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The pharmaceutical contract research and manufacturing market size is estimated to grow at a CAGR of 10.32% between 2022 and 2027. The pharmaceutical contract research and manufacturing size is forecast to increase by USD 121.35 billion. 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.
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)). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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.
One of the key factors driving the pharmaceutical CRAM market growth is the availability of cost-efficient resources in emerging markets. Countries such as China, India, Brazil, and Mexico have witnessed significant advances in their healthcare infrastructure and technological advances in their drug development processes. As a result, large and medium-sized pharmaceutical companies from developed countries are outsourcing the research and manufacturing operations of various drugs and therapies to vendors in such countries. One of the key reasons for the increasing popularity of outsourcing these processes is the availability of labor at a comparatively lower price than in developed countries.
Factors such as the increasing number of US FDA-approved manufacturing plants in such countries also encourage outsourcing. For instance, India, which is one of the most preferred countries for CMO, has more than 100 US FDA-approved manufacturing facilities, and the number of such facilities has increased in the country. Therefore, the global pharmaceutical CRAM market is expected to grow strongly during the forecast period.
The growing concern over the patent expiries of various small as well as large molecules is continuously adding to the global CRAM 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 pharmaceutical 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 pharmaceutical 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 pharmaceutical CRAM market during the forecast period.
The stereotypical nature of CMOs is one of the key challenges hindering the pharmaceutical CRAM 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 lack the ability to 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 global pharmaceutical CRAM market during the forecast period.
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.
Global Pharmaceutical Contract Research and Manufacturing (CRAM) Market Customer Landscape
Vendors 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 pharmaceutical contract research and manufacturing under the division, Boehringer Ingelheim BioXcellence. Its offerings include the manufacturing of human pharmaceutical products, animal pharmaceutical products, and biopharmaceuticals on a contract basis for other vendors.
The pharmaceutical contract research and manufacturing market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the CMO segment will be significant during the forecast period. CMOs are organizations that manufacture drugs and other pharmaceutical therapies, such as vaccines and healthcare products, on a contract basis for pharmaceutical vendors and biotechnology companies. Advances in medical sciences and the growing adoption of speciality 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 global pharmaceutical CRAM 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 pharmaceutical vendors 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.
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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 vendors 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 global pharmaceutical CRAM 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 pharmaceutical vendors globally. These solutions include contract research solutions and innovative technology services. Various small- and medium-sized pharmaceutical vendors and biotechnology vendors 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.
The outbreak of COVID-19 adversely affected all countries in North America, especially the US. However, the market in the region is currently witnessing a significant increase in the number of pharmaceutical CMOs. Various small- and medium-sized CMOs are entering the market in the region with innovative services in terms of drug manufacture and distribution.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Pharmaceutical Contract Research And Manufacturing (CRAM) Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.32% |
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Market growth 2023-2027 |
USD 121.35 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
9.35 |
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Regional analysis |
North America, Asia, Europe, and Rest of World (ROW) |
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Performing market contribution |
Asia at 41% |
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Key countries |
US, Germany, UK, China, and India |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, 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. |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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