The biologics outsourcing market involves contracting various drug development activities like cell line development, cell banking, protein expression and purification, and drug substance manufacturing to contract development and manufacturing organizations (CDMOs). These CDMOs help pharmaceutical and biotechnology companies reduce capital investment, access advanced technologies and expert human resources. The outsourcing model enables companies to focus on their core competencies of research and development while gaining faster access to the market. Commonly outsourced biologics include monoclonal antibodies, recombinant proteins, blood factors, vaccines, and cell and gene therapies.
The global biologics outsourcing market is estimated to be valued at US$ 19.67 billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers for the growth of the Global Biologics Outsourcing Market Size is the increasing demand for cost-effective drug development. Developing biologics requires large investments, advanced infrastructure and a skilled workforce. Outsourcing to CDMOs helps companies reduce capital expenditure by 30–50% through flexible resourcing. CDMOs provide access to state-of-the-art facilities that may not be feasible for small biotech startups. This allows companies to focus resources on R&D and commercialization. As mentioned in the heading, rising demand for affordable medicine is fueling the growth of outsourcing in the biopharmaceutical industry.
The ability to reduce costs while gaining speed to market provided by CDMOs is a key factor driving more organizations to outsource biologics development activities. This is expected to significantly contribute to the strong projected growth of the global biologics outsourcing market during the forecast period.
Segment Analysis
The biologics outsourcing market can be segmented into contract development and manufacturing organization (CDMO), contract research organization (CRO), and contract manufacturing organization (CMO) segments. The CDMO segment is dominating currently due to increasing demand for reducing costs and improving efficiencies in biologics manufacturing. CDMOs provide end-to-end services from drug development to commercial manufacturing and supply, which help biopharmaceutical companies focus on their core areas.
PEST Analysis
Political: Governments across major countries are supporting the biopharmaceutical industry through initiatives to boost development of biosimilars and biologics. However, trade barriers can impact outsourcing activities.
Economic: The growth of the biologics market and pressure to reduce costs is driving increased outsourcing of activities. Developed markets remain key sources of revenue while emerging markets offer new opportunities.
Social: The demand for biologic drugs to treat chronic diseases is increasing globally due to rising life expectancy and lifestyle changes. However, high treatment costs can impact accessibility in some regions.
Technological: Advanced technologies like modular facilities, single-use systems, and digitalization are helping CDMOs improve efficiencies, flexibility and reduce costs of biologics manufacturing.
Key Takeaways
The global biologics outsourcing market is expected to witness high growth. North America currently dominates due to presence of major pharmaceutical companies and CMOs/CDMOs in the region. However, Asia Pacific is emerging as a fast-growing regional market due to increasing establishments of biomanufacturing facilities and policy support in countries like China, India, and South Korea.
Key players operating in the biologics outsourcing market are Thermo Fisher Scientific Inc., Abzena Ltd., Fujifilm Diosynth Biotechnologies, KBI Biopharma, EirGenix, Inc., Curia Global, Inc., Bionova Scientific, Inc., Boehringer Ingelheim International GmbH., STC Biologics., Abbvie Inc., Avid Bioservices, Inc., Catalent Inc., Emergent, Eurofins Scientific, Genentech, Inc., Genscript Biotech Corporation, JSR Corporation, Lonza, Merck KGaA, Rentschler Biopharma SE. The key players are focusing on expanding capabilities and capacities to benefit from the industry growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
