Healthcare Contract Development And Manufacturing Organization Market To Reach $471.0 Billion By 2030

Healthcare Contract Development And Manufacturing Organization Market Growth & Trends

The global healthcare contract development and manufacturing organization market size is expected to reach USD 471.0 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 9.5% from 2023 to 2030. The market is expected to show lucrative growth due to increasing R&D expenditure and rising outsourcing trends.

Healthcare Contract Development and Manufacturing Organization (CDMO) provide outsourcing services to various pharmaceutical industries on a contract basis. An increase in outsourcing by pharmaceutical companies, expansions in the pharmaceutical industry, and the support of CDMOs in reducing operational and capital expenses are some of the major factors anticipated to propel the market growth in the forecast period.

In addition, growing pressure on pharmaceutical and medical device companies to follow stringent timelines has increased the demand for outsourcing development and manufacturing activities to CDMOs. Further, due to the increasing demand for medical devices in emerging countries, various companies are shifting their focus on research and development activities for medical device contract development and manufacturing. Over the past 10 years, several pharmaceutical companies have turned to CMOs, CROs, and CDMOs to assist in preformulation and development & manufacturing of their novel innovations. Outsourcing is a high growth market and most spending is focused on early development.

Around 75% of new drug pipelines come from small and midsized biopharmaceutical companies. These companies have high profit margins, which make them easy targets for healthcare providers who are trying to reduce cost. Thus, instead of investing in establishing their own infrastructure, it is profitable for these companies to outsource services to third-party organizations who have expertise and the required equipment. Several pharmaceutical companies are seeking outsourced services for optimizing the development of their molecule. For instance, in March 2023, Remedium Bio, a U.S.-based biotechnology company, entered in a collaboration agreement with Exothera, a Belgium-based CDMO, to scale up the production of Remedium’s lead gene therapy drug candidate, AAV2-FGF18 in the treatment of osteoarthritis.

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

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Healthcare Contract Development And Manufacturing Organization Market Report Highlights

• The contract manufacturing segment dominated the market with a revenue share of 73.5% in 2022 due to increase in the outsourcing of manufacturing services by pharmaceutical and medical device companies

• By small molecule contract development sub-segment, the preclinical/segment is expected to register the highest CAGR of 10.4% in the forecast period due to the rising pipeline of novel therapeutics

• North America dominated the healthcare contract development and manufacturing organization market with the largest revenue share of 40.9% in 2022. High shares of the region are majorly due to the presence of a large number of actively functioning CROs and CMOs in the region, especially across the U.S.

• The Asia Pacific is projected to witness the fastest CAGR of 10.4% during the forecast period. The region is anticipated to witness a lucrative CAGR owing to the low-cost contract development and manufacturing services offered by Asian CROs and CMOs

Healthcare Contract Development And Manufacturing Organization Market Segmentation

Grand View Research has segmented the global healthcare contract development and manufacturing organization market based on services, and region:

Healthcare CDMO 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 CDMO Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.                

  • Canada

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • Netherlands

  • Belgium

  • Denmark

  • Norway

  • Sweden

• Asia Pacific

  • China

  • India

  • Japan

  • 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

  • Kuwait

List of Key Players in the Healthcare CDMO Market

• Catalent Inc.

• Lonza

• Recipharm AB

• Siegfried Holding AG

• Thermo Fisher Scientific, Inc.

• Labcorp Drug Development

• Jabil Inc

• Syngene International Limited

• IQVIA Inc.

• Almac Group

• Ajinomoto Bio-Pharma

• Adare Pharma Solutions

• Alcami Corporation

• Vetter Pharma International.