Biopharmaceutical CMO And CRO Market Size (2024 - 2029)

Biopharmaceutical CMO And CRO Market Analysis

The Biopharmaceutical CMO And CRO Market size is estimated at USD 78.17 billion in 2024, and is expected to reach USD 115.35 billion by 2029, growing at a CAGR of 6.70% during the forecast period (2024-2029).

The market is driven by factors such as growing investment by market players to expand the biopharmaceutical CMO facility, growing robust pharmaceutical pipeline, and increasing strategic activities by the market players such as collaboration and partnership.

Due to the rising trend of outsourcing in the biopharmaceutical industry, the global CMO/CRO market is experiencing significant growth. For instance, in November 2022, Baxter International Inc. unveiled a substantial USD 100 million expansion for its sterile fill and finish manufacturing facility in Halle (Halle Westfalen), Germany. The Halle facility is operated by BioPharma Solutions (BPS), a branch of Baxter that collaborates with renowned pharmaceutical and biotech companies to create and contract-manufacture drug products for injectable pharmaceuticals (parenteral).

Similarly, in June 2022, the Government of Quebec bestowed a loan of USD 18 million upon Jubilant Pharma Limited to facilitate the expansion of the contract manufacturing facility in Montreal. Moreover, in October 2022, Evonik unveiled the completion of an expansion worth EUR 36 million (USD 38.12 million) for its contract manufacturing facilities in the United States and Europe. At various Evonik production sites, cutting-edge technologies encompassing high-potency APIs, fermentation, mPEGs, and continuous processing were either integrated or improved. Thus, expanding these contract manufacturing services is likely to increase their adoption by pharmaceutical and medical device companies and is anticipated to boost market growth.

Moreover, market players are also adopting several strategies, such as mergers, acquisitions, and collaboration, which are expected to boost the biopharmaceutical CMO & CRO market growth over the forecast period. For instance, in November 2023, Ichor Life Sciences, a CRO and longevity biotechnology company, announced the launch of Ichor Clinical Trial Services. With the founding of Ichor Clinical, the company can now serve biotechnology and pharmaceutical clients from early preclinical studies through late-stage clinical trials and F-A approval.

Additionally, in July 2023, TransCure bioServices, a CRO specializing in humanized mouse models, formed a strategic partnership with Precl na Inc., based in South Korea, specializing in autoimmune and inflammatory diseases. This partnership is a significant milestone for TransCure as it expands its presence into the APAC region, strengthens its service portfolio, and enhances the quality of its research outcomes.

Hence, increasing funding for expanding manufacturing facilities and strategic initiatives taken by the CRO and CMO companies is expected to boost the market over the forecast period. However, limited outsourcing among well-established biopharmaceutical manufacturers and regulatory challenges are expected to restrain the market over the forecast period.

Biopharmaceutical CMO And CRO Industry Segmentation

As per the scope of the report, biopharmaceutical CMO (contract manufacturing organization) refers to companies that provide manufacturing services to biopharmaceutical companies. They handle the production of drugs, biologics, or other pharmaceutical products on a contractual basis.

The biopharmaceutical CMO and CRO market is segmented by source, service type, contract research, products, and geography. By source, the market is segmented as mammalian and non-mammalian. The market is segmented by service type as contract manufacturing (process development, fill and finish operations, analytical & qc studies, and packaging). The market is segmented by contract research as oncology, inflammation & immunology, cardiology, neuroscience, and others. The market is segmented by product as biologics and biosimilars; by geography, the market is segmented as North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major global regions. The report offers the value (in USD) for the above segments.