Healthcare Contract Development And Manufacturing Organization Market Size, Share & Trends Report

Healthcare Contract Development And Manufacturing Organization Market Size, Share & Trends Analysis Report By Services (Contract Development, Contract Manufacturing), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Apr, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-438-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The global healthcare contract development and manufacturing organization market size was estimated at 193.4 billion in 2019 and is anticipated to expand at a CAGR of 8.1% over the forecast period. Increasing outsourcing of R&D is one of the major factors contributing to market growth. Healthcare contract development and manufacturing organization (CDMO) provides outsourcing services to various pharmaceutical industries on a contract basis. Increase in the outsourcing by pharmaceutical companies, growing pharmaceutical industry, and support of CDMOs in reducing the operational and capital expenses are some of the major factors anticipated to propel the market growth.

Global healthcare contract development & manufacturing organization market size

Healthcare contract development and manufacturing organizations offer one-stop solutions from development to manufacturing to all the pharmaceutical and medical device companies on a contract basis. Most of the small-sized pharmaceutical and biopharmaceutical companies prefer outsourcing their development and manufacturing organization activities due to lack of internal capabilities.

In addition, favorable regulatory affairs in developing economies and assurance of quality services are other major drivers for contract development and manufacturing organization market. Most of the pharmaceutical and biopharmaceutical companies are outsourcing their manufacturing activities to CDMOs in order to meet the rising demand for small molecules and biologics in emerging countries. This is expected to drive market growth over the forecast period.

However, increasing logistic costs, serialization issues faced by healthcare organizations, and threat of infringement of Intellectual Property (IP) rights are anticipated to restrain the market growth for healthcare contract development and manufacturing organization over the forecast period.

Services Insights

The market is segmented on the basis of services, which includes contract development and contract manufacturing. The contract manufacturing segment accounts for the largest market share of 72.7 % in 2019 and is also expected to grow at the fastest CAGR of 8.1 % during the forecast period. Growing trend of outsourcing, increasing use of medical devices due to the rising prevalence of various chronic diseases, and complexity in manufacturing devices are expected to drive the healthcare contract development and manufacturing organization market.

Global healthcare contract development & manufacturing organization market share

Contract manufacturing is further sub-segmented into API/bulk drugs, finished dose formulations, and medical device. In the contract manufacturing segment, the medical device is expected to account for the largest market share of 47.5% in 2019. The medical device segment is further sub-segmented into class I, class II, and class III. Increased spending by the pharmaceutical companies on R&D, rising prevalence of chronic disease, and an increasing number of CROs are some major factors positively affecting the market growth.

Regional Insights

North America held the largest share of the healthcare CDMO market in 2019 and is expected to continue its dominance over the forecast period. Change in lifestyle habits such as smoking, lack of physical activity, and alcohol consumption is leading to growth in the number of chronic diseases in the region. Due to this, the demand for pharmaceutical products is increasing, which is inducing various pharmaceutical companies to outsource the manufacturing of drugs to CDMOs. It is one of the major factors responsible for the market growth of CDMO in North America.

Asia Pacific is expected to witness the fastest CAGR of 8.9 % over the forecast period. Asia Pacific continues to be leading the market in healthcare contract development & manufacturing organization due to low manufacturing costs as compared to North America and Europe. China and India are the major suppliers of API manufacturing services in the region.

Key Companies & Market Share Insights 

The market is highly competitive in nature with the presence of some major market players that include Catalent Inc.; Lonza Group Ltd.; Recipharm AB; Siegfried Holding AG; Thermo Fisher Scientific Inc.; Covance Inc.; Jabil; Sanmina Corporation; IQVIA Holdings Inc.; and Flex.

The key parameter affecting the competitive nature is the rapid adoption of advanced healthcare technology for improved healthcare. Also, to retain market share and diversify the product portfolio, major players are undertaking strategies such as mergers, acquisitions, and partnerships.

Healthcare Contract Development And Manufacturing Organization Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 204.8 billion

Revenue forecast in 2027

USD 352.3 billion

Growth Rate

CAGR of 8.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

Segments covered

Services, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; Netherlands; Belgium; Switzerland; Russia; Sweden; China; India; Japan; Australia; South Korea; Malaysia; New Zealand; Singapore; Philippines; Thailand; Mexico; Brazil; Argentina; Colombia; Chile; South Africa; Saudi Arabia; UAE; Israel; Egypt

Key companies profiled

Catalent Inc.; Lonza Group Ltd.; Recipharm AB; Siegfried Holding AG; Thermo Fisher Scientific Inc.; Covance Inc.; Jabil; Sanmina Corporation; IQVIA Holdings Inc.; Flex

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global healthcare contract development and manufacturing organization market report on the basis of services and region:

  • Service Outlook (Revenue, USD Billion, 2016 - 2027)

    • Contract Development

      • 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

    • Contract Manufacturing

      • API/Bulk Drugs

      • Finished Dose Formulations

      • Medical Device

        •  Class I

        •  Class II

        •  Class III

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

      • France

      • Spain

      • Italy

      • Netherlands

      • Belgium

      • Switzerland

      • Russia

      • Sweden

    • Asia Pacific

      • India

      • Japan

      • China

      • Australia

      • South Korea

      • Malaysia

      • New Zealand

      • Singapore

      • Philippines

      • Thailand

    • Latin America

      • Brazil

      • Mexico

      • Argentina

      • Colombia

      • Chile

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

      • Israel

      • Egypt

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