Lyophilization Equipment and Services Market Size

Lyophilization Equipment & Services Market Analysis

The lyophilization equipment and services market is poised to grow at a CAGR of 8.5% during the forecast period.

The impact of COVID-19 in its initial phase was profound owing to restrictions on drug production in pharmaceutical and biotech manufacturing sites, which hampered market growth. The demand for lyophilized drugs and emergency use authorization (EUA) for certain lyophilized drugs compensated for the market growth in the later stages of the pandemic. For instance, in May 2020, Cipla launched remdesivir under its brand name CIPREMI (remdesivir lyophilized powder for injection, 100 mg). Gilead Sciences Inc. received a EUA from the US FDA to use remdesivir for COVID-19 patients who were hospitalized. The market has been recovering well over the last two years since the drug manufacturing restrictions were lifted. The growing demand and approvals for lyophilized drugs are ultimately propelling the use of lyophilization equipment and services and are hence expected to propel the market during the forecast period.

The key drivers augmenting the market are the rising demand for lyophilized products in the pharmaceutical industry and technological advancements in lyophilization methods.

In the past few years, the number of biopharmaceuticals being developed and manufactured has increased significantly. Moreover, the rising demand for aseptic packaging and preservation, as well as the increase in the production of protein-based drugs, is expected to boost the demand for freeze-drying. Thus, pharmaceutical manufacturers and equipment suppliers are moving toward an array of advanced process analytical technologies (PAT) to help optimize their freeze-drying operations. In the case of biologics, the formulation and storage in aqueous solutions result in instability. Lyophilization can help improve their long-term stability. The process of lyophilization is a complex, multistep process that requires a sound understanding of both the product and the process-related attributes to ensure higher operational efficiency and consistency in producing acceptable final products. As most pharmaceutical products could not be commercially viable without lyophilization, their usage is inevitable.

Furthermore, growth in the number of commercially available vaccines and injectables for various disease conditions and rising demand for contract manufacturing and outsourcing activities in the biopharmaceutical industry are also anticipated to emphasize the growth of the global lyophilization equipment and services market in the near future.

The advancements in technology and increasing product approvals, along with partnerships and collaborations by key players, are helping in the market's growth. For instance, in September 2021, DARA Pharma Group and MOTUS signed a technology transfer agreement to manufacture loading systems for freeze dryers. Moreover, in December 2021, PCI Pharma Services (PCI), a CDMO, reported the closing of the earlier-notified acquisition of Lyophilization Services of New England, Inc., a CDMO based in Bedford, New Hampshire. This addition is a critical step for PCI, as LSNE will extend PCI's range of services as a global CDMO, creating its expertise in the clinical trial supply, specialty manufacturing, and pharmaceutical packaging. PCI can now offer integrated large and small-molecule solutions for its clinical and commercial consumers, including global manufacturing capabilities in high potency, complex formulations, sterile fill-finish, and lyophilization, an important manufacturing process commonly used with injectable and biologic therapies. Such partnerships are projected to boost market growth during the forecast period.

Therefore, owing to the aforementioned factors, it is anticipated that the studied market will witness growth over the analysis period. However, the high setup and maintenance costs of freeze-drying equipment and the increasing utilization of alternative drying techniques in the pharmaceutical and biotechnology industries are likely to impede the market growth.