by The Contract Pharmaceutical Manufacturing Market provides pharmaceutical product development and manufacturing services to biotechnology and pharmaceutical companies. With years of experience and expertise in the development and commercial manufacturing of small molecules, sterile fill/finish capabilities, and biologics drug substance and drug product, contract manufacturing organizations help companies bring products to market quicker and focus on their core activities.
The Global Contract Pharmaceutical Manufacturing Market is estimated to be valued at US$ 116.88 Mn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2030.
Key Takeaways
Key players: Key players operating in the Contract Pharmaceutical Manufacturing market are Accenture plc, Belden Inc., Cisco Systems, Inc., Claroty Ltd., CyberX, Cyberbit, Darktrace, Deloitte Touche Tohmatsu Limited, Bayshore Networks, Hitachi Systems Security Inc., Fortinet, Inc., OTORIO Ltd., IBM Corporation, Dragos, Inc., Indegy, IOActive Inc., Kaspersky Lab, Leidos, Thales Group, Wurldtech Security Technologies Inc., Honeywell International Inc. (NextNine Ltd.), Nozomi Networks Inc., and NCC Group.
Growing demand: The growing demand for cost effective and efficient manufacturing processes and focus on core competencies across biotechnology and pharmaceutical companies is expected to drive the demand for contract pharmaceutical manufacturing services over the forecast period.
Global expansion: Key contract manufacturing players are expanding globally to tap emerging markets through partnerships and acquisitions. Companies are also investing in advanced technologies like artificial intelligence and blockchain to enhance quality, traceability and security compliance.
Market key trends: One of the key trends in the contract pharmaceutical manufacturing market is the use of advanced technologies like AI, machine learning and automation to drive efficiency gains, optimize processes, enhance data-driven decision making and reduce operational costs. These technologies allow real-time monitoring, predictive maintenance and reduce human errors. This is expected to be a major driver for the market over the next few years.
Porter’s Analysis
Threat of new entrants: In the Contract Pharmaceutical Manufacturing Market Demand the requirements to enter the market are high as one need to invest in infrastructure, licences and comply with strict regulations. This poses as a barrier.
Bargaining power of buyers: Large pharmaceutical companies have strong bargaining power over contract manufacturing organizations as they can switch between contract manufacturers easily.
Bargaining power of suppliers: Contract manufacturers depend on raw material suppliers for supplies so suppliers have some control over pricing and quality of raw materials.
Threat of new substitutes: There is a low threat of substitution in this market as opportunities to replace contract manufacturing services are limited.
Competitive rivalry: The market is consolidated with large players occupying major shares. Intense competition exists between prominent providers to gain market share.
Geographical Regions
North America region accounts for the largest market share in terms value owing to presence of major pharmaceutical companies opting for contract manufacturing in this region. Growing biologics market and patent cliffs have increased outsourcing activities further driving regional market growth.
Asia Pacific region is expected to grow at the fastest CAGR during the forecast period. This is attributed to factors like low manufacturing costs, availability of skilled workforce and excipients at competitive prices. Rising investments by international players to leverage these advantages have augmented regional market revenues.
Geographical Regions
The Asia Pacific region is projected grow at the fastest rate during the forecast period in the contract pharmaceutical manufacturing market in terms of value. Countries like India, China offer competitive advantages like availability of skilled labor, excipients and intermediates at low costs which attracts significant investments from global players in this region. Rising biologics production and patent expiries in the region further stimulates outsourcing activities and drives regional market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
