Market Overview
The Global Healthcare CMO Market is expected to reach a value of
USD 197.8 billion in 2023, and it is further anticipated to reach a market value of
USD 461.3 billion by 2032 at a
CAGR of 9.9%.
Healthcare Contract Manufacturing Organizations (CMOs) are firms offering vast services like drug development & manufacturing under legal contracts. They look to various healthcare sectors, including
pharmaceutical companies & hospitals, providing services like pre-formulation, formulation development, stability studies, and method development along with the production of materials for pre-clinical & Phase I clinical trials, as well as late-stage clinical trial materials.
Key Takeaways
- By Type the Pharmaceutical segment takes the lead in 2023 & is anticipated to dominate throughout the forecasted period.
- In addition, the Medical Devices segment is expected to have significant growth over the forecasted period.
- By End User, Pharmaceutical & biopharmaceutical companies take the lead & drive the market in 2023
- Asia Pacific has a 47.4% share of revenue in the Global Healthcare CMO Market in 2023
Market Dynamic
The global healthcare contract manufacturing organizations (CMO) market plays a significant role in the large outsourcing sector, with pharmaceutical & medical device companies constantly looking for strategies to enhance their product portfolios, lower costs, enhance efficiencies, & streamline timelines. Economic pressures, technological developments, & financial crises allow pharmaceutical, biotechnological, & life sciences companies to outsource manufacturing processes, realizing cost benefits in a shorter timeframe. As major drivers for the Healthcare CMO Market include the rising number of drugs going off-patent, technological advancements, growth in utilization & development of generic drugs, and investments in R&D by governments & companies.
However, even after these positive trends, the market experiences challenges due to its fragmented nature & a lesser inclination for outsourcing, mainly regarding lucrative drugs, which may impede the growth of the Healthcare CMO Market, highlighting the need for industry stakeholders to address these barriers & promote the benefits of outsourcing in the pharmaceutical and medical device manufacturing landscape.
Research Scope and Analysis
By Type
The Healthcare Contract Manufacturing Organization (CMO) Market is categorized into Pharmaceutical and Medical Device segments, the Pharmaceutical segment is anticipated to dominate the market, mainly fueled by the increase in global demand for drugs, along with the rise in chronic diseases & an expanding geriatric population. The growing
healthcare demands are further highlighted by the rise in consumer healthcare spending, contributing to the strong growth of the Pharmaceutical segment within the Healthcare CMO Market. As the number of chronic illnesses continues to grow across the world, there is an increase in requirement for efficient drug manufacturing, positioning the Pharmaceutical segment as a key driver in meeting these healthcare requirements, which also highlights the vital role played by Healthcare CMOs in addressing the evolving landscape of pharmaceutical production & responding to the healthcare needs of diverse populations.
By End User
Pharmaceutical & biopharmaceutical companies emerged as dominant players in the market, driven by significant investments in manufacturing biologics, which includes diverse biologic categories like synthetic vaccines, nanobodies, fusion proteins, & immunotherapeutics, transforming disease therapy. The growth in biologics demand allows pharmaceutical and biopharmaceutical companies to outsource manufacturing to Contract Manufacturing Organizations (CMOs), expanding segment growth. Outsourcing allows compliance with market-specific regulations, ensuring affordable & efficient alignment with drug registrations & approvals, and addressing the challenges created by diverse life cycle stages of pharmaceutical products. The growth in approved pharmaceutical products further drives market expansion.
Moreover, the
medical device companies segment anticipates significant growth driven by technological advancements, the rising complexity of drug-device therapies, & the adoption of wearable medical devices. Further, rising in-house manufacturing costs allow outsourcing to expert service providers, making companies focus on core competencies & deliver quality products affordably. Also, strict regulations & cost pressures in the medical device industry highlight the importance of outsourcing to reduce business risks, expedite market entry, & reduce overall costs, developing innovation-based strategies for market players.
