Biopharmaceutical CMO Market Projected, 12.6% CAGR By 2032

Introduction

Global Biopharmaceutical CMO Market size is expected to be worth around USD 51.5 Billion by 2032 from USD 18.2 Billion in 2023, growing at a CAGR of 12.6% during the forecast period from 2024 to 2032.

The biopharmaceutical Contract Manufacturing Organization (CMO) is experiencing significant growth, driven by the increasing demand for biologics and complex therapies, such as monoclonal antibodies, cell and gene therapies, and vaccines. CMOs are expanding their capabilities to meet the burgeoning pipeline of biologics, investing in modern facilities equipped with single-use technologies and advanced bioreactors. These investments enhance production efficiency and flexibility while ensuring stringent control over contamination and purity essential for biologics manufacturing.

Biopharmaceutical CMOs primarily produce biologics and biosimilars, which include a range of products derived from human, animal, or microbial sources. These products encompass vaccines, blood components, cells, genes, and recombinant proteins. The services provided by biopharmaceutical CMOs include manufacturing, fill and finish operations, analytical and quality control studies, and packaging.

An aging population is another driver for the CMO market. According to the US Government’s National Library of Medicine journal on chronic diseases, the number of Americans aged 50 and older is projected to increase by 61.11%, from 137.25 million in 2020 to 221.13 million by 2050. Correspondingly, the prevalence of chronic diseases in this age group is expected to nearly double from 71.522 million in 2020 to 142.66 million by 2050, further fueling the demand for biopharmaceutical manufacturing services.

The COVID-19 pandemic also positively impacted the market, with a marked increase in growth from 2019 to 2020 due to the urgent need for COVID-19 vaccines and therapeutic solutions. This led to numerous partnerships between biopharmaceutical firms and CMOs, significantly driving market growth during this period. Looking ahead, the market is anticipated to continue its robust growth trajectory from 2024 to 2033.

Key Takeaways

• Market Size: Biopharmaceutical CMO Market size is expected to be worth around USD 51.5 Billion by 2032 from USD 18.2 Billion in 2023.
• Market Growth: The market growing at a CAGR of 12.6% during the forecast period from 2024 to 2032.
• Type Analysis: The Biologics segment is the most lucrative in the global biopharmaceutical CMO market.
• Source Analysis: The Mammalian Segment Is Estimated To Hold a Significant Market Share.
• Service Analysis: The Manufacturing Segment Is a Significant Market Shareholder
• Regional Analysis: North America held the largest revenue share of 34.2% in 2022.
• Global Market Access: CMOs allow companies to expand into new geographical markets by providing local production and expertise in meeting regional regulatory requirements​
• Regulatory Compliance: CMOs provide essential services to ensure that biopharmaceuticals meet strict regulatory standards, helping companies achieve Good Manufacturing Practice (GMP) compliance

Biopharmaceutical CMO Statistics

• The U.S. biopharmaceutical industry directly contributes 1.6% to the U.S. GDP.
• When considering indirect impacts, the industry’s contribution grows to 3.4% of the U.S. GDP.
• There are over 1,500 FDA-approved biopharmaceutical facilities across 47 states and Puerto Rico.
• More than 900,000 workers are employed directly in biopharmaceutical manufacturing.
• Nearly 4.4 million U.S. jobs are supported through indirect impacts related to biopharmaceutical manufacturing.
• The average wage in biopharmaceutical manufacturing is nearly double that of other industries.
• The U.S. biopharmaceutical sector received an initial investment of $70 million from NIST to support NIIMBL.
• Since 2017, over $380 million in nonfederal co-investment has been spurred by this initial funding.
• Biopharmaceutical exports from primarily foreign-owned firms totaled over $17 billion in 2018.
• These firms spent about $20 billion on R&D in 2018.
• Foreign direct investment in pharmaceuticals and medicines totaled $511.3 billion in 2019.
• Over 215,000 U.S. jobs related to biopharmaceuticals were supported by foreign direct investment in 2018.
• The biopharmaceutical manufacturing sector is a major employer with over 300,000 jobs in 2019.
• R&D spending on biotechnology within the pharmaceutical industry grew from $17.7 billion in 2010 to $46.0 billion in 2018.
• The share of biologics in new drug approvals increased from 7% (2000-2008) to 16% (2009-2017).

