July 18, 2024
Biopharmaceutical CMO and CRO Market

Biopharmaceutical CMO and CRO Market: Growing Demand for Outsourcing Services Drives Market Growth

The global biopharmaceutical CMO and CRO market is estimated to be valued at US$32.4 billion in 2022 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030. This market is driven by the increasing demand for outsourcing services in the biopharmaceutical industry.

Market Overview:
The biopharmaceutical CMO and CRO market involves the outsourcing of manufacturing and research services for biologic drugs. These services help biopharmaceutical companies reduce costs, improve efficiency, and focus on their core competencies. With the complexity of biologic drugs and the need for specialized expertise, outsourcing these services to contract manufacturing organizations (CMOs) and contract research organizations (CROs) has become crucial for companies in the industry.

Market Key Trends:
One key trend in the biopharmaceutical CMO and CRO market is the growing demand for integrated services. Many biopharmaceutical companies prefer to work with CMOs and CROs that offer a comprehensive range of services, including formulation development, analytical testing, clinical trials, manufacturing, and packaging. Integrated service providers offer convenience and cost savings by eliminating the need for multiple vendors and ensuring seamless coordination throughout the drug development process.

This trend is driven by the desire to streamline operations, accelerate time to market, and ensure consistency and quality across all stages of the drug development lifecycle. Integrated service providers also have the advantage of providing valuable insights and expertise at each stage, leading to more efficient and successful drug development.

Porter’s Analysis:

Threat of New Entrants: The biopharmaceutical CMO and CRO market is expected to experience a low threat of new entrants. This is due to the high barriers to entry, including the need for extensive knowledge and expertise in biopharmaceutical research and development. Additionally, the market is dominated by established players who have strong relationships with pharmaceutical companies, making it difficult for new entrants to gain a foothold.

Bargaining Power of Buyers: Buyers in the biopharmaceutical CMO and CRO market have significant bargaining power. This is because there are numerous players in the market offering similar services, giving buyers the ability to negotiate favorable terms and prices. Additionally, buyers have the option to switch CMOs and CROs if they are not satisfied with the services provided.

Bargaining Power of Suppliers: Suppliers in the biopharmaceutical CMO and CRO market have moderate bargaining power. While there are certain specialized suppliers who hold unique capabilities or technologies, overall, there are many suppliers available in the market. This gives CMOs and CROs the ability to choose from multiple suppliers and negotiate favorable terms.

Threat of New Substitutes: The threat of new substitutes in the biopharmaceutical CMO and CRO market is low. This is because the services provided by CMOs and CROs are critical to the biopharmaceutical industry, and there are limited alternative options available. Pharmaceutical companies rely on the expertise and capabilities of CMOs and CROs to conduct clinical trials, manufacture drugs, and provide other essential services.

Competitive Rivalry: The competitive rivalry in the biopharmaceutical CMO and CRO market is high. This is due to the presence of numerous players offering similar services and competing for market share. The market is highly fragmented, with both large multinational companies and smaller specialized CMOs and CROs vying for contracts from pharmaceutical companies.

Key Takeaways:

The global Biopharmaceutical CMO and CRO Market Size is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period of 2023-2030. This growth is attributed to the increasing demand for outsourcing services by pharmaceutical companies, as they aim to reduce costs, accelerate drug development timelines, and access specialized expertise.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the biopharmaceutical CMO and CRO market. This can be attributed to the presence of a robust pharmaceutical industry, favorable regulatory environment, and the presence of major key players in the region.

Key players operating in the biopharmaceutical CMO and CRO market include Allphase Clinical Research, AlcheraBio, Alcami, Akos Urgent Care, Agilent, AGC Biologics, Affinity Life Sciences, Inc., Actimus Bio, ACI Clinical, Accumedix, Inc., Absorption Systems, A10 Clinical Solutions, Albuquerque Clinical Trials (ACT), Ajinomoto Bio-Pharma Services, Advanced Clinical Services LLC, ACM Global Laboratories, Accelerated Enrollment Solutions, AbbVie Contract Manufacturing, Advanced BioScience Laboratories, Advanced Clinical Research Institute, and Alliance for Clinical Trials in Oncology, among others. These key players provide a wide range of services in the biopharmaceutical CMO and CRO market, including clinical research, manufacturing, and regulatory support.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it