According to a new market research study titled 'Healthcare CMO Market to 2027 - Global Analysis and Forecasts by Service and Geography. The global healthcare CMO market is expected to reach US$ 223,355.6 Mn in 2027 from US$ 80,479.4 in 2018. The market is estimated to grow with a CAGR of 12.2% from 2019-2027. The report highlights the trends prevalent in the global healthcare CMO market and the factors driving the market along with those that act as challenges to its growth.
The major players operating in the healthcare CMO market include, Royal DSM, Catalent, Inc, Boehringer Ingelheim International GmbH, Recipharm AB (publ), Fareva, Lonza, Piramal Enterprises Ltd, Dr. Reddy’s Laboratories Ltd., Almac Group, FAMAR Health Care Services.
The market for healthcare CMO is expected to grow significantly due to factor as 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. However, the challenge such as lack of skilled professionals for CMO likely to impact the growth of the market in the forecast period.
Pharmaceutical contract manufacturing services segment is expected to grow the market for healthcare CMO over the forecast period by service segment.
Global healthcare CMO market, based on service was segmented as, pharmaceutical contract manufacturing services and medical device contract manufacturing services. In 2018, the pharmaceutical contract manufacturing services held the largest share of the market, by service. Additionally, the segment is also expected to grow at the fastest CAGR during the forecast period owing to advantaged offered by the contract manufacturing companies.
Rising Demand in Developing Regions
The developing regions such as Asia Pacific and Middle East, Africa and Latin America are growing dynamically in the biotechnology and pharmaceutical sectors. The governments of the respective countries in these regions are supporting through various initiatives, funding, programs and conferences. The growth of the pharmaceutical and biotechnology is driven by the economic, demographic development, rising healthcare expenditures, and improving public-private healthcare funding among the others. Asia Pacific have a great potential to serve the medical device industry. Thus, owing to the above mentioned factors the developing regions are likely to create growth opportunities for the healthcare CMO market during the forecast period.
Mergers and agreements were observed as the most adopted strategy in global healthcare CMO industry. Few of the recent market consolidations are listed below:
2018: In October, 2018, Recipharm acquired Sanofi’s inhalation contract manufacturing business including a manufacturing facility located in Holmes Chapel, UK to expand its full service offering to include specialist, in-demand capabilities.
2017: In February, 2017, Catalent Pharma Solutions acquired Accucaps Industries Limited to expand Softgel development and manufacturing capabilities and capacity in Canada.
2015: In May 2015, Lonza and Nikon signed a collaboration in the field of cell and gene therapy manufacturing in Japan.
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Media, Healthcare and Telecommunication industries.