As per Precedence Research, the global biopharmaceutical CMO and CRO market size is predicted to surpass US$ 59.13 billion by 2030 and growing at a CAGR of 7.4% from 2022 to 2030.
As per Precedence Research, the global biopharmaceutical CMO and CRO market size is predicted to surpass US$ 59.13 billion by 2030 and growing at a CAGR of 7.4% from 2022 to 2030.
A CMO stands for contract manufacturing organization. It supplies research services to pharmaceutical and biotechnology companies. It contracts with other pharma companies to manufacture medicines. The CMO and CRO are vital for the success of the biopharmaceutical industry. It has a direct impact on the industry. People are demanding more biopharma treatment, leading to the growth of the biopharma industry. The biopharma industry is growing faster and forms a significant part of the pharma industry.
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A CMO contracts with other pharma companies for the development of drugs. It delivers research services on a contract basis. The COVID-19 pandemic saw an increasing number of patients. With this, multiple players in the biopharma industry invested heavily in delivering drugs and other medications. The biopharma companies outsource their resources, thus increasing the requirement for contract services.
Growth Factors
The COVID-19 pandemic led to disruptions in the supply chain of the pharmaceutical sector. The market players are investing heavily in the biopharma industry to improve their productivity and efficiency. This, in turn, is making the bio manufacturers shift their focus to outsourcing. Biopharma companies are currently outsourcing their resources, capital, and even the whole biomanufacturing process, thus significantly contributing to market growth. CMOs are adopting a mergers and acquisitions strategy to offer integrated bioprocessing services to their customers.
In recent years, the biopharmaceutical industry has seen many mergers. This helped the industry expand and stay competitive in the biopharma contract services market. There has been high pressure on contract biomanufacturers due to the development of novel therapeutics and bioprocessing tools. As a result, CMOS is employing different strategies to meet its customer’s needs.
Regional Snapshots
North America held the largest revenue share in 2021. This is due to the presence of several service providers across the region. CMOs have produced many approved products in the United States. Various small and medium size biopharma companies need more finances and resources to set up their facilities. This, in turn, has raised the demand for biopharma CMO and CRO services.
Asia Pacific is projected to grow at a promising CAGR during the forecast period. The region offers cost-associated advantages, leading to market growth across the region. There is a high volume of large molecule production in India, leading to market growth in India. The lack of biosimilar approval regulations is positively impacting India’s market growth.
Report Highlights
- By source, the mammalian segment held the largest market share. This is due to the need for more internal expertise in the biopharma industry. Other factors, such as the launch of novel expression systems, process monitoring solutions, disposable devices, and automated screening methods, led to the segment’s growth. It has led to the productive production of biologics using mammalian cells.
- By service, the contract research segment is expected to register the fastest CAGR in the coming years. This is due to the outsourcing of research activities by biopharmaceutical companies. The companies are investing heavily in outsourcing their manufacturing, research, and development activities, thus driving the segment’s growth. These factors have resulted in the most significant share of this segment. New and small-scale market players are focused on developing biopharmaceuticals and thus outsourcing contract research services, catalyzing segment growth.
- By product, the biologics segment has held highest revenue share. This growth is due to the complicated manufacturing steps, higher success rate, and high specificity of biologics. CMOs can meet the rising service demand for biologics production due to the increasing usage of bioreactors, purification processing, and quality analysis. Moreover, there has been competition amongst manufacturers are several companies are investing heavily in biosimilar development. This is expected to benefit the CMOs.
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Market Report Scope
| Report Coverage | Details |
| Market Size In 2022 | US$ 33.4 Billion |
| Market Size By 2030 | US$ 59.13 Billion |
| Growth Rate From 2022 to 2030 | CAGR of 7.4% |
| Largest Market | North America |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered |
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| Regions Covered |
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Market Dynamics for Biopharmaceutical CMO and CRO Market:
Market Driver: Strong Biologics Pipeline
The pharmaceutical and biotechnology companies spend heavily on contracted development and manufacturing services. This acts as the main driver of the market. Outside vendors provide these services. The demand for biopharmaceutical CMO and CROs is expected to grow in the forecasted period. Small-size CMOs are expected to grow at a faster rate. The market growth is due to the rising number of biologics pipelines. This, in turn, raises the demand for outsourcing services. For instance, in 2018, the United States FDA approved 64 novel molecular entities and biologics. In addition, many mergers and acquisitions are happening in the biopharma CMO & CRO industry which is expected to contribute to the market growth worldwide.
Market Restraint: High Initial Investments and Limited Outsourcing
The main factor hampering the market growth is the high investment in biopharma companies’ production facilities and the costs of getting new equipment for biomanufacturing. The market’s expansion is further limited by biopharma companies’ restricted use of outsourcing services. Furthermore, problems have been seen in contract negotiations between CMOs and consumers. These contract negotiations are challenging because of intellectual property rights, warranties, expenses, and timeframes. This, in turn, is impeding market growth.
Market Opportunity: Initiatives to Develop Innovative Growth Opportunities
The CMO industry is expected to offer numerous growth opportunities in the coming years. Innovative growth opportunities are provided by the biopharmaceutical CMO and CRO market players. One of the best ways to promote market growth is by heavily investing in research and development activities. Other lucrative market opportunities are new product launches, region growth, and mergers and acquisitions. The CMOs and CROs are expanding their business operations worldwide, thus leading to market growth.
Market Challenge: Pharmaceutical companies setting up their manufacturing site
Many pharmaceutical companies are investing and setting up their manufacturing sites to manufacture and develop new drugs and medications. This factor is posing a challenge to market growth. For instance, in Dec 2021, Pfizer (a pharma and Biotechnology company in the USA) invested 68.5 Million dollars in a new facility in Durham, North Carolina.
Related Reports
- Pharmaceutical Contract Manufacturing and Research Services Market 2022 – 2030: https://www.precedenceresearch.com/pharmaceutical-contract-manufacturing-and-research-services-market
- Contract Research Organization (CROs) Services Market 2022 – 2030: https://www.precedenceresearch.com/contract-research-organization-services-market
- Healthcare Contract Research Organization Market 2022 – 2030: https://www.precedenceresearch.com/healthcare-contract-research-organization-market
Key Developments in the Marketplace:
- In December 2021, Discovery Life Sciences acquired In Vitro ADMET Laboratories (IVAL) to expand its skilled workforce.
- In December 2021, Cerba HealthCare acquired the Viroclinics-DDL group and entered the CRO space.
- In November 2021, Lonza acquired the Exosomics Service Unit to expand its capacity to manufacture exosomes.
Market Segmentation
Segments Covered in the Report
By Service
- Contract Manufacturing
- Process Development
- Upstream
- Downstream
- Fill & Finish Operations
- Analytical & QC studies
- Packaging
- Process Development
- Contract Research
- Inflammation & Immunology
- Cardiology
- Oncology
- Neuroscience
- Others
By Source
- Mammalian
- Non-Mammalian
By Product
- Biologics
- Vaccines
- Monoclonal antibodies (MABs)
- Recombinant Proteins
- Antisense, RNAi, & Molecular Therapy
- Others
- Biosimilars
Regional Segmentation
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan, India, Southeast Asia and Rest of APAC)
- Latin America (Brazil and Rest of Latin America)
- Middle East and Africa (GCC, North Africa, South Africa, Rest of MEA)
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