The Healthcare CMO Market Report is segmented on the basis of the following:
By Type
- Medical Devices
- Pharmaceutical
By End User
- Medical Device Companies
- Pharmaceutical & Biopharmaceutical Companies
- Others
Regional Analysis
The Asia Pacific region emerged as the leading region in the market, contributing a substantial 47.4% to the total revenue share, which is expected to persist over the forecasted period, driven by enhancing healthcare services & the economic growth of developing nations. The affordability of conducting clinically approved trials in this region serves as a major factor, enticing manufacturers to relocate their operations & encourage market expansion. Further, the growth in the Asia Pacific is fueled by the presence of various major companies striving to meet the growing demand for medical equipment & medications., which is expected to significantly elevate the healthcare & biopharmaceutical device industries in the region, marking a transformative period of expansion & innovation.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
While the healthcare CMO market is diverse, a few key players dominate most of the market share. Also, an abundance of competitors influences service pricing, mainly affecting smaller vendors. To stay competitive, players are likely to offer comprehensive services, a strategy more accessible to those with large capital, which intensifies competition & establishes a hurdle for new entrants, focusing on the importance of financial resources in navigating the dynamics of this market.
In February 2023, Lonza unveiled its plans to grow its bioconjugation facility in Switzerland, which broadens Lonza's clientele, attracting companies to venture into clinical manufacturing, as well as signifies Lonza's commitment to meeting the growing demand for bioconjugation services & accommodating a diverse range of customers, particularly those embarking on clinical production.
Some of the prominent players in the global Healthcare CMO Market are:
- Lonza
- Samsung Biologics
- Catalent Inc
- Nordson Medical
- FLEX Ltd
- Viant Technology
- Fareva
- Piramal Healthcare
- Plexus Corp
- Recipharm AB
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Healthcare CMO Market:
The COVID-19 pandemic triggered a dual impact on the Global Healthcare Contract Manufacturing Organization (CMO) Market, as the growth in demand for pharmaceuticals & medical supplies led to increased outsourcing to CMOs, driving market growth. However, the recessionary pressures made healthcare companies optimize costs, impacting the CMO market. The pandemic focused on the need for resilient & flexible supply chains, allowing pharmaceutical firms to recheck their outsourcing strategies. As a result, CMOs experienced both opportunities & challenges, looking through a dynamic landscape shaped by the pandemic's healthcare demands & economic constraints. Also, the market witnessed fluctuations in demand, allowing adaptation strategies among CMOs to align with the changing needs of the global healthcare industry during these challenging times.
Recent Development
- In June 2023, Catalent expanded its OneBioSuite, an all-inclusive solution for development, production, & supply, which now also includes diverse biological modalities like antibodies, cell & gene therapies, mRNA, & recombinant proteins. The upgraded service will be introduced alongside Catalent's involvement in the BIO International Convention, showcasing the company's commitment to providing comprehensive solutions across a wide spectrum of biological advancements.
- In October 2022, Recipharm made a strategic investment in an advanced high-speed filling line for pre-filled syringes & cartridges at its Wasserburg, Germany site, which focuses on meeting the growing client demand for high-growth file formats in the international Contract Development and Manufacturing Organization (CDMO) sector and expands Recipharm's overall manufacturing capabilities, mainly in sterile filling for injectable pharmaceuticals, aligning with their big initiative of expansion & enhancement across the business.
- In November 2022, Medeologix, a MedTech contract manufacturing firm based in Taiwan, announced the acquisition of three medical device companies, forming a comprehensive integrated service group, which expands the company's capabilities in design & development, solidifying its position as a leading contract manufacturer in the interventional & surgical device realm. The strategic acquisitions focused to improve Medeologix's offerings & strengthen its standing in the competitive landscape of medical device manufacturing.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 197.8 Bn |
| Forecast Value (2032) |
USD 461.3 Bn |
| CAGR (2023-2032) |
9.9% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Type (Medical Devices and Pharmaceutical), By
End User (Medical Device Companies, Pharmaceutical
& Biopharmaceutical Companies, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Lonza, Samsung Biologics, Catalent Inc, Nordson
Medical, FLEX Ltd, Viant Technology, Fareva, Piramal
Healthcare, Plexus Corp, Recipharm AB, and Other
Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Healthcare CMO Market size is estimated to have a value of USD 197.8 billion in 2023 and is
expected to reach USD 461.3 billion by the end of 2032.
Asia Pacific has the largest market share for the Global Healthcare CMO Market with a share of about
47.4% in 2023.
Some of the major key players in the Global Healthcare CMO Market are Lonza, Samsung Biologics,
Catalent Inc, and many others.
The market is growing at a CAGR of 9.9 percent over the forecasted period.