Pharmaceutical Contract Manufacturing And Research Services Market Growth & Trends
The global pharmaceutical contract manufacturing and research services market size is expected to reach USD 395.2 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 7.10% from 2023 to 2030. The rising investments in R&D, increasing demand for generics, and the growing aging population with various chronic diseases are responsible for market growth. However, the advent of COVID-19 led to a temporary shutdown of research and manufacturing activities of ancillary goods used for manufacturing drugs, which had impacted the supply chain and is likely to have a negative impact on the market growth.
Outsourcing allows pharmaceutical companies to focus on their core competencies such as sales and marketing rather than manufacturing and research. This is expected to have a positive impact on the market growth. However, the pharmaceutical companies practicing in-house manufacturing are increasing their investments with respect to production capabilities. This may limit the potential growth of contract manufacturing services to traditional customers, thereby hampering industrial growth.
The COVID-19 pandemic has provided new opportunities for pharmaceutical contract manufacturing and research services. Because of this pandemic, the contract service sector has switched its focus toward manufacturing and research of COVID-19 therapies and vaccines. For instance, in October 2020, CDMO Recipharm formed an agreement with Arcturus Therapeutics to support the manufacturing of its COVID-19 vaccine candidate — ARCT-021. Currently, it is in the phase 1/2 clinical trial. Similarly, in March 2022, the biotechnology company GeoVax partnered with a CRO CATO SMS to support GeoVAX in the Phase 2 trials of the COVID-19 Vaccine candidate GEO-CM04S1.
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Pharmaceutical Contract Manufacturing And Research Services Market Report
Report Attribute Details
Market size value in 2023 — USD 244.5 billion
Revenue forecast in 2030 — USD 395.2 billion
Growth rate — CAGR of 7.10% from 2023 to 2030
Base year for estimation — 2022
Historical data — 2018–2021
Forecast period — 2023–2030
Pharmaceutical Contract Manufacturing And Research Services Market Report Highlights
- By service, the manufacturing segment dominated the market in 2022. In this segment, Active Pharmaceutical Ingredient (API) / bulk drugs held the largest revenue share of over 60.0% in 2021. Pharmaceutical companies prefer outsourcing services for API research and manufacturing owing to the reduction in the cost of production of APIs
- In the manufacturing service segment, finished dose formulations are expected to register the fastest CAGR of 7.6% from 2023 to 2030
- The research service segment is further segmented based on therapeutic area, wherein oncology held a significant share of over 25.0% in 2021 and is anticipated to maintain its lead in the coming years owing to the high disease burden of cancer worldwide
- CMOs/CDMOs with the ability to establish facilities in emerging countries are expected to drive the market. The contract service sector is in its infancy in countries, including Brazil, India, and China
- Companies can position themselves for strong growth, given that demand is expected to expand rapidly in the coming years. Increased competitiveness in the contract service sector is anticipated to ultimately benefit the sector growth
- China, Japan, and India are projected to witness tremendous growth in the forecast period owing to high disease prevalence
