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The biologics contract development and manufacturing organization (cdmo) market size is forecast to increase by $ 10.63 billion at a CAGR of 10.46% between 2024 and 2028. The market is experiencing significant growth due to several key trends. One major factor driving market growth is the availability of cost-efficient resources in emerging markets, which attracts biopharmaceutical companies to outsource their manufacturing needs. Another trend is the advent of big data, which enables CDMOs to optimize their manufacturing processes and improve product quality. Capacity utilization and constraints are also major challenges for the market, as CDMOs strive to meet the increasing demand for biologics while managing their production capacity effectively. To address these challenges, CDMOs are investing in advanced technologies and expanding their manufacturing capabilities to meet the evolving needs of their clients.
Overall, the Biologics CDMO market is expected to continue its growth trajectory, driven by these trends and the increasing demand for outsourced manufacturing services in the biopharmaceutical industry.
The market is witnessing significant growth due to the increasing demand for biological medicinal products, particularly in the areas of small molecules and large molecules, including biologics, biosimilars, cancer therapies, monoclonal antibodies, and treatments for chronic infectious diseases. Pharma clients are turning to CDMOs for their expertise in advanced manufacturing technologies, such as single-use/disposable bioreactors, automation, software development, and process engineering. The market caters to the production of biological medicinal products, such as monoclonal antibodies, for various therapeutic areas, including diabetes patients. CDMOs offer clinical services, quality testing, and supply chain management to ensure the timely delivery of high-quality products.
The market for biologics CDMOs is segmented into large and niche players, with the smaller, niche CDMOs focusing on specific therapeutic areas, such as cancer therapies and tissue processing. The use of advanced manufacturing technologies and the increasing demand for biosimilars are expected to drive market growth in the coming years.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Mammalian segment is estimated to witness significant growth during the forecast period.The global biologics CDMO market is witnessing significant growth due to the increasing demand for biologics, biosimilars, cancer therapies, and monoclonal antibodies. Biologics, derived from living organisms such as animals, plants, or microorganisms, include monoclonal antibodies, recombinant proteins, vaccines, and novel therapies. The market for biologics CDMOs can be segmented into mammalian and microbial cells. Mammalian cells, derived from the tissue of a mammal, are the most commonly used cells in the production of biologics. These cells are cultured in vitro using advanced technology and specialized expertise. The monoclonal segment, which includes monoclonal antibodies and immunotherapies, is a significant contributor to the biologics CDMO market.
The production of these therapies requires cutting-edge technology and niche CDMOs with expertise in fermentation, microbial fermentation, and plant-based expression systems. The supply chain for biologics involves quality testing and third-party logistic providers to ensure the integrity and safety of these complex products. The biopharmaceutical segment, which includes diabetes patients and treatments for chronic infectious diseases, is a major consumer of biologics. The disease landscape is continually evolving, with a growing focus on infectious diseases and evidence-based practice. Biopharmaceutical CDMOs are meeting this demand with advanced manufacturing technologies, such as single-use/disposable bioreactors, to produce smaller batches for clinical trials and commercial production.
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The Mammalian segment accounted for USD 5.74 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is witnessing significant growth due to the increasing demand for clinical services in the biopharmaceutical industry. Advanced automation and software development are key trends in this market, enabling process engineering in the field of biology, tissue processing, and cell bank creation. The aging geriatric population and the resulting multisystem functional decline, including myelosuppression, cardiotoxicity, renal insufficiency, and neurotoxicity, necessitate the production of biological medications through mammalian cell lines and proteins. Pharmaceutical companies are focusing on post-translational changes in therapeutic protein production using mammalian cell cultures. Biological medications, including vaccinations, somatic cells, tissues, and allergies, are being developed using gene therapy and biological molecules.
Cell receptors and metabolic illnesses, such as metabolic syndrome, are also under investigation. CDMOs play a crucial role in this industry by providing contract development and manufacturing solutions, as well as innovative technology services, to small and medium-sized pharmaceutical and biotechnology vendors. The US, with its active government support, advanced infrastructure, and presence of key players like AbbVie, Eli Lilly, Merck, Pfizer, and Amgen, holds a substantial market share in the North American region.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Availability of cost-efficient resources in emerging markets is the key driver of the market. The market encompasses the production of biologics, including small molecules, large molecules, biosimilars, monoclonal antibodies, cancer therapies, and vaccines, for pharma clients. Advanced technology and specialized expertise are essential in this sector, particularly for niche CDMOs specializing in biopharmaceuticals. Biologics CDMOs focus on cutting-edge technology, such as fermentation, microbial fermentation, and plant-based expression systems, to produce recombinant proteins, monoclonal antibodies, and immunotherapies. The Biologics segment, which includes monoclonal antibodies and immunotherapies, is expected to dominate the market due to the rising demand for novel therapies in the disease landscape, particularly for chronic infectious diseases and cancer. The Monoclonal segment, which focuses on monoclonal antibodies, is also expected to grow significantly due to their increasing use in diabetes patients and other therapeutic areas.
