Healthcare contract manufacturing market size is anticipated to grow at 8.96% CAGR to reach USD 507.12 billion by 2030.
The healthcare contract manufacturing market size was valued USD 242.46 billion in 2021 and is expected to reach USD 507.12 billion by 2030 at 8.96% CAGR during the forecast period 2022-2030. The contract manufacturing means that a company and a manufacturer sign a contract. Here, the manufacturer provides different components separately to the company for a specified period.
The contract manufacturers in the healthcare sector provide various components such as pharmaceutical and medical devices, and other services for drug manufacturing. The patent expiration of medical devices and increasing competition among major companies are the important drivers for market growth. Along with that, the growing demand for convenient devices is also playing a major role in boosting the market.
The major players in the Healthcare Contract Manufacturing Market are also providing customized services to meet the crucial needs of the developers and designers of medical devices in the market. Moreover, North America will hold the largest share in the market in the upcoming years. Along with that, the countries in the Asia-Pacific region such as India and China are flourishing the market extensively.
COVID-19 Analysis of Healthcare Contract Manufacturing Market
The advent of COVID-19 disease had a negative and positive effect on the healthcare storage contract manufacturing market. The lockdown across the world caused huge disruptions in the supply chain. This also reduced the demand for medical devices and caused huge losses to the major companies. However, the demand for respirators, ventilators, etc. increased significantly. Thus, the market observed several fluctuations during 2020-2021. However, the rising use of sophisticated devices for medical use is promoting the market growth extensively.
Healthcare Contract Manufacturing Market Dynamics
The rising demand for specialized medical devices will drive the market. Along with that, the growing population of older people and sedentary lifestyle is also major driver for the healthcare storage contract manufacturing market. Hence, these factors will increase the market growth significantly.
One of the major restraints of the healthcare storage contract manufacturing market is the disruption in the supply chain. Along with that, the interoperability and standardization problems will further lower the market growth in the upcoming years. Along with that, the acquisition of small companies by contract with healthcare manufacturers will restrict the outsourcing of the components.
However, as the companies are coming forward for acquisitions and mergers, this step will help to reduce the costs required for manufacturing. Along with that, the increasing use of the facilities of multi-product and several technological advancements will open new opportunities for market growth.
The major challenge for the Baxter healthcare contract manufacturing is the low availability of skilled laborers. Due to the COVID-19, the supply chain is majorly disturbed. Along with that, the problems related to interoperability, standardization, and control issues will reduce the market growth.
The Compound Annual Growth Rate (CAGR) of the Baxter healthcare contract manufacturing market will grow at 9.86%. According to the MRFR analysis, the market value will reach up to USD 250.9 Billion by the end of the forecast period 2017-2028.
Value Chain Analysis
With the growing demand and technological advancements in the Baxter healthcare contract manufacturing market, the value chain will have stable growth. The rising demand for generic drugs, developments by the key players, etc. will fuel the market growth.
Healthcare Contract Manufacturing Market Segmentations
The Healthcare Contract Manufacturing Market segments are divided into service type, industry, and type. On the basis of service type, the Healthcare Contract Manufacturing Market is divided into medical device contract manufacturing and pharmaceutical contract manufacturing.
On the basis of type, the Healthcare Contract Manufacturing Market is segmented into non-sterile and sterile.
On the basis of industry, the Healthcare Contract Manufacturing Market is segmented into the pharmaceutical industry, biopharmaceutical industry, and medical device industry.
Healthcare Contract Manufacturing Market Regional Analysis
Regionally, the Healthcare Contract Manufacturing Market is divided into North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa. It is valuated that the Americas will lead the Healthcare Contract Manufacturing Market in the upcoming years. The countries such as Canada and the US have been increasing their capability with technological advancements. Along with that, the presence of several companies is the major reason for the significant growth.
Secondly, the presence of contract manufacturers for generic drug production in Europe is also pushing the market growth. Europe will hold the second-largest share in the Healthcare Contract Manufacturing Market. Apart from that, other several factors boosting the market growth are rising disposable income and easy availability of advanced products. Also, the supportive policies by the government for development and research in this sector will fuel the market growth.
The Asia-Pacific region will have lucrative growth with a high CAGR. It is due to the significant development rate in India and China. In these countries, rising expenditure for healthcare, low costs of materials and manufacturing, are the major drivers. Along with that, the low costs of laborers are also attracting several market players for investments. Thus, it is pushing the market towards growth.
Lastly, the Middle and African regions will have the least growth as compared to other regions. However, with several notable developments in biotechnology and pharmaceutical companies among GCC (Gulf-Corporation Council), the region will have stable growth.
The key players in the healthcare storage contract manufacturing are using different strategies. They are announcing mergers, acquisitions, collaborations, etc. that will fuel the market growth in the forecast period.
The major key players in the healthcare storage contract manufacturing are as follows.
The report overview of the Healthcare Contract Manufacturing Market is as follows.
The report score highlights the forecast period for the analysis of Healthcare Contract Manufacturing Market. It highlights the market opportunities, drivers, opportune it is, etc. The report gives insight into the key strategies by key layers. The information provided in this report is collected from secondary and primary sources.
|Market Size||USD 507.12 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Industry|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Boehringer Ingelheim, AbbVie, Grifols International, S.A, Lonza AG, Catalant, Aesica Pharmaceuticals, Benchmark Electronics, Evonik Industries, Flex Ltd, Forefront Medical Technologies, Teva Pharmaceutical Industries, Hamilton Company, Sanmina Corporation, Patheon, Mylan, and Vetter Pharma International.|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
Healthcare contract manufacturing market projected to grow at approximately 8.96% CAGR during the assessment period (2022-2030).
The valuation of the healthcare contract manufacturing market is estimated to increase to USD 507.12 BN by the end of 2030.
Major cliffing in the healthcare and pharmaceutical industry worldwide and government support, are major tailwinds pushing the growth of the healthcare contract manufacturing market.
North America holds the largest share in thehealthcare contract manufacturing market, followed by Europe and the Asia Pacific, respectively.
AbbVie, Boehringer Ingelheim, Vetter Pharma International, Grifols International, S.A, Mylan, Catalant, Lonza AG, Patheon, Sanmina Corporation, Aesica Pharmaceuticals, Hamilton Company, Evonik Industries, Benchmark Electronics, Flex Ltd, Teva Pharmaceutical Industries, and Forefront Medical Technologies, are some of the top players operating in the healthcare contract manufacturing market.