Healthcare CDMO Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.20 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Healthcare CDMO Market Analysis
The healthcare contract development and manufacturing organization (CDMO) market was valued at USD 273.21 billion in the current year and is expected to reach USD 432.03 million by the end of the forecast period, registering a CAGR of 8.02%.
COVID-19 has had a significant impact on the healthcare CDMO market owing to the high demand for vaccine development by various pharmaceutical and biotechnology companies in the past three years. For instance, in July 2021, ExeVir and Mithra, a CDMO, collaborated to utilize the fill and finish capabilities for ExeVir's therapies at Mithra's integrated R&D and manufacturing platform to accelerate the development of XVR011 for the potential treatment and prevention of COVID-19. Furthermore, as per a study published in the World Economic Journal in February 2022, companies like Lonza and Catalent played critical roles in manufacturing COVID19 vaccines during the pandemic. Some major pharmaceutical companies like Pfizer and GlaxoSmithKline (GSK) also developed business operations to offer CDMOlike services to other firms to better manage their capacity during the initial phase of the pandemic. Hence, the increased demand for COVID-19 vaccines led to increased outsourced manufacturing agreements for CDMOs, contributing to the market's growth. Therefore, the pandemic positively affected the healthcare contract development and manufacturing organization market.
The significant factors that drive the market's growth include the increasing research and development (R&D) activities by the pharmaceutical and medical devices company, as well as increasing demand for advanced diagnostic and therapeutic products.
Outsourcing activities benefit many healthcare companies by improving operational efficiencies, expanding geographical presence, decreasing resource costs, gaining therapeutic expertise, and enhancing on-demand services. For instance, in May 2023, an article published in Akums Pharmaceutical stated that outsourcing API expertise in drug development offers numerous benefits for pharmaceutical companies. It includes various services such as technical expertise, regulatory compliance, and efficient manufacturing processes, enabling pharmaceutical companies to focus on their core competencies, such as R&D. Additionally, by outsourcing API manufacturing, pharmaceutical companies can accelerate their drug development timelines, access new technologies, and ensure consistent quality control. Outsourcing API expertise provides pharmaceutical companies with strategic advantages, allowing them to optimize resources, enhance efficiency, and bring high-quality drugs to market. Thus, owing to the benefits offered by the CDMO, the adoption of outsourcing is increasing by pharmaceutical companies, thereby contributing to market growth.
Moreover, increasing investment in R&D also propels the growth of the market. For instance, in January 2023, GenScript's Biologics subsidiary ProBio notched its fundraising round and raised about USD 224 million. The investment will help ProBio with further research and development, expanding its manufacturing capacity and developing its CDMO business. Similarly, in June 2022, Jubilant Pharma Limited announced that the Government of Quebec had granted them a loan of USD 18 million to fund the capacity expansion of the contract manufacturing facility in Montreal.
Market players are also adopting several strategies, such as mergers, acquisitions, and collaboration, which are expected to boost the healthcare CDMO market growth over the forecast period. For instance, in July 2023, Societal CDMO Inc. announced the expansion of its broad suite of CDMO services to address the biopharmaceutical industry's expanding activity in psychedelic drug development. Similarly, in October 2022, Terumo Pharmaceutical Solutions (TPS), a division of Terumo Corporation, announced that it would expand its contract development and manufacturing services for parenteral drugs to global customers.
Hence, growing investment in research and development, increasing outsourcing by pharmaceutical, biopharmaceutical, and medical devices companies, and strategic activities undertaken by market players are expected to boost the market growth over the forecast period. However, compliance issues while outsourcing, the changing scenario of outsourcing in developing countries, and regulatory and legal compliance are expected to restrain the market over the forecast period.
Healthcare CDMO Market Trends
Small Molecule Segment Expected to Hold Significant Market Share Over the Forecast Period
CDMOs play a crucial role in the small molecule development and manufacturing process. They provide specialized services to pharmaceutical and biotechnology companies needing more infrastructure, expertise, or capacity to carry out these activities in-house.
The global burden of chronic diseases has significantly increased in recent years, increasing the demand for small-molecule drugs and research. Hence, the companies in the market are investing heavily in identifying and discovering novel small molecules with potential therapeutic applications, fueling the demand for small molecule development and manufacturing services and thereby boosting growth in the market. For instance, in May 2023, Global Healthcare Opportunities, or GHO Capital Partners LLP, invested in Sterling Pharma Solutions (a CDMO), a pharmaceutical development and manufacturing organization. The new investment will likely support Sterling's growth trajectory in strengthening production capacity across Europe, the United Kingdom, and the United States.