The CDMO market also includes third-party logistic providers to ensure efficient supply chain management and evidence-based practice. Countries like China, India, Brazil, and Mexico are emerging as preferred destinations due to their advanced manufacturing technologies, such as single-use/disposable bioreactors, and lower labor costs. The increasing number of FDA-approved manufacturing facilities in these countries further encourages outsourcing.
Advent of big data is the upcoming trend in the market. The market encompasses small molecules and large molecules, including biologics, biosimilars, cancer therapies, monoclonal antibodies, and various other specialized therapies. Biopharmaceutical CDMOs provide supply chain solutions for these advanced biological medicinal products, employing cutting-edge technology and specialized expertise. The market caters to various disease landscapes, such as chronic infectious diseases and cancer, utilizing advanced manufacturing technologies like fermentation, microbial fermentation, and plant-based expression systems. Niche CDMOs focus on specific areas like monoclonal antibodies, immunotherapy, and recombinant proteins, including vaccines and novel therapies. Third-party logistic providers ensure the efficient transportation and quality testing of these sensitive biological materials. In the realm of biologics, the Biologics segment and Monoclonal segment account for significant market share, with monoclonal antibodies and immunotherapy being crucial areas of focus.
Diabetes patients, for instance, greatly benefit from these advanced therapies. Biologic CDMOs employ single-use/disposable bioreactors for smaller, niche projects, ensuring cost-effective and efficient production. Biopharmaceutical companies rely on these CDMOs to provide evidence-based practice and high-quality services, enabling them to bring novel therapies to the market faster. The CDMO market is a critical component of the pharmaceutical industry, driving innovation and progress in the development and manufacturing of biological medicinal products, small-molecule drugs, and biopharmaceuticals.
Capacity utilization and constraints is key challenge affecting the market growth. The market plays a pivotal role in producing small molecules and large molecules, including biologics, biosimilars, cancer therapies, monoclonal antibodies, and vaccines. Biopharmaceutical CDMOs specialize in the production of advanced biological medicinal products, such as recombinant proteins, monoclonal antibodies, and immunotherapies, using cutting-edge technology like fermentation, microbial fermentation, and plant-based expression systems. The market caters to various disease landscapes, including chronic infectious diseases and cancer, and serves pharma clients requiring specialized expertise in niche areas. However, the market faces capacity utilization constraints, which impact the production of biologics, monoclonal antibodies, and vaccines. Approximately 35% of CDMOs encounter minor constraints during the manufacturing process, while 20% face moderate to major constraints.
These constraints hinder the production of therapeutics at their full potential, leading to delays in the launch of new treatments for diabetes patients and other therapeutic areas. To mitigate these challenges, third-party logistic providers offer advanced technology solutions, such as single-use/disposable bioreactors, to smaller, niche BioCDMOs. The use of evidence-based practice and advanced manufacturing technologies, such as continuous manufacturing, further enhances the efficiency and quality testing of biologics.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3P BIOPHARMACEUTICALS S.L.U - A leading player in the market provides innovative solutions, including keyless motorcycle ignition switches among their offerings. This organization's expertise extends beyond the realm of biologics, showcasing their versatility and commitment to diverse industries. Their keyless motorcycle ignition switch is a testament to their engineering capabilities and their dedication to enhancing the functionality and convenience of transportation technology.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for biologics, biosimilars, small molecules, and novel therapies in various disease landscapes. The market caters to the needs of pharma clients in the production of large molecules, including monoclonal antibodies, recombinant proteins, vaccines, and cancer therapies. The market comprises specialized niche CDMOs and biopharmaceutical CDMOs, providing advanced technology and expertise in areas like microbial fermentation, single-use/disposable bioreactors, and advanced manufacturing technologies. The biologics segment, which includes monoclonal antibodies and immunotherapies, dominates the market. Monoclonal segment focuses on the production of monoclonal antibodies using advanced technology like plant-based expression systems.
The market also caters to the production of small molecule drugs using specialized expertise and cutting-edge technology. The supply chain involves quality testing, third-party logistic providers, and evidence-based practice to ensure the production of biological medicinal products that meet international standards. The market serves various therapeutic areas, including infectious diseases, chronic diseases, and cancer therapies. The production of vaccines and biosimilars for diseases like diabetes and cancer therapies is a significant contributor to the market's growth. Novel therapies, such as non-mammalian (microbial) and recombinant proteins, are also gaining popularity in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.46% |
Market growth 2024-2028 |
$ 10.63 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.65 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 49% |
Key countries |
US, Germany, France, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3P BIOPHARMACEUTICALS S.L.U, AbbVie Inc., AGC Biologics, Binex Co. Ltd., Boehringer Ingelheim International GmbH, Bora Pharmaceuticals Co. Ltd, Catalent Inc., Evonik Industries AG, FUJIFILM Corp., Grifols SA, J RETTENMAIER and SOHNE GmbH and Co KG, JSR Corp., Kemwell Biopharma Pvt. Ltd., Lonza Group Ltd., Novartis AG, Rentschler Biopharma SE, Samsung Electronics Co. Ltd., Shenzhen Hepalink Pharmaceutical Co. Ltd., Toyobo Co. Ltd., and WuXi Biologics Cayman Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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