India CMO Market Size (2024 - 2029)

India CMO Market Analysis

The India CMO Market size is estimated at USD 22.51 billion in 2024, and is expected to reach USD 44.63 billion by 2029, at a CAGR of 14.67% during the forecast period (2024-2029).

Contract manufacturing organizations (CMOs) provide drug development and manufacturing services to the pharmaceutical industry under contractual agreements. With a rising demand for injectable drugs, especially in cancer research, the contract manufacturing market is set to expand. Injectable drugs promise higher returns than other formulations and demonstrate superior therapeutic efficiency.

• CMOs adhere to stringent regulations and boast a skilled workforce, cutting-edge manufacturing facilities, and a cost-effective service portfolio. Heightened competition in the pharmaceutical sector underscores the urgency of swiftly launching products, aiming for a pioneering market position. Consequently, the push for earlier product launches, mounting pricing pressures, and the advantages offered by CMOs—like reduced timelines and high-quality products at competitive costs—serve as primary market drivers.
• The Indian pharmaceutical landscape encompasses significant segments, including generic drugs, OTC medicines, vaccines, bulk drugs, contract research and manufacturing, biosimilars, and biologics. Notably, India stands out as a leading supplier of affordable vaccines.
• Boasting 60% of the global vaccine production, India meets 40-70% of the World Health Organization's (WHO) demand for diphtheria, pertussis, and tetanus (DPT) and Bacillus Calmette–Guérin (BCG) vaccines, alongside a dominant 90% share for the measles vaccine. Such vast production capabilities position India as a potential growth driver for the studied market.
• In 2023, the Indian government, as per the Central Drugs Standard Control Organization, greenlit 21 new drugs targeting various genetic diseases. This move paves the way for local players to establish new facilities, addressing the surging medicine demand. Additionally, India plays a pivotal role as a pharmaceutical exporter, with the U.S. notably relying on Indian imports and establishing plants there.
• However, challenges loom on the horizon. Stringent government regulations and declining approvals for small molecules and biologics in specific regions could stifle market growth. Moreover, smaller CDMOs face heightened error risks due to a lack of advanced technology. Concerns over subpar quality and pricing challenges further complicate market expansion efforts.

India CMO Industry Segmentation

Contract manufacturing organizations (CMOs) assist pharmaceutical and biotechnology firms in producing cutting-edge drug substances. CMOs typically offer various services, including commercial production, drug development, formal stability assessments, formulation development, etc. The market study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period.

India Contract Manufacturing Organization is Segmented by Service Type (API and Intermediates and Finished Dose). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for the Above Segments.