In addition to the investments, pharmaceutical companies are teaming up with small molecule drug development and manufacturing service providers to accelerate their drug development activity by utilizing the advanced technologies or resources available at the CDMOs. For instance, in March 2023, CatSci Ltd announced a new partnership with AGC Pharma Chemicals, a global small molecule CDMO. This will enable CatSci's customers to harness AGC's expertise in GMP manufacturing from kilos to tonnes to support clinical phase projects.
Hence, increasing investment in developing small molecule drug compounds and strategic activities undertaken by the market players is expected to boost the segment growth over the forecast period.
North America is Expected to Hold a Significant Market Share Over the Forecast Period
In North America, the healthcare CDMO market is expected to grow owing to factors such as established research facilities and high investment in R&D advanced products. Furthermore, the strong foothold of key market players and rising grants by the National Institute of Health for developing novel therapeutics in the region are also aiding the market growth. Rapid growth in medical device manufacturing and the adoption of CDMO services are also major factors contributing to market growth in North America.
The increasing burden of cancer in the United States encourages development and manufacturing activities, and increasing pharmaceutical consumption is expected to propel the market growth. For instance, according to the American Cancer Society Cancer Statistics 2023, 1.9 million new cancer cases are predicted to be diagnosed in the United States in 2023. Out of all the cancer cases, breast cancer is estimated to account for 0.3 million new cases. Similarly, leukemia is expected to account for 59.6 thousand new cases, and lymphoma around 89.3 thousand new cases in the United States in 2023. Hence, the rising incidence of cancer in the nation is predicted to raise the need for novel therapies, which would ultimately lead to a growth in R&D activities and CDMO services for the development of new drugs, thereby boosting the market growth over the forecast period.
Further, the development of CDMO organizations in the country that provide drug development and manufacturing services is likely to propel the growth of the market. For instance, in March 2022, Acanthus Research Inc. announced the launch of Acanthus Pharma Services Inc., a rapidly expanding CDMO organization focusing on providing services to the pharmaceutical and biotechnology industry. The company offers organic synthesis services such as specialty chemicals and organic chemistry services.
Further, strategic activities by the market players, such as mergers & acquisition partnerships and collaboration, are expected to propel the market's growth. For instance, in May 2023, Moderna, Inc., entered into a long-term agreement with Ontario-based Novocol Pharma, a sterile injectable CDMO, to perform aseptic fill-finish, labeling, and packaging of mRNA respiratory vaccines expected to be produced in Canada.
Hence, increasing demand for outsourcing, growing consumption, increasing investment in R&D, and strategic activities by the market players are expected to boost the market over the forecast period.
Healthcare CDMO Industry Overview
The healthcare contract development and manufacturing organization market is fragmented in nature, with the presence of many market players anticipated to concentrate on offering one-stop-shop services to gain a competitive edge. Moreover, market players are engaging in strategic activities such as service expansion, collaboration, partnerships, and mergers and acquisitions.
Some of the key players in the healthcare CDMO market are Catalent Inc., Lonza, Recipharm AB, Thermo Fisher Scientific, Inc., Labcorp Drug Development, and IQVIA Inc.
Healthcare CDMO Market Leaders
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Catalent Inc.
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Lonza
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Recipharm AB
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Thermo Fisher Scientific, Inc
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Labcorp Drug Development
*Disclaimer: Major Players sorted in no particular order
Healthcare CDMO Market News
- September 2023: Future Fields launched its contract development and manufacturing organization services. This new CDMO offering utilizes the EntoEngine platform to design and produce high-quality proteins that comply with industry standards tailored for small-to-medium biopharmaceutical companies.
