Active Pharmaceutical Ingredients CDMO Market to Grow with a CAGR of 6.10% through 2029
Increasing drug Research & Development is expected to drive the Global Active Pharmaceutical Ingredients CDMO Market growth in the forecast period, 2025-2029.
According to TechSci Research report, “Active
Pharmaceutical Ingredients CDMO Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2029F”, the Global Active
Pharmaceutical Ingredients CDMO Market stood USD 91.98 Billion in 2023 and is
anticipated to project steady growth in the forecast period with a CAGR of 6.10%
through 2029. The expansion of the pharmaceutical and biotechnology sectors can be attributed to various factors, including heightened research and development (R&D) activities, an increase in chronic disease prevalence, the growing significance of generics, and a rise in biopharmaceutical consumption. As pharmaceutical firms concentrate on creating innovative therapies and broadening their product ranges, they frequently enlist the services of Contract Development and Manufacturing Organizations (CDMOs) to fulfill their manufacturing requirements. In recent decades, there has been a growing trend among pharmaceutical companies to outsource their discovery, development, and manufacturing operations to CDMOs. This trend is particularly prominent in the biopharmaceutical industry, where small biotech firms often depend on CDMOs to produce their developmental products as they progress through the pipeline. By collaborating with CDMOs, these companies can capitalize on the CDMOs' expertise and infrastructure, allowing them to concentrate on their core competencies in research and development.
The COVID-19 pandemic has further emphasized the significance of CDMOs in the pharmaceutical supply chain. The pandemic has disrupted the supply chain of Active Pharmaceutical Ingredients (API), resulting in shortages of raw materials, shipping delays, and increased expenses. According to a survey by the Institute for Supply Management, a substantial percentage of firms experienced supply chain disruptions due to COVID-19, underscoring the necessity for robust contingency plans. Consequently, pharmaceutical companies are increasingly relying on CDMOs to mitigate supply chain risks and ensure business continuity.c
CDMOs provide several advantages to the pharmaceutical and biotech sectors, including potential capabilities and cost savings compared to in-house manufacturing. By collaborating with CDMOs, firms can access cutting-edge facilities, specialized expertise, and scalable manufacturing capabilities without requiring substantial upfront investments. This enables companies to bring new drugs to market more quickly and efficiently, ultimately improving patient access to essential medications. The decision to outsource manufacturing to CDMOs is often influenced by the size of the company. Small and medium-sized enterprises (SMEs) typically face fewer stakeholders and organizational obstacles in the decision-making process, allowing for more agile decision-making. SMEs are often more inclined to partner with CDMOs to meet their manufacturing requirements and expedite their product development timelines.
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The Global Active Pharmaceutical Ingredients CDMO Market is segmented into Molecule Type, Synthesis, Drug Type, Workflow, Application, Regional Distribution, and Company.
Based on application, the oncology has emerged as the fastest growing segment in the Global Active Pharmaceutical Ingredients CDMO Market during forecast period. Oncology, or cancer treatment, is a focal point in the pharmaceutical sector due to the increasing global cancer prevalence and demand for effective therapies. To meet this demand, pharmaceutical companies are increasingly outsourcing oncology drug development and manufacturing to Contract Development and Manufacturing Organizations (CDMOs). This shift is primarily driven by the rising incidence of cancer worldwide, a leading cause of mortality with millions of new cases each year. The growing prevalence of cancer, coupled with the demand for personalized treatments, has spurred innovation in oncology drug development. CDMOs play a vital role in this process by providing expertise in API synthesis, formulation development, and manufacturing. The oncology market experiences rapid advancements in research and development, leading to the introduction of novel drug molecules and treatment approaches. Collaborating with CDMOs enables pharmaceutical companies to accelerate the development timeline for oncology drugs, addressing unmet medical needs and improving patient outcomes. This strategic partnership allows pharmaceutical firms to leverage the specialized capabilities of CDMOs in the oncology therapeutic area, ultimately contributing to the growth and innovation of the API CDMO market.
Based on region, Asia Pacific have emerged as the fastest growing region in the Global Active Pharmaceutical Ingredients CDMO Market in 2023. The pharmaceutical industry in the region is experiencing rapid growth, fueled by factors like population expansion, heightened healthcare spending, and growing demand for pharmaceutical goods. This expansion is especially notable in emerging economies like China, India, and Southeast Asian nations, which have witnessed significant investments in healthcare infrastructure and pharmaceutical manufacturing capabilities. In the Asia Pacific area, API CDMOs benefit from various competitive strengths, such as a proficient workforce, reduced production expenses, and favorable regulatory conditions. These attributes make the region an attractive destination for pharmaceutical firms seeking to outsource their API development and manufacturing tasks to streamline costs and gain access to specialized knowledge.
Major companies operating in Global Active
Pharmaceutical Ingredients CDMO Market are:
- Cambrex Corporation
- Thermo Fisher Scientific, Inc.
- Recipharm AB
- Corden Pharma International GmbH
- Samsung Biologics Co., Ltd.
- Lonza Group Ltd.
- Siegfried Holding AG
- Piramal Pharma Limited
- AbbVie Inc.
- Catalent, Inc.
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“The Pharmaceutical Contract Development and Manufacturing Organization (CDMO) oversees the outsourcing of drug substances and collaborates on innovative development programs preceding manufacturing. It stands as a pivotal factor driving substantial growth in the healthcare sector. The global population surge forecasts significant healthcare opportunities. The escalating demand within the pharmaceutical sector underscores the importance of contract development and manufacturing organizations, centralizing innovation and development initiatives. CDMOs facilitate pharmaceutical industries in outsourcing drug production efficiently, reducing time and costs. Increased investments in research and development by pharmaceutical companies are poised to further expand the pharmaceutical CDMO industry”, said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based management consulting firm.
“Active Pharmaceutical Ingredients CDMO Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Molecule Type (Small Molecule, Large Molecule), By Synthesis (Biotech, Synthetic), By Drug Type (Innovative, Generics), By Workflow (Clinical, Commercial), By Application (Cardiology, Oncology, Ophthalmology, Neurology, Orthopedic, Other), By Region and Competition, 2019-2029F”, has evaluated
the future growth potential of Global Active Pharmaceutical Ingredients CDMO
Market and provides statistics & information on market size, structure and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in Global Active
Pharmaceutical Ingredients CDMO Market.
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