Healthcare CMO Market Forecast, Trends, Scope by 2031
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.
Healthcare CMO Market Analysis
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.
Healthcare CMO Market Overview
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.
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Healthcare CMO Market: Strategic Insights
Market Size Value in US$ 80,479.4 Million in 2018 Market Size Value by US$ 223,355.6 Million by 2027 Growth rate CAGR of 12.2% from 2019-2027 Forecast Period 2019-2027 Base Year 2018
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Healthcare CMO Market: Strategic Insights
| Market Size Value in | US$ 80,479.4 Million in 2018 |
| Market Size Value by | US$ 223,355.6 Million by 2027 |
| Growth rate | CAGR of 12.2% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2018 |
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Healthcare CMO Market Drivers and Opportunities
Rising Geriatric Population Coupled With The Increasing Production of Drugs & Medical Devices to Favor Market
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.
Growth Opportunities Due to Rising Development of Biosimilars
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.
Healthcare CMO Market Report Segmentation Analysis
Key segments that contributed to the derivation of the healthcare CMO market analysis is based on service.
- Based on service, the healthcare CMO market is bifurcated into pharmaceutical contract manufacturing services and medical device contract manufacturing services. The pharmaceutical contract manufacturing services is further categorized into active pharmaceutical ingredients (API), final dosage form manufacturing, and packaging. Similarly, the medical device contract manufacturing services is sub-segmented into outsourcing design, device manufacturing, and final good assembly. The pharmaceutical contract manufacturing services segment held the largest market share in 2023 and the same is expected to register highest CAGR during the forecast period.
Healthcare CMO Market Share Analysis by Geography
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.
Healthcare CMO Market Report Scope
Healthcare CMO Market News and Recent Developments
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:
- Kühne Holding AG has entered into a definitive agreement to acquire pharma contract development and manufacturing organization Aenova Group from leading international investment firm BC Partners. As part of the transaction, BC Partners’ advised funds will reinvest alongside Kühne Holding AG and continue to support Aenova as a minority shareholder. Financial terms were not disclosed. The Aenova Group is one of the world's leading CDMOs (Contract Development and Manufacturing Organizations) in the pharmaceutical and healthcare industry. (BC Partners, News, April 2024)
- Pharmascience, the largest Canadian-owned pharmaceutical company, announced a major US$ 120 million sterile injectable manufacturing facility expansion at its Candiac site. Following this important milestone, the company is now proud to announce the expansion of its contract development and manufacturing organization (CDMO) services with the creation of a new business unit dedicated to injectable products. (Pharmascience Inc., News, February 2024)
- Danaher Corporation announced a definitive agreement to acquire privately-held Aldevron, for cash purchase price of approximately US$ 9.6 billion, Danaher expects to finance the acquisition using cash on hand and/or proceed from the issuance of commercial paper. (Danaher Corporation, Press Release, June 2021)
Healthcare CMO Market Report Coverage and Deliverables
The “Healthcare CMO Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Healthcare CMO market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Healthcare CMO market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Healthcare CMO market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the healthcare CMO market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Service , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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