Pharmaceutical Contract Research and Manufacturing Market Analysis North America,Asia,Europe,Rest of World (ROW) - US,Germany,UK,China,India - Size and Forecast 2023-2027

Pharmaceutical Contract Research Market Forecast 2023-2027 

The pharmaceutical contract research and manufacturing market size is estimated to grow by USD 121.35 billion at a CAGR of 10.32% between 2022 and 2027. The growth of the market depends on several factors, including the availability of cost-efficient resources in emerging markets, the growing need to focus on core competencies, and the growing need to focus on core competencies. The growth of the market is significantly boosted by the accessibility of economical resources in emerging markets. Nations such as China, India, Brazil, and Mexico have demonstrated notable progress in healthcare infrastructure and technological innovations within drug development procedures. This progress has resulted in an upswing in outsourcing activities by prominent pharmaceutical companies from developed countries, both large and medium-sized.

What will be the size of the Pharmaceutical Contract Research And Manufacturing (CRAM) Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by service (CMO and CRO), end-user (big pharmaceuticals, small and medium-sized pharmaceuticals, and generic pharmaceuticals), and geography (North America, Asia, Europe, and Rest Of World (ROW)).

By Service

The market share growth of the CMO segment will be significant during the forecast period. CMOs are organizations that manufacture drugs and other medicine therapies, such as vaccines and healthcare products, on a contract basis for medicine companies and biotechnology companies. Advances in medical sciences and the growing adoption of specialty medicines, along with other developments such as nanotechnology and stem cell research, are leading to the emergence of drugs that have a short half-life. Such developments are creating demand for more composite manufacturing processes.

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The CMO segment was valued at USD 84.92 billion in 2017 and continued to grow until 2021. The CMO segment of the market has witnessed significant growth in recent years, owing to the increasing trend of outsourcing the manufacture of various small molecules and biologic drugs by companies globally. Emerging countries such as India, Brazil, China, and Mexico are the major countries in the CMO segment due to the presence of cheap labor and the availability of land at a low cost for setting up manufacturing facilities.

By Regions

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Asia is estimated to contribute 41% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to companies in North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

North America dominates the CRO segment of the market due to the presence of various large-scale CROs in the US. For instance, IQVIA, which is the world's largest CRO, is headquartered in the US and is known to provide R&D solutions to various large medicine companies globally. These solutions include contract research solutions and innovative technology services. Various small- and medium-sized medicine companies and biotechnology companies are also dependent on the technologies and services provided by such CROs in the region. Companies such as Charles River and Laboratory Corporation of America are some of the major CROs that are headquartered in the region and provide R&D services globally.

Market Dynamics and Customer Landscape

The Pharmaceutical Contract Research And Manufacturing (CRAM) Market is being driven by the increasing demand for cutting-edge processes and integrated drug development services. As pharmaceutical companies seek to streamline their operations and focus on core competencies, they are outsourcing various aspects of drug development and manufacturing to Contract Manufacturing Organizations (CMOs) and Contract Development and Manufacturing Organizations (CDMOs). These entities provide a range of services, including drug production, packaging, quality control, and drug delivery systems, allowing pharmaceutical companies to bring new drug candidates to market more efficiently and cost-effectively.

Additionally, the rise in the development of therapeutics and vaccines for various diseases has spurred the need for specialized expertise and infrastructure, which CRAM providers offer. The expansion of biologics and biopharmaceuticals, as well as the growing demand for generic drugs, further contributes to the growth of the CRAM market. Digitalization is also playing a significant role, with CRAM providers leveraging technology to enhance efficiency and collaboration throughout the drug development process. Overall, the CRAM market is poised for continued growth as pharmaceutical companies increasingly rely on outsourcing partners to navigate complex drug development processes and bring innovative therapies to market.

Our researchers analyzed the data with 2022 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.

Key Market Driver

The availability of cost-efficient resources in emerging markets emerges as a key driver propelling the growth of the market. Countries like China, India, Brazil, and Mexico have made significant strides in healthcare infrastructure and technological advancements in drug development processes. This development has led to a surge in outsourcing by large and medium-sized pharmaceutical companies from developed nations. Outsourcing research and manufacturing operations to these countries is favored due to the availability of labor at lower costs compared to developed nations.

