Biologics CDMO market is expanding rapidly but is challenged by capacity constraints

By Jane Byrne

- Last updated on GMT

© GettyImages/Andrew Brookes
© GettyImages/Andrew Brookes

Related tags Biologics

The biologics CDMO market is expected to grow by US$8.65bn from 2021 to 2026, at a CAGR of 12.2% during the forecast period, according to new market data from Technavio.

The mammalian segment will have significant market share growth during the forecast period. “This segment accounted for a significant share of the market in 2021 due to the rising use of mammalian cells in the treatment of diseases.”

Another key driver supporting the biologics contract development DMO market growth is the availability of cost-efficient resources in emerging markets, with India a preferred low-cost production hub, reads the publication​. “India is estimated to contribute approximately one-third of the global biologics CDMO revenue.”

India has more than 100 US FDA-approved manufacturing facilities, and the number of such facilities is increasing, finds the outlook. 

The strong presence of companies such as Lupin and Zydus Cadila is increasing the share of the biologics CDMO market in the Asian country. Hyderabad-based Dr Reddy’s is betting on biologics as well. 

Technavio expects significant growth to come from the North America market over the next four years.

Indeed, CPhI’s insights report ‘US Pharma Market 2022 and Beyond’​ predicted that the US is going to play a key role in the development of advanced manufacturing technologies: “While the country cannot compete on labor costs, it has the scope to bring new efficiencies to advanced biologics manufacturing.”

Barriers to growth

The Technavio publication also outlined how growth in the biologics CDMO market is challenged by capacity constraints.

The high cost of downstream purification is further restricting CDMOs from operating at their optimum capacity.  “In addition, the shortage of cost-effective single-use products and the limitations in advanced cell culture systems for upstream performance are limiting the growth of the market.”

biologics CDMO techavio graphic
© Technavio 

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