1. Health

The Healthcare Cmo Market Is Estimated To Witness High Growth Owing To Increasing Demand For Contract Manufacturing

Disclaimer: This is a user generated content submitted by a member of the WriteUpCafe Community. The views and writings here reflect that of the author and not of WriteUpCafe. If you have any complaints regarding this post kindly report it to us.

 

The Healthcare CMO Market is estimated to be valued at US$ 440.5 Mn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The healthcare CMO market involves contract manufacturing of pharmaceutical, biologics and medical device products. Contract manufacturing provides advantages like reduced costs through economies of scale, access to latest technologies and equipment and expertise in specialized manufacturing processes. This helps healthcare companies focus more on drug development while outsourcing manufacturing activities.

Market key trends:

Demand for contract manufacturing in the healthcare industry is growing owing to increasing focus on core competencies by pharmaceutical companies. Growing prevalence of chronic diseases is also driving drug development activities which is fueling demand for CMOs. CMOs help drug makers reduce manufacturing costs through economies of scale as they can produce for multiple clients simultaneously. There is growing adoption of single-use technologies by CMOs to prevent contamination risks and enable bioprocessing of complex therapies. This is allowing contract manufacturers to support production of advanced modalities like cell and gene therapies. Stringent regulatory norms also make in-house manufacturing complex and expensive which is boosting use of external CMO partners for manufacturing needs.

Porter’s Analysis

Threat of new entrants: The healthcare CMO market has high entry barriers due to high initial investments in facilities and equipment required for conducting contract manufacturing services. This creates a low threat of new entrants.

Bargaining power of buyers: The bargaining power of buyers is moderate as the healthcare CMO market has a large number of buyers and contracting organisations. Buyers have some influence on pricing, but contract manufacturing services are essential for their business operations.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as well-established CMOs source raw materials from a few major suppliers and have alternatives. However, suppliers hold some bargaining power when supplying specialised materials and technologies.

Threat of new substitutes: There is a low threat from substitutes since contract manufacturing services provide integrated development and manufacturing capabilities that are difficult to substitute. In-house manufacturing requires large capital investments.

Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous global and regional players competing on service quality, regulatory compliance, price and innovation.

SWOT Analysis

Strength: The healthcare CMO market has well-established players with robust integrated capabilities and regulatory compliance. This ensures client trust and long-term partnerships.
Weakness: Smaller players have limited capabilities and geographical presence. They also face challenges in maintaining quality and compliance standards for diverse product portfolios.
Opportunity: Growing biosimilars, biologics and vaccines segments increase the demand for specialized contract manufacturing and present opportunities for market players. Outsourcing from innovative drug makers to focus on core competencies also supports market growth.
Threats: Stringent regulatory norms and intense price competition threaten profit margins. Additionally, consolidation among larger players intensifies competition.

Key Takeaways

The global healthcare CMO market is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing demand for generics and biosimilars. The market size for 2023 is estimated at US$ 440.5 Mn.

Regional analysis: North America dominated the healthcare CMO market in 2023, accounting for around 35% share. This was attributed to presence of major pharmaceutical players and emergence of biosimilars and biologics manufacturing in the region. Asia Pacific is anticipated to grow at the fastest rate over 2023-2030 because of low-cost manufacturing and increasing outsourcing by multinational drug companies to the region.

Key players operating in the healthcare CMO market are Accellent, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions, Inc., DSM, Fareva, Greatbatch, Inc., Lonza Group, Patheon, Inc. (Thermo Fisher Scientific Inc.), Piramal Healthcare, Binex, Cytovance Biologics, Emergent BioSolutions

Read Our More Blogs : https://www.dailyprbulletin.com/healthcare-cmo-market-forecast-outlook-trend-2023-2030/

Login

Welcome to WriteUpCafe Community

Join our community to engage with fellow bloggers and increase the visibility of your blog.
Join WriteUpCafe