The global Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization (CDMO) market was USD 92 Billion in 2022 and is expected to register a revenue CAGR of 7% during the forecast period.
Rising prevalence of chronic diseases such as cancer, cardiovascular problems, and diabetes as well as high demand for improved therapies are major factors driving market revenue growth. in addition, demand for API contract development and manufacturing services is driven by increasing emphasis on cost-effective manufacturing and the requirement for specialized knowledge in drug development.
Demand for API CDMO services is also being driven by rising trend of outsourcing drug research and manufacturing operations. The medication development process is sped up, overhead costs are decreased, and pharmaceutical companies may concentrate on their core capabilities due to outsourcing. Moreover, outsourcing gives clients access to specialist knowledge in the design and production of sophisticated pharmaceuticals, which is expected to further drive revenue growth of the market.
In addition, introduction of innovative technologies such as continuous production, Process Analytical Technology (PAT), and Artificial Intelligence (AI) is expected to hasten the creation of new drugs and lower manufacturing costs. High-potency APIs (HPAPIs) are in great demand, and their production requires specialist knowledge, which is driving revenue growth of the market.
In addition, demand for dependable and skilled CDMO partners is being driven by strict regulatory requirements for the quality and safety of pharmaceuticals as well as rising emphasis on Good Manufacturing Practices (GMP). This will drive revenue growth of the market.
In addition, the API CDMO industry has been damaged by the COVID-19 epidemic. APIs and pharmaceuticals are in short supply as a result of the pandemic's impact on the world's manufacturing and supply chains. The pandemic has, however, also resulted in higher spending on drug development and production activities, which is expected to drive revenue growth of the market.
The Active Pharmaceutical Ingredient (API) Contract Development and Manufacturing Organization (CDMO) market is highly competitive, with a number of large and medium-sized players accounting for a majority of market revenue. Major players are deploying various strategies, such as mergers & acquisitions, strategic agreements & contracts, and developing, testing, and introducing more effective products.
Some major companies included in the global API CDMO market report are:
Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization Market Segmentations:
Manufacturing Type Outlook
Type of Synthesis Outlook
Type of Drug Outlook
Therapeutic Application Outlook