Pharmaceutical Contract Research and Manufacturing Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Manufacturing Service (API/Bulk Drugs, Advanced Drug Delivery Formulations Packaging, Packaging and Finished Dose), By Formulation (Solid Formulations, Liquid Formulations, and Semi-Solid Formulations), By Research Service (Oncology, Vaccines, Cardiology, Neuroscience, and Other Research Services), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The global pharmaceutical contract research and manufacturing market was valued at USD 160,463.7 Million in 2022 and is anticipated to reach a value of USD 311,034.9 Million by 2030 expanding at a CAGR of 8.7% between 2023 and 2030.

Pharmaceutical businesses use a collaborative, outsourced model called Pharmaceutical Contract Research and Manufacturing (CRAM) to outsource different parts of their manufacturing, research, and development processes to specialist service providers. Under this structure, pharmaceutical firms outsource their research and development needs, including preclinical studies, clinical trials, and regulatory support, to contract research organizations (CROs). Pharmaceutical goods, such as final dosage forms and active pharmaceutical ingredients (APIs), are produced concurrently by contract manufacturing organizations (CMOs). Pharmaceutical contract service providers now make up a very fragmented market with a mix of established enterprises, mid-sized businesses, and start-ups. It is thought that the innate knowledge of CMO manufacturing and CDMOs can facilitate a decrease in a product's time-to-market, substantial cost savings, and access to bigger production capacity and cutting-edge technology.  It is noteworthy to highlight that the pharmaceutical contract manufacturing industry has seen a significant amount of merger and acquisition activity in recent years as firms attempt to become one-stop shops in order to meet the various demands of pharmaceutical producers.

Pharmaceutical Contract Research and Manufacturing Market Major Driving Forces

Flexibility and Scalability: Pharmaceutical businesses may adjust to changing market needs with greater flexibility and scalability when they outsource through CRAM. They don't require large capital expenditures in infrastructure or staff because they may simply scale their operations up or down in accordance with the particular needs of a project. 

Cost-Effectiveness: The goal of cost-effectiveness is one of the main forces behind CRAM. By contracting with specialist businesses to handle some aspects of research, development, and manufacturing, pharmaceutical corporations can lower their operating expenses. This enables them to take use of the infrastructure and experience of contract service providers while concentrating on their core skills.

Expertise Access: Through CRAM, pharmaceutical businesses may have access to a wide range of expertise that is available in manufacturing and research organizations (CMOs) and contract research organizations (CROs). These outside partners frequently possess cutting-edge technology and unique expertise, which helps to increase productivity and shorten development times.

Globalization of the Pharmaceutical Industry: CRAM gives businesses access to a worldwide network of manufacturing and research resources as the pharmaceutical industry grows increasingly globalized. This is especially helpful when navigating various regulatory environments and reaching global markets.

Pharmaceutical Contract Research and Manufacturing Market Key Opportunities

Growing Drug Development Pipelines: Owing to developments in genomics, biotechnology, and personalized medicine, the pharmaceutical industry is experiencing a boom in drug development efforts. This gives CRAM service providers a significant chance to help businesses manage larger pipelines, carry out clinical trials, and hasten the creation of innovative treatments.

Biopharmaceuticals: CRAM now has more options thanks to the growth of biopharmaceuticals. Due to the increasing demand for specialized knowledge in bioprocessing and biomanufacturing, CMOs have the opportunity to provide services associated with the creation of biologics and biosimilars.

Emerging Markets: As a means of expansion, the pharmaceutical sector is increasingly focusing on emerging markets. Through CRAM, businesses can gain access to local knowledge and resources in these markets, which makes it easier to modify drug development and production processes to comply with local regulatory standards.

Pharmaceutical Contract Research and Manufacturing Market Key Trends

·         As a result of biologics, such gene treatments and monoclonal antibodies, are so successful in treating complicated and chronic illnesses, there is a fast increasing demand for these products.

·         Due to their expanding populations and increasing disposable budgets, emerging economies including China and India are seeing a sharp increase in the demand for medicines.

·         The pharmaceutical sector is changing due to the use of new technologies including automation, big data, and artificial intelligence (AI).

·         Integrated services covering the full drug development lifecycle, from target selection through clinical trials and commercialization, are being offered by CROs and CMOs more and more. CROs and CMOs are putting more of a focus on quality and compliance as regulations get stricter.

Region-wise Market Insights

North America accounted for the largest market share at 36.7% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 9.2% between 2023 and 2030.

The CRAM market in North America occupied the largest market share of 36.7%, accounting for USD 58,890.3 million in 2022. The market is driven by a stable pharmaceutical sector, a high degree of innovation, and supportive regulations. The region's leadership in outsourcing different phases of drug development and production is partly attributed to the abundance of contract research organizations (CROs) and contract manufacturing organizations (CMOs). Europe is another important participant, registering 25.7% of the market share in the CRAM business. It is home to important pharmaceutical centers, including the United Kingdom, Germany, and Switzerland. The area gains from a heritage of cooperation between university and business, a highly qualified workforce, and a strong emphasis on research and development. Furthermore, European nations are aggressively embracing the outsourcing trend in order to gain specialist skills and optimize costs. Asia-Pacific is emerging as a vibrant and quickly expanding market, with the CRAM sector seeing the fastest CAGR of 9.2%. Key contenders include China and India, which provide economic advantages, a large pool of highly skilled scientists, and progressively more advanced infrastructure. Outsourcing operations in early-phase clinical trials, research services, and manufacturing are all on the rise in the Asia-Pacific area.

Market Competition Landscape

Global and regional competitors coexist in the pharmaceutical contract research and manufacturing industry, creating a highly competitive environment. Through mergers and acquisitions, the pharmaceutical contract research and manufacturing business has become more consolidated. Larger companies have acquired smaller competitors in an effort to boost their market share and broaden their product offerings. Due to this tendency, the big companies have emerged with a wide geographic reach and a variety of products. Businesses are implementing cutting-edge technology more often in the pharmaceutical contract research and manufacturing sector in an effort to boost environmental sustainability, safety, and project efficiency. Businesses with a wide geographic reach are better able to access a variety of markets and possibilities. They can increase their market share and diversify their project portfolio by utilizing their regional or worldwide footprints. Local and regional pipeline contractors possess a competitive edge in their particular markets due to their familiarity with local laws, cultural quirks, and project-specific specifications.

Prominent entities in the worldwide pharmaceutical contract research and manufacturing industry employ diverse organic and inorganic tactics to fortify and enhance their market outlook. Prominent players in the market include:

·         IQVIA (formerly QuintilesIMS)

·         Covance (a Labcorp Company)

·         Lonza Group

·         Parexel International (acquired by ICON plc)

·         Thermo Fisher Scientific

·         Charles River Laboratories

·         Patheon (a Thermo Fisher Scientific Company)

·         Catalent

·         Wuxi AppTec

·         Biocon

·         Quotient Sciences

·         Catalyst Clinical Services

·         Vetter Pharma

·         Syneos Health

·         Recipharm

·         Emergent BioSolutions

·         Samsung Biologics

·         Piramal Pharma Solutions

·         AGC Biologics (formerly CMC Biologics)

·         Almac Group

A global pioneer in integrated healthcare services, IQVIA delivers a comprehensive range of services, including clinical research, consulting, and technological solutions. IQVIA is a prominent player in contract research and manufacturing, providing help to biotechnology and pharmaceutical firms across their full product lifecycle. Covance, a well-known contract research company that provides services in drug development, clinical trials, and laboratory testing, is a member of the Labcorp family. With a global base, Covance provides full support to pharmaceutical businesses from early development through post-marketing research.