The Global Biologics Outsourcing Market Is Driven By Increasing Demand For Biologics
Biologics are complex molecules manufactured through biological processes and they have large, complex structures that are far more difficult to characterize and reproduce than traditional small molecule drugs. Producing biologics requires highly specialized expertise and production facilities. Given the complex manufacturing processes and high capital investment needs, many biopharmaceutical companies strategic ally outsource the production of biologics. Service providers help these companies avoid high facility set up and operation costs while ensuring timely product development and commercialization.
The global Biologics Outsourcing Market is estimated to be valued at US$ 22.66 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Outsourcing biologics production to contract development and manufacturing organizations has become one of the major trends in the biopharmaceutical industry in recent years. These organizations have substantial expertise, economies of scale, and infrastructure to efficiently manufacture complex biologics. Moreover, they provide end-to-end solutions from product development to commercial production. This has helped biopharmaceutical companies focus their resources on drug discovery and clinical research while outsourcing manufacturing responsibilities. Furthermore, contract manufacturing organizations are continuously expanding their biologics development and manufacturing capabilities through heavy investments. Their growing technical expertise and capabilities are enabling outsourcing of more complex cutting-edge biotherapeutics such as cell and gene therapies. This trend is expected to further accelerate over the coming years.
Porter's Analysis
Threat of new entrants: The biologics outsourcing market requires high capital investment for R&D and specialized equipment, which acts as a barrier for new entrants.
Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power over CROs due to their volume and potential influence on demand.
Bargaining power of suppliers: Suppliers of specialized equipment and instruments have some bargaining power, as changing suppliers requires lengthy validation activities.
Threat of new substitutes: There are limited substitutes to outsourced biologics manufacturing services. Developing in-house capabilities requires substantial investments.
Competitive rivalry: The market is consolidated, with intense competition among few global players. Service differentiation and specialty capabilities drive competitive rivalry.
Key Takeaways
The Global Biologics Outsourcing Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The global Biologics Outsourcing Market is estimated to be valued at US$ 22.66 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
North America currently dominates the market owing to presence of large pharmaceutical companies and established CROs in the region. Europe and Asia Pacific are also lucrative markets expected to exhibit fast growth due to increasing research and manufacturing activities in these regions. North America holds the major share of the biologics outsourcing market currently owing to strong presence of pharmaceutical companies and CROs in the US and Canada. Established manufacturing clusters and regulatory expertise in the region drive outsourcing demand. Europe is the second largest market for biologics outsourcing supported by strategic investments in biosimilars and cell therapies in the UK, Germany, France and Spain. Asia Pacific region is projected to witness highest growth during the forecast period with expanding biologics developments in China, India, Japan and South Korea.
Key players
Key players operating in the biologics outsourcing market are Quorum Technologies Inc., Pix4D SA, Photometrix Ltd., Koninklijke Philips NV, Agisoft LLC, PhotoModeler Technologies, Intel Corporation, Faro Technologies Inc., Autodesk Inc., General Electric Company, and Vi3Dim Technologies.
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