Biologics CDMO Market Size (2024 - 2029)

Biologics Contract Development and Manufacturing Organization (CDMO) Market Analysis

The Biologics CDMO Market size is estimated at USD 18.17 billion in 2024, and is expected to reach USD 30.45 billion by 2029, growing at a CAGR of 10.87% during the forecast period (2024-2029).

The global pharmaceutical industry is growing exponentially, driven by global economic growth, a growing and aging population, and new product launches. Even though small molecules continue to command the prominent share of the market, large molecules, such as biologics, biosimilars, and cell and gene therapies, are expected to witness the fastest growth over the forecast period.

• Cancer therapies are among the primary drivers for a large proportion of the growth in the biologics market. Even with the faster growth forecast, small molecules outweigh biologics in terms of drug approvals. For instance, the FDA's Center for Drug Evaluation and Research (CDER) approved many new drugs and biological products in recent years.
• The advancements in tag technology and blockchain are mainly helping pharmaceutical companies with serialization requirements. Although blockchain technology cannot be used in the pharmaceutical industry to label actual drug products, digital ledger technology is significantly being implemented as a two-dimensional barcoding system. The technology is then utilized to authenticate containers throughout the supply chain.
• Cost-of-goods for a biological API are far higher than those for a drug product because of the technically challenging and capital-intensive API development and manufacturing process. About three-quarters of the revenue from biologics and outsourcing comes from API production, and CDMOs invest heavily to expand capacity. Biologic drugs are high-value, high-margin products, so pharma companies are mainly focused on supply security rather than investing in manufacturing.
• Capacity constraints are still a problem in the pharmaceutical industry, and almost 6 in 10 pharma manufacturers face minor constraints at some manufacturing stage. In the current market scenario, capacity utilization information is essential for planners and investors to determine whether capacity will be available to produce pipeline drugs nearing approval. While most breakthroughs in the future are expected from bio-pharma, mass production capacity constraint is driving costs.
• The COVID-19 outbreak drives health costs and further strains federal and state government finances. It's possible that many Americans lost their employer-based private health plans due to job loss or sickness. The United States spends more on health care than any other country. For instance, the Centers for Medicare & Medicaid Services has predicted the total national health spending in the United States from 2021 to 2030. The United States is expected to spend USD 6.7 trillion on healthcare by 2030.

Biologics Contract Development & Manufacturing Organization (CDMO) Industry Segmentation

The biologics contract development and manufacturing organization (CDMO) market is segmented by type (Mammalian and Non-Mammalian (Microbial)), by product type (biologics [monoclonal, recombinant proteins, antisense, and molecular therapy, vaccines, and other biologics], and biosimilars), by geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.