- March 2023: Catalent and Bhami Research Laboratory (BRL) announced a licensing agreement to provide Catalent with access to BRL's formulation technology to help enable the subcutaneous delivery of high-concentration biologic therapies.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Outsourcing Services by Pharmaceutical, Biotechnology, and Medical Devices Companies
4.2.2 Rising Investment in Research and Development
4.2.3 Growing Demand for Advanced Diagnostic and Therapeutic Products
4.3 Market Restraints
4.3.1 Compliance Issues While Outsourcing
4.3.2 Regulatory and Legal Compliance
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Services
5.1.1 Contract Development
5.1.1.1 Small Molecule
5.1.1.1.1 Preclinical
5.1.1.1.1.1 Bioanalysis and DMPK Studies
5.1.1.1.1.2 Toxicology Testing
5.1.1.1.1.3 Other Preclinical Services
5.1.1.1.2 Clinical
5.1.1.1.2.1 Phase I
5.1.1.1.2.2 Phase II
5.1.1.1.2.3 Phase III
5.1.1.1.2.4 Phase IV
5.1.1.2 Large Molecule
5.1.1.2.1 Cell Line development
5.1.1.2.2 Process Development
5.1.1.2.2.1 Upstream
5.1.1.2.2.1.1 Microbial
5.1.1.2.2.1.2 Mammalian
5.1.1.2.2.1.3 Others
5.1.1.2.2.2 Downstream
5.1.1.2.2.2.1 MABs
5.1.1.2.2.2.2 Recombinant Proteins
5.1.1.2.2.2.3 Others
5.1.2 Contract Manufacturing
5.1.2.1 Small Molecule
5.1.2.2 Large Molecule
5.1.2.2.1 MABs
5.1.2.2.2 Recombinant Proteins
5.1.2.2.3 Others
5.1.2.3 High Potency API
5.1.2.4 Finished Dose Formulations
5.1.2.4.1 Solid Dose Formulation
5.1.2.4.2 Liquid Dose Formulation
5.1.2.4.3 Injectable Dose Formulation
5.1.2.5 Medical Devices
5.1.2.5.1 Class I
5.1.2.5.2 Class II
5.1.2.5.3 Class III
5.2 By Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Mexico
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 Germany
5.2.2.3 France
5.2.2.4 Spain
5.2.2.5 Italy
5.2.2.6 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 India
5.2.3.2 Japan
5.2.3.3 China
5.2.3.4 Australia
5.2.3.5 South Korea
5.2.3.6 Rest of Asia-Pacific
5.2.4 Middle East & Africa
5.2.4.1 GCC
5.2.4.2 South Africa
5.2.4.3 Rest of the Middle East & Africa
5.2.5 South America
5.2.5.1 Brazil
5.2.5.2 Argentina
5.2.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Catalent Inc.
6.1.2 Lonza
6.1.3 Recipharm AB
6.1.4 SANNER
6.1.5 Thermo Fisher Scientific Inc.
6.1.6 Labcorp Drug Development
6.1.7 Jubilant Biosys Ltd
6.1.8 Syngene International Limited
6.1.9 IQVIA Inc.
6.1.10 Almac Group
6.1.11 Ajinomoto Bio-Pharma
6.1.12 Adare Pharma Solutions
6.1.13 Alcami Corporation
6.1.14 Vetter Pharma International
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Healthcare CDMO Industry Segmentation
Healthcare contract development and manufacturing organization (CDMO) provides services to pharmaceutical, biotechnology, and medical device companies. These services often include developing, manufacturing, and testing medical products. CDMOs play a crucial role in the healthcare industry by offering specialized expertise and infrastructure to help bring new drugs and medical devices to market efficiently and safely.
The Healthcare Contract Development and Manufacturing Organization Market is Segmented By Services (Contract Development (Small Molecule (Preclinical (Bioanalysis and DMPK Studies, Toxicology Testing, and Other Preclinical Services) Clinical (Phase I, Phase II, Phase III, and Phase IV), Large Molecule (Cell Line development, Process Development (Upstream (Microbial, Mammalian, and Others), and Downstream (MABs, Recombinant Proteins, and Others) and Others) and (Contract Manufacturing (Small Molecule, Large Molecule (MABs, Recombinant Protein, and Others), High Potency API, Finished Dose Formulations (Solid Dose Formulation, Liquid Dose Formulation, and Injectable Dose Formulation), and Medical Devices (Class I, Class II, and Class III)), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report offers the value (in USD) for the above segments. The report also covers the estimated market sizes and trends for 17 countries across major regions globally.
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Frequently Asked Questions
What is the current Healthcare CDMO Market size?
The Healthcare CDMO Market is projected to register a CAGR of 8.20% during the forecast period (2024-2029)
Who are the key players in Healthcare CDMO Market?
Catalent Inc., Lonza, Recipharm AB, Thermo Fisher Scientific, Inc and Labcorp Drug Development are the major companies operating in the Healthcare CDMO Market.
Which is the fastest growing region in Healthcare CDMO Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Healthcare CDMO Market?
In 2024, the Asia Pacific accounts for the largest market share in Healthcare CDMO Market.
What years does this Healthcare CDMO Market cover?
The report covers the Healthcare CDMO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Healthcare CDMO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Healthcare CDMO Industry Report
Statistics for the 2024 Healthcare CDMO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Healthcare CDMO analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
