Pharmaceutical Contract Manufacturing and Research Services Market Regional Analysis:
Asia Pacific Market Insights
Asia Pacific pharmaceutical contract manufacturing and research services market is set to capture revenue share of over 42.9% by 2035. An increase in the number of businesses outsourcing projects to the region's developing countries is fueling this market. Because of their increasing capacity for production, nations like Singapore, China, and India have emerged as significant participants in the pharmaceutical sector in recent years. The pharmaceutical industry in Asia-Pacific was expected to increase by 4.2% between 2022 and 2027, with China, India, and Japan leading the way in market share.
The dominant country in the Asia Pacific market is China due to low labor and production costs that draw big investors from pharmaceutical corporations in the country.
India is coming into prominence within the pharmaceutical contract manufacturing and research services market, driven by factors including enhanced social insurance programs, advantageous economic conditions, growing manufacturing capabilities, and the availability of a large patient population. The area has emerged as a top outsourcing location for pharmaceutical manufacturing due to its cost benefits. In addition to facilitating the conduct of clinical trials and studies, a varied patient pool also helps the pharmaceutical business in the country flourish. For example, the nation had the largest number of malaria cases in the Asia-Pacific region in 2020.
North America Market Insights
North America is expected to experience stable growth during the forecast period due to several factors, including the high number of clinical trials, a wide base of production for active pharmaceutical ingredients, modern manufacturing capabilities, the presence of leading pharmaceutical companies, and the expansion of the generics industry. Additionally, several market participants carry out strategic efforts, which support pharmaceutical contract manufacturing and research services market expansion.
For example, in January 2022, Recro Pharma Inc., a contract development and manufacturing organization (CDMO) focused on resolving complex formulation and manufacturing challenges, mostly in small molecule therapeutic development, announced that it had been awarded a new contract from a major US government department for formulation development and cGMP manufacturing.
The U.S. has maintained the largest market share in North America. It can be linked to important regional actors, particularly in the U.S., and the rising burden of chronic diseases. For example, the American Cancer Society estimates that in 2022 there will be 609,360 cancer-related deaths and 1.9 million new cancer cases identified in the country. Due to the growing incidence of cancer, there is a greater need for pharmaceuticals to treat the disease. To meet this demand, pharmaceutical companies are forming collaborations with providers of contract manufacturing and research services, which is driving up market expansion.
