Biopharmaceutical CMO & CRO Market Growth & Trends
The global biopharmaceutical CMO and CRO market size is expected to reach USD 54.1 billion by 2030, registering a CAGR of 5.90% over the forecast period, according to a new report by Grand View Research, Inc. Post-pandemic the market is being driven by the growing interest of conventional drug developers in the biological therapeutics. At present, outsourcing has become a cost-saving strategy for small- to medium-sized biomanufacturers, as it helps in eliminating the need for establishing costly specialized facilities or hiring and training personnel. The post-pandemic recovery has started owing to positive pipeline developments across modalities.
For instance, Lonza and Moderna announced a ten-year collaboration for the commercial manufacturing of the COVID-19 vaccine. Such developments compensated for minor delays in clinical trials that occurred during the first half of 2020. The contract manufacturing organization segment is projected to unlock lucrative growth opportunities over the foreseeable future. The decline in R&D productivity and increased development costs have resulted in high pressure on biopharmaceutical manufacturers pertaining to short-term earnings and profit margins. This, in turn, has created lucrative opportunities for the CMOs & CROs to accelerate their business operations.
The robustness of venture capital investments is one of the important supportive factors that has created opportunities for the growth of CMOs. Venture capital funds are considered more reliable than public equity. An increase in the availability of venture funds for life sciences is expected to bolster the growth of CMOs. However, these CMOs & CROs are expected to face competition from in-house departments of pharmaceutical & biotechnology companies. Several big pharma companies like Novartis announced to maintain and expand their biomanufacturing processes in-house over the coming years.
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Report Attribute Details Market Size value in 2023 — USD 32.4 billion Revenue forecast in 2030 — USD 54.1 billion Growth Rate — CAGR 6.6% from 2023 to 2030 Base year for estimation — 2022 Historical data — 2018–2021 Forecast period — 2023–2030
Biopharmaceutical CMO & CRO Market Report Highlights
Non-mammalian cell line-based bioproduction system is expected to be the fastest-growing segment over the forecast period
Innovative strategies are being implemented to identify and explore the potential of various microbes
This can be attributed to increasing investments in research programs for the development of novel therapeutics
The market in North America is recognized as a leader in biopharmaceutical innovations, thereby resulting in a large share of 33.9%
Moreover, the presence of several service providers and a higher concentration & number of biopharmaceutical firms in the region supports the market growth
The key players are involved in establishing mutually beneficial alliances with other emerging CMOs to scale up their production capabilities
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