Biologics CDMO Market Is Dominated by APAC

The biologics CDMO industry will generate USD 31,839.7 million, growing at a rate of 10.3%, by 2030 as per a report by P&S Intelligence. This is credited to the increasing demand for medicines, growing investment in healthcare infrastructure, the launch of new products, and the increasing elderly population.

Pharma and biotech organizations that require higher capital investments for advanced technologies are partnering with CDMOs, because of the high demand for novel therapeutics and the increasing prevalence of infectious diseases.

In the past few years, the drug substances category accounted for the largest biologics CDMO market share, of more than 50%. This is attributed to the increasing biologics approvals, mainly by the FDA, along with the strong clinical pipelines and decreasing biologic drug development rate of failures.

Mammalian cell culture will contribute a revenue of USD 17,983 million to the biologics CDMO industry in 2030, growing at a rate of more than 10% over this decade. This category will continue to grow as more-complex biologics are developed.

As per the European Federation of Pharmaceutical Industries and Associations (EFPIA), in the past few years, the pharmaceutical industry invested USD 46,144 million in Europe for developing and researching new medicines. The growing demand for pharmaceutical drugs and biologics, along with the enhanced production requirements, have driven CDMOs to engage in research and development.

Furthermore, research and development support the testing and development of novel therapies, clinical testing for safety & marketing, and expansion of product portfolio. Thus, the rising investment in research and development will advance the growth of the industry. 

The pandemic had a positive impact on the industry, due to the high requirement for vaccines and therapeutic antibodies during that time.

APAC is an evolving market, which attracts the attention of biologics contract manufacturing and development organizations. APAC will remain the largest and fastest-growing region, with a compound annual growth rate of more than 10% throughout this decade. This is credited to the enormous and rapidly increasing population, which is demanding better access to medicines.

Moreover, the growth in the region is because of the growing affordability of pharmaceuticals due to the development of low-cost generics. In addition, the increasing number of government healthcare programs, growing urbanization rate, and increasing GDP per capita are thriving CDMO market. 

For instance, India is an exceptional nation for the CDMO industry, as it has highly skilled and qualified workers and has received FDA approvals for numerous drugs.  

It is because of the increasing and aging populace, massive investment in healthcare infrastructure, and the increasing healthcare program by the government, the demand for biologics CDMO will continue to grow in the coming years.