Biologics such as monoclonal antibodies, recombinant proteins, and stem cell & gene therapies have revolutionized the treatment of various chronic and life-threatening diseases. However, high development costs associated with biologics hamper widespread accessibility and adoption. Outsourcing drug development activities such as preclinical and clinical research, laboratory testing, and manufacturing to specialized contract service providers helps pharmaceutical companies focus their resources and reduce costs. CROs and CDMOs offer scale and expertise that can significantly shorten development timelines and facilitate the commercialization of affordable biotherapeutic drugs.
The global Biologics Outsourcing Market is estimated to be valued at US$ 22.66 billion in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for cost-effective drug development has been a major driver for the growth of the biologics outsourcing market. By outsourcing non-core functions to specialist CROs and CDMOs, pharmaceutical companies can leverage their expertise across various stages of drug development and manufacturing. This allows them to focus internal resources on core activities such as intellectual property generation and commercialization. It is estimated that outsourcing can reduce development costs by up to 30-40% and compress timelines by 6-18 months.
SWOT Analysis
Strength: The biologics outsourcing market has wide scope for drugs development as biologics have a huge potential of treating chronic diseases like cancer. There is an increased focus on R&D of large molecule drugs.
Weakness: High development costs associated with biologics. Developing biologics requires extensive research and clinical trials. Biologics also have complex manufacturing processes.
Opportunity: Growing prevalence of chronic diseases worldwide is generating demand for advanced treatment options. Rapid growth of the biosimilars market also presents an opportunity. Growing focus on outsourcing non-core activities offers opportunities for CROs and CMOs.
Threats: Stringent regulatory requirements poses challenges. Data privacy and security threats also exist. Intense competition among existing players can impact profits. Drug development process faces uncertainties which can impact return on investment.
Key Takeaways
The Global Biologics Outsourcing Market Size is expected to witness high growth in the forecast period owing to the rising demand for biologic drugs for the treatment of various chronic diseases. The market size is projected to reach US$ 22.66 Billion in 2024 from US$ 10.5 Billion in 2020, registering a CAGR of 8.1% during the forecast period.
Regional analysis - North America dominates the market currently due to presence of major pharmaceutical companies and high healthcare spending. Asia Pacific is expected to grow at the fastest pace during the forecast period supported by rising investments in healthcare infrastructure and biologics manufacturing capabilities in countries like China, India and South Korea.
Key players - Key players operating in the biologics outsourcing market are Quorum Technologies Inc., Pix4D SA, Photometrix Ltd., Koninklijke Philips NV, Agisoft LLC, PhotoModeler Technologies, Intel Corporation, Faro Technologies Inc., Autodesk Inc., General Electric Company, and Vi3Dim Technologies. These players are focusing on expanding their service offerings and capabilities to tap growth opportunities in this high potential market.
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