Pharmaceutical Contract Manufacturing Global Market - Forecast to 2025

Globally Pharmaceutical markets are showing rapid growth and in coming years expected to evolve further in the field of research and development, manufacturing and formulation due to rise in population, increasing in diseases like infectious diseases, oncology, cardiovascular disorders, rising healthcare expenditures, collaborations, merger and acquisitions. Pharmaceutical companies are increasing their dependence on contract manufacturing organizations due to lack of having well equipped manufacturing facilities, advanced technologies, high containment capabilities or though they have the facilities, due to insufficient time and to have backup manufacturing, pharmaceutical companies are outsourcing. This trend is favoring contract manufacturing service providers and is expected to increase the share in the pharmaceutical manufacturing market. Contract pharmaceutical manufacturing services are mainly focused on manufacturing of Active Pharmaceutical Ingredients (API) and Finished Dosage Formulations (FDF). APIs based on molecule size are categorized into biologics/large and synthetic/small molecules. According to IQ4I analysis, synthetic molecules occupy major share of 65% to 70% and the biologics accounts for share of 30% to 35% in API market. One of the major reasons for increasing in synthetic API market is the availability of small molecule drugs for all the major diseases and large number of small molecule drugs in pipeline, which is expected to enter the market in coming years.
According to IQ4I analysis, the Pharmaceutical contract manufacturing global market is expected to grow at mid single digit CAGR to reach $95,904.9 million by 2025. Pharmaceutical contract manufacturing market based on product is segmented into API manufacturing and FDF manufacturing. API manufacturing market holds the largest share in 2018 and is expected to grow at mid single digit CAGR from 2018 to 2025 due to government initiatives, increase in a number of API manufacturers, increasing availability of APIs for all the diseases, aging population, rise in chronic diseases, research and manufacturing of new drugs and demand for generics. FDF manufacturing is the fastest growing segment with strong CAGR from 2018 to 2025, due to high profit margin for pharma contract manufacturers and most of the CMO companies in APAC regions are shifting from API to FDF manufacturing.
The API manufacturing market by customer base is sub segmented into Branded API manufacturing and Generic API manufacturing. The generic API manufacturing segment is accounted for the largest revenue in 2018 and is expected to grow at a strong CAGR from 2018 to 2025, due to the patent expiries of branded drugs, low cost of generic medicines. The branded API segment is projected to grow at a CAGR of 4.0% from 2018 to 2025.
The FDF manufacturing market by dosage form is classified into solid dosage form, injectable dosage form, and semi-solid liquid, gaseous dosage form. Solid dosage form is accounted for the largest revenue in 2018 and is expected to grow at a CAGR of 4.0% from 2018 to 2025, due to changing consumer demands, advent and progress of newer dosage forms and ever evolving regulations. The injectable dosage form is a fastest growing segment and expected to grow at a CAGR of 11.4% from 2018 to 2025 due to its direct infusion to the body, and onset of action of drugs is faster. Hence it is suitable for emergency conditions.
Pharmaceutical contract manufacturing by phase is segmented into commercial manufacturing and clinical manufacturing. Commercial manufacturing holds the highest revenue in 2018 and expected to grow at a mid single digit CAGR from 2018 to 2025, due to huge demand for commercial API production, patent expiry increases commercial manufacturing of API and FDF and increase in outsourcing of generic APIs. Whereas, clinical manufacturing is expected to grow at a high single digit CAGR from 2018 to 2025, due to increase in the number of pipeline drugs where 55-60% of the APIs are synthetic API, clinical phase 2 and 3 projects requiring cGMP facilities and increase in outsourcing by innovator pharma companies due to low cost manufacturing and shorter timelines. Also, clinical manufacturing play a significant role in securing client relationships that can lead to commercial scale manufacturing contracts.
Pharmaceutical contract manufacturing market by application is segmented as Oncology, Central nervous system, Cardiovascular disorder, Infectious diseases, Pulmonary disorders, Metabolic disorder, Gastrointestinal disorders, Musculoskeletal disorders, Genitourinary disorders, Endocrinology and other applications (acute pain, chronic pain and post-surgical, dental, ENT, autoimmune disorder). Among these applications, Infectious disease segment accounted for the largest revenue in 2018 due to increase in global HIV pandemic causes about one million deaths every year, emergence of severe acute respiratory syndrome (SARs) and viral hemorrhagic fever. The Oncology segment is a fastest growing application market during the forecasting period, due to increase in incidence of breast and lung cancer, increase in the usage of synthetic HPAPIs for cancer treatment, increase in geriatric population and FDA approvals.
Pharmaceutical contract manufacturing market by region is segmented as North America (U.S. and Rest of North America), Europe (Germany, France, Italy and Rest of Europe), Asia-Pacific (China, India, Japan, and Others) and Rest of the World (Brazil, Rest of Latin America and Middle East & others). North America accounts for the largest revenue in 2018 and is expected to grow at a mid single digit CAGR from 2018 to 2025. In North America, U.S. and Canada are the most prominent countries in which U.S. occupies the largest revenue, due to expansion of regional market includes developed healthcare sector, availability of funds, increasing clinical trials, rising burden of cancer, increasing government focus on generic drugs, rising demands for specialty of drugs and technological advancements. Asia-Pacific region is expected to grow at a strong CAGR of 8.4% from 2018 to 2025. Mainly India and China are concentrated more due to low labor cost, regulatory relaxation, abundance availability of raw materials, infrastructure facility, rise in generic demands, increased production capabilities, the presence of large number of domestic and international players, and concentration of CMO companies.
The report provides an in-depth market analysis of the above-mentioned segments across the following regions:
• North America
o U.S.
o Rest of North America
• Europe
o Germany
o France
o Italy
o Rest of Europe
• Asia-Pacific
o China
o India
o Japan
o Rest of APAC
• Rest of the World (RoW)
o Brazil
o Rest of Latin America
o Middle East and Others