Healthcare Contract Development and Manufacturing Organization Market (By Services: Contract Manufacturing and Contract Development) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030


The global healthcare contract development and manufacturing organization market size was estimated at US$ 224.57 billion in 2021 and is expected to hit US$ 456.8 billion by 2030 with a remarkable CAGR of 8.2% from 2022 to 2030.

Healthcare Contract Development and Manufacturing Organization Market Size 2021 to 2030

Growth Factors

A contract development and manufacturing organization is a corporation or organization that provides classified services to other organizations on a contract basis, ranging from medication discovery to drug manufacture for a variety of therapeutic uses. These contract development and manufacturing organizations primarily function as an end user for small businesses that lack manufacturing capacity in the development of novel medications.

The healthcare contract development and manufacturing organizations are pharmaceutical industry institutions that provide a wide range of services on a contract basis, from medication development to drug manufacturing. This contract allows the bulk of pharmaceutical companies to outsource those aspects of their operations that can support scalability or allow the big company to focus on drug discovery and marketing instead. The formulation development, pre-formulation, clinical trials, formal stability, stability studies, registration, and commercial production batches are all services that pre-formulation provide. The goal of service providers is to focus on a single technology or dosage form while simultaneously ensuring end to end consistency and efficiency for all of their outsourcing customers.

The healthcare contract development and manufacturing organization market will be driven by the increased demand for specialist medical gadgets. A primary driver for the healthcare storage contract manufacturing industry in the growing population of older individuals and their inactive lifestyle. As a result, these variables will greatly boost the healthcare contract development and manufacturing organization market growth during the forecast period.

Report Scope of the Healthcare Contract Development and Manufacturing Organization Market

Report Coverage Details
Market Size by 2030 USD 456.8 Billion
Growth Rate from 2022 to 2030

CAGR of 8.2%

North America Market Share in 2021 41.5%
Contract Manufacturing Market Share in 2021 74%
Base Year 2021
Forecast Period 2022 to 2030
Segments Covered Service, Geography
Companies Mentioned Flex, Covance Inc., Lonza Group Ltd., Thermo Fisher Scientific Inc., Jabil, Catalent Inc., Sanmina Corporation, IQVIA Holdings Inc., Siegfried Holding AG, Recipharm AB

 

The disruption in the supply chain is one of the primary restraints in the healthcare contract development and manufacturing organization market. In addition, challenges with connectivity and standardization will slow industry expansion in the near future. Furthermore, the purchase of small businesses via contract with healthcare manufacturers will limit the component outsourcing.

However, because corporations are lining up for acquisitions and mergers, this approach will assist to down production costs. Additionally, the increased utilization of multi-product facilities, as well as many technological innovations and developments, will create new growth prospects for the healthcare contract development and manufacturing organization market during the forecast period.

The surge in desire to outsource various operations that are time demanding by the pharmaceutical companies is expected to boost the growth of the healthcare contract development and manufacturing organization market. The pharmaceutical industry’s rise will aid the healthcare contract development and manufacturing organization market’s expansion in the upcoming years. The increased support of contract development and manufacturing organizations in lowering the capital and operational expenses will assist the market in achieving maximum income in the near future.

The healthcare contract development and manufacturing organization market will be driven in the next years by a boom in regulatory affairs, which are positive, and quality assurance services. Furthermore, increasing shipping costs and the danger of violation of intellectual property rights could stifle the healthcare contract development and manufacturing organization market expansion throughout the projection period.

A company and a manufacturer sign a contract for contract manufacturing. For a specific period of time, the manufacturer provides the company with various components. The pharmaceutical and medical device components, as well as other services for drug manufacturing, are provided by contract manufacturers in the healthcare industry. The healthcare contract development and manufacturing organization market is being driven forward by the expiration of medical device patents and increased rivalry among large businesses. In addition, the healthcare contract development and manufacturing organization market is being boosted by the increased desire for convenient devices.

The major market players in the healthcare contract development and manufacturing organization market also offer customized services to fulfill the specific needs of medical device inventors and designers. Furthermore, the North America will continue to dominate the healthcare contract development and manufacturing organization market in the coming years. In addition, emerging countries in the Asia-Pacific region are thriving in the healthcare contract development and manufacturing organization market.

Services Insights

In 2020, the contract manufacturing dominated the market for healthcare contract development and manufacturing organization, accounting for the majority of revenue 74% in 2021. This is mostly wing to the pharmaceutical and medical device industries’ strong penetration of contract manufacturing.

