The healthcare contract manufacturing outsourcing market is projected to grow at a CAGR of 8.34% to reach US$242.990 billion by 2025, from US$150.258 billion in 2019. Like every other business, Healthcare Sector also leverages the outsourcing process in the manufacture of drugs or medical devices. Contract manufacturing is a method for getting drugs and devices manufactured by an outsourcing firm dealing in that business. The increasing number of patients puts pressure on the hospitals to maintain appropriate facilities to meet the expectations in terms of infrastructure, workforce, medicines, and equipment. Outsourcing of some of the processes like drug or medical device manufacturer is being demanded by the Healthcare sector to be able to focus on core competencies while minimizing the cost of operations.
Experience and expertise by Healthcare outsourcing manufacturing market are driving the demand for such a market. On top of it, Healthcare providers can avoid unnecessary capital investments which might strain their resources. New players, willing to enter the healthcare market, can outsource the manufacture of drugs and devices to sustain their existence while providing quality services. The cost factor is the major reason for the booming Healthcare CMO market. Bypassing the process of hiring experts and saving on time is an added advantage for the customers of this market.
The increased productivity while reducing the probability of errors is contributing to the market growth in the forecast period. Mistakes in the healthcare sector can be fatal for the patient and destroy the hard-earned earnings of the service provider. Healthcare CMO companies tend to remain up-to-date with the latest changes in the industry and can provide optimal solutions to their customers. This adds to the growth of the companies under this sector. Research & Development of Drugs is a costly exercise and is the major reason why Healthcare CMO Industry is Booming. Besides, governmental pressure to remain competitive and efficient while ensuring the safety of the patients in shaping the way the healthcare sector is transforming. Patent Expiration is also a major reason why companies are resorting to healthcare CMO.
CMO companies, due to economies of scale, are able to minimize the cost of production of drugs and can maintain their profits and let the healthcare service provider maintain their incremental profit.
The Asia Pacific region is expected to show higher growth prospects in the forecast period due to high dependence on the healthcare CMO firms from developed countries. To meet the rising demand for medical equipment for surgeries and other medical aids, countries, such as India, are outsourcing the manufacture of these devices and maintaining its quality standards. Developed countries such as America, have significantly invested in updating and upgrading their facilities and enhanced production more efficiently. America shares a substantial portion of the pie of this market due to the presence of a large number of pharmaceutical companies. European region also holds a major portion of the market due to high governmental support and booming biopharmaceutical sector.
|Market size value in 2019||US$150.258 billion|
|Market size value in 2025||US$242.990 billion|
|Growth Rate||CAGR of 8.34% from 2019 to 2025|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Services, Type, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Jubilant Pharma LLC, Pfizer CentreOne, Lonza Group, AGC Group, Recipharm AB, Catalent, Inc., The Aenova Group, Baxter Healthcare Corporation, Boehringer Ingelheim International GmbH, DPx Holdings|
|Customization scope||Free report customization with purchase|
o Pharmaceutical CMO
o Medical Device CMO
o North America
o South America
o Middle East and Africa
o Asia Pacific
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