Healthcare Contract Manufacturing Organization Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 234.55 Billion |
| Market Size (2029) | USD 381.40 Billion |
| CAGR (2024 - 2029) | 9.00 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Healthcare Contract Manufacturing Organization Market Analysis
The Healthcare Contract Manufacturing Organization Market size is estimated at USD 234.55 billion in 2024, and is expected to reach USD 381.40 billion by 2029, growing at a CAGR of 9% during the forecast period (2024-2029).
The major factors propelling the market's growth are the increasing trend of inclination of pharmaceutical and medical device manufacturers toward outsourcing, expiration of patents, increasing expansion of the services offering, and rising investment in R&D.
Medical device and pharmaceutical manufacturers are inclined toward contract manufacturing owing to several benefits offered by CMO companies, such as contract manufacturing, which allows companies to leverage the expertise and efficiency of specialized third-party manufacturers. This can lead to cost savings in labor, equipment, facilities, and materials. In addition, contract manufacturing allows companies to concentrate on their core strengths, such as research and development, regulatory compliance, and marketing, while leaving the production process to specialized partners. Thus, owing to the benefits offered by the CMO to the pharmaceutical and medical devices industry are expected to boost the healthcare CMO market during the forecast period.
Additionally, CMOs' increasing expansion of manufacturing services and facilities is expected to contribute to the market's growth during the forecast period. For instance, in June 2022, Jubilant Pharmova, a wholly-owned subsidiary of Jubilant Pharma Limited, announced that the Government of Quebec granted a loan of CAD 25 million (USD 18.22 million), which includes a forgivable portion of CAD 6.3 million (USD 4.56 million) to fund the CAD 100 million (USD 72.34 million) capacity expansion at the CMO Montreal facility. Similarly, in October 2022, multiple Evonik production sites were upgraded with advanced technologies, such as high-potency API (HPAPI), fermentation, mPEGs, and continuous processing. Thus, expanding these contract manufacturing services is likely to increase its adoption by the pharmaceutical and medical devices industry and is anticipated to boost the market's growth.
Moreover, market players' strategic activities are expected to boost the market's growth during the forecast period. For instance, in September 2023, Aspen Pharmacare Holdings Limited and its wholly-owned South African subsidiary, Aspen SA Operations (Pty) Ltd, agreed with Novo Nordisk AS for the technical transfer and commercial manufacture of human insulin.
Hence, the increasing trend of outsourcing, manufacturing facility expansion, and strategic activities are expected to boost the market during the forecast period. However, stringent regulatory guidelines, increasing lead time, and logistics costs are expected to restrain the market during the forecast period.
Healthcare Contract Manufacturing Organization Market Trends
The Finished Dosage Formulation (FDF) Manufacturing Segment is Expected to Hold a Significant Share of the Market During the Forecast Period
Advances in pharmaceuticals have led to more complex drug formulations, including controlled-release, biologics, and specialty dosage forms, which creates the need for expensive processes such as contract manufacturing. In addition, pharmaceutical companies increasingly outsource non-core activities, including formulation development and manufacturing, to specialized CMOs, allowing them to focus on core R&D and commercialization efforts.
The FDF manufacturing segment is anticipated to grow owing to an increase in patent expiration and increasing funding in R&D. When a patent expires, it opens the door for generic drug manufacturers to enter the market. Generic manufacturers often partner with CMOs to produce their versions of the formerly patented drugs. For instance, Abbvie Inc. reported that the blockbuster drug Humira would lose exclusivity by the end of 2023. Similarly, Bristol Myers Squibb's drug Revlimid is expected to lose its patent by the end of 2025. Hence, CMOs can leverage their existing manufacturing facilities and expertise to produce generic versions of drugs that have lost patent protection. This allows for efficient use of their resources and facilities.
Additionally, strategic partnerships and agreements between the CMO and pharmaceutical companies for manufacturing the FDF are expected to contribute to the segment's growth. For instance, in March 2022, Nutra Pharma Corporation, a biotechnology firm focused on developing and marketing treatments for MS, HIV, and pain, collaborated with Avini Health to serve as a product formulator and contract manufacturer.
Hence, increasing patent expiration and growing partnerships and collaboration are expected to boost the segment's growth during the forecast period.
North America is Expected to Hold a Significant Share in the Market During the Forecast Period
The North American contract manufacturing organizations (CMOs) have evolved from an initial offering of essential manufacturing services to a wide range of services to meet the market and outsourcer demand. Steady growth in the US pharmaceutical industry and increasing outsourcing by major pharmaceutical companies focusing on their core competencies to improve profit margins are driving the country's market.
