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The Healthcare Contract Manufacturing Market Registered US$ 51.4 Bn in 2019 and it is Estimated to reach more than US$ 110.8 Bn by 2028, likely to grow with a CAGR of 8.9 % during the Forecast Period
The global healthcare contract manufacturing is constantly evolving. They are becoming crucial for the growth of the pharmaceutical, biotech, and medical device industries. These contract manufacturing organizations provide support to these industries in the form of manufacturing services outsourced on a contract basis. Further, as the expiration of patented drugs, rise of generic medicines, and technological innovations like healthcare analytics are influencing product development, the healthcare contract manufacturing market is expected to experience a boom over the forecast period.
Rising Trend of Outsourcing in the Healthcare Industry to Drive the Healthcare Contract Manufacturing Market
Several biopharma and medical device manufacturers are outsourcing the manufacturing of their products due to several benefits offered by the contact manufacturing organizations. Companies are strategically outsourcing production to reduce operational costs, lower drug development risks, adapt to shifting manufacturing requirements, gain access to manufacturing expertise and reduce drug commercialization development times. Additionally, there has been a steady growing demand for API contract manufacturing in recent years, which aids the growth of the healthcare contract manufacturing market. Furthermore, increasing preference for non-invasive surgical procedures is increasing demand for manufacturing large units of endoscopic systems and surgical instruments and several mid-sized organizations largely outsource the manufacturing of these systems, which in turn drives the growth of the healthcare contract manufacturing market.
Looming Expiry of Patents of Several Blockbuster Drugs
In the healthcare industry, several top-selling drugs are facing patent expiration between 2018 and 2024. Some of the drugs losing exclusivity in 2019 are Rituxan, Lyrica, Herceptin, Avastin, Epclusa and Harvoni, Sensipar, Advair, Restasis, Letairis and Suboxone film. This will give rise to the remarkable manufacturing of generic medicines. In addition, a large number of generic manufacturers emerged during 2011 and 2016 when hundreds of billions of dollars worth of branded drug sales lost patent protection. This expansion in market production will require increased manufacturing capabilities, which in turn will increase the demand for healthcare contract manufacturing organizations.
Pharmaceutical & Biopharmaceutical Manufacturing Segment to Hold the Largest Share in the Healthcare Contract Manufacturing Market
Based on type, pharmaceutical & biopharmaceutical manufacturing holds the largest share in the global market as they rely heavily on contract manufacturing organizations for API manufacturing and drug manufacturing. In addition, the rising cost of research and the development of pharmaceutical drugs are also increasing the adoption of contract manufacturing in the pharmaceutical industry.
North America to Hold the Largest Share in the Healthcare Contract Manufacturing Market
Among the regions, North America held the largest market share in the total addressable market. The U.S. dominates the market mainly owing to the presence of several contract manufacturing organizations. In addition, the presence of a large number of medical device manufacturers also contributes to its revenue growth. However, Asia Pacific is expected to grow with a considerable rate over the forecast period as countries such as China and India are growing as the pharmaceutical manufacturing centers. In addition, the availability of low labor costs, cheap raw materials, and favorable regulations also promotes the growth of the Asia Pacific healthcare contract manufacturing market.
Strategic Mergers and Acquisition to be the Key Approach of the Healthcare Contract Manufacturing Market
The healthcare contract manufacturing market is highly fragmented and increasingly competitive. The key players are trying to consolidate the market through strategic mergers and acquisitions. For instance, in August 2018, Catalent, Inc. acquired Juniper Pharmaceuticals, Inc., a company that provides clinical trial manufacturing and high-end fee-forservice pharmaceutical development. This acquisition has expanded and strengthened Catalent’s offerings in formulation development, bioavailability solutions, and clinical-scale oral dose manufacturing, and complemented its integrated worldwide clinical and commercial supply network.
The key players in the healthcare contract manufacturing market are Patheon N.V., Catalent, Inc., Lonza Group, Boehringer Ingelheim Group, PCI Pharma Services, Vetter Pharma-Fertigung GmbH & Co. KG, Almac Group, Dr. Reddy’s Laboratories, Famar SA, and Recipharm AB among several others.
Global Healthcare Contract Manufacturing Market by Type
- Pharmaceutical & biopharmaceutical manufacturing
- Medical device manufacturing segment
Global Healthcare Contract Manufacturing Market by Region
- North America
- Asia Pacific
- Latin America
- Middle East & Africa