Biologics CDMO Market To Generate Revenue Worth $31,839.7 Million by 2030
- Published: October 2023
The global biologics CDMO market is projected to generate USD 31,839.7 million revenue by 2030, advancing at a CAGR of 11.0% during 2024–2030. This can be ascribed to the growing geriatric population, the rising outsourcing of R&D activities, the surging incidence of chronic diseases, and the increasing number of partnerships between companies and biologics CDMOs to introduce novel products.
For the development of bioreactors and biologics, CDMOs offer exclusive expertise that allows big pharmaceutical firms and smaller innovators alike to bring products to market more rapidly. The biologics business is approaching more than 30% share of the pharma market, globally. Also, this trend is contributing to the development of biologics including atopic dermatitis, anticancer, immunosuppressants, antibodies, and others, as well as, helping in increasing the number of biosimilars being approved.
Moreover, the upsurge in the growth of biologics is obvious, as the number of CDMOs investing heavily in new biomanufacturing facilities. For instance, in 2021, Danaher acquired the mRNA-focused CDMO Aldevron for more than $9.5 billion. Similarly, Charles River Laboratories acquired Vigene Biosciences & Cognate BioServices for more than $1 billion.
Clinical Bifurcation Is a Faster-Growing Market
The clinical bifurcation category is projected to grow at a higher CAGR, of around 12%, during the forecast period, as the biopharmaceutical industry embraces outsourcing to mitigate the accompanying risks in the drug development phase with biologics CDMOs’ development and manufacturing expertise.
Another major incentive for biologics CDMOs to pursue long-term partnerships with clinical-stage biopharma companies, besides their clinical pipeline, is that it allows them to secure supply contracts early in the product lifecycle. This gives companies an edge over their competitors with easier technology transfer due to development know-how. Such collaborations are a must-have commercial strategy for biologics CDMOs that focus on specific therapy areas, such as oncologic high-potency active pharmaceutical ingredients (HPAPIs).
Moreover, commercial manufacturing holds a larger share of the biologics CDMOs market, driven by the increasing outsourcing of mAbs, which contribute the bulk of the category’s revenue. Also, the market share of this category is set to grow over the forecast period, due to the increase in cell and gene therapies’ expected approvals and market entries.
Geographically, APAC dominates the market, owing to the surging prevalence of chronic diseases, the increasing focus of companies on R&D, and the growing geriatric population. According to research, the region is experiencing a rise in the prevalence of chronic diseases, such as CVDs, diabetes, and cancer. People with low economic status are the most affected in the region, as they have less access to insurance policies and healthcare services to fight chronic ailments.
For instance, as per an article published in ResearchGate, around two-thirds of the global population lives in the region, and the prevalence of diabetes has reached an epidemic scale. Diabetes cases are expected to increase at a massive pace in the South Asian region, with a more than 150% rise in type-2 diabetes cases between 2000 and 2035.
Furthermore, the growth in the regional market is being driven, in part, by the increasing affordability of pharmaceuticals, as a result of the emergence of low-cost generics. Additionally, an increase in GDP per capita, a surge in government healthcare programs, and a rise in the urbanization rate have expanded the access to doctors and pharmacies for significant portions of the population, which, in turn, are boosting the demand for CDMOs.
Major players operating in the biologics CDMO market include Catalent Inc., Rentschler Biopharma SE, Emergent BioSolutions Inc., JRS PHARMA LP, Boehringer Ingelheim International GmbH, WuXi Biologics (Cayman) Inc., Samsung Biologics Co. Ltd., Lonza Group Ltd., FUJIFILM Diosynth Biotechnologies U.S.A. Inc., Binex Co. Ltd., Novartis AG, AbbVie Inc., and Thermo Fisher Scientific Inc.