Partnering with CMOs allows companies to expedite developing and producing pharmaceuticals and medical devices, potentially bringing products to market faster. In addition, collaboration with CMOs provides pharmaceutical and healthcare companies access to specialized manufacturing expertise and technologies that may not be available in-house. Hence, the collaboration agreement between pharmaceutical companies and CMOs is increasing. For instance, in January 2023, Catalent announced that it had signed a development and license agreement with Ethicann Pharmaceuticals Inc., an American specialty pharmaceutical company specializing in creating high-value cannabinoid drug therapies using Zydisorally disintegrating tablet (ODT) technology, to advance Ethicann's clinical drug pipeline. as per the agreement, Catalent would use its Zydis technology to develop pharmaceutical products containing cannabidiol (CBD) and tetrahydrocannabinol (THC) for Ethicann's use in clinical trials for various conditions. Additionally, in May 2023, Moderna Inc. announced a long-term agreement with Ontario-based Novocol Pharma to perform aseptic fill-finish, labeling, and packaging of mRNA respiratory vaccines expected to be produced in Canada.
Furthermore, increasing investment in developing and expanding the contract manufacturing facilities is expected to contribute to the market's growth during the forecast period. CMOs have increasingly adopted continuous manufacturing for biologics production following FDA approval. For instance, in June 2022, Agilent Technologies and Abzena expanded their continuous manufacturing capabilities to manufacture nucleic acid therapeutics and biologics drugs in the United States.
Hence, increasing R&D in pharmaceuticals and collaborative agreements with CMOs is expected to contribute to the market's growth during the forecast period.
Healthcare Contract Manufacturing Organization Industry Overview
The healthcare contract manufacturing market is moderately competitive and has several significant players. In terms of market share, a few major players dominate the market, and some prominent players are vigorously making acquisitions of other companies to consolidate their global market positions. Some of the major market players are Catalent Pharma Solutions Inc., Recipharm AB, Jubilant Biosys Ltd (Jubilant Pharmova Ltd), Pfizer CentreSource (Pfizer Inc.), and Piramal Healthcare.
Healthcare Contract Manufacturing Organization Market Leaders
-
Catalent Pharma Solutions, Inc.
-
Recipharm AB
-
Jubilant Biosys Ltd.(Jubilant Pharmova Ltd.)
-
Pfizer CentreSource (Pfizer Inc.)
-
Piramal Healthcare
*Disclaimer: Major Players sorted in no particular order
Healthcare Contract Manufacturing Organization Market News
- April 2024: Ferring Pharmaceuticals and SK Pharmteco, a CDMO, forged an agreement to enhance commercial manufacturing capacity for the drug substance of Ferring's intravesical gene therapy Adstiladrin (nadofaragene firadenovec-vncg) to secure ample long-term supply.
- March 2024: Tonix Pharmaceuticals Holding Corp. announced its selection of two contract manufacturing organizations (CMOs). Almac Pharma Services, a subsidiary of the privately owned Almac Group, is one of the selected CMOs for the potential launch and commercialization of Tonmya (TNX-102 SL) in the United States.
Healthcare Contract Manufacturing Organization Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
-
4.2 Market Drivers
- 4.2.1 Increasing Inclination of Pharmaceutical and Medical Device Manufacturer Toward Outsourcing
- 4.2.2 Expansion in Services Offering of CMOs
- 4.2.3 Increasing Investment in R&D
-
4.3 Market Restraints
- 4.3.1 Increasing Lead Time and Logistics Costs
- 4.3.2 Stringent Regulatory Requirements
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value – USD)
-
5.1 By Services Type
- 5.1.1 Pharmaceutical
- 5.1.1.1 Active Pharmaceutical Ingredient (API) Manufacturing
- 5.1.1.1.1 Large Molecules
- 5.1.1.1.2 Small Molecules
- 5.1.1.1.3 High Potency API
- 5.1.1.2 Finished Dosage Formulation (FDF) Development and Manufacturing
- 5.1.1.2.1 Solid Dose Formulation
- 5.1.1.2.2 Liquid Dose Formulation
- 5.1.1.2.3 Injectable Dose Formulation
- 5.1.2 Medical Device
- 5.1.2.1 Device Development and Manufacturing Service
- 5.1.2.1.1 Device Engineering Service
- 5.1.2.1.2 Process Development Service
- 5.1.2.1.3 Device Manufacturing Service
- 5.1.2.2 Quality Management Service
- 5.1.2.2.1 Inspection and Testing Service
- 5.1.2.2.2 Packaging Validation Service
- 5.1.2.3 Assembly Service
-
5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.1.3 Mexico
- 5.2.2 Europe
- 5.2.2.1 United Kingdom
- 5.2.2.2 Germany
- 5.2.2.3 France
- 5.2.2.4 Spain
- 5.2.2.5 Italy
- 5.2.2.6 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 India
- 5.2.3.2 Japan
- 5.2.3.3 China
- 5.2.3.4 Australia
- 5.2.3.5 South Korea
- 5.2.3.6 Rest of Asia-Pacific
- 5.2.4 Middle East and Africa
- 5.2.4.1 GCC
- 5.2.4.2 South Africa
- 5.2.4.3 Rest of Middle East and Africa
- 5.2.5 South America
- 5.2.5.1 Brazil
- 5.2.5.2 Argentina
- 5.2.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
-
6.1 Company Profiles
- 6.1.1 Catalent Pharma Solutions Inc.
