Booming Healthcare Industry to Cement Future of Healthcare Contract Manufacturing Market: WiseGuyReports
14 May 2019
Pune, India, May 14, 2019 (GLOBE NEWSWIRE) -- As per the report found on Wise Guy Reports (WGR), the global healthcare contract manufacturing market is predicted to reach the valuation of USD 250.9 billion by 2023, crossing the value of USD 129.9 billion it attained in the year 2016. Furthermore, the market is slated to display a stellar CAGR of 9.86%, during the forecast period (2017-2023).
Elevated Demand in Emerging Regions to Augment Market Position
The emerging regions including the Middle East and Africa, Asia Pacific and Latin America are witnessing dynamic growth in the biotechnology as well as pharmaceutical sectors. The various government bodies in these regions are lending strong support in the form of numerous initiatives, programs, conferences and funding. The rapid expansion of the pharmaceutical and biotechnology sectors has been fuelled by the demographic and economic growth, increasing healthcare expenditures, along with the enhancement in the public-private healthcare funding and so on. As a result, the emerging regions across the globe are bound to present numerous growth opportunities to the healthcare CMO market in the coming years.
Growing Inclination towards Outsourcing by Pharmaceutical and Medical Device Manufacturers
The healthcare contract manufacturing market has grown at an exponential rate over the past few years on account of the numerous advantages offered by a number of contract manufacturing companies around the world. These types of companies are offering a host of services to the biopharmaceutical, pharmaceutical, and medical device companies. The pharmaceutical and biopharmaceutical companies are offered various services by the CMO, ranging from the production of small amounts of materials for research and development (R&D) activities to larger quantities being provided for clinical study as well as for commercialization.
Also, the medical devices companies obtain immense help from the CMO when it comes to meeting with the surging demands from expanding customer base. In addition, the vendors make massive investments in R&Ds, aiming to deliver innovative and high quality products in the market. The growing demand for healthcare products like vaccines, medicines, implants, diagnostics devices, and VARIOUS other therapeutic devices and medicines are presumed to drive the demand for contract manufacturing. Thus, on account of these factors, the healthcare CMO market is set to rise substantially in the years ahead.
Complexities Related to Supply Chain to Pose Challenges to the Market Growth
Complexities associated with the supply chain as well as concerns related to control of third parties will remain one of the top challenges in the global market for healthcare contract manufacturing in the near future.
Non-Sterile Contract Manufacturing to Control the Largest Market Share
Depending on the type, the healthcare contract manufacturing market is considered for sterile contract manufacturing and non-sterile contract manufacturing. Among these, the non-sterile contract manufacturing market governed the largest share, reaching the valuation of USD 95.8 billion in 2016.
The Pharmaceutical Contract Manufacturing Market Wins Big in the Global Market
The types of services offered by healthcare contract manufacturing include pharmaceutical contract manufacturing and medical device contract manufacturing. Here, the pharmaceutical contract manufacturing market was the largest market in 2016, having reached the valuation of USD 73.1 billion that year. This market is presumed to get a good lead during the review period backed by surging demand for drugs on account of the rising prevalence of chronic and acute diseases, burgeoning geriatric population, in addition to growing healthcare expenditures by public, private, payers along with the consumers.
Pharmaceuticals to Gain the Top Position Among all the Industries in the Global Market
Industry-wise, the healthcare contract manufacturing market is segmented on the basis of pharmaceutical, biopharmaceutical and medical device; where the pharmaceutical industry was responsible for the largest share in 2016 of the total market.
The Market in Americas to Develop at the Fastest -Rate
The market in Americas will be the growing at the fastest-rate of 10.3% during the review period. Expanding investment in healthcare, the existence of a strong economic condition, coupled with the rising focus of research institutions on upgrading technology are some significant reasons backing the strong growth of the regional market. Moreover, the contract manufacturers that are well-established in the region are progressively upgrading their factories along with their manufacturing capabilities. Thus, with the latest sophisticated manufacturing units as well as cheaper priced models, the American contract manufacturers are giving stiff competition to the formidable companies present in Asia.
Asia Pacific to Prove its Mettle Backed by Rising Healthcare Expenditures
Asia Pacific is on the verge of becoming one of the stronger contenders in the healthcare contract manufacturing market. Study recognizes the region as an emerging market for biopharmaceutical and pharmaceutical industry across the globe, defined on the basis of the cost-effective manufacturing of a number of pharmaceutical products as well as the increasing healthcare expenditures across the region.
Growth in the Middle East and Africa to be Sluggish but Holds Potential
The least share of the total market will be controlled by the Middle East & Africa region, owing to the lack of availability of medical facilities along with lackluster performance of the healthcare sector in the region. Yet, the countries in the region like Kuwait and Qatar are stressing on the expansion of the healthcare industry and development of medical facilities, touted to be the significant booster to the market in the following years.
The leading companies currently operating in the global healthcare contract manufacturing market include Boehringer Ingelheim, AbbVie, S.A, Lonza AG, and Grifols International, among others.
Out of these, AbbVie is responsible for over 18% share of the global healthcare contract manufacturing market.
April 2019 - Catalent is in the process to acquire Paragon Bio-services, a Baltimore-based contract manufacturing organization focused on viral vectors used in gene therapies, for USD 1.2 billion.
Wise Guy Reports is part of the Wise Guy Research Consultants Pvt. Ltd. and offers premium progressive statistical surveying, market research reports, analysis & forecast data for industries and governments around the globe.
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