- Lonza
- Piramal Enterprises Ltd
- Dr. Reddy’s Laboratories Ltd.
- Almac Group
- FAMAR Health Care Services.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Service , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
The List of Companies
- Royal DSM
- Catalent, Inc
- Boehringer Ingelheim International GmbH
- Recipharm AB (publ)
- Fareva
- Lonza
- Piramal Enterprises Ltd
- Dr. Reddy’s Laboratories Ltd.
- Almac Group
- FAMAR Health Care Services
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