Pharmaceutical Contract Research and Manufacturing Market size is set to grow by USD 121.35 billion from 2022-2027

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Pharmaceutical Contract Research and Manufacturing Market size is set to grow by USD 121.35 billion from 2022 2027 — Pharmaceutical Research and Manufacturing

According to a recent report by Technavio, the Pharmaceutical Contract Research and Manufacturing Market is poised to witness significant growth, with an estimated increase of USD 121.35 billion at a CAGR of 10.32% from 2022 to 2027. The key driver behind this growth is the availability of cost-efficient resources in emerging markets, such as China, India, Brazil, and Mexico.

Emerging Markets Drive Growth: Countries like China, India, Brazil, and Mexico have seen remarkable advancements in healthcare infrastructure and technological capabilities in drug development. This has led pharmaceutical companies from developed nations to subcontract research and manufacturing operations to these countries, driven by the availability of labor at lower costs than in developed nations.

Segmentation Overview:

• Service: The market is segmented based on Contract Manufacturing Organization (CMO) and Contract Research Organization (CRO).

• End-user: Segments include Big Pharmaceuticals, Small and Medium-sized Pharmaceuticals, and Generic Pharmaceuticals.

• Geography: Regions covered are North America, Asia, Europe, and Rest of World (ROW).

Contract Manufacturing Organization (CMO) Segment Growth: The CMO segment is anticipated to experience substantial market share growth during the forecast period. CMOs, entities that contractually produce drugs, vaccines, and pharmaceutical products for other companies, are seeing increased demand due to advancements in medical sciences, the rise of specialized medicines, and progress in nanotechnology and stem cell research.

Geographical Overview:

• Asia: Projected to account for 41% of global market growth, Asia stands out as a key region.

• North America: Offers substantial growth prospects for companies.

Market Dynamics: Market Drivers:

• Patent expiries leading to the entry of lower-priced generics and biosimilars.

• Outsourcing generic drug manufacturing to CMOs in emerging nations due to cost efficiency, available labor, and Asia’s dominance in the generic drug market.

Challenges:

• Stereotypical perceptions of CMOs impede CRAM market growth.

• Asian CMOs face limitations in accessing advanced technologies, resulting in reliance on older methods and constraints in large-scale production of biological drugs and vaccines.

Key Insights Covered:

• Compound Annual Growth Rate (CAGR) during the forecast period.

• Factors driving market growth between 2023 and 2027.

• Precise estimation of the market size and its contribution.

• Predictions about upcoming trends and changes in consumer behavior.

• Growth of the market across North America, Asia, Europe, and Rest of World (ROW).

For more detailed insights and information, you can refer to the complete Technavio report on the Pharmaceutical Contract Research and Manufacturing Market.

Source: Technavio