Active Pharmaceutical Ingredients CDMO Market to be dominated by Oncology Segment to reach 190.11 Bn by 2030 - Says Maximize Market Research
- The Active Pharmaceutical Ingredients (APIs) CDMO market is experiencing significant growth, largely driven by the rising demand for new oncology therapies, with the oncology segment accounting for the largest market share.
- The Asia Pacific region is set to become the largest market due to its cost-effective manufacturing capabilities, robust supply chain, and skilled workforce, particularly in countries like China and India.
- The market is segmented by product types and applications, with key growth segments including traditional APIs, highly potent APIs, and antibody-drug conjugates, and is bolstered by increasing pharmaceutical R&D investments, patent expirations, and a demand for generic drugs.
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Pharmaceutical Industry Sees Significant Growth in CDMO Services
Within the pharmaceutical sector, a specialized organization known as a Contract Development and Manufacturing Organization (CDMO) for Active Pharmaceutical Ingredients (APIs) delivers a diverse array of services related to the creation and manufacturing of APIs. The complexity of pharmaceutical ingredients is on the rise, with small molecules gaining prevalence, and cost-saving strategies are propelling the swift growth of outsourcing services within the pharmaceutical sector.
Market Size and Growth Projections
Maximize Market Research, a healthcare research firm, has issued a report on the Global Active Pharmaceutical Ingredients CDMO Market. The total market for the Pharmaceutical Ingredients CDMO Market stood at USD 118.2 billion in 2023 and is anticipated to expand at a 7.06 percent Compound Annual Growth Rate (CAGR) through the projection period, reaching close to USD 190.11 billion by 2030.
Key Drivers of Market Growth
The oncology segment is expected to dominate the market due to the rising number of cancer cases globally. This segment is anticipated to continue to grow significantly, driven by the increasing demand for new cancer therapies and the presence of novel drugs in the cancer pipeline. According to the U.S. FDA, as of 2023, the global oncology pipeline includes 16 oral medications and 6 injectable drugs, with 6 drugs dedicated to breast cancer and 3 aimed at addressing non-small cell lung cancer (NSCLC).
Regional Analysis
The Asia Pacific region is poised to be the largest market for Pharmaceutical Ingredients CDMO due to its cost-effective manufacturing compared to other global regions. This cost advantage is attributed to significantly lower labor costs in countries like China and India, where typical labor costs in the pharmaceutical manufacturing sector are inferior to those in the US and Europe. The region not only presents cost benefits but also boasts a robust supply chain network and a highly skilled workforce, with a burgeoning number of proficient individuals in pharmaceutical sciences and chemical engineering.
Market Segmentation
The market is segmented by product type, including Traditional Active Pharmaceutical Ingredient (Traditional API), Highly Potent Active Pharmaceutical Ingredient (HP-API), Antibody-Drug Conjugate (ADC), and others. The market also covers applications such as oncology, hormonal, glaucoma, cardiovascular, and diabetes.
Key Market Trends
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Oncology Segment Growth: The oncology segment dominated the active pharmaceutical ingredient CDMO market, accounting for the largest revenue share of 35.72% in 2023. This dominance is attributed to the rising number of cancer cases globally, driving the demand for new cancer therapies.
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Antibody-Drug Conjugate Segment: The antibody-drug conjugate segment is expected to show lucrative growth during the forecast period, driven by the increasing demand for targeted therapies in cancer treatments.
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Synthetic Segment: The synthetic segment dominated the API CDMO market and accounted for the largest revenue share of 73.19% in 2023. The biotech segment is estimated to register a faster CAGR over the forecast period.
Market Opportunities
The market offers significant opportunities for investment, driven by factors such as increasing pharmaceutical R&D investments, patent expirations, and a rise in demand for generic drugs and biologic innovations. The growth of small molecules and the need to reduce costs are also contributing to the rapid expansion of outsourcing services in the pharmaceutical sector.
Strategic Initiatives
To cater to the escalating demand for CDMO Services, key players like Lonza have expanded their facilities to enhance their capabilities in developing new drugs. Companies are strategically positioning themselves to offer comprehensive support to customers in various stages of drug development and manufacturing, exemplified by Siegfried's acquisition in Wisconsin, US, to establish Siegf Acceleration for early CDMO services.
Conclusion
The Active Pharmaceutical Ingredients CDMO Market is witnessing significant growth, driven by factors like the increasing demand for oncology APIs and the strategic initiatives undertaken by key players to meet market demands and support customers in drug development and manufacturing. The market is expected to continue expanding at a rapid pace, driven by technological advancements and increasing investments in pharmaceutical R&D.
