Healthcare Contract Development And Manufacturing Organization Market Is Expected To Reach USD 471.0

Healthcare Contract Development And Manufacturing Organization Industry Overview

The global healthcare contract development and manufacturing organization market size was valued at USD 217.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.2% from 2022 to 2030.

An increase in uptake of outsourcing services by pharmaceutical companies and growth in R&D investments are expected to drive the market. Medical devices & pharmaceutical companies are outsourcing low-end services to reduce the overall cost of production. This trend is expected to contribute to the growth of the market for healthcare contract development and manufacturing organization (CDMO), in the forecast period. The presence of end-to-end service providers that offer value-added services for an integrated or risk-sharing business model is expected to bolster market growth.

The COVID-19 pandemic has significantly impacted the global economy in 2020 and has had an ongoing impact on various industries. However, the market for healthcare contract development and manufacturing organization (CDMO) witnessed a positive impact due to this pandemic. CDMOs are playing an important role in meeting the needs of pharmaceutical companies, biotech companies, and other end-users during this crisis. For instance, Lonza signed a 10-year manufacturing contract with Moderna for manufacturing the COVID-19 vaccine. CDMO players are offering pharma, biotech, and other end-user companies cost-efficiency, time-saving, and specialized expertise. The rapid rise in demand for COVID-19 vaccines and therapeutics is propelling the IND CDMO market. Even post-pandemic, the future seems upright for the IND CDMO market owing to the robust drug pipeline of pharmaceutical and biotech companies.

Gather more insights about the market drivers, restrains and growth of the Global Healthcare Contract Development And Manufacturing Organization Market

According to the 2019 PhRMA member annual survey, pharmaceutical companies invested USD 79.6 billion in R&D. As the healthcare industry is undergoing a process of dynamic change, factors such as rapid technological advancements (e.g., automation & artificial intelligence), the need for CROs/CMOs/CDMOs, and rising investments in research are influencing the healthcare market. Outsourcing activities are befitting many pharmaceutical companies in improving operational efficiencies, expanding geographical presence, decreasing resource costs, gaining therapeutic expertise, and enhancing on-demand services. Medical device companies are focusing on emerging countries to gain access to newer markets and increase their revenues. OEM consolidation has also boosted the overall medical devices contract manufacturing market.

For pharmaceutical companies, increasing R&D costs is a challenge, which significantly affects their bottom line therefore they have partnered with CROs & CMOs for integrated outsourcing services. Outsourcing research activities to CMO or CDMO helps accelerate the workflow of companies, provide unique specialized services, decrease drug development costs, and provide the expertise & experience needed for assisting research.

For many pharmaceutical companies, innovations and speed-to-clinic factors are of critical importance. Small companies and specialty pharmaceutical players increasingly rely upon delivering these important requirements within the industry. Many CROs and CDMOs promote themselves as one-stop-shop companies. The one-stop-shop service model is where a CRO handles everything from API to dosage form and early development to commercialization. To provide these services, a CDMO must have a wide range of enabling technologies and specialized handling capabilities to address specific problem statements. Although these services address many problem statements, there is a wide range of product design capabilities among CDMO players that can be critical in scaling a product concept and bringing it to the market.

Browse through Grand View Research's Medical Devices Industry Research Reports.

• Medical Device Outsourcing Market - The global medical device outsourcing market size was valued at USD 107.92 billion in 2021 and is anticipated to exhibit a compound annual growth rate (CAGR) of 12.1% over the forecast period. Increasing demand for medical devices combined with the rising price competition and requirement to reduce the cost is expected to drive the market during the forecast period.

• Pharmaceutical Contract Manufacturing And Research Services Market - The global pharmaceutical contract manufacturing and research services market size was valued at USD 200.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.2% from 2022 to 2030. Cost-saving and time-saving benefits associated with the implementation of outsourcing are responsible for driving the market. The market participants are routinely investing in infrastructure, personnel, and technology in order to gain a greater share of the outsourcing revenue.

Healthcare Contract Development And Manufacturing Organization Market Segmentation

Grand View Research has segmented the global pharmaceutical contract manufacturing and research services market report on the basis of service and region:

Healthcare Contract Development And Manufacturing Organization Services Outlook (Revenue, USD Billion, 2018 - 2030)

• Contract development

  • Small Molecule

    • Preclinical

      • Bioanalysis and DMPK studies

      • Toxicology Testing

      • Other Preclinical Services

• Clinical

  • Phase I

  • Phase II

  • Phase III

  • Phase IV

• Laboratory Services

  • Bioanalytical Services

  • Analytical Services

• Large Molecule

  • Cell Line development

  • Process Development

    • Upstream

    • Microbial

    • Mammalian

    • Others

• Downstream

• MABs

• Recombinant proteins

• Others

• Others

• Contract manufacturing

  • Small Molecule

  • Large Molecule

  • MABs

  • Recombinant proteins

  • Others

• High Potency API

• Finished Dose Formulations

• Solid Dose Formulation

• Liquid Dose Formulation

• Injectable Dose Formulation

• Medical Devices

• Class I

• Class II

• Class III

Healthcare Contract Development And Manufacturing Organization Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa (MEA)

Market Share Insights

• 2021: Thermo Fisher underwent a definitive agreement to acquire PPD for USD 17.4 billion.

Key Companies profiled:

Some prominent players in the healthcare contract development and manufacturing organization market include:

• Catalent Inc.

• Lonza

• Recipharm AB

• Siegfried Holding AG

• Thermo Fisher Scientific, Inc.

• Labcorp Drug Development (Covance Inc.)

• Jabil

• Sanmina Corporation

• IQVIA Holdings Inc.

• Flex

• Covance Inc.

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