Interestingly, one of the research projects by Root Analysis goes on to predict that pharmaceutical contract manufacturing market is all set to be valued at $140 billion by 2030.
As such, the sector is most likely to grow at a CAGR of 6.5% between 2022 and 2030.
The report went ahead and noted that there has been major merger as well as acquisition activity in recent years within pharmaceutical contract manufacturing market.
This is because these companies are looking to meet the varied needs of pharmaceutical developers, as per the authors.
Pushing factors in the pharmaceutical contract manufacturing market
The report also goes on to highlight other key driving factors for the market during the forecast period, which happen to include continued technological innovation within the production technologies as well as a greater demand for small-molecule products. Moreover, a larger need when it comes to cost-effective drug production and the execution of advanced technologies like biologics as well as cell and gene therapies happen to be other contributing factors.
Raising the outsourcing of manufacturing activities is indeed helping pharmaceutical companies to go ahead and focus on their core capabilities. This is in turn contributing to a more streamlined as well as an efficient approach to drug development, as per the report.
A transition towards advanced therapeutic approaches, like biopharmaceuticals and biosimilars, has gone on to lead pharmaceutical companies to explore outsourcing choices when it comes to manufacturing, the research stated.
Roots Analysis also went ahead and emphasized the significance of players in the contract manufacturing market when it comes to supporting the changing requirements of the pharmaceutical industry; specifically with the rising demand for generic drugs because of patent expirations.
The research went on to share that, at 51%, small pharmaceutical companies will go on to hold quite a dominant share of the market by this decade-end.
There also happen to be large companies that are all set to expand their market at a much higher CAGR of 9.1% between 2022-2030.
Moreover, the report described that rising demand when it comes to clinical trial support services goes on to mean that there is indeed a greater opportunity for organizations in the market.
As per the report, the Asia-Pacific region will go ahead and play a role of dominance during the forecast period. The Roots Analysis says that the region is indeed expected to hold 37% of the market share by 2030.
The report, however, also stated that key issues for the market go on to include companies being constrained by dependence on the quality and reliability of contract manufacturing organisations- CMOs. Moreover, there happen to be pretty high initial investment costs for equipment and facilities too. Yet the global pharmaceutical contract manufacturing market looks forward to achieving sustainable growth by way of enhancing partnerships with the CMOs that are dependable, says the report.
