Europe, the biopharmaceutical contract manufacturing market, is anticipated to reach US$ 7,343.21 Mn in 2027 from US$ 4,031.85 Mn in 2019. The market is projected to grow with a CAGR of 7.9% from 2020-2027.
The biopharmaceutical contract manufacturing market is growing primarily due to the increasing demand for biologics and increasing outsourcing by pharmaceutical companies in the European region that are boosting the market over the years. Restraining factors, such as increasing competition in the industry likely to damage the growth of the market in the coming years. Additionally, robust advancements in research and development activities and consolidation in the pharmaceutical CMO industry are likely to increase the growth of the biopharmaceuticals contract manufacturing in the forecast period.
Contract manufacturing is the type of outsourcing where a company enters into an agreement or legal settlement with another manufacturing firm for products, parts, or components, which the former will then use in its production process to complete its product. The various biopharmaceutical companies manufacture antibodies, non-antibody scaffolds, recombinant proteins, fragments as well as DNA from different sources.
The contract manufacturing organization (CMO) offers numerous benefits to pharmaceutical companies, including reducing investments in facilities, drug development costs, thereby improves net cash flow. Outsourcing is cheaper and increases the efficiency of manufacturing processes. The rise of the CMOs was fueled by the increasing number of drug manufacturing failures. In the past, pharmaceutical companies had dedicated manufacturing facilities for innovative drugs in development. However, to reduce the risk of overcapacities, the demand for manufacturing outsourcing has been rising continuously.
CMOs play crucial roles in providing additional capacities to mitigate the risk of supply shortages by offering additional sites for pharmaceutical companies with multisite supply strategies as well as backup capacities. For instance, In 2017 Boehringer opened the first phase of the US$ 77 million facility with a single-use bioreactor capable of handling up to 2000 liters of clinical supplies or industrial production. It was designed in such a way that 2000-L single-use bioreactors and additional fill / finish capacities can be added when it is necessary. Rentschler, which is looking to expand globally, two years ago, added a new facility to its site in Laupheim, Germany, to expand its capacity, saying it recognized the growing demand for biologics. It invested about €24 million to add two 3,000-liter stainless steel bioreactors, more than doubling its capacity. Thus, owing to the factors mentioned above are likely to boost the growth of the biopharmaceutical contract manufacturing market in Europe during the forecast period.
In 2019, the biologics segment accounted for the largest market share in the biopharmaceutical contract manufacturing market in Europe. A significant boom has been witnessed in the contract manufacturing of biologics. This can be attributed to difficulties in the production of a large-scale biologics in house. For instance, Sanofi has outsourced the manufacturing of its biologics pipeline to Boehringer Ingelheim. Many companies are opting CMOs services to speed up the development process and lower production costs.
In 2019, the analytical and quality control segment estimated the highest CAGR of 8.8% in the market during the forecast period. CMOs provide a wide array of services ranging from cell cultivation to final product packaging. Increasing regulatory compliance, complex manufacturing process, and product integrity are driving the adoption of the services mentioned above offered by CMOs. Hence, the segment is anticipated to witness growth at a significant rate during the forecast period.
Some of the significant secondary sources for cold plasma equipment included in the report are the World Health Organization (WHO) and the Food and Drug Administration (FDA).