SAN FRANCISCO, Sept. 5, 2022 /PRNewswire/ — The global healthcare contract manufacturing market size is expected to reach USD 512.7 billion by 2030, expanding at a CAGR of 9.6% during the forecast period, according to a new report by Grand View Research, Inc. The changing regulatory landscape coupled with rising offshoring to emerging countries is anticipated to propel the healthcare contract manufacturing market growth over the forecast period. Many companies witnessed losses in sales and operating profit during the COVID-19 pandemic. As per Jabil, Inc., COVID-19 has increased expenses, primarily related to additional labor costs and procurement of PPE for employees globally, and has caused a reduction in factory utilization due to travel disruptions and restrictions.
Key Industry Insights & Findings from the report:
- The pharmaceutical segment dominated the market with a share of 74.8% in 2021 owing to a low manufacturing budget and highly sophisticated contract manufacturing service offerings.
- The medical devices segment is expected to be the fastest-growing segment with a CAGR of 11.7% owing to increasing pressure on OEMs to reduce costs and enhance the timeline for taking a product to market.
- Cardiology is the dominant segment in the medical device contract manufacturing market owing to the rising demand for cardiovascular devices as a result of the increasing prevalence of associated heart conditions.
- Asia Pacific is the dominant region with a share of 45.7% in 2021 and is expected to witness lucrative growth owing to the presence of a large number of service providers, lower costs and growing demand for medical devices in the region.
Read 160 page market research report, “Healthcare Contract Manufacturing Market Size, Share & Trends Analysis Report By Type (Medical Devices, Pharmaceutical), By End-use, By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2022 – 2030“, published by Grand View Research.
Healthcare Contract Manufacturing Market Growth & Trends
Due to the emergence of infections, such as COVD-19 many organizations are attempting to accelerate production to meet the growing demand. Thus, these companies are appointing healthcare CMOs to speed up their production processes, as well as reduce their overall costs to meet the increasing demand for medical products. The worldwide effort to develop a vaccine and therapeutic agent against COVID-19 has created the greatest opportunity for many large as well as small CMOs as the pharmaceutical companies are manufacturing vaccine doses on large scale. Hence we can say that the pandemic has had a positive impact on this industry.
Increasing demand for advanced products is another major factor driving the industry scale. Original equipment manufacturers (OEMs) are outsourcing the manufacturing activities of medical devices to third parties, mainly in developing countries to gain economic benefits. Furthermore, these regions are witnessing rising cases of chronic conditions such as heart disorders, thereby positively affecting the market growth. Changes in reimbursement schemes are some of the major factors anticipated to increase the adoption of cost containment measures by OEMs. For instance, to prevent reimbursement issues from impacting financing goals, device manufacturers are developing a well-planned reimbursement strategy in parallel with their regulatory and clinical strategies in the early phases of product development.
Healthcare Contract Manufacturing Market Segmentation
Grand View Research has segmented the global healthcare contract manufacturing market based on type and region:
Healthcare Contract Manufacturing Market – Type Outlook (Revenue, USD Billion, 2017 – 2030)
- Medical Device
- By Service
- Accessories Manufacturing
- Assembly Manufacturing
- Component Manufacturing
- Device Manufacturing
- By Therapeutic Area
- Diagnostic imaging
- General & plastic surgery
- Drug delivery
- Diabetes care
- By Service
- API/Bulk Drugs
- Advanced Drug Delivery Formulations
- Finished Dose Formulations
- Semi-solid formulations
Healthcare Contract Manufacturing Market – End use Outlook (Revenue, USD Billion, 2017 – 2030)
- Medical Device Companies
- Pharmaceutical Companies
- Biopharmaceutical Companies
Healthcare Contract Manufacturing Market – Regional Outlook (Revenue, USD Billion, 2017 – 2030)
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
List of key players in the Healthcare Contract Manufacturing Market
- Nordson Corporation
- Integer Holdings Corporation
- Jabil Inc.
- Viant Technology LLC
- FLEX LTD.
- Celestica Inc.
- Sanmina Corporation
- Plexus Corp.
- West Pharmaceutical Services, Inc.
- Catalent, Inc.
- Thermo Fisher Scientific Inc.
- Boehringer Ingelheim International GmbH
- Samsung Biologics
- WuXi AppTec
- FUJIFILM Diosynth Biotechnologies
- Cambrex Corporation
Check out more related studies published by Grand View Research:
- Healthcare Contract Research Organization Market – The global healthcare contract research organization market size is expected to reach USD 74.7 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.5% from 2022 to 2030. The increasing cost of drug development is expected to drive market demand over the forecast period. Also, rising clinical trial costs and challenges pertaining to patient recruitment have led biopharmaceutical companies to turn to regions like Central and Eastern Europe, Asia Pacific, Latin America, and the Middle East for cost savings and quick patient recruitment.
- Healthcare Contract Development And Manufacturing Organization Market – The global healthcare contract development and manufacturing organization market size is expected to reach USD 471.0 billion by 2030 at a CAGR of 9.2% according to a new report by Grand View Research, Inc. The market is expected to show lucrative growth due to increasing R&D expenditure and rising outsourcing trends.
- Pharmaceutical Contract Manufacturing And Research Services Market – The global pharmaceutical contract manufacturing and research services market size is expected to reach USD 395.2 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 7.2% from 2022 to 2030. The rising investments in R&D, increasing demand for generics, and the growing aging population with various chronic diseases are responsible for market growth. However, the advent of COVID-19 led to a temporary shutdown of research and manufacturing activities of ancillary goods used for manufacturing drugs, which had impacted the supply chain and is likely to have a negative impact on the market growth.
Browse through Grand View Research’s Medical Devices Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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