Healthcare Contract Development and Manufacturing Organization Market

The global healthcare contract development and manufacturing organization market size was valued at USD 204.52 billion in 2020 and is projected to register a substantial CAGR during the forecast period, 2021-2028. The market growth is attributed to rapid growth of the pharmaceutical industry, rise in the outsourcing by the pharmaceutical companies, and lowering the capital and operational expenses by contract development and manufacturing organization.

A company that provides services such as drug development through drug manufacturing and is being served to different other pharmaceutical companies is known as contract development and manufacturing organization. This is also widely called as a contract manufacturing organization. The outsourcing of the development and organization activities manufacturing is adopted majorly by small-sized pharmaceutical companies due to lack of internal capabilities.

The outbreak of COVID-19 pandemic had a challenging impact on the market as there are various unprecedented issues in front of the drug developers. The pandemic has brought drastic aspects of the pharmaceutical industry starting from drug development, drug manufacturing, their supplies, their trials, and then sending it to supply chain logistics. However, all the problems mentioned are short-term and are likely to overcome as the pandemic starts subsiding.

Market Trends, Drivers, Restraints, and Opportunities

• Offering solutions ranging from the development of drugs to the manufacturing of drugs to all the medical & clinical device companies at one place. This is expected to drive the market growth.
• Increasing demand for biological and molecules in developing countries and increasing number of outsourcing the manufacturing activities to development and manufacturing organizations are acting as key driving factors for the market.
• Massive investments for research & development, expansion of capacity, and access to specialized knowledge & resources is anticipated to help in the growth of the market.
• The intimidation of infringement of Intellectual Property (IP) rights, rise in the cost of logistics, and issues faced by healthcare organizations for sterilizations are expected to hamper the market.

Scope of the Report

The report on the global healthcare contract development and manufacturing organization market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Contract manufacturing is anticipated to expand at a fast CAGR

On the basis of services, the global healthcare contract development and manufacturing organization market is bifurcated into contract development and contract manufacturing. The contract development segment is further divided into preclinical, clinical, and laboratory devices. The preclinical segment is sub-divided into toxicology testing, bioanalysis & DMPK studios, and other preclinical services. The clinical segment is further segmented into phase I, phase II, and phase III. The laboratory services are further bifurcated into analytical services and bioanalytical services.

The contract manufacturing segment is divided into API/bulk drugs, medical devices, and finished dose formulations. The medical devices segment is further divided into class I, class II, and class III. The contract manufacturing segment held a major share of the market in 2019 with a share of more than 70.2% and is anticipated to expand at a fast CAGR over the forecast period owing to complexity in manufacturing devices coupled with rise in the use of medical devices due to increase in incidence of chronic diseases.

Asia Pacific is expected to grow at a rapid pace

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a key share of the market in 2019 and is expected to continue to do so over the forecast period. The regional market growth is attributed to increase in demand for pharmaceutical products as a result of which pharmaceutical companies start to outsource the manufacturing and development of drug to contract development and manufacturing organization. However, the market of Asia Pacific is expected to grow at a rapid pace in the coming years owing to low cost for manufacturing as compared to Europe and North America.

Segments

Segments Covered in the Report
The global contract development and manufacturing organization market has been segmented on the basis of

Services

• Contract Development
  • Preclinical
    • Toxicology Testing
    • Bioanalysis & DMPK Studios
    • Preclinical Services
  • Clinical
    • Phase I
    • Phase II
    • Phase III
• Laboratory Devices
  • Analytical Services
  • Bioanalytical Services
• Contract Manufacturing
  • API/Bulk Drugs
  • Medical Devices
    • Class I
    • Class II
    • Class III
  • Finished Dose Formulations

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Catalent Inc.
• Lonza Group Ltd.
• Recipharm AB
• Siegfried Holding AG
• Thermo Fisher Scientific Inc.
•  Covance Inc.
• Jabil
• Sanmina Corp.
• IQVIA Holdings Inc.
• Flex

Competitive Landscape

Key players competing in the global healthcare contract development and manufacturing organization market are Catalent Inc.; Lonza Group Ltd.; Recipharm AB; Siegfried Holding AG; Thermo Fisher Scientific Inc.; Covance Inc.; Jabil; Sanmina Corp.; IQVIA Holdings Inc.; and Flex. Many of these players have adopted business strategies such as launching new products, introducing new technology, merger, partnership, and production capacity expansion to increase their market position and expand their consumer base globally.