Healthcare CMO Market Size, Trends and Growth Analysis by 2027

The global market for healthcare Contract Manufacturing Organizations (CMOs) is projected to grow significantly, reaching approximately US$ 223,355.6 million by 2027, up from US$ 80,479.4 million in 2018. This growth represents a compound annual growth rate (CAGR) of 12.2% from 2019 to 2027.

Several factors are propelling this market expansion, including the increasing trend among pharmaceutical and medical device manufacturers to outsource production, the growing number of patent expirations, and the rising elderly population. These elements are further complemented by an uptick in the production of both drugs and medical devices. Nonetheless, the market faces challenges, particularly the shortage of skilled professionals in the CMO sector, which could hinder growth during the forecast period.

The phenomenon of patent expirations is expected to significantly influence market dynamics. The global rise in contract manufacturing is facilitating the production of generic drugs, spurred by legislation that promotes competition and ultimately benefits consumers. CMOs play a crucial role in drug manufacturing, ensuring bioequivalence testing and adherence to current good manufacturing practices (cGMP). This outsourcing model not only reduces manufacturing costs but also allows for large-scale production. According to statistics, around US$ 194 billion in sales of innovative drugs were at risk between 2017 and 2020, with an estimated loss of nearly US$ 31 billion due to patent expirations in 2018 alone. These factors indicate that the healthcare CMO market is poised for substantial growth in the coming years.

The global healthcare CMO market is categorized by service type into two primary segments: pharmaceutical contract manufacturing services and medical device contract manufacturing services. It is anticipated that the pharmaceutical contract manufacturing services segment will lead the market by 2027, driven by the benefits offered by contract manufacturing organizations and the increasing prevalence of both chronic and acute diseases worldwide. Furthermore, this segment is expected to experience the highest growth rate throughout the forecast period from 2018 to 2027.

The report on the healthcare CMO market incorporates insights from various primary and secondary sources, including the Indian Drug Manufacturers? Association, the International Trade Administration, the Japan CMO Association, the Medicines and Healthcare products Regulatory Agency, the Ministry of Health, and the Saudi Pharmaceutical Industries & Medical Appliances Corporation, among others.