What Fueled The Previous Growth In The Biopharmaceutical CMO And CRO Market?
The biopharmaceutical cmo and cro market has seen considerable growth due to a variety of factors.
• In recent years, the market size for biopharmaceutical Contract Manufacturing Organizations (CMO) and Contract Research Organizations (CRO) has shown prolific growth. The market is slated to expand from a worth of $33.33 billion in 2024 to $35.6 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 6.8%.
Factors contributing to this growth during the historical period include increased investment in biopharmaceutical research and development, rising demand for novel therapies, a broader biologics pipeline, robust growth in the biopharmaceutical sector, and the evolution of outsourcing strategies implemented by pharmaceutical companies.
What Can Be Expected from the Biopharmaceutical CMO And CRO Market Size?
The biopharmaceutical cmo and cro market is expected to maintain its strong growth trajectory in upcoming years.
• A significant surge is predicted in the size of the biopharmaceutical CMO and CRO market in the coming years. It is anticipated to expand to $45.89 billion by 2029, with a CAGR of 6.6%.
The growth during the forecasted period can be accounted for by increasing outsourcing in drug development and manufacturing, the need for cost-effective production methods, the expansion of therapeutic areas and drug pipelines, rising demand for personalized medicine and an boost in investment in biotechnology startups. The forecast period is also expected to see growing trends such as the adoption of automated and high-throughput technologies, the use of advanced analytics and artificial intelligence in drug development, increased demand for cell and gene therapies, enhanced integration of digital technologies in clinical trials, and a rise in outsourcing of complex biopharmaceutical processes.
What Are the Critical Driver Fuelling The Biopharmaceutical CMO And CRO Market's Growth?
The growth of the biopharmaceutical CMO and CRO market is expected to be fueled by the surge in investment in research and development. Several factors, including the quest for innovation, competitive demands, the requirement to meet changing market needs, and government incentives, are contributing to the increase in research and development investments. This investment allows CMOs and CROs to devise improved manufacturing techniques and research processes, subsequently enhancing their skills and operational efficiency. This pursuit of innovation captures and sustains clients by offering advanced solutions while ensuring regulatory adherence. For example, Eurostat, the statistical office of the European Union based in Luxembourg, reported that in 2022, the research and development (R&D) expenditure of the EU increased by 6.34%, reaching €352 billion ($384.42 billion) from €331 billion ($361.48 billion) in the previous year. Hence, the escalated investment in research and development is propelling the growth of the biopharmaceutical CMO and CRO market.
How Is The Biopharmaceutical CMO And CRO Market segmented?
The biopharmaceutical cmo and cromarket covered in this report is segmented –
1) By Product: Biologics, Biosimilars
2) By Service Type: Contract Manufacturing, Contract Research
3) By Source: Mammalian, Non-Mammalian
Subsegments:
1) By Biologics: Monoclonal Antibodies (mAbs), Vaccines, Recombinant Proteins, Cell and Gene Therapies, Antibody-Drug Conjugates (ADCs), Therapeutic Enzymes
2) By Biosimilars: Biosimilar Monoclonal Antibodies, Biosimilar Insulins, Biosimilar Growth Hormones, Biosimilar Erythropoietins, Biosimilar Granulocyte Colony-Stimulating Factors (G-CSFs)
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How Are Emerging Trends Reshaping The Dynamics Of The Biopharmaceutical CMO And CRO Market?
Major players in the biopharmaceutical CMO and CRO market are forging strategic alliances to improve their services, increase efficiencies, and fast-track drug development for biopharmaceutical companies. These strategic alliances are essentially collaborations where companies exploit the strengths and resources of each other for mutual benefits and success. For example, Abzena plc., a biopharmaceutical company based in the UK, formed an alliance with Argonaut Manufacturing Services Inc., a U.S.-based contract manufacturing organization (CMO), in June 2024. Their aim was to meld drug development and manufacturing solutions for their clients. By doing so, they aspire to deliver expedited, complete drug development and manufacturing solutions that boost efficiency, decrease costs, and simplify biopharmaceutical production for clients.
Who Are the Key Players In The Biopharmaceutical CMO And CRO Market?
Major companies operating in the biopharmaceutical CMO and CRO market are:
• Thermo Fisher Scientific Inc.
• Boehringer Ingelheim International GmbH
• Eurofins Scientific SE
• Lonza Group AG
• Syneos Health Inc.
• Catalent Inc.
• Charles River Laboratories International Inc.
• Parexel International (MA) Corporation
• Samsung Biologics Co. Ltd.
• CELLTRION INC.
• Medpace Holdings Inc.
• Fujifilm Diosynth Biotechnologies UK Limited
• Almac Group
• Pharmaron Beijing Co. Ltd.
• Worldwide Clinical Trials
• KBI Biopharma
• Inotiv Inc.
• Caidya
• Rentschler Biopharma SE
• Celerion Inc.
• TFS HEALTHCARE LIMITED
What Is The Most Dominant Region In The Biopharmaceutical CMO And CRO Market?
North America was the largest region in the biopharmaceutical CMO and CRO market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biopharmaceutical CMO and CRO market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
