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Classified in: Health, Covid-19 virus
Subject: MRR

Pharmaceutical contract research and manufacturing (CRAM) market size to grow by USD 121.35 billion from 2022 to 2027; The availability of cost-efficient resources in emerging markets to be a major driver - Technavio


NEW YORK, June 9, 2023 /PRNewswire/ -- The pharmaceutical contract research and manufacturing (CRAM) market size is forecast to increase by USD 121.35 billion from 2022 to 2027, at a CAGR of 10.32%, according to the recent market study by Technavio. The growth of the market depends on several factors, including the availability of cost-efficient resources in emerging markets and the growing need to focus on core competencies. This report offers an up-to-date analysis regarding the current market scenario, the latest trends and drivers, and the overall market environment. Read our Sample Report

Pharmaceutical contract research and manufacturing (CRAM) market - Vendor Analysis:

The pharmaceutical contract research and manufacturing (CRAM) market is fragmented and highly localized, with many vendors catering to each logistics sub-segment. However, several companies are entering into mergers and acquiring other companies, thus leading to consolidation in the market. Competition is, therefore, intensifying, and vendors are seeking to gain a competitive edge by constantly adapting to the changing marketplace.

Technavio has extensively analyzed 15 major vendors, including Almac Group Ltd., Boehringer Ingelheim International GmbH, Cadila Pharmaceuticals Ltd., Catalent Inc., Charles River Laboratories International Inc., Cmic Holdings Co. Ltd., Dr Reddys Laboratories Ltd., ICON plc, IQVIA Holdings Inc., Laboratory Corp. of America Holdings, Lonza Group Ltd., Lupin Ltd., Recipharm AB, Samsung Electronics Co. Ltd., Syneos Health Inc., Thermo Fisher Scientific Inc., PCI Pharma Services, Parexel International Corp., OPTIMAPHARM d.o.o., and Novotech Australia Pty Ltd.

Vendor Offerings -

Charts & data tables about market and segment sizes for a historic period of five years (2017-2021), and forecast period (2023-2027) have been covered in this report. Download The Sample Report

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Market Segmentation:

This market report extensively covers market segmentation by service (CMO and CRO), end-user (big pharmaceuticals, small and medium-sized pharmaceuticals, and generic pharmaceuticals), and geography (North America, Asia, Europe, and Rest Of World (ROW)). 

The market share growth by the CMO segment will be significant for overall market growth during the forecast period. CMO segment of the global pharmaceutical CRAM market has witnessed significant growth in recent years, owing to the increasing trend of outsourcing the manufacture of various small molecules and biologic drugs by pharmaceutical vendors globally. Emerging countries such as India, Brazil, China, and Mexico are the major countries in the CMO segment due to the presence of cheap labor and the availability of land at a low cost for setting up manufacturing facilities. Such factors will increase the segment growth during the forecast period.

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Market Dynamics:

Key Drivers: 

Factors such as the increasing number of US FDA-approved manufacturing plants in such countries also encourage outsourcing. For instance, India, which is one of the most preferred countries for CMO, has more than 100 US FDA-approved manufacturing facilities, and the number of such facilities has increased in the country. Moreover, the rapidly evolving market environment and the strong support of the Government of China help the country specialize in the research of drugs, including regenerative medicines and small-molecule-based drugs. Despite the CRO market in China being highly fragmented due to the presence of several small CROs, these vendors contribute approximately 18% to 20% of the global CRO market revenue. Therefore, the global pharmaceutical CRAM market is expected to grow strongly during the forecast period.

Major Trends:

Patent expiry leads to the loss of market exclusivity of approved drugs and creates opportunities for the entry of generic drugs and biosimilars, which are priced at a lower rate. Due to the low cost and profit margins associated with generics, various large pharmaceutical companies outsource the manufacturing process of their generic drugs to CMOs in emerging countries such as India. This process is outsourced to the CMOs in emerging countries due to the low cost of manufacturing, availability of labor, and ease of distribution, as the market in Asia is largely dominated by generic drugs. Moreover, as a result of the looming patent cliff and the cost-effective nature of generics, the pharmaceutical market is also witnessing an increasing adoption of generic drugs in the US and in the developed countries of Europe. Hence, the market opportunity for CMOs is increasing in these regions. Thus, the increasing number of patent expiration of drugs will increase the demand for CRO and CMO services which in turn will boost the growth of the global pharmaceutical CRAM market during the forecast period.

Key Challenges:

Despite recent advances in the healthcare infrastructure, CMOs in Asia, which hold the highest share of the global CMO market, lack access to advanced technologies. Hence, they use older technologies to manufacture drugs. These CMOs lack the ability to produce biological drugs and vaccines on a large scale. This is primarily due to the complex manufacturing processes of biological drugs, which require advanced technologies. The cost of manufacturing such drugs is also usually high. Moreover, many global CMOs operating on a small scale lack the funding required to produce biological drugs on a large scale. As a result, the growth opportunity for the small and medium-sized CMOs is restricted to the growth of small molecule-based generic drugs. Such factors will hinder the market growth during the forecast period.

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Pharmaceutical Contract Research And Manufacturing (CRAM) Market Scope

Report Coverage

Details

Base year

2022

Historic period

2017-2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 10.32%

Market growth 2023-2027

USD 121.35 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

9.35

Regional analysis

North America, Asia, Europe, and Rest of World (ROW)

Performing market contribution

Asia at 41%

Key countries

US, Germany, UK, China, and India

Competitive landscape

Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks

Key companies profiled

Almac Group Ltd., Boehringer Ingelheim International GmbH, Cadila Pharmaceuticals Ltd., Catalent Inc., Charles River Laboratories International Inc., Cmic Holdings Co. Ltd., Dr Reddys Laboratories Ltd., ICON plc, IQVIA Holdings Inc., Laboratory Corp. of America Holdings, Lonza Group Ltd., Lupin Ltd., Recipharm AB, Samsung Electronics Co. Ltd., Syneos Health Inc., Thermo Fisher Scientific Inc., PCI Pharma Services, Parexel International Corp., OPTIMAPHARM d.o.o., and Novotech Australia Pty Ltd.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Table of Content

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Service

7 Market Segmentation by End-user

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com

SOURCE Technavio


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