Globally Pharmaceutical markets are showing rapid growth and in coming years expected to evolve further in the field of research and development, manufacturing, and formulation due to rise in population, increase in chronic diseases like infectious diseases, oncology, cardiovascular disorders, rising healthcare expenditures, collaborations, mergers, and acquisitions. Pharmaceutical companies are increasing their dependence on contract manufacturing organizations due to lack of well-equipped manufacturing facilities, advanced technologies, high containment capabilities or though they have the facilities, due to insufficient time and to have backup manufacturing, pharmaceutical companies are outsourcing. This trend is favoring contract manufacturing service providers and is expected to increase the share in the pharmaceutical manufacturing market. Contract pharmaceutical manufacturing services are mainly focused on the manufacturing of Active Pharmaceutical Ingredients (API) and Finished Dosage Formulations (FDF).
The pharmaceutical contract manufacturing global market is expected to reach $120,124.7 million by 2027 growing at a high single digit CAGR. Increased trend of outsourcing, high uptake of small molecules drugs across diverse therapeutics, patent expiration of small molecules, advanced technologies in API and FDF manufacturing, increasing deals and investments, increased demand for generic injectables, increasing incidence and prevalence of chronic diseases, and increase in geriatric population are some of the factors driving the market growth. However, contamination of pharmaceutical products (API and FDF), pricing pressure for pharmaceutical contract manufacturing, requirement of highly skilled technicians, increasing biologics approvals and adoption in disease management, stringent regulatory policies, and environmental concerns are some of the factors that are hindering pharmaceutical contract manufacturing global market growth. The pharmaceutical contract manufacturing global market is mainly segmented based on product, phase, application, and geography.
The pharmaceutical contract manufacturing market based on product is segmented into API manufacturing and FDF manufacturing. API manufacturing segment accounted for the largest share in 2020 and FDF manufacturing segment is the fastest growing segment and is expected to grow at high single digit CAGR from 2020 to 2027. The high profit margin for pharma contract manufacturers, shifting from API to FDF manufacturing by CMOs and CDMOs, rising demand for advanced dosage forms, and rising demand for generic drugs are some of the factors driving the growth of the FDF contract manufacturing market.
The API manufacturing market global market based on customer base is sub-segmented into Branded API manufacturing and Generic API manufacturing. The generic API manufacturing segment accounted for the largest revenue in 2020 and is expected to grow at high single digit CAGR from 2020 to 2027, due to the patent expiries of branded drugs, low cost of generic medicines.
The FDF manufacturing global market based on dosage form is further classified into solid dosage form, injectable dosage form, and semi-solid liquid and gaseous dosage form. Solid dosage form segment accounted for the largest revenue in 2020 due to changing consumer demands, advent and progress of newer dosage forms, and ever-evolving regulations. The injectable dosage form is the fastest-growing segment and is expected to grow at a low teen CAGR from 2020 to 2027 due to its direct infusion to the body, ease of administration, and onset of action of drugs is faster as compared to solid dosage forms. Hence it is suitable for emergency conditions. Among semi-solid, liquid, and gaseous dosage form, semisolids segment accounted for the largest revenue of in 2020 owing to the increased usage of semisolids such creams, lotions and gels due to increase in skin related diseases, and changing climatic conditions.
The solid dosage form market is further classified into tablets, capsules, and others such as powders and granules. Among these, tablets segment generated the largest revenue in 2020 owing to its ease of formulation techniques, manufacturing, and ease of administration to all the age groups.
Pharmaceutical contract manufacturing global market based on phase is segmented into commercial manufacturing and clinical manufacturing. Commercial manufacturing segment contributed to the largest revenue in 2020 due to huge demand for commercial API production, patent expiry, and increasing outsourcing of generic APIs. Whereas, clinical manufacturing segment is the fastest growing segment and is expected to grow at high single digit CAGR from 2020 to 2027 owing to a rise in demand for effective novel drugs with various therapeutic applications, rise in R&D investments for discovering new drugs coupled with the rising number of different types of chronic diseases.
The pharmaceutical contract manufacturing market by therapeutic applications is segmented into infectious diseases, oncology, cardiovascular disorders, central nervous system, pulmonary disorder, gastrointestinal disorder, endocrine disorders, metabolic disorders, genito-urinary disorders, musculoskeletal disorders, and others such as others such as ophthalmology, autoimmune diseases, ENT, dental, dermatology, and pain management. Among these applications, the infectious disease segment accounted for the largest revenue in 2020 because of the global-wide rapid spread of COVID-19 and increased incidence of other infectious diseases such as tuberculosis, HIV, pneumonia, influenza, hepatitis, and others. The oncology division is the fastest growing and is expected to grow at a double digit CAGR from 2020 to 2027 driven mainly by the rising incidence of cancer cases, lifestyle changes, increasing geriatric population, high demand for anti-cancer drugs, increase in the usage of synthetic HPAPIs for cancer treatment, increase in geriatric population and rising demand for personalized medicine especially for treating cancer.
The pharmaceutical contract manufacturing market based on region is classified into North America (U.S. and Rest of North America), Europe (Germany, France, Italy and Rest of Europe), Asia-Pacific (China, India, Japan, and Others), and the Rest of the World (Brazil, Rest of Latin America and Middle East & others). North America accounts for the largest revenue in 2020. The developed healthcare sector, availability of funds, increasing clinical trials, rising burden of cancer, increasing governments focus on generic drugs as well as the establishment of domestic API manufacturers, rising demands for the specialty of drugs and technological advancements, rising demand for advanced dosage forms, and also establishment of foreign CMOs/CDMOs are some of the factors driving the market growth. The Asia-Pacific region is the fastest growing region and is expected to grow at double digit CAGR from 2020 to 2027. Low labor cost, regulatory relaxation, abundance availability of raw materials, infrastructure facility, rise in generic demands, increased production capabilities, the presence of a large number of domestic and international players, coupled with low investments for the establishment of manufacturing facilities as compared to western countries.
Some of the major players are Lonza Group (Switzerland), AbbVie Inc. (AbbVie contract manufacturing, U.S.), Thermo Fisher Scientific (Patheon, N.V., U.S.), Pfizer Inc. (Pfizer CentreOne, U.S.), Permira Funds (Cambrex Corporation, U.K.), Carlyle Group (Albany Molecular Research Inc. U.S.), WuXi AppTec (WuXi STA pharmaceuticals, China), Recipharm AB (publ) (Sweden), Aenova Group GmbH (Germany), China Resources Pharmaceutical Group Limited (China), and others.
The report provides an in-depth market analysis of the above-mentioned segments across the following regions:
• North America
o Rest of North America
o Rest of Europe
o Rest of APAC
• Rest of the World (RoW)
o Rest of Latin America
o Middle East and Others