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Outsourcing boosts healthcare contract manufacturing. Pharmaceutical and medical device businesses can focus on what they do best by using contract makers to make parts, devices, and pharmaceutical goods. Complexity of healthcare product production processes shapes the market. Complex pharmaceutical and medical device production requires specific skills and facilities. Contract manufacturers can handle these complications.
Healthcare contract manufacturing is driven by cost-efficiency. Healthcare companies use contract manufacturers' skills and infrastructure to maximize resources and save manufacturing costs. They may deliberately manage resources and concentrate on R&D and marketing.
Healthcare contract manufacturing partners are chosen due to strict regulatory and quality criteria. Contract manufacturers must follow GMP and ISO standards to provide safe, high-quality healthcare goods.
Globalization boosts healthcare contract manufacturing. Companies are working with regional contract manufacturers to build robust and diverse supply chains. This strategy increases flexibility and reduces supply chain interruption concerns.
Rapid innovation and shorter time-to-market cycles in healthcare items are market factors. Contract manufacturers with modern technology and specialized skills speed up drug and device research and commercialization.
Biomanufacturing and biopharmaceuticals promote healthcare contract manufacturing. Biologics like vaccinations and therapeutic proteins need specialized facilities and understanding. Beginning or developing biopharmaceutical enterprises might save money on contract manufacturing.
Contract manufacturing allows organizations to scale output to market demand. This versatility is vital in the healthcare business, where product demand fluctuates. Contract manufacturers scale to effectively modify production levels.
Advanced manufacturing technologies including robots, automation, and data analytics affect healthcare contract manufacturing. Contract manufacturers that invest in cutting-edge technology may improve healthcare product efficiency, accuracy, and quality.
Strategic agreements between healthcare corporations and contract manufacturers impact market dynamics. These partnerships enable knowledge, resource, and risk sharing, boosting industry innovation and competitiveness.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Growth Rate | Â 8.03% (2024-2032) |
Healthcare contract manufacturing Market Highlights:
Global Healthcare Contract Manufacturing Market Overview
Healthcare Contract Manufacturing Market Size was valued at USD 273.13 Billion in 2023. The Global Healthcare Contract Manufacturing industry is projected to grow from USD 299.74 Billion in 2024 to USD 600 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.03% during the forecast period (2024 - 2032). The contract manufacturing means that a company and a manufacturer sign a contract. Here, the manufacturer provides different components separately to the company for a specified period.
The contract manufacturers in the healthcare sector provide various components such as pharmaceutical and medical devices, and other services for drug manufacturing. The patent expiration of medical devices and increasing competition among major companies are the important drivers for market growth. Along with that, the growing demand for convenient devices is also playing a major role in boosting the market.
The major players in the Healthcare Contract Manufacturing Market are also providing customized services to meet the crucial needs of the developers and designers of medical devices in the market. Moreover, North America will hold the largest share in the market in the upcoming years. Along with that, the countries in the Asia-Pacific region such as India and China are flourishing the market extensively.
COVID-19 Analysis of Healthcare Contract Manufacturing Market
The advent of COVID-19 disease had a negative and positive effect on the healthcare storage contract manufacturing market. The lockdown across the world caused huge disruptions in the supply chain. This also reduced the demand for medical devices and caused huge losses to the major companies. However, the demand for respirators, ventilators, etc. increased significantly. Thus, the market observed several fluctuations during Forecast. However, the rising use of sophisticated devices for medical use is promoting the market growth extensively.
In January 2024, Enzene Biosciences, a biopharmaceutical company and contract development and manufacturing organization (CDMO), established its inaugural production facility in New Jersey, United States. Enzene is a subordinate company of the pharmaceutical corporation Alkem Labs. Enzene's US facility is situated in the Princeton West Innovation Campus and is anticipated to be operational by June 2024. Enzene aims to establish itself as a Contract Development and Manufacturing Organization (CDMO) partner for biotech enterprises in the United States, assisting them in the successful commercialization of potential drug compounds. This location is situated in the central area of the US Northeast Corridor, making it easily accessible to numerous prominent biotech and pharmaceutical companies worldwide. Customers have already begun reserving capacities for continuous manufacturing and/or fed-batch processes. Enzene is allocating $50 million to enter the US market. This plant is one of the few biologics-focused continuous manufacturing facilities established by an Indian company in the United States. The company plans to establish several manufacturing lines for its continuous manufacturing technology platform.
In December 2023, Visura Technologies Inc., a privately owned medical device company located in Minneapolis, Minnesota, and YKK Corporation of America, a subsidiary of Japan-based YKK Corp., established Evevo Manufacturing LLC. This new joint venture aims to support emerging medical device companies in the Minneapolis ecosystem. The distinctive partnership between the leadership teams of YKK and Visura Technologies resulted in the establishment of a joint venture owned by both companies. Evevo Manufacturing will primarily serve start-up and rising medical device companies that frequently struggle to attract and retain the interest of contract manufacturing partners.
