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 billionfrom 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 -
Almac Group Ltd.: The company offers pharmaceutical contract research and manufacturing under the division, Boehringer Ingelheim BioXcellence.
Boehringer Ingelheim International GmbH: The company offers pharmaceutical contract research and manufacturing such as Active Pharmaceutical Ingredients, and Generic Formulations.
Cadila Pharmaceuticals Ltd.: The company offers pharmaceutical contract research and manufacturing such as Active Pharmaceutical Ingredients, and Generic Formulations.
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
Key Benefits for Industry Players & Stakeholders ?
The report offers information on the criticality of vendor inputs, including R&D, CAPEX, and technology.
It also provides detailed analyses of the market's competitive landscape and vendors' product offerings.
The report also provides a qualitative and quantitative analysis of vendors to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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.
Get a holistic overview of the pharmaceutical contract research and manufacturing (CRAM) market by industry experts to evaluate and develop growth strategies. Download the Sample
Market Dynamics:
Key Drivers:
Availability of cost-efficient resources in emerging markets
Growing need to focus on core competencies
Strong research funding
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:
Increasing number of patent expiration of drugs
Increasing number of US FDA-approved manufacturing facilities.
Advent of big data
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:
Stereotypical nature of CMOs
Market concentration of CROs
Capacity utilization and constraints
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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What are the key data covered in this Pharmaceutical Contract Research And Manufacturing (CRAM) Market report?
CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the Pharmaceutical Contract Research And Manufacturing (CRAM) Market between 2023 and 2027
Precise estimation of the size of the Pharmaceutical Contract Research And Manufacturing (CRAM) Market size and its contribution to the market in focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the Pharmaceutical Contract Research And Manufacturing (CRAM) Market industry across North America, Asia, Europe, and Rest of World (ROW)
A thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of Pharmaceutical Contract Research And Manufacturing (CRAM) Market vendors
The contract development and manufacturing organization (CDMO) outsourcing marketis estimated to grow at a CAGR of 12.76% between 2022 and 2027. The size of the market is forecast to increase by USD 84.14 billion. This report extensively covers market segmentation by product (small molecules and biologics), service (api/bulk drugs, drug product manufacturing, and packaging), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The growing pharmaceutical industry will fuel the growth of the contract development and manufacturing organization outsourcing market.
The Global Active Pharmaceutical Ingredients (API) Market size is estimated to grow by USD 88.74 billion between 2022 and 2027 accelerating at a CAGR of 7.24%. This active pharmaceutical ingredients (API) market report extensively covers market segmentation by manufacturing type (captive APIs and contract APIs), type (innovative APIs and generic APIs), and geography (Asia, North America, Europe, and Rest of World (ROW)). The increasing number of type II drug master files (DMFs) is notably driving the active pharmaceutical ingredients market growth.
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
1.1 Market overview
Exhibit 01: Executive Summary ? Chart on Market Overview
Exhibit 02: Executive Summary ? Data Table on Market Overview
Exhibit 03: Executive Summary ? Chart on Global Market Characteristics
Exhibit 04: Executive Summary ? Chart on Market by Geography
Exhibit 05: Executive Summary ? Chart on Market Segmentation by Service
Exhibit 06: Executive Summary ? Chart on Market Segmentation by End-user
Exhibit 07: Executive Summary ? Chart on Incremental Growth
Exhibit 08: Executive Summary ? Data Table on Incremental Growth
Exhibit 09: Executive Summary ? Chart on Vendor Market Positioning
2 Market Landscape
2.1 Market ecosystem
Exhibit 10: Parent market
Exhibit 11: Market Characteristics
3 Market Sizing
3.1 Market definition
Exhibit 12: Offerings of vendors included in the market definition
3.2 Market segment analysis
Exhibit 13: Market segments
3.3 Market size 2022
3.4 Market outlook: Forecast for 2022-2027
Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ billion)
Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ billion)
Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)
4 Historic Market Size
4.1 Global pharmaceutical contract research and manufacturing (CRAM) market 2017 - 2021
Exhibit 18: Historic Market Size ? Data Table on Global pharmaceutical contract research and manufacturing (CRAM) market 2017 - 2021 ($ billion)
Exhibit 169: Syneos Health Inc. - Business segments
Exhibit 170: Syneos Health Inc. - Key offerings
Exhibit 171: Syneos Health Inc. - Segment focus
13 Appendix
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
Exhibit 172: Inclusions checklist
Exhibit 173: Exclusions checklist
13.3 Currency conversion rates for US$
Exhibit 174: Currency conversion rates for US$
13.4 Research methodology
Exhibit 175: Research methodology
Exhibit 176: Validation techniques employed for market sizing
Exhibit 177: Information sources
13.5 List of abbreviations
Exhibit 178: List of abbreviations
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.
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