Healthcare Contract Development And Manufacturing Organization Industry Overview
The global healthcare contract development and manufacturing organization market size is expected to reach USD 471.0 billion by 2030 at a CAGR of 9.2% according to a new report by Grand View Research, Inc. The market is expected to show lucrative growth due to increasing RD expenditure and rising outsourcing trends.
Healthcare contract development and manufacturing organization (CDMO) provides outsourcing services to various pharmaceutical industries on a contract basis. An increase in the outsourcing by pharmaceutical companies, expansions in the pharmaceutical industry, and the support of CDMOs in reducing the operational and capital expenses are some of the major factors anticipated to propel the market growth in the forecast period.
In addition, growing pressure on pharmaceutical and medical device companies to follow stringent timelines has increased the demand for outsourcing development and manufacturing activities to CDMOs. Further, due to the increasing demand for medical devices in emerging countries, various companies are shifting their focus on research and development and outsourcing medical devices. Also, the rise in outsourcing of RD and the growing competency of CDMOs are expected to further contribute to the growing demand for early-stage development CDMOs by life science companies.
However, increasing logistic costs, serialization issues faced by healthcare organizations, and the threat of infringement of Intellectual Property (IP) rights are anticipated to restrain the market growth for healthcare contract development manufacturing organization over the forecast period.
Healthcare Contract Development and Manufacturing Organization Market Segmentation
Grand View Research has segmented the global healthcare contract development and manufacturing organization market based on services and region:
Based on the Services, the market is segmented into Contract development, and Contract manufacturing.
- Global pharmaceutical and biotech companies are increasingly outsourcing drug development activities to CROs and academics as a strategy to stay competitive and flexible in a world of increasingly sophisticated technologies, exponentially growing knowledge, and an unstable economic environment.
- The medical device segment is further sub-segmented into Class I, Class II, and Class III devices. Access to advanced manufacturing technologies, cost-effectiveness, and the increasing number of CMOs are some major factors positively affecting the market growth.
Key Companies and Market Share Insights
The key parameter affecting the competitive nature is the rapid adoption of advanced healthcare technology for improved healthcare. Also, to retain market share and diversify the product portfolio, major players are undertaking strategies such as mergers, acquisitions, and partnerships. For instance, in 2021, Thermo Fisher underwent a definitive agreement to acquire PPD for USD 17.4 billion. Some prominent players in the healthcare contract development and manufacturing organization market include:
- Catalent Inc.
- Lonza
- Recipharm AB
- Siegfried Holding AG
- Thermo Fisher Scientific, Inc.
- Labcorp Drug Development (Covance Inc.)
- Jabil
- Sanmina Corporation
- IQVIA Holdings Inc.
- Flex
Order a free sample PDF of the Healthcare Contract Development And Manufacturing Organization Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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