Dublin, Nov. 02, 2023 (GLOBE NEWSWIRE) -- The "Global Healthcare CMO Market (by Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.
The global healthcare Contract Manufacturing Organization (CMO) market is poised for significant growth, projected to reach a substantial value of $145.7 billion by 2023, registering a remarkable Compound Annual Growth Rate (CAGR) of 12.12% during the forecasted period. This comprehensive report delves into the top impacting factors, growth drivers, challenges, trends, and key players that are shaping the landscape of the healthcare CMO market.
Top Impacting Factors
Growth Drivers
- Surging Geriatric Population: The increasing aging population is driving demand for healthcare services, medications, and devices, boosting the CMO market's growth.
- Increasing Spread of Chronic Diseases: The rise in chronic illnesses necessitates a continuous supply of pharmaceuticals and medical devices, fostering CMO market growth.
- Escalating Demand for Generic Drugs: A growing preference for cost-effective alternatives fuels the demand for generic drugs, a key driver for CMOs.
- Increasing Demand for Active Pharmaceutical Ingredient (API): The heightened demand for APIs, particularly biologics, in pharmaceutical manufacturing is a significant growth factor.
Challenges
- Rapid Technological Advancements: The rapid pace of technological change in healthcare introduces competition and the potential obsolescence of offerings, challenging market players.
- Dependent on Patents, Copyrights, Trademarks, and Trade Secrets: The reliance on intellectual property protection introduces risks as patents expire, impacting market dynamics.
Trends
- Escalating Role of Artificial Intelligence Technology: The integration of AI in healthcare CMO operations enhances efficiency, safety, and quality in pharmaceutical production.
- Evolution of Advanced Respiratory Equipment: The development of sophisticated respiratory devices is a noteworthy trend in the medical device CMO segment.
Key Drivers: Increasing Demand for Active Pharmaceutical Ingredient (API)
The growing demand for Active Pharmaceutical Ingredient (API) manufacturing is a prominent driver for the healthcare CMO market. Factors contributing to this growth include patent expirations, the expansion of global generic production capacities, government initiatives in the healthcare sector, biologics innovation, and the increasing incidence of diseases, including cancer and age-related ailments. Notably, the focus on high-potency APIs is propelling demand in this segment, presenting opportunities for CMOs in biopharmaceutical and small molecule API sectors.
Key Challenge: Rapid Technological Advancements
The healthcare industry's fast-paced technological advancements pose a significant challenge. Evolving standards, sophisticated customer needs, and the introduction of new technologies create competition and the potential for obsolescence as patents expire. Timely introduction of enhanced offerings and technologies is critical to staying competitive and mitigating operational and market risks.
Key Trend: Escalating Role of Artificial Intelligence Technology
Artificial Intelligence (AI) technology plays a vital role in enhancing healthcare CMO operations. From repetitive tasks to treatment planning, medication management, and drug discovery, AI improves efficiency and safety. AI is also instrumental in healthcare data management, enabling better risk detection and product quality, further fostering market growth.
Segmentation
The healthcare CMO market is divided into two primary segments: Pharmaceutical and Medical Device. The pharmaceutical CMO segment includes Active Pharmaceutical Ingredients (API) and others. The medical device manufacturing segment is expected to experience rapid growth, driven by increasing outsourcing due to the lack of in-house manufacturing facilities and growing complexity. CMOs in this segment offer quality management, assembly, integration, testing capabilities, and supply chain management, making them attractive partners for healthcare organizations.
Geographic Coverage
The global healthcare CMO market is divided into four regions: North America, Europe, Asia Pacific, and the Rest of the World. North America holds the largest market share, driven by a strong emphasis on drug discovery and manufacturing outsourcing. The region's commitment to scientific research in disease mechanisms and the development of pharmaceutical agents contributes significantly to market growth. Asia Pacific is poised for substantial growth, with governments entering into contracts with local CMOs to expedite production of life-supporting devices, such as ventilators, in response to the COVID-19 pandemic.
Key Players
The global healthcare CMO market is moderately consolidated, with key players including Samsung Biologics Co. Ltd., Boehringer Ingelheim GmbH, Koninklijke DSM N.V. (Royal DSM), Thermo Fisher Scientific Inc., Catalent Pharma Solutions, Inc., Integer Holdings Corporation, Piramal Enterprises Limited, Lonza Group AG, Aurobindo Pharma Limited, Symbiosis Pharmaceutical Services, Fareva Group, and Recipharm AB.
The Impact of COVID-19
The COVID-19 pandemic has created a surge in demand for biopharmaceutical services offered by CMOs. To meet the increased demand, CMOs have invested in facilities and bioprocessing units, accelerating production. The pandemic has driven vaccine development and manufacturing activity, leading to further expansion in this sector. CMOs have made strategic investments in modular construction, technology, and process intensification, expanding capabilities in new modalities such as mRNA and cell and gene therapy. This continued growth is anticipated in the post-COVID era.
In conclusion, the global healthcare CMO market is on a trajectory of substantial growth, driven by diverse factors such as demographic shifts, technological advancements, and the evolution of AI technology. Challenges, especially related to intellectual property, must be navigated, but the future is promising for this vital industry.
Key Topics Covered
1. Executive Summary
2. Introduction
2.1 Healthcare Contract Manufacturing Organization (CMO): An Overview
2.2 Healthcare CMO Segmentation: An Overview
3. Global Market Analysis
3.1 Global Healthcare Contract Manufacturing Organization (CMO) Market: An Analysis
3.2 Global Healthcare CMO Market: Type Analysis
4. Regional Market Analysis
4.1 North America Healthcare CMO Market: An Analysis
4.2 Europe Healthcare CMO Market: An Analysis
4.3 Asia Pacific Healthcare CMO Market: An Analysis
4.4 Rest of World Healthcare CMO Market: An Analysis
5. Impact of COVID-19
5.1 Surge in Contracts to CDMOs
5.2 Supply Chain Issues Amidst Surge in Demand for CDMOs
5.3 Preparedness Measures in the Event of Supply Chain Disruption
5.4 Post-COVID Scenario
6. Market Dynamics
6.1 Growth Drivers
6.2 Challenges
6.3 Market Trends
7. Competitive Landscape
7.1 Global Healthcare CMO Market Players Financial Comparison
7.2 Global Healthcare CMO Market Players by Research & Development (R&D) Expenses
8. Company Profiles
8.1 Catalent Pharma Solutions Inc.
8.2 Samsung Biologics Co. Ltd.
8.3 Aurobindo Pharma Limited
8.4 Boehringher Ingelheim
8.5 Integer Holdings Corporation
8.6 Piramal Enterprises Limited
8.7 Lonza Group AG
8.8 Koninklijke DSM N.V. (Royal DSM)
8.9 Thermo Fisher Scientific Inc.
8.10 Recipharm AB
8.11 Fareva Group
8.12 Symbiosis Pharmaceutical Services
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