by The global healthcare CMO market involves various contract manufacturing organizations that provide pharmaceutical and medical device development and manufacturing services to healthcare companies such as pharmaceutical, biotechnology and medical device companies on a contract basis. These CMO companies manufacture pharmaceutical drugs including tablets, capsules, injectables, ointments etc and medical devices including imaging equipment, surgical equipment, prosthetics etc as per the specifications and requirements of their pharmaceutical and medical device clients.
The global healthcare CMO market is estimated to be valued at US$ 440.5 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increased reliance on outsourcing of healthcare operations and rising demand for cost-effective and scalable manufacturing are expected to drive the growth of the global healthcare CMO market over the forecast period. Pharmaceutical and medical device companies are increasingly outsourcing their manufacturing operations to CMOs to benefit from reduced compliance costs, focus on core competencies such as R&D and marketing, and access to advanced manufacturing technologies. In addition, growing prevalence of chronic diseases and launch of newer biologics and devices has also led to demand for high-quality manufacturing on a larger commercial scale which is effectively met by CMOs, thus propelling the market growth.
Segment Analysis
The healthcare CMO market is divided into pharmaceutical contract manufacturing and medical device contract manufacturing. Pharmaceutical CMO dominates the market with around 60% share primarily because of the large volume of drugs outsourced globally. The pharmaceutical CMO handles activities related to drug development and manufacturing including clinical trials material, commercial manufacturing, packaging and labelling.
PEST Analysis
Political: Healthcare is a sensitive sector globally and regulations vary across countries. Stringent regulatory approval process impacts outsourcing.
Economic: Growing pharma industry, cost pressures on manufacturers, expansion in emerging markets are driving outsourcing and market growth.
Social: Ageing population and disease prevalence are increasing demand for affordable treatment and generic drugs, benefiting CMOs.
Technological: Advanced technologies for personalized medicine, recombinant therapeutics are opportunities. Digital connectivity aids remote monitoring of facilities.
Key Takeaways
Global Healthcare CMO Market Size is expected to witness high growth at a CAGR of 8.3% during the forecast period of 2023 to 2030.
Regional analysis Regional analysis The Asia Pacific region is projected to be the fastest growing market during the forecast period due to presence of large pool of generic manufacturers and contract service providers in countries like India and China.
Key players operating in the healthcare CMO market are Abbott Laboratories, Danaher Corporation, Siemens Healthineers, Bio-Rad Laboratories, Inc., PerkinElmer, Inc., Sysmex Asia Pacific Pte Ltd, Becton, Dickinson and Company, Sight Diagnostics, Horiba, and Nihon Kohden Corporation. Key players Abbott Laboratories is one of the leading players offering end-to-end development and manufacturing services for pharmaceutical and biotech industries. Siemens Healthineers provides complete integrated solutions and services across healthcare delivery chain with imaging, laboratory diagnostics and advanced therapies.
Bio-Rad Laboratories, Inc. focuses on production of diagnostic platforms, life science research, and clinical diagnostic products. They have capabilities for manufacturing sensitive products requiring sterile processing and serialization. PerkinElmer, Inc. offers complete suite of analytical tools and services for drug manufacturing process.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