Emerging Trends

• Emerging Therapeutic Modalities: There is a shift towards cell-based therapies, gene therapies, and nucleic-acid based therapies, such as mRNA vaccines. This trend is expanding the toolkit available for disease treatment and prevention.
• Increased Data Utilization: The use of artificial intelligence (AI) and machine learning (ML) in drug development and manufacturing is growing, enhancing everything from drug discovery processes to quality control.
• Industry-Academia Collaboration: Increased crossover and cooperation between biopharmaceutical companies and academic institutions are speeding up the pace of innovation and application of new therapies and technologies.
• Single-Use Technologies: Adoption of single-use systems in manufacturing processes is on the rise, offering cost reductions, increased flexibility, and reduced contamination risks.
• Continuous Bioprocessing: There is a push towards continuous manufacturing processes, which can enhance efficiency and scalability for biopharmaceutical production.
• Digital Twins and Advanced Modeling: The use of digital twins and advanced computational models is becoming more common to simulate and optimize biopharmaceutical manufacturing processes.
• Quality by Design (QbD): Implementation of QbD approaches is increasing, focusing on building quality into processes from the earliest development stages.
• Scalable Manufacturing Processes: Efforts to develop scalable manufacturing processes for complex proteins and other biologics are critical to meet the flexibility demands of personalized medicine.
• Robust and Scalable Cell Expansion Techniques: Innovations in cell culture technologies that allow for robust and scalable expansion of therapeutic cells are essential for the advancement of cell therapies.
• Integrated Process and Supply Chain Optimization: There is an emphasis on integrating and optimizing the entire supply chain and manufacturing process to improve efficiency and reduce costs.

Use Cases

• mRNA Vaccine Production: During the COVID-19 pandemic, CMOs played a critical role in rapidly scaling up the production of mRNA vaccines, such as those developed by Moderna and Pfizer-BioNTech. This involved advanced biomanufacturing technologies like single-use bioreactors to meet the global demand for vaccines.
• Cell and Gene Therapy Manufacturing: CMOs are increasingly used for the production of cell and gene therapies, which require specialized knowledge and technology for the manipulation of cells and genes. This includes viral vector production and CAR-T cell therapies.
• Continuous Bioprocessing: Some CMOs implement continuous bioprocessing methods, enhancing the efficiency and scalability of biologic drug production by reducing downtime between batches and improving product quality.
• Regulatory Compliance and Quality Control: CMOs help biopharmaceutical companies comply with regulatory standards such as Good Manufacturing Practices (GMP) by offering quality assurance and validation services, essential for FDA approval.
• Single-Use Technologies: CMOs utilize single-use systems to minimize contamination risk and increase flexibility in production. This is particularly important for biologic drug manufacturing, which demands high levels of sterility.
• Early-Phase Clinical Manufacturing: CMOs are often used to produce small batches of biopharmaceuticals during early-phase clinical trials. This allows companies to test new therapies without the cost of building their own facilities.
• Outsourced Fill and Finish Services: Many CMOs provide “fill and finish” services, a critical step where the drug product is filled into containers and packaged for distribution. This is essential for injectable biologics, which require sterile conditions.
• Technology Transfer Services: CMOs offer expertise in transferring biomanufacturing processes from a biopharma company’s laboratory to full-scale production, facilitating a smoother transition from research to commercialization.
• Global Expansion: CMOs enable smaller biopharmaceutical companies to expand globally by offering localized production in different regions, helping companies meet regulatory and market-specific requirements.
• High-Potency API Manufacturing: Some CMOs specialize in the production of high-potency active pharmaceutical ingredients (APIs), which are crucial for treatments like oncology drugs. These require highly controlled environments to ensure safety and quality.

Conclusion

The biopharmaceutical Contract Manufacturing Organization (CMO) market is experiencing substantial growth, driven by increasing demand for biologics, gene therapies, and vaccines. CMOs are investing in advanced technologies, such as single-use systems and continuous bioprocessing, to enhance production efficiency and flexibility.

The aging population and rising prevalence of chronic diseases further propel the demand for biopharmaceuticals. Additionally, CMOs play a crucial role in ensuring regulatory compliance, expanding global market access, and supporting innovations in emerging therapeutic modalities. With a projected CAGR of 12.6%, the market is expected to reach USD 51.5 billion by 2032.

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