The healthcare CMO market size is projected to reach US$ 385.26 billion by 2031 from US$ 138.24 billion in 2023. The market is expected to register a CAGR of 13.7% during 2023–2031. Growing market consolidation and rise in the mergers and acquisitions are likely to remain key trends in the market.
Due to advances in biotechnology and innovative therapies, there is a growing demand for contract manufacturing organization (CMO) services in biopharmaceuticals and biologics. The rise of complex and specialized molecules, including highly potent drugs and personalized medicines, has increased the demand for CMOs with expertise in managing complex manufacturing processes. The healthcare CMO market is becoming increasingly global, and companies are seeking to partner with CMOs in different regions to benefit from cost efficiencies, regulatory advantages, and access to diverse markets.
CMOs provide services related to developing, manufacturing, and packaging pharmaceuticals, biotechnology products, medical devices, and other healthcare products. The healthcare industry is trending towards increasing outsourcing to CMOs. Companies leverage the expertise and skills of CMOs to streamline manufacturing processes and focus on core competencies. CMOs who offer flexible and scalable manufacturing solutions are in demand. Adapting to different production scales and schedules is critical for pharmaceutical and biotech companies.
The number of geriatric populations has been rising significantly across the world. According to the data published by the United Nations, the geriatric population is estimated to grow at a rate of 3% every year. Europe and Asia Pacific regions have the highest aged population of people 60 years and above. Further, the ageing population of the world is projected to reach from 1.4 billion in 2030 to 2.1 billion in 2050. Ageing has been linked with the various chronic diseases such as cardiovascular, diabetes, cancer and many more. Thereby, increasing the demand for the therapeutics products and the medical devices are increasing from these age groups are higher. Therefore, the above mentioned factors is expected to drive the market for the healthcare CMO owing to the rising demands globally.
The biosimilars are gaining attraction due to the apparent cost-savings that consumers hope to gain and opportunities for substitute pharmaceutical manufacturers to enter both established and emerging markets. Technological advancements and improvements for understanding any disease such as cancer, rheumatoid arthritis among others is leading to an increased demand for development of biosimilars and biologics. For fulfilling the unmet conditions many companies are heavily investing in biologics manufacturing that would generate higher revenues in return. The emerging countries such as China, India, Australia, and South Korea have the largest biotechnology hubs and are witnessing growth of the market due to the up-coming players. Therefore, the companies are preferring to outsource the manufacturing services to the CMOs so as to save in-house cost and time required for testing services during the development process of the biologics and biosimilars. This shift of preferring CMOs over in-house manufacturing is expected to increase the opportunity for the growth of the CMOs across the globe in the coming years.
Key segments that contributed to the derivation of the healthcare CMO market analysis is based on service.
The geographic scope of the healthcare CMO market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America has dominated the healthcare CMO market. The growth of the healthcare CMO market in North America are increase in the pharmaceutical, biopharmaceutical and medical devices industry, favorable conditions, and a well-regulated healthcare industry. The US held the largest market share in 2023. US is the largest market for the pharmaceutical and biopharmaceutical industry, the country accounts approximately one third of the global market. US is known as the leader in the world for the research and development activities in the biopharmaceutical. Moreover, the support from the government enhances the contract manufacturing for the pharmaceutical and biopharmaceuticals. This helps to push companies toward the development of drugs, countermeasures, and relate diagnostics estimated that are necessary for the public health and safety. In addition, an increase in complex device manufacturing has provided freedom from the day-to-day concerns and allows to put more focus and efforts for the company’s core technology that boosts market growth in the region.
The regional trends and factors influencing the Healthcare CMO Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Healthcare CMO Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 138.24 Billion |
| Market Size by 2031 | US$ 385.26 Billion |
| Global CAGR (2023 - 2031) | 13.7% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Service
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Healthcare CMO Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Healthcare CMO Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The healthcare CMO market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the healthcare CMO market are listed below:
The “Healthcare CMO Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The North America region dominated the healthcare CMO market in 2023.
Increasing inclination of pharmaceutical and medical device manufacturers towards outsourcing, increasing patent cliffs and rising geriatric population coupled with the increasing production of drugs & medical devices are the driving factors impacting the healthcare CMO market.
Growing market consolidation and rise in the mergers and acquisitions are likely to act as future trends for the healthcare CMO market.
Catalent, Inc and Lonza are the leading players operating in the healthcare CMO market.
US$ 385.26 billion would be the estimated value of the healthcare CMO market by 2031.
13.7% is the CAGR of the healthcare CMO market.