The global biologics CDMO market is projected to generate $31,839.7 million revenue in 2030, advancing at a CAGR of 10.3% during 2021–2030. This can be ascribed to the rising and aging population, high demand for medicines, and surging healthcare expenditure.
Furthermore, cancer medicines are one of the key drivers for the biologics market growth, and despite the fact that small molecules continue to dominate biologics in terms of drug approvals, the number of biologics approvals is gradually increasing, which boosts CDMOs’ growth.
Drug products are expected to grow with the higher CAGR, of approximately 10.5%, during the forecast period. This will be because the core activity of CDMOs is commercial drug product manufacturing, to help pharmaceutical companies bridge the capacity shortage or reduce the complexities in manufacturing complicated drugs.
Drug substances contribute the highest revenue in the market owing to an increase in biologics approvals, particularly from the FDA, as well as the strong clinical pipelines and reduced biologics drug development failure rates.
In the market, demand for commercial services is increasing owing to the outsourcing of mAbs as numerous cell and gene therapeutics are rapidly getting approval from the FDA.
Geographically, APAC was the highest revenue contributor to the market in 2021, and it is expected to maintain this trend during the forecast period. This is credited to the rapidly growing and aging population in the region, surging demand for biologic and specialty drugs, increasing requirement for cost control in drug development, and growing healthcare expenditure.
North America holds the second position, in terms of revenue, in the market. The widespread utilization of contract manufacturing and development services by pharmaceutical and medical device firms is a significant aspect driving the region's industry growth.
To secure a strong position in the biologics CDMO market, key players are engaging in collaborations, partnerships, mergers and acquisitions, investments, and facility expansions. For instance, in October 2021, Lonza Group Ltd. announced plans to expand its mammalian development services in Singapore. The expansion will establish additional capacity for cell culture, purification, and analytical services for mammalian biologics.
Similarly, in February 2022, Recipharm AB announced the acquisition of Arranta Bio, an advanced-therapy CDMO, to expand its biologics offerings in the U.S. Under this acquisition, Arranta Bio provides a platform to build its capabilities in new biologics modalities, leveraging Arranta Bio’s expertise in advanced therapies, to bring a high degree of diversification across multiple technologies and modalities.
Some of the key players in the market are Boehringer Ingelheim International GmbH, WuXi Biologics (Cayman) Inc., Samsung Biologics, Lonza Group Ltd., FUJIFILM Diosynth Biotechnologies U.S.A. Inc., Toyobo Co. Ltd., Parexel International Corporation, ICON plc, BINEX Co. Ltd., JRS Pharma LP, Rentschler Biopharma SE, AGC Biologics, Sandoz International GmbH (Novartis AG), Catalent Inc., and AbbVie Inc.