Healthcare Contract Manufacturing Market Trends
Market Drivers
The rising demand for specialized medical devices will drive the market. Along with that, the growing population of older people and sedentary lifestyle is also major driver for the healthcare storage contract manufacturing market. Hence, these factors will increase the market growth significantly.
Restraints
One of the major restraints of the healthcare storage contract manufacturing market is the disruption in the supply chain. Along with that, the interoperability and standardization problems will further lower the market growth in the upcoming years. Along with that, the acquisition of small companies by contract with healthcare manufacturers will restrict the outsourcing of the components.
Opportunities
However, as the companies are coming forward for acquisitions and mergers, this step will help to reduce the costs required for manufacturing. Along with that, the increasing use of the facilities of multi-product and several technological advancements will open new opportunities for market growth.
Challenges
The major challenge for the Baxter healthcare contract manufacturing is the low availability of skilled laborers. Due to the COVID-19, the supply chain is majorly disturbed. Along with that, the problems related to interoperability, standardization, and control issues will reduce the market growth.
Value Chain Analysis
With the growing demand and technological advancements in the Baxter healthcare contract manufacturing market, the value chain will have stable growth. The rising demand for generic drugs, developments by the key players, etc. will fuel the market growth.
Healthcare Contract Manufacturing Market Segment Insights
The Market segments of Healthcare Contract Manufacturing are divided into service type, industry, and type. On the basis of service type, the market of Healthcare Contract Manufacturing is divided into medical device contract manufacturing and pharmaceutical contract manufacturing.
On the basis of type, the Healthcare Contract Manufacturing Market is segmented into non-sterile and sterile.
On the basis of industry, the market segment of Healthcare Contract Manufacturing are pharmaceutical industry, biopharmaceutical industry, and medical device industry.
Healthcare Contract Manufacturing Market Regional Insights
Regionally, the market of Healthcare Contract Manufacturing is divided into North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa. It is valuated that the Americas will lead the Healthcare Contract Manufacturing Market in the upcoming years. The countries such as Canada and the US have been increasing their capability with technological advancements. Along with that, the presence of several companies is the major reason for the significant growth.
Secondly, the presence of contract manufacturers for generic drug production in Europe is also pushing the market growth. Europe will hold the second-largest share in the Healthcare Contract Manufacturing Market. Apart from that, other several factors boosting the market growth are rising disposable income and easy availability of advanced products. Also, the supportive policies by the government for development and research in this sector will fuel the market growth.
The Asia-Pacific region will have lucrative growth with a high CAGR. It is due to the significant development rate in India and China. In these countries, rising expenditure for healthcare, low costs of materials and manufacturing, are the major drivers. Along with that, the low costs of laborers are also attracting several market players for investments. Thus, it is pushing the market towards growth.
Lastly, the Middle and African regions will have the least growth as compared to other regions. However, with several notable developments in biotechnology and pharmaceutical companies among GCC (Gulf-Corporation Council), the region will have stable growth.
Competitive Landscape
The key players in the healthcare storage contract manufacturing are using different strategies. They are announcing mergers, acquisitions, collaborations, etc. that will fuel the market growth in the forecast period.
The major key players in the healthcare storage contract manufacturing are as follows.
- Boehringer Ingelheim
- AbbVie, Grifols Internationa
- A, Lonza AG
- Catalant
- Aesica Pharmaceuticals
- Benchmark Electronics
- Evonik Industries
- Flex Ltd
- Forefront Medical Technologies
- Teva Pharmaceutical Industries
- Hamilton Company
- Sanmina Corporation
- Patheon
- Mylan
- Vetter Pharma International
Recent Developments
- October 2023: Daiichi Sankyo received USD 5.5 Bn agreement from Merck for developing their cancer drug candidates.
- October 2023: Advent International and Warburg Pincus, two investment firms complete the acquisition of Baxter's Biopharma Solutions business to form Simtra BioPharma Solutions, a contract development and manufacturing organization (CDMO) company.
- July 2023: Samsung Biologics enter into an agreement with Pfizer for the development of two new drug products in a USD 897 million combined deal
Report Overview
The report overview of the Healthcare Contract Manufacturing Market is as follows.
- Market Overview
- COVID-19 Analysis
- Dynamics of the Market
- Value Chain Analysis
- Market Segmentation
- Regional Analysis
- Competitive Analysis
- Recent Development
The report score highlights the forecast period for the analysis of Healthcare Contract Manufacturing Market. It highlights the market opportunities, drivers, opportune it is, etc. The report gives insight into the key strategies by key layers. The information provided in this report is collected from secondary and primary sources.
Healthcare Contract Manufacturing Segmentation
Healthcare Contract Manufacturing Service Type Outlook
- Medical Device Contract Manufacturing
- Pharmaceutical Contract Manufacturing
Healthcare Contract Manufacturing Type Outlook
- Non Sterile
- Sterile
Healthcare Contract Manufacturing Industry Outlook
- Pharmaceutical Industry
- Biopharmaceutical Industry
- Medical Device Industry
Healthcare Contract Manufacturing Region Outlook
- North America
- Europe
- Latin America
- Asia-Pacific
- The Middle East and Africa
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