Growth opportunities in the pharmaceutical contract development and manufacturing market look promising over the next six years. This is mainly due to the continuous expansion in the product and the assistance in curtailing expenditures and the increasing demand for manufacturing competence.
Pharmaceutical Contract Development and Manufacturing Market Dynamics (including market size, share, trends, forecast, growth, forecast, and industry analysis)
Key Drivers
The augmenting demand for manufacturing competence is attaining prominence throughout the world, which the FDA and the US center for drug evaluation and research are constantly supporting, propelling the pharmaceutical contract development and manufacturing market share. Also, enormous countries led by economic adversity are looking for ways to reduce drug expenditures. Pharma and biotech companies are assigned with the onerous duty to minimize drug cost, which has led them to evaluate prospects for manufacturing outsourcing. Asian CMOs are generating ventures into the transformation and extension of the market by acquiring assets in the United States and Europe.
Also, CMOs are intensifying productivity in the competitive market. The large CMOs are enlarging their regional prevalence and entering the niche market through a merger. For example, SK Holdings, the holding company of South Korea’s SK Group, in 2019, launched a US-based contract manufacturing organization (CMO), SK pharmteco, an association between SK biotek in Korea and AMPAC Fine Chemicals (AFC) in the United States, which has assisted the market. In accordance with the Association of Accessible Medicines, the US healthcare system alone retained USD 313 billion in 2019. Medicare and Medicaid in the same year saved USD 96 billion and USD 48.5 billion, respectively. Governments across nations are encouraging the usage of these generic drugs owing to their cost benefits. However, strict government norms associated with the production of API and drugs is hampering the market growth.
Service Segment Drivers
Based on the service, pharmaceutical manufacturing services are expected to expand at a faster CAGR during the forecast period. This is because of the excessive demand and consumption of generic drugs, which has resulted in market growth. Additionally, the advantages like quality assurance, economical, and advanced skill have bolstered the pharmaceutical contract development and manufacturing market size.
Regional Drivers
Based on the regional coverage, Asia-Pacific is projected to expand at a higher CAGR in the market over the forecast period. This is primarily attributed to the strategic measures by the countries like China, India, and Japan. For instance, “Ministry of Health and Family Welfare India” published US$ 9.30 billion under the 2020-2021 budget, which has paved the way for market growth.
Pharmaceutical Contract Development and Manufacturing Market’s leading Manufacturers:
- Baxter BioPharma Solutions
- Covance, Inc. (LabCorp)
- Charles River Laboratories International, Inc.
- Jubilant Life Sciences Limited
- Lonza
- QuintilesIMS
- Albany Molecular Research, Inc.
- Pfizer, Inc. (Pfizer CenterOne)
- Grifols S.A
- Boehringer Ingelheim GmbH
Pharmaceutical Contract Development and Manufacturing Market Segmentation:
Segmentation by Service
- Pharmaceutical Manufacturing Devices
- Drug Development Services
- Biologics Manufacturing Devices
Segmentation by End-User
- Big Pharmaceutical Companies
- Small & Medium Sized Pharmaceutical Companies
- Generic Pharmaceutical Companies
- Others
Segmentation by Region:
- North America
- United States of America
- Canada
- Asia Pacific
- China
- Japan
- India
- Rest of APAC
- Europe
- United Kingdom
- Germany
- France
- Spain
- Rest of Europe
- RoW
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Rest of the world (remaining countries of the LAMEA region)
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