Market Trends of Biologics CDMO Industry
This section covers the major market trends shaping the Biologics CDMO Market according to our research experts:
CDMOs’ Access to New Technologies and Higher Speed of Execution Driving Market Growth
- Pressure to reduce the supply chain length and improve lead-time efficiency is forcing companies to take various measures to meet the demand, turning contract manufacturing into a major enabler in the supply chain to reduce the speed of execution.
- Often, contract manufacturing is followed by contract packaging for some pharmaceutical drugs. As a result, pharmaceutical companies seek vendors who provide contract manufacturing and contract packaging, along with quality testing. In addition, third-party logistic providers, like DHL, are extending their service capability to include contract packaging services.
- CDMOs are gaining significant market traction through advanced technology and specialized expertise. Keeping up with the latest technology trends is particularly important for niche CDMOs specializing in one compound or dosage form.
- Biopharmaceutical CDMOs are most likely to succeed in a highly competitive industry. They are willing to adopt cutting-edge technology and invest the necessary time and capital to build differentiated capabilities. The best CDMOs will move quickly to increase capacity while remaining flexible and agile.
- With the rising prevalence of infectious diseases and increased demand for novel therapies, pharma and biotech companies requiring higher capital investments for advanced technologies are forming collaborations with CDMOs, further driving the market's growth.
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North America to Hold Prominent Market Share
- North America is one of the major markets for the biologics CDMO industry, owing to the presence of two major economies, namely, the United States and Canada. The United States is home to one of the major pharmaceutical industries in the world and commands a significant share of the market revenue.
- According to a study by the IQVIA Institute for Human Data Science, global medicine spending will reach USD 1.8 trillion in 2026, including COVID-19 vaccines. In addition, the region also holds a prominent share of the CDMO market. According to Results Healthcare, the region accounts for about 37% of the CDMO market share and is expected to witness growth in mid-single-digit percentage points over the coming years.
- The high prevalence of chronic diseases, the aging of the population, and the increased need for evidencebased practice are factors that have bolstered the high demand for clinical trials in the United States. In recent years, a growing number of clinical trials have shifted from academic medical centers to communitybased practices to global sites in different countries.
- Moreover, CROs have a strong foothold in the region, contributing to the market's growth. These include QVIA Holdings Inc., Pharmaceutical Product Development LLC, PRA Health Sciences Inc., and Laboratory Corporation of America Holdings. Companies such as Biovectra are also focusing on offering contract development and manufacturing capacity for intermediates and active pharmaceutical ingredients (APIs) at four cGMP facilities in North America. The Chinese contract development and manufacturing organization (CDMO) recently signed a 10-year lease deal for a clinical manufacturing facility in the United States, further helping the biologics CDMO market grow.
- Emergent BioSolutions also announced various CDMO deals with COVID-19 vaccine developers, including Vaxart, Novavax, J&J, and AstraZeneca. The company's experience in commercializing anti-infectious disease vaccines, including FDA-approved vaccines BioThrax (Anthrax Vaccine Adsorbed) and Vaxchora (Cholera Vaccine, Live, Oral), and its pandemic-ready manufacturing network are major factors in winning these deals for the COVID-19 vaccine. The company's Bayview drug substance facility in Baltimore, Maryland, was designed and built in partnership with the US government to respond to the pandemic. The new Center for Innovation in Advanced Development and Manufacturing (CIADM) has single-use bioreactor systems of up to 4,000 L.
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