- 6.1.2 Recipharm AB
- 6.1.3 Jubilant Biosys Ltd (Jubilant Pharmova Ltd)
- 6.1.4 Thermo Fisher Scientific Inc.
- 6.1.5 Boehringer Ingelheim Group
- 6.1.6 Pfizer CentreSource (Pfizer Inc.)
- 6.1.7 Lonza Group
- 6.1.8 Baxter Biopharma Solutions (Baxter International Inc.)
- 6.1.9 Piramal Healthcare
- 6.1.10 Jabil Inc.
- 6.1.11 Celestica Inc.
- 6.1.12 Nordson Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityHealthcare Contract Manufacturing Organization Industry Segmentation
The healthcare contract manufacturing organization market is a segment of the healthcare industry where specialized companies provide manufacturing, development, and other support services to pharmaceutical, biotechnology, medical device, and other healthcare-related companies. These services are typically outsourced to CMOs by companies that may not have the in-house capabilities, infrastructure, or expertise required for certain aspects of the product development and manufacturing process.
The healthcare contract manufacturing organization market is Segmented by services type (pharmaceutical (active pharmaceutical ingredient (API) manufacturing and finished dosage formulation (FDF) manufacturing) and medical devices (device development and manufacturing service, quality management service, and assembly service)) and geography (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 regions globally. The report offers the value (USD) for the above segments.
| By Services Type | Pharmaceutical | Active Pharmaceutical Ingredient (API) Manufacturing | Large Molecules |
| Small Molecules | |||
| High Potency API | |||
| By Services Type | Pharmaceutical | Finished Dosage Formulation (FDF) Development and Manufacturing | Solid Dose Formulation |
| Liquid Dose Formulation | |||
| Injectable Dose Formulation | |||
| By Services Type | Medical Device | Device Development and Manufacturing Service | Device Engineering Service |
| Process Development Service | |||
| Device Manufacturing Service | |||
| By Services Type | Medical Device | Quality Management Service | Inspection and Testing Service |
| Packaging Validation Service | |||
| By Services Type | Medical Device | Assembly Service | |
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Geography | Europe | United Kingdom | |
| Germany | |||
| France | |||
| Spain | |||
| Italy | |||
| Rest of Europe | |||
| Geography | Asia-Pacific | India | |
| Japan | |||
| China | |||
| Australia | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Geography | Middle East and Africa | GCC | |
| South Africa | |||
| Rest of Middle East and Africa | |||
| Geography | South America | Brazil | |
| Argentina | |||
| Rest of South America |
Healthcare Contract Manufacturing Organization Market Research FAQs
How big is the Healthcare Contract Manufacturing Organization Market?
The Healthcare Contract Manufacturing Organization Market size is expected to reach USD 234.55 billion in 2024 and grow at a CAGR of 9% to reach USD 381.40 billion by 2029.
What is the current Healthcare Contract Manufacturing Organization Market size?
In 2024, the Healthcare Contract Manufacturing Organization Market size is expected to reach USD 234.55 billion.
Who are the key players in Healthcare Contract Manufacturing Organization Market?
Catalent Pharma Solutions, Inc., Recipharm AB, Jubilant Biosys Ltd.(Jubilant Pharmova Ltd.), Pfizer CentreSource (Pfizer Inc.) and Piramal Healthcare are the major companies operating in the Healthcare Contract Manufacturing Organization Market.
Which is the fastest growing region in Healthcare Contract Manufacturing Organization Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Healthcare Contract Manufacturing Organization Market?
In 2024, the Asia Pacific accounts for the largest market share in Healthcare Contract Manufacturing Organization Market.
What years does this Healthcare Contract Manufacturing Organization Market cover, and what was the market size in 2023?
In 2023, the Healthcare Contract Manufacturing Organization Market size was estimated at USD 213.44 billion. The report covers the Healthcare Contract Manufacturing Organization Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Healthcare Contract Manufacturing Organization Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Healthcare Contract Manufacturing Organization Industry Report
Statistics for the 2024 Healthcare Contract Manufacturing Organization market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Healthcare Contract Manufacturing Organization analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
