BIOPHARMACEUTICAL CMO AND CRO MARKET ANALYSIS

Biopharmaceutical CMO and CRO MarketSize and Trends

The global biopharmaceutical CMO and CRO market was valued at US$ 32.4 Bn in 2022 and is forecast to reach a value of US$ 54.1 Bn by 2030 at a CAGR of 5.9% between 2023 and 2030. The global biopharmaceutical CMO and CRO market is experiencing strong growth due to the rise in burden of chronic diseases and growing trend of outsourcing across the globe. Moreover, increasing demand for biologics or biosimilars and rapid growth of the biopharmaceutical industry is expected to boost the market growth. However, factors such as stringent regulatory framework and rise in cost of raw materials are expected to hamper the market growth.

Global Biopharmaceutical CMO and CRO Market Trends:

Increasing demand for API manufacturing is a recent trend

Active Pharmaceutical Ingredients (API) manufacturing is witnessing a steady growth in demand over the last few years. This is attributed to rise in burden of cancer and age-related diseases, rise in the global generic production capacities, and innovation in biologics. Thus, players in the market are focusing on the development of biological APIs, increasing the API manufacturing capacities. This in turn is expected to offer better opportunities for CMOs, both in the biopharmaceutical and small molecule API sectors, and this trend is expected to continue over the forecast period.

Increase in research and development is another trend

Players in the market are engaged in research and development activities for the development of safe and effective drugs to treat chronic, genetic, respiratory, and other age-related diseases and to reduce global disease burden. In November 2022, Sanofi and Insilico Medicine signed a US$ 1200 million Drug Development Deal. The agreement will allow Sanofi to use Insilico’s AI platform to advance drug development in up to six new targets. This trend is also expected to continue during the forecast period, driving the growth of the market.