Moreover, the increasing number of US FDA-approved manufacturing plants in emerging markets further fuels the outsourcing trend. For example, India boasts more than 100 US FDA-approved manufacturing facilities, signifying its status as a preferred destination for Contract Manufacturing Organizations (CMOs). The expanding pool of FDA-approved facilities in emerging markets strengthens confidence in outsourcing partnerships, driving the growth of the global Pharmaceutical CRAM Market during the forecast period.

Significant Market Trends

The growing concern over the patent expiries of various small as well as large molecules is continuously adding to the global market growth. Patent expiry leads to the loss of market exclusivity of approved drugs and creates opportunities for the entry of generic drugs and biosimilars, which are priced at a lower rate. The generic versions of these drugs, despite having similar efficacy as the original drug, cost less, resulting in value erosion of the global market. Due to the low cost and profit margins associated with generics, various large medicine companies outsource the manufacturing process of their generic drugs to CMOs in emerging countries such as India. This process is outsourced to the CMOs in emerging countries due to the low cost of manufacturing, availability of labor, and ease of distribution, as the market in Asia is largely dominated by generic drugs. 

Moreover, as a result of the looming patent cliff and the cost-effective nature of generics, the market is also witnessing an increasing adoption of generic drugs in the US and in the developed countries of Europe. Hence, the market opportunity for CMOs is increasing in these regions. Thus, the increasing number of patent expiration of drugs will increase the demand for CRO and CMO services which in turn will boost the growth of the global market during the forecast period.

Major Market Challenge

The stereotypical nature of CMOs is one of the key challenges hindering market growth. Despite recent advances in the healthcare infrastructure, CMOs in Asia, which hold the highest share of the global CMO market, lack access to advanced technologies. Hence, they use older technologies to manufacture drugs. These CMOs cannot produce biological drugs and vaccines on a large scale. This is primarily due to the complex manufacturing processes of biological drugs, which require advanced technologies. The cost of manufacturing such drugs is also usually high.

Many global CMOs operating on a small scale lack the funding required to produce biological drugs on a large scale. As a result, the growth opportunity for the small and medium-sized CMOs is restricted to the growth of small molecule-based generic drugs. This is currently a major challenge faced by CMOs, which is expected to significantly hinder the growth of the market during the forecast period.

Key Market Customer Landscape

The 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 growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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.

Boehringer Ingelheim International GmbH - The company offers under the division, Boehringer Ingelheim BioXcellence. Its offerings include the manufacturing of human pharmaceutical products, animal products, and biopharmaceuticals on a contract basis for other companies. 

The  market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Almac Group Ltd.
• Boehringer Ingelheim International GmbH
• Cadila Pharmaceuticals Ltd.
• Catalent Inc.
• Charles River Laboratories International Inc.
• Cmic Holdings Co. Ltd.
• Dr Reddys Laboratories Ltd.
• ICON plc
• IQVIA Holdings Inc.
• Laboratory Corp. of America Holdings
• Lonza Group Ltd.
• Lupin Ltd.
• Recipharm AB
• Samsung Electronics Co. Ltd.
• Syneos Health Inc.

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.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.

• Service Outlook 
  • CMO
  • CRO

• End-user Outlook
  • Big pharmaceuticals
  • Small and medium-sized pharmaceuticals
  • Generic pharmaceuticals

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • Rest of World (ROW)
    • Brazil
    • Argentina

Market Analyst Overview

The market is thriving, driven by the increasing demand for drug development services and contract manufacturing organizations (CMOs). As medicine companies seek to streamline operations and reduce costs, they turn to medicine outsourcing through clinical research organizations (CROs) and drug formulation services. These entities offer a wide range of services, including API manufacturing, drug discovery services, and biopharmaceutical manufacturing. Additionally, drug delivery systems and pharmaceutical packaging services play a crucial role in ensuring the safety and efficacy of medications. Regulatory compliance services, analytical testing services, and quality assurance are essential for maintaining GMP compliance and ensuring drug efficacy. With a focus on drug scale-up services and pharmaceutical supply chain management, the market continues to evolve to meet the evolving needs of the pharmaceutical industry.

