Global Healthcare Contract Development And Manufacturing Organization Market by Services (Contract Manufacturing, Contract Development) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global healthcare contract development and manufacturing market was valued at USD 204.8 million in 2020. It is expected to grow at an 8.6% compound annual growth rate (CAGR), between 2021 and 2028. The market is expected to grow due to increased outsourcing by pharmaceutical companies as well as R&D investments. To reduce production costs, pharmaceutical and medical device companies outsource low-end services. Over the forecast period, this trend will contribute to the market growth for healthcare contract design and manufacturing organization (CDMO). Market growth will be aided by the presence of service providers who offer value-added services in an integrated or risk-sharing model.

In 2020, the COVID-19 pandemic had a significant impact on the global economy and continues to have an impact on many industries. This pandemic had a positive effect on the healthcare contract development market and the manufacturing organization (CDMO). CDMOs play an important role in meeting the demands of pharmaceutical and biotech companies as well as other end-users during this crisis. Lonza, for example, signed a 10-year contract with Moderna to manufacture the COVID-19 vaccination. CDMO players offer pharma, biotech, as well as other end-users, cost-efficiency, expertise, and time-savings. The IND CDMO market is growing rapidly due to the rapid increase in demand for COVID-19 therapeutics and vaccines. The strong drug pipelines of biotech and pharmaceutical companies makes it look like the market will continue to prosper even after the pandemic.

According to the PhRMA member annual survey 2019, pharmaceutical companies have invested USD 79.6 million in R&D. This is due to factors like rapid technological advances (e.g. artificial intelligence) and the need for CROs/CMOs/CDMOs as well as rising research investments. Many pharmaceutical companies are embracing outsourcing to improve operational efficiency, expand geographical presence, decrease resource costs, gain therapeutic expertise and enhance on-demand services. To gain access to new markets and increase revenues, medical device companies are now focusing their efforts on emerging countries. The overall market for medical device contract manufacturing has seen an increase in OEM consolidation.

Pharmaceutical companies face increasing R&D costs. This is a problem that has a significant impact on their bottom line. CROs and CMOs have formed partnerships to provide integrated outsourcing services. CMOs and CDMOs can outsource research activities, which helps companies speed up their workflow, provide unique services, lower drug development costs, as well as provide the experience and expertise needed to assist research.

Innovations and speed-toclinic factors are critical for many pharmaceutical companies. These are critical requirements that specialty pharmaceutical players and small companies increasingly depend upon. Many CDMOs and CROs are viewed as one-stop shops. A CRO can handle everything, from API development and dosage form to early development and commercialization. A CDMO must be able to provide these services. They should have access to a variety of enabling technologies as well as specialized handling capabilities that can address specific problem statements. These services can address many problems, but there are many CDMO players who have the product design skills that could be crucial in scaling a product idea and bringing it to market.

Services Insights

Contract manufacturing dominated the healthcare contract development and manufacturing organization market and held the largest revenue share at 73.4% in 2020. This is mainly due to the high penetration rate of contract manufacturing in the medical device and pharmaceutical industries. The market for healthcare contract design and manufacturing organization can be divided into two segments based on services: contract development and contract manufacture.

As a way to remain competitive and flexible in an environment of rapidly changing technologies, increasing knowledge, and unstable economic conditions, global pharmaceutical and biotech companies are outsourcing drug development activities. Contract development has many advantages over in-house drug development, including access to industry experts, a shorter time to market, lower cost, and a greater focus on core competencies.

Due to rising rates of chronic diseases and increasing demand for medical devices, outsourcing is a growing trend. The market for healthcare contract organization and healthcare contract development is also being driven by the complexity of manufacturing devices. Further sub-segments of contract manufacturing include API/bulk and finished dose formulations as well as medical devices. The market for healthcare contract design and manufacturing organizations had 49.9% of the largest share in contract manufacturing in 2020. This was the highest revenue share. Further sub-segments of the medical device market are Class I, Class II and Class III. Market growth is positively affected by the availability of advanced manufacturing technologies, cost effectiveness, and an increasing number CMOs.

Regional Insights

North America was the dominant market for healthcare contract development and manufacturing organizations. In 2020, it held 41.1% of the total revenue. This was due to the country's advanced medical infrastructure, lower cost and increasing demand for medical equipment. Further, the region saw a rise in demand for contract manufacturing and contract development due to the growth of the pharmaceutical sector. North America is set to see a lucrative increase in contract development and manufacturing medical devices.

Major changes are expected to take place in the EU's regulatory framework, which could impact market access and entry. Due to strict regulatory policies, the region's market for healthcare contract development is expected to expand. The EU MDR, which was implemented in May 2017, made it mandatory that manufacturers monitor the quality, performance, as well as the quality of medical devices. The market is expected to grow during the forecast period. Market growth is expected to be driven by established market players and superior manufacturing capabilities over the forecast period. Multinational companies will likely increase their investments in healthcare contract development and manufacturing.

Asia Pacific will see the fastest CAGR at 9.5% during the forecast period. This is due to the increasing regulatory focus on quality control in manufacturing medical devices, particularly in emerging economies like China and India. Market growth in Asia Pacific is also expected due to growing healthcare tourism in emerging countries. Due to the rapid growth of healthcare industries, Latin America and the Middle East are expected to see lucrative growth.

Market Share Insights and Key Companies

The rapid adoption of healthcare technology that improves healthcare is the key factor that will determine the competitiveness of the market. Major players are pursuing strategies like mergers, acquisitions and partnerships to maintain market share and diversify their product portfolio. In 2021, for example, Thermo Fisher entered into a definitive agreement to purchase PPD for USD 17.4 million. The following are some of the most prominent players in healthcare contract development and manufacturing organizations:

• Catalent Inc.

• Lonza Group Ltd.

• Recipharm AB

• Siegfried Holding AG

• Thermo Fisher Scientific Inc.

• Covance Inc.

• Jabil

• Sanmina Corporation

• IQVIA Holdings Inc.

• Flexibility

Up Market Research published a new report titled “Healthcare Contract Development And Manufacturing Organization Market research report which is segmented by Services (Contract Manufacturing, Contract Development), By Players/Companies Lonza Group Ltd, Covance Inc, Siegfried Holding AG, Thermo Fisher Scientific Inc, Flex, IQVIA Holdings Inc, Recipharm AB, Jabil, Catalent Inc, Sanmina Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Healthcare Contract Development And Manufacturing Organization Market Report Segments:

The market is segmented by Services (Contract Manufacturing, Contract Development).

Healthcare Contract Development And Manufacturing Organization Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Healthcare Contract Development And Manufacturing Organization Market

Overview of the regional outlook of the Healthcare Contract Development And Manufacturing Organization Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Healthcare Contract Development And Manufacturing Organization Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Healthcare Contract Development And Manufacturing Organization Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Contract Manufacturing

                2. Contract Development

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Healthcare Contract Development And Manufacturing Organization Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Healthcare Contract Development And Manufacturing Organization Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.