PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290847
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290847
The Biologics Outsourcing Market size was valued at USD 80,410.3 million in 2022, expanding at a CAGR of 18.7% from 2023 to 2030.
Biologics are a more complex class of medicines to manufacture, package, store, and distribute than their chemical counterparts. Outsourcing of any aspect of the supply chain means pharmaceutical companies and their chosen vendors need to work in true partnership, navigating the complex process together to ensure speed to market. Developing and manufacturing biologic drugs in-house can be costly due to the need for specialized facilities, equipment, and personnel. Outsourcing allows companies to avoid or reduce these capital investments and instead pay for specific services or processes as needed, potentially resulting in cost savings.
The increasing trend of outsourcing in the biopharmaceutical industry enables companies to gain access to advanced biologics development and manufacturing capacities in a cost-effective manner. Outsourcing allows companies to access advanced facilities, equipment, and expertise without the need for substantial capital investments. contract research organizations (CROs)and contract manufacturing organizations (CMOs) are equipped with experienced scientists and technicians who possess the necessary skills to handle complex biologics processes. There are 2,823 Contract Research Organizations businesses in the US as of 2023, an increase of 0.9% from 2022. The highest costs for business in The Contract Research Organizations industry in the US as a percentage of revenue are Wages (29.1%), Purchases (6.8%), and Rent & Utilities (3.4%, according to industry statistics of U.S. By leveraging the expertise and infrastructure of outsourcing partners, companies can optimize their operations, reduce financial risks, and accelerate the commercialization of their biologic products.
The Global Biologics Outsourcing Market is segmented on the basis of specificity, Type, Application, and Region.
The market is divided into five categories based on Product Type: Antibody, Recombinant, Protein, Vaccines, and Others. Antibody dominates the market. These are commonly outsourced types of biological products. Antibodies are proteins produced by the immune system in response to the presence of foreign substances, such as pathogens or abnormal cells. Outsourcing the development and manufacturing of antibodies can offer several advantages to biopharmaceutical companies.
The market is divided into three categories based on Application: Therapeutics, Diagnostics, and Research. Therapeutics dominate the market and are likely to maintain their dominance during the forecast period. Biologics Outsources are used for therapeutic purposes, often to treat complex diseases like cancer, autoimmune disorders, or genetic diseases. The biologics outsourcing market refers to the outsourcing of various processes related to the development, manufacturing, and commercialization of biologic drugs or therapeutics.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. North America is expected to dominate Biologics Outsourcing Market, due to increasing R&D spend of biopharma companies and escalating approvals and uptake of biosimilar. Biopharmaceutical companies in North America have been allocating significant resources to research and development activities. This focus on R&D allows them to develop innovative biologic drugs and therapies. Pharmaceutical Research and Manufacturers of America predicted that the U.S. biopharmaceutical industry has been the world leader in the development of new medicines, and PhRMA member companies continue to be at the forefront. The entire U.S. biopharmaceutical invested an estimated USD122 billion in R&D in 2020. Europe and Asia Pacific are expected to propel significant growth in Biologics Outsourcing Market, due to the Technological advancements in cell line engineering (gene editing tools) & cell line development technologies.
Companies invest heavily in research and development to enhance their cell line development technologies, develop new products, and explore novel therapeutic applications. These players offer a wide range of services, including contract research, contract manufacturing, clinical trial services, and other support services for biopharmaceutical companies The Biologics outsourcing market is highly competitive, with several companies vying for market share. For instance, in 2023, Boehringer Ingelheim opens a USD386m German R&D plant. The Biologics Development Center (BDC) will develop antibodies and therapeutic proteins and manufacture substances for clinical trials, says Boehringer Ingelheim. The growth of biosimilar and the need for their development and manufacturing are also contributing to the demand for biologics outsourcing. Biosimilar developers often rely on outsourcing partners to leverage their expertise and infrastructure.
In April 2022, Catalent, the global leader in enabling biopharma, cell, gene, and consumer health partners to optimize the development, launch, and supply of better patient treatments across multiple modalities, nowadays announced the acquisition from Vaccine Manufacturing and Innovation Centre UK Limited (VMIC Ltd.) of a biologics development and manufacturing facility currently under construction near Oxford, U.K.
The scope of this report covers the market by its major segments, which include as follows: