Biologics outsourcing has become crucial for drug manufacturing companies in reducing operational costs and improving productivity. Biologics such as monoclonal antibodies, cytokines, insulin, blood factors, and vaccines are popular therapeutic drugs employed for treating various chronic illnesses. With the increasing prevalence of conditions such as cancer and cardiovascular diseases, the demand for biologic medicines has tremendously grown over the years. According to the analysis,
Global Biologics Outsourcing market is estimated to be valued at US$ 19.67 Billion in 2023 and is expected to exhibit a CAGR of 12.9% during the forecast period (2023-2030).
Key Takeaways
Key players operating in the biologics outsourcing market include Lonza Group Ltd., Boehringer Ingelheim GmbH, Samsung Biologics Co. Ltd., WuXi Biologics, AGC Biologics, Abzena plc, GenScript, Thermo Fisher Scientific Inc., Charles River Laboratories International Inc., and Fujifilm Diosynth Biotechnologies U.S.A. Inc.
The rising R&D expenditure on Biologics Outsourcing Market Demand, increasing focus on core competencies, and large pipeline of biological drugs create significant opportunities for contract service providers. Several pharmaceutical companies prefer outsourcing non-core drug manufacturing activities to CMOs for reducing costs and improving efficiencies.
Geography remains a major factor influencing the biologics outsourcing market. While North America and Europe currently dominate the market, Asia Pacific region is likely to offer lucrative expansion opportunities during the forecast period. The increasing investments by international pharmaceutical majors to establish manufacturing facilities in countries like China and India will boost the outsourcing of biologics production in Asia Pacific.
Market Drivers
The growing demand for affordable biopharmaceuticals positively drives the biologics outsourcing market. With rising healthcare costs, payers and governments globally are putting pressure on drug manufacturers to reduce the prices of biologic drugs. Outsourcing drug production allows pharmaceutical companies to minimize in-house costs and get better control over prices.
Market Restrains
Maintaining quality standards and ensuring product safety remains one of the major challenges in biologics outsourcing due to complexity in manufacturing biological drugs. Outsourcing partners are required to demonstrate high technical capabilities and comply with stringent regulatory guidelines to produce biologics of consistent quality. This increases their operational costs.
Segment Analysis
The biologics outsourcing market can be segmented based on type, service and source. Based on type, the market is divided into insourcing and outsourcing. Outsourcing dominates the segment as it helps companies to focus on their core activities and strategic business units. Outsourcing biologics activities to contract service providers reduces operational costs and delivers expertise.
Based on service, the market is classified into Clinical Trail Services, Manufacturing/Fill & Finish Services, Analytical & Quality Control Studies and Other non-clinical services. Clinical trial services dominate the segment as outsourcing clinical trials helps in reducing costs and shorter approval timelines. Large pharmaceutical companies outsource clinical trial activities to contract research organizations to effectively manage complex global clinical programs.
Global Analysis
Regionally, North America dominates the biologics outsourcing market due to presence of large pharmaceutical companies and favorable regulatory environment for clinical trials. Key regional markets include U.S and Canada. The Asia Pacific region is expected to grow at the fastest rate during the forecast period. Rapidly developing pharmaceutical industry, large patient pool and low-cost operations attract biologics companies to outsource activities to Asian contract service providers such as China, India and South Korea. Availability of skilled workforce and expertise in bioprocessing & biomanufacturing further drives the market growth in the Asia Pacific region.
Get this Report in Japanese Language:
Get this Report in Korean Language:
About Author:
Ravina Pandya Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