On the other hand, the contract development is expected to grow at fastest rate during the forecast period. The contract development has various advantages over in-house drug development, including access to industry specialists, shorter time to market, lower costs, and a greater concentration on core skills.

Region Insights

North America region accounted revenue share of 41.5 in 2021. The North America region’s demand for healthcare contract development and manufacturing was boosted by the growth of the pharmaceutical industry. As a result, in terms of contract development and manufacturing of medical devices, North America’s market is predicted to increase rapidly.

Healthcare Contract Development and Manufacturing Organization Market Share, By Region, 2021 (%)

Asia Pacific region is expected to develop at the fastest rate 10% during the forecast period. The major changes to the European Union regulatory framework are anticipated, potentially affecting market access and entrance. Due to the Europe region’s severe regulatory laws, the market for healthcare contract development and manufacturing organization is likely to flourish.

Key Developments

  • ANI Pharmaceuticals announced the opening of its own contract development and manufacturing organization in October 2019. This company has been given the title ANI Global Source, and it is intended to assist the pharmaceutical industry in later stage development and commercial manufacture of small molecule medicinal plants.
  • Thermo Fisher Scientific Inc. announced the opening of a new viral vector contract development and manufacturing organization in 2019. The organization will be able to help with the research, production, and testing of viral vectors, which are critical components in the development of novel lifesaving gene and cell therapies around the world.
  • Cambrex announced the acquisition of Avista, a contract development and manufacturing organization, in November 2018. It provided a wide range of services, including drug development and manufacturing practices, as well as microbiology testing.
  • Recipharm, a pharmaceutical services company, in November 2019, announced that it will purchase Consort Medical, a British supplier of drug delivery devices who also provides manufacturing services.

The introduction of new products for outsourcing various processes in the pharmaceutical industry, as well as the expansion of key market competitors, are expected to drive the healthcare contract development and manufacturing organization market growth in the near future. The healthcare contract development and manufacturing organization market is expected to develop significantly in the forecast period due to the increase in acquisitions and definitive agreements made by the leading market leaders.  

Some of the prominent players in the global healthcare contract development and manufacturing organization market include:

  • Flex
  • Covance Inc.
  • Lonza Group Ltd.
  • Thermo Fisher Scientific Inc.
  • Jabil
  • Catalent Inc.
  • Sanmina Corporation
  • IQVIA Holdings Inc.
  • Siegfried Holding AG
  • Recipharm AB

Segments Covered in the Report

By Services

  • Contract Manufacturing
    • Small Molecule
      • Preclinical
        • Bioanalysis and DMPK studies
        • Toxicology Testing
        • Other Preclinical Services
      • Clinical
        • Phase I
        • Phase II
        • Phase III
        • Phase IV
      • Laboratory Services
        • Bioanalytical Services
        • Analytical Services
    • Large Molecule
      • Cell Line development
      • Process Development
        • Upstream
          • Microbial
          • Mammalian
          • Others
        • Downstream
          • MABs
          • Recombinant proteins
          • Others
      • Others
  • Contract Development
    • Small Molecule
    • Large Molecule
      • MABs
      • Recombinant proteins
      • Others
    • High Potency API
    • Finished Dose Formulations
      • Solid Dose Formulation
      • Liquid Dose Formulation
      • Injectable Dose Formulation
    • Medical Devices
      • Class I
      • Class II
      • Class III

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of healthcare contract development and manufacturing organization market?
According to Precedence Research, the global healthcare contract development and manufacturing organization market size was reached at US$ 224.57 billion in 2021 and is anticipated to rake US$ 456.8 billion by 2030.
The global healthcare contract development and manufacturing organization market is expected top drive growth at a CAGR of 8.2% from 2022 to 2030.
The major players operating in the market are Flex, Covance Inc., Lonza Group Ltd., Thermo Fisher Scientific Inc., Jabil, Catalent Inc., Sanmina Corporation, IQVIA Holdings Inc., Siegfried Holding AG, and Recipharm AB.
The existence of contract manufacturers in the emerging nations, which have greatly reduced prices and reduced product development time, is one of the primary factors expected to contribute to the healthcare contract development and manufacturing organization market’s growth.
North America region accounted revenue share of 41.5 in 2021 and will lead in near future.

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