LONDON--(BUSINESS WIRE)--The global pharmaceutical contract manufacturing market is expected to grow at a CAGR of close to 7% during the period 2016-2020, according to Technavio’s latest report.
In this report, Technavio covers the market outlook and growth prospects of the global pharmaceutical contract manufacturing market for 2016-2020. The global pharmaceutical contract manufacturing market is categorized into the following three segments based on type of contract manufacturing: active pharmaceutical ingredient (API)/bulk drug contract manufacturing, final dosage form (FDF), and others (includes packaging and distribution).
“The global pharmaceutical contract manufacturing market is highly fragmented and is moving toward consolidation through vertical integration, and alliances and acquisitions. This ongoing consolidation will emerge into a handful of integrated players providing end-to-end services for the drug development while maintaining the advantages of low cost and high productivity,” says Sapna Jha, a lead cardiovascular and metabolic disorders research expert from Technavio.
Technavio’s healthcare and life sciences research analysts segment the global pharmaceutical contract manufacturing market into the following regions:
- Americas
- APAC
- EMEA
In 2015, with a market share of over 39%, the Americas dominated the global pharmaceutical contract manufacturing market, followed by APAC with over 32% and EMEA with over 28%.
Americas: government support to strengthen market
The pharmaceutical contract manufacturing market in the Americas is growing due to the increasing older population and higher uptake of biologicals, leading to a rising demand-supply gap. Also, growing demand for generics and favorable initiatives taken by the governments in the pharmaceutical field and various research initiatives taken by biotechnological companies are major factors driving the growth of the market. The demand for generics is increasing not only in developed markets but also in underdeveloped and developing countries such as Mexico and Brazil.
Government support has been an important tool for the domestic players in the less developed markets of the Americas, such as Brazil and Mexico. Brazil’s health authority National Health Surveillance Agency (ANVISA) permits the procurement or manufacturing of APIs only for vendors registered with ANVISA. Furthermore, foreign companies find it difficult to expand their generics market in Brazil, as approximately 80% of the market is dominated by the four local vendors such as Medley, Eurofarma, Biosintética, and EMS. According to the research reports published in 2015, more than 85% of the drugs used in Mexico were manufactured domestically, to help restrict rising healthcare costs.
Request a sample report: http://www.technavio.com/request-a-sample?report=53142
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
APAC: India emerges as the fastest growing market in the region
The pharmaceutical contract manufacturing market in APAC will grow at a significant rate during the forecast period due to better market penetration of generics and growing adoption of advanced technologies in emerging economies, especially in India and China.
The rising number of initiatives undertaken by major vendors to assist patients in these countries will result in increased sales in these regions. India is estimated to be the fastest growing pharmaceutical contract manufacturing market due to its quality manufacturing capabilities and cost competitiveness.
EMEA: substitution of branded drugs with generics helps boost market
The pