Released July 03, 2024 | NEW DELHI
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs) have been witnessing a spike in demand, driven by factors including rising complex biologics, precision medicines and the need to outsource operations by pharma companies.
These companies work as independent contractors, handling drug development and manufacturing for pharmaceutical companies, allowing them to focus on their core competencies and other functionalities. While CMOs concentrate solely on the manufacturing process, CDMOs provide end-to-end drug development as well as manufacturing. According to PricewaterhouseCoopers, 28% of CDMOs provide a portfolio encompassing all three modalities--small molecules, large molecules and advanced therapies--while 37% of CDMOs offer end-to-end services throughout the value chain. In addition to being crucial for the production of complicated pharmaceutical and biotechnology products, they also assist in reducing costs and minimizing operational hazards.
Industrial Info Resources is presently tracking 792 active capital spending projects worth around US$37 billion globally that are geared toward CMOs and CDMOs. Subscribers to Industrial Info's GMI Pharmaceutical-Biotech Project Database can learn more by viewing the related project reports.
Asia and North America are the biggest drivers of investment, with an investment value of about US$15 billion and US$14 billion, respectively across 162 and 287 projects. They both own a combined market share of over 80%, followed by Europe with an investment of about US$7 billion across 236 projects.
Overall, about 52% of the investment is already under construction, 27% is in the initial planning stages and 13% in the latter engineering phase. Most of these projects are anticipated to be completed by August 2025, while the rest are expected to reach fruition by January 2033.
Despite their growth, CDMOs and CMOs face challenges including supply chain risks, regulatory hurdles and transactional partnership models. However, as these organizations adopt SMART (specific, measurable, achievable, relevant, and time-bound) technologies leveraging automation and data analytics, opt for flexible manufacturing processes, and form strategic partnerships, the future for CMOs and CDMOs seems promising.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
These companies work as independent contractors, handling drug development and manufacturing for pharmaceutical companies, allowing them to focus on their core competencies and other functionalities. While CMOs concentrate solely on the manufacturing process, CDMOs provide end-to-end drug development as well as manufacturing. According to PricewaterhouseCoopers, 28% of CDMOs provide a portfolio encompassing all three modalities--small molecules, large molecules and advanced therapies--while 37% of CDMOs offer end-to-end services throughout the value chain. In addition to being crucial for the production of complicated pharmaceutical and biotechnology products, they also assist in reducing costs and minimizing operational hazards.
Industrial Info Resources is presently tracking 792 active capital spending projects worth around US$37 billion globally that are geared toward CMOs and CDMOs. Subscribers to Industrial Info's GMI Pharmaceutical-Biotech Project Database can learn more by viewing the related project reports.
Asia and North America are the biggest drivers of investment, with an investment value of about US$15 billion and US$14 billion, respectively across 162 and 287 projects. They both own a combined market share of over 80%, followed by Europe with an investment of about US$7 billion across 236 projects.
Overall, about 52% of the investment is already under construction, 27% is in the initial planning stages and 13% in the latter engineering phase. Most of these projects are anticipated to be completed by August 2025, while the rest are expected to reach fruition by January 2033.
Despite their growth, CDMOs and CMOs face challenges including supply chain risks, regulatory hurdles and transactional partnership models. However, as these organizations adopt SMART (specific, measurable, achievable, relevant, and time-bound) technologies leveraging automation and data analytics, opt for flexible manufacturing processes, and form strategic partnerships, the future for CMOs and CDMOs seems promising.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