In the dynamic realm of pharmaceuticals, contract services and outsourcing play pivotal roles in driving innovation and efficiency across the industry. As the global market continues to evolve, various trends and advancements are reshaping the landscape of pharmaceutical contract manufacturing and research services. Let's explore some key elements shaping this domain. There are Expanding Opportunities in Contract Services sector.  Pharmaceutical Contract Services and Outsourcing have become integral components of the industry, offering a range of solutions from drug development to manufacturing and distribution.

The availability of advanced technologies and cost-efficient resources in emerging markets such as China, India, Brazil, and Mexico has spurred significant growth in this sector. These countries have made substantial investments in healthcare infrastructure and technological advancements, attracting outsourcing activities from large and medium-sized pharmaceutical companies worldwide. Key Players and Emerging Trends are given here. Companies like CordenPharma International, WuXiAppTec, and RedHillBiopharma are leading the way in providing comprehensive contract manufacturing and research services. They offer expertise in areas such as high potency API (HPAPI) production, solid formulations, finished dose formulations, and regulatory pathways.

Innovative Drug Development and Manufacturing programs are essential for the industry. The pharmaceutical industry is witnessing remarkable advancements in drug development processes, including the emergence of novel therapies and formulations. Notable examples include AZD1222, developed by AstraZeneca, and INO-4800, developed by Inovio Pharmaceuticals, both representing cutting-edge mRNA vaccine technology. Additionally, the increasing interest in cannabinoids like Cannabidiol (CBD) and Tetrahydrocannabinol (THC) has led to the development of new formulations and regulatory pathways. Addressing Regulatory Compliance and Quality Assurance is of utmost importance in the industry.  Ensuring regulatory compliance and maintaining high-quality standards are paramount in pharmaceutical contract manufacturing. Companies like Zydis and Harmans specialize in providing innovative solutions for solid formulations and regulatory pathways, facilitating the development and commercialization of pharmaceutical products.

The role of Global Health Organizations is important in the present time. Global health organizations such as the World Health Organization (WHO) play a crucial role in shaping regulatory frameworks and promoting international collaboration in pharmaceutical research and development. Their guidance and recommendations influence regulatory pathways and quality standards across the industry. As the pharmaceutical contract manufacturing and research services market continues to expand, opportunities abound for companies to innovate and collaborate in bringing new therapies to market. With advancements in technology, growing interest in novel drug formulations, and increasing regulatory scrutiny, the industry is poised for continued growth and evolution.

In conclusion, pharmaceutical contract services and outsourcing play vital roles in driving innovation, efficiency, and accessibility in the pharmaceutical industry. By leveraging emerging trends, embracing technological advancements, and prioritizing regulatory compliance and quality assurance, companies can navigate the complexities of the global market and contribute to improving healthcare outcomes worldwide.

 

Pharmaceutical Contract Research And Manufacturing (CRAM) Market Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.32%
Market growth 2023-2027	USD 121.35 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.35
Regional analysis	North America, Asia, Europe, and Rest of World (ROW)
Performing market contribution	Asia at 41%
Key countries	US, Germany, UK, China, and India
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Almac Group Ltd., Boehringer Ingelheim International GmbH, Cadila Pharmaceuticals Ltd., Catalent Inc., Charles River Laboratories International Inc., Cmic Holdings Co. Ltd., Dr Reddys Laboratories Ltd., ICON plc, IQVIA Holdings Inc., Laboratory Corp. of America Holdings, Lonza Group Ltd., Lupin Ltd., Recipharm AB, Samsung Electronics Co. Ltd., Syneos Health Inc., Thermo Fisher Scientific Inc., PCI Pharma Services, Parexel International Corp., OPTIMAPHARM d.o.o., and Novotech Australia Pty Ltd.
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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