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| Global Healthcare CMO Market Size |
The healthcare CMO (contract manufacturing organization) market provides
contract services ranging from product development and design to commercial
manufacturing for pharmaceutical and medical device companies. Healthcare CMOs
help companies improve their supply chain management, reduce costs, address
capacity issues and focus on core competencies. They provide cost-effective
manufacturing of medical devices including in-vitro diagnostic equipment,
imaging systems and disposables. This outsourcing model has benefited both
large and small medical device companies.
The global
healthcare CMO Market is estimated to be valued at US$ 440.5 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period
2023 to 2030, as highlighted in a new report published by Coherent Market
Insights.
Market Opportunity
The growing demand for medical devices is expected to offer lucrative
opportunity for healthcare CMOs. Over the past couple of decades, there has
been growing prevalence of chronic and lifestyle diseases worldwide owing to
rapidly aging population and changing lifestyle habits. This has increased the
demand for technologies supporting diagnosis and treatment including medical
imaging systems, radiology equipment, in-vitro diagnostic instruments and other
devices. Healthcare CMOs help medical device companies meet this growing demand
by offering manufacturing facilities, regulatory expertise, quality management
systems and skilled workforce for various classes of medical devices. As
companies look to optimize costs and focus on innovation, outsourcing
manufacturing to healthcare CMOs is expected to grow further in the coming
years.
Porter's Analysis
Threat of new entrants: The healthcare CMO market requires significant capital
investment to build necessary manufacturing facilities and infrastructure,
which acts as a barrier for new entrants. Hefty regulatory compliance and
certification procedures further raise entry barriers.
Bargaining power of buyers: The presence of many Healthcare CMO firms provides
buyers with opportunities to negotiate competitive prices. However, expertise
and confidential intellectual property may limit buyer alternatives to an
extent.
Bargaining power of suppliers: Key materials and components used in healthcare
manufacturing have few substitutes, allowing key suppliers to influence
pricing. Suppliers remain fragmented though, diluting individual supplier
bargaining power.
Threat of new substitutes: Technology advances offer new opportunities like
telehealth and personalized medicine, but no alternative currently replaces
core CMO manufacturing services entirely.
Competitive rivalry: The market sees intense competition among major global
players offering comprehensive service portfolios and regional firms
specializing in niche services. Extensive regulatory oversight ensures quality
consistency.
SWOT Analysis
Strengths: Technological expertise, quality consistency, capabilities across
modalities, regulatory compliance.
Weaknesses: Heavy capital investments, reliance on few large clients, price
fluctuations.
Opportunities: Growth in biologics and biosimilars, emerging economies, digital
innovations.
Threats: Pricing pressures, talent crunch, stringent regulations.
Key Takeaways
Global
Healthcare CMO Market Size is expected to witness high growth on
account of growing demand for biologics and biosimilars along with expansion of
healthcare infrastructure in emerging regions. The global healthcare CMO Market
is estimated to be valued at US$ 440.5
Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030.
Regional analysis: North America currently dominates the market owing to
presence of major pharmaceutical companies and favorable regulations. Asia
Pacific is expected to be the fastest growing market going forward on back of
increasing investments by international pharma majors coupled with improving
healthcare infrastructure in countries like China, India, South Korea and
Japan.
Key players: Key players operating in the Healthcare CMO market are Abbott
Laboratories, Danaher Corporation, Siemens Healthineers, Bio-Rad Laboratories,
Inc., PerkinElmer, Inc., Sysmex Asia Pacific Pte Ltd, Becton, Dickinson and
Company, Sight Diagnostics, Horiba, and Nihon Kohden Corporation. Abbott
Laboratories is one of the leading global players in this market with vast
product portfolio and geographic presence.
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