by The healthcare CMO (contract manufacturing organization) industry provides contract development and manufacturing services for pharmaceutical and biopharmaceutical companies. Healthcare CMOs aid pharmaceutical companies in manufacturing API (active pharmaceutical ingredients), finished dosage forms such as tablets, capsules, liquids, semi-solids and steriles. Choosing a reliable CMO eases the burden and risk associated with internal manufacturing, enabling pharmaceutical firms to focus on drug discovery and commercialization.
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 key trends
One of the key trends in the healthcare CMO market is the shift towards personalized medicines. Developments in genomic sciences and molecular diagnostics are enabling more precise prescribing of treatment based on an individual’s genetic makeup and biomarkers. This is driving demand for specialized manufacturing capabilities by CMOs to produce small batch sizes quickly and flexibly. Companies are outsourcing such production to CMOs so they can focus on the scientific discovery and commercialization aspects of personalized medicines.
Porter’s Analysis:
Threat of new entrants: The healthcare CMO market has moderate threat as setting up CMO facility requires huge capital investments and regulatory approvals. Bargaining power of buyers: Large healthcare and pharma companies have strong bargaining power due to their high demand and volume sales. Bargaining power of suppliers: Suppliers of raw materials and packaging have less bargaining power due to presence of many suppliers in the market. Threat of new substitutes: Low threat due to no close substitutes for CMO services. Competitive rivalry: High competitive rivalry among existing CMOs due to presence of many players and limited number of large pharma customers.
Key Takeaways:
Global Healthcare CMO Market Size is expected to witness high growth during the forecast period. 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.
North America is currently the largest market for healthcare CMOs due to presence of many large pharmaceutical companies in the US. Asia Pacific is expected to witness fastest growth in coming years due growing pharmaceutical industry and availability of low cost manufacturing facilities in China and India. China and India offer low cost CMO facilities along with easy availability of raw materials and expertise which is attracting companies to shift their manufacturing bases to Asia Pacific region.
Key players: 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. Abbott Laboratories, Danaher Corporation and Siemens Healthineers are some of the leading players in healthcare CMO market with capabilities across various manufacturing segments.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
