Dublin, Jan. 30, 2024 (GLOBE NEWSWIRE) -- The "Contract Manufacturing In India Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" report has been added to ResearchAndMarkets.com's offering.
The Indian Contract Manufacturing Organization (CMO) sector is currently undergoing a significant expansion with projected growth from USD 19.63 billion in 2023 to an impressive USD 38.92 billion by 2028, reflecting a Compound Annual Growth Rate (CAGR) of 14.67%. This notable increase is attributable to the growing demand for injectable drugs, particularly within the realm of cancer research, which is set to stimulate the pharmaceutical contract manufacturing market in India.
Market Dynamics and Growth Indicators
A key driver for this surge is the increasing profitability of injectable formulations. Pharmaceutical and vaccine sectors, critical to Indian industry, amplify the country's reputation as a premier supplier of generic medicines globally and account for a staggering 60% of the world's vaccines. This capacity firmly establishes India as the world's third-largest pharmaceutical industry in terms of volume and value.
The conducive governmental policies, such as the Strengthening of Pharmaceutical Industry (SPI) initiative and Production Linked Incentive (PLI) schemes, are paving the pathway for massive industry enhancements and foreign investments – rallying an additional expected sale of INR 2,94,000 crore (USD 37.09 billion) over the span of six years.
India's Global Footprint and Emerging Trends
The generic medicine subsector within the solid finished dose segment demonstrates a substantial market share due to factors such as cost-effectiveness and patent compliance. India, as a primary exporter of generic drugs and a significant vaccine supplier, is crucial in the global healthcare ecosystem.
The United States emerges as a primary beneficiary of India's robust pharma exports, as India hosts more USFDA-approved facilities than any country outside the USA. Furthermore, the USA captures a considerable share of India's pharma exports, establishing a critical market growth trajectory.
Key Market Impediments
The strict regulatory environment and reduced approval rates for some molecules and biologics are identified as potential market constraints. The dearth of cutting-edge technology amongst smaller CDMOs may lead to process inconsistencies and quality concerns, potentially hampering projected market growth.
India CMO Market Landscape and Strategic Developments
The India CMO market characterizes a fragmented landscape with major players like Dr. Reddy's Laboratories and Cipla Ltd. seeking innovation and strategic partnerships to secure greater market shares. The market players are deeply invested in expansion strategies to enhance their offerings and global reach.
Recent strategic moves in the sector include Cipla Limited's acquisition of Endura Mass from Medinnbelle Herbalcare and Dr. Reddy's Laboratories' exclusive collaboration with South Korean company HK inno. N Corporation for a novel gastrointestinal medication.
Conclusion
The India CMO market is at the cusp of rapid development, with advancements driven by government support, technological innovation, and strategic market maneuvers. A promising future awaits through the sector's blend of global collaborations, accentuated by a flourishing generic drug segment and an enhanced focus on the pharmaceutical manufacturing capacities.
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