Global Biotechnology Contract Manufacturing Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2030

Global Biotechnology Contract Manufacturing Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2030

Global Biotechnology Contract Manufacturing Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 – 2030

Global Biotechnology Contract Manufacturing Market was valued US$ 16.5 Billion in 2022 and is expected to reach ~US$ 36.5 Billion by 2032, growing at a CAGR of 8.3% during the forecast period 2023-2032.

A Contract production Organization (CMO) is a company that specializes in delivering services such as medication production to other enterprises within the biopharmaceutical sector. Biotechnology contract manufacturing plays a significant role in the biopharmaceutical business by enabling enterprises to focus on research, development, and commercialization while entrusting specialized partners with efficient and compliant manufacturing procedures. This cooperative strategy makes it easier for cutting-edge biotech goods to hit the market, which benefits biotech companies as well as patients in need of cutting-edge treatments.

Several factors contribute to the growth of the biotechnology contract manufacturing market, including the increasing demand for biologics and biosimilars, the growing outsourcing of biologics manufacturing by biopharmaceutical companies, a heightened focus on personalized medicine, expanding partnerships between pharmaceutical companies and biologics contract manufacturers, and technological advancements in the manufacturing sector. Furthermore, the market is expected to experience growth due to rising demand for cell and gene therapies and the expanding biologics production capabilities of CMOs. However, large corporations view outsourcing as risky due to the loss of strategic control and limited management oversight, leading them to prefer keeping their manufacturing processes in-house. This could pose certain challenges related to the growth of biotechnology contract manufacturing.

Due to a number of important variables, such as the rising biologics pipeline, increasing manufacturing complexity, and a strategic shift by businesses towards core operations, the biologics contract manufacturing market is developing at an impressive rate. Many biotechnology and pharmaceutical companies now outsource a variety of activities, from large-scale manufacturing to early-stage drug discovery. In order to keep costs competitive while accelerating R&D, expanding into new markets, gaining access to cutting-edge technology, using regulatory knowledge, and mitigating risks—outsourcing has become indispensable.

The complex process of developing and producing biologics, together with the need to meet ever-higher quality requirements, has encouraged pharmaceutical companies to prefer using contract manufacturing organisations (CMOs). In addition, a growing number of businesses are using CMO services in order to streamline the development process and lower manufacturing costs. For instance, Sanofi has decided to contract with Boehringer Ingelheim to manufacture its biologics pipeline. Furthermore, TaiMed Biologics depends on CMO WuXi PharmaTech to produce Ibalizumab, an FDA-designated orphan medication. Additionally, in 2021, Samsung Biologics extended its 2020–2021 partnership with AstraZeneca. Under this agreement, a drug ingredient, such as the COVID-19 long-acting antibody combination made by AstraZeneca, will be produced. In 2022, a cancer immunotherapy product will be manufactured.

“Manufacturing segment, by service, to be largest market from 2023 to 2030.”

The global biotechnology contract manufacturing market comprise major segments such as manufacturing, formulation and fill-finish, packaging and labelling and other services. The manufacturing sector became the market leader in the global biotechnology contract manufacturing industry in 2022. Upstream and downstream manufacturing are two of the stages that make up the biopharmaceutical manufacturing process. Biopharmaceutical businesses always face challenges in designing, optimising, and implementing sophisticated protocols and procedures to guarantee product purity, owing to the complex nature of biologics production. Because of this continuous difficulty, producers of biologics are forced to look outside help in order to meet production targets and stay on the cutting edge of changing industry trends and technology. This emphasises the expanding tendency of manufacturing service outsourcing.

“Biologic Drug Substance segment, by type, to be largest market from 2023 to 2030.”

The global biotechnology contract manufacturing market comprises major segments such as Biologic Drug Substance, Manufacturing and Biologic Drug Product Manufacturing. The majority of the worldwide biotechnology contract manufacturing market was accounted for by the biologic drug substance manufacturing industry in 2022. The significant portion can be attributed to increased research efforts focused on creating novel treatments for long-term illnesses. The need for more recent, focused treatments such monoclonal antibodies, cell therapies, and gene therapies is rising as many patented medications are about to expire. These complex medicinal compounds require sophisticated machinery and production techniques to produce. Because of this, forward-thinking businesses are more likely than ever to outsource the production of these biological medicinal ingredients, which helps the industry grow.

“North America to be largest region in Biotechnology Contract Manufacturing Market.”

It is expected that the United States will continue to hold its dominant position in the North American market during the projection period. Rising demand for clinical trials, the ongoing expansion of the pharmaceutical and medical device industries, rising healthcare costs, significant investment in research and development, and the presence of major market players that provide all-inclusive services including manufacturing, storage, logistics, and more are some of the factors that have contributed to this market dominance. Prominent companies like Almac and Alderley Analytical offer a comprehensive suite of integrated services to more than 600 biotech and pharmaceutical industries, contributing to the expansion of this market in the nation. Furthermore, the market's growth in this sector is anticipated due to the biopharmaceutical businesses' strong presence and major impact in the region with regard to revenue, technological improvements, and job possibilities.

The biotechnology contract manufacturing sector has a very bright future ahead of it in the Asia Pacific area. This can be ascribed to a number of things, such as the growth in government programs to further healthcare research, the tendency of outsourcing manufacturing services, and the increased investments in pharmaceutical research and development (R&D). The large investments made in healthcare infrastructure and research and development initiatives are one important factor driving market expansion in the Asia Pacific region. Furthermore, the region's big population and rising chronic illness incidence are fuelling demand for novel medicines, which in turn is promoting the need for biologic medications and their outsourcing of manufacturing. Additionally, it is anticipated that the region's beneficial medication licensing regulations will further spur market expansion. The robust pharmaceutical and biotech sectors in the region, the established pharmaceutical industry infrastructure, the rising demand for biologics and biosimilars, and the growing trend of pharmaceutical and biopharmaceutical companies outsourcing manufacturing services are all contributing factors to the growth of the biotechnology contract manufacturing market in the Asia Pacific region.

Biotechnology Contract Manufacturing Competitive Landscape

The competitive landscape of the Biotechnology Contract Manufacturing Market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Biotechnology Contract Manufacturing technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Biotechnology Contract Manufacturing Market is highly competitive, with numerous companies vying for market share. Prominent companies in the Biotechnology Contract Manufacturing Market include:

Major Players:

Lonza

Thermo Fisher Scientific

Wuxi AppTec

Catalent

Recent Developments:

WuXi Biologics and GSK plc inked a licensing deal in January 2023 that gave GSK the only worldwide right to make use of WuXi Biologics' patented technological platforms. This contract covered WuXi Biologics' internal research, development, production, and marketing of bispecific antibodies.

Samsung Biologics and GSK plc partnered in October 2022 to produce GSK's monoclonal antibody products, which include Benlysta, a therapy for lupus, among other illnesses.

Starting in 2020, Samsung Biologics and AstraZeneca extended their partnership in 2021. Under this agreement, a drug ingredient, such as the COVID-19 long-acting antibody combination made by AstraZeneca, will be produced. In 2022, a cancer immunotherapy product will be manufactured.