Market Size of Biopharmaceutical CMO And CRO Industry
![Biopharmaceutical CMO And CRO Market Summary](https://s3.mordorintelligence.com/biopharmaceutical-cmo-and-cro-market/1715750353163-biopharmaceutical-cmo-and-cro-market-Market-Summary.png)
Study Period | 2019 - 2029 |
Market Size (2024) | USD 78.17 Billion |
Market Size (2029) | USD 115.35 Billion |
CAGR (2024 - 2029) | 6.70 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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Biopharmaceutical CMO And CRO Market Analysis
The Biopharmaceutical CMO And CRO Market size is estimated at USD 78.17 billion in 2024, and is expected to reach USD 115.35 billion by 2029, growing at a CAGR of 6.70% during the forecast period (2024-2029).
The market is driven by factors such as growing investment by market players to expand the biopharmaceutical CMO facility, growing robust pharmaceutical pipeline, and increasing strategic activities by the market players such as collaboration and partnership.
Due to the rising trend of outsourcing in the biopharmaceutical industry, the global CMO/CRO market is experiencing significant growth. For instance, in November 2022, Baxter International Inc. unveiled a substantial USD 100 million expansion for its sterile fill and finish manufacturing facility in Halle (Halle Westfalen), Germany. The Halle facility is operated by BioPharma Solutions (BPS), a branch of Baxter that collaborates with renowned pharmaceutical and biotech companies to create and contract-manufacture drug products for injectable pharmaceuticals (parenteral).
Similarly, in June 2022, the Government of Quebec bestowed a loan of USD 18 million upon Jubilant Pharma Limited to facilitate the expansion of the contract manufacturing facility in Montreal. Moreover, in October 2022, Evonik unveiled the completion of an expansion worth EUR 36 million (USD 38.12 million) for its contract manufacturing facilities in the United States and Europe. At various Evonik production sites, cutting-edge technologies encompassing high-potency APIs, fermentation, mPEGs, and continuous processing were either integrated or improved. Thus, expanding these contract manufacturing services is likely to increase their adoption by pharmaceutical and medical device companies and is anticipated to boost market growth.
Moreover, market players are also adopting several strategies, such as mergers, acquisitions, and collaboration, which are expected to boost the biopharmaceutical CMO & CRO market growth over the forecast period. For instance, in November 2023, Ichor Life Sciences, a CRO and longevity biotechnology company, announced the launch of Ichor Clinical Trial Services. With the founding of Ichor Clinical, the company can now serve biotechnology and pharmaceutical clients from early preclinical studies through late-stage clinical trials and F-A approval.
Additionally, in July 2023, TransCure bioServices, a CRO specializing in humanized mouse models, formed a strategic partnership with Precl na Inc., based in South Korea, specializing in autoimmune and inflammatory diseases. This partnership is a significant milestone for TransCure as it expands its presence into the APAC region, strengthens its service portfolio, and enhances the quality of its research outcomes.
Hence, increasing funding for expanding manufacturing facilities and strategic initiatives taken by the CRO and CMO companies is expected to boost the market over the forecast period. However, limited outsourcing among well-established biopharmaceutical manufacturers and regulatory challenges are expected to restrain the market over the forecast period.
Biopharmaceutical CMO And CRO Industry Segmentation
As per the scope of the report, biopharmaceutical CMO (contract manufacturing organization) refers to companies that provide manufacturing services to biopharmaceutical companies. They handle the production of drugs, biologics, or other pharmaceutical products on a contractual basis.
The biopharmaceutical CMO and CRO market is segmented by source, service type, contract research, products, and geography. By source, the market is segmented as mammalian and non-mammalian. The market is segmented by service type as contract manufacturing (process development, fill and finish operations, analytical & qc studies, and packaging). The market is segmented by contract research as oncology, inflammation & immunology, cardiology, neuroscience, and others. The market is segmented by product as biologics and biosimilars; by geography, the market is segmented as North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major global regions. The report offers the value (in USD) for the above segments.
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Biopharmaceutical CMO And CRO Market Size Summary
The biopharmaceutical CMO and CRO market is poised for substantial growth, driven by increasing investments in facility expansions and strategic collaborations among key industry players. The trend of outsourcing within the biopharmaceutical sector is a significant factor propelling market expansion, as companies seek to enhance their manufacturing capabilities and streamline drug development processes. Notable expansions, such as Baxter International's investment in its sterile fill and finish manufacturing facility in Germany and Jubilant Pharma's facility expansion in Montreal, underscore the industry's commitment to scaling operations. Additionally, strategic partnerships, like those between TransCure bioServices and Precl na Inc., are enhancing service portfolios and expanding market reach, particularly in the APAC region. These developments are expected to bolster the adoption of contract manufacturing and research services, contributing to the market's robust growth trajectory.
The market's growth is further supported by the increasing prevalence of chronic diseases, particularly cancer, which drives demand for advanced therapeutics and, consequently, drug research and manufacturing services. The North American region is anticipated to capture a significant market share due to its high pharmaceutical expenditure and substantial investments in research and development. The adoption of continuous manufacturing processes and collaborations for vaccine development, such as Moderna Inc.'s agreement with Novocol Pharma, are also expected to fuel market expansion. The competitive landscape is characterized by the presence of major players like Lonza Group AG and ICON PLC, who are actively engaging in mergers and acquisitions to strengthen their market positions. Overall, the combination of high R&D investments, strategic partnerships, and technological advancements is set to propel the biopharmaceutical CMO and CRO market forward during the forecast period.
Biopharmaceutical CMO And CRO Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Investment by CMOs For Capacity Expansion
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1.2.2 Robust Biopharmaceuticals Pipeline
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1.2.3 Cost And Time Saving Benefits Offered By Contract Services
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1.3 Market Restraints
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1.3.1 Limited Outsourcing Amongst Well-Stablished Biopharmaceutical Manufacturer
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1.3.2 Regulatory Challenges
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value – USD)
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2.1 By Source
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2.1.1 Mammalian
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2.1.2 Non-mammalian
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2.2 By Services Type
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2.2.1 Contract Manufacturing
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2.2.1.1 Process Development
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2.2.1.2 Fill & Finish Operations
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2.2.1.3 Analytical & QC Studies
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2.2.1.4 Packaging
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2.2.2 Contract Research
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2.2.2.1 Oncology
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2.2.2.2 Inflammation & Immunology
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2.2.2.3 Cardiology
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2.2.2.4 Neuroscience
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2.2.2.5 Others
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2.3 By Product
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2.3.1 Biologics
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2.3.1.1 Monoclonal antibodies (MAbs)
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2.3.1.2 Recombinant Proteins
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2.3.1.3 Vaccines
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2.3.1.4 Antisense, RNAi, & Molecular Therapy
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2.3.1.5 Others
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2.3.2 Biosimilars
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.2 Europe
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2.4.2.1 United Kingdom
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2.4.2.2 Germany
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2.4.2.3 France
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2.4.2.4 Spain
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2.4.2.5 Italy
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2.4.2.6 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 India
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2.4.3.2 Japan
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2.4.3.3 China
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2.4.3.4 Australia
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2.4.3.5 South Korea
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2.4.3.6 Rest of Asia-Pacific
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2.4.4 Middle East and Africa
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2.4.4.1 GCC
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2.4.4.2 South Africa
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2.4.4.3 Rest of the Middle East and Africa
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2.4.5 South America
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2.4.5.1 Brazil
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2.4.5.2 Argentina
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2.4.5.3 Rest of South America
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Biopharmaceutical CMO And CRO Market Size FAQs
How big is the Biopharmaceutical CMO And CRO Market?
The Biopharmaceutical CMO And CRO Market size is expected to reach USD 78.17 billion in 2024 and grow at a CAGR of 6.70% to reach USD 115.35 billion by 2029.
What is the current Biopharmaceutical CMO And CRO Market size?
In 2024, the Biopharmaceutical CMO And CRO Market size is expected to reach USD 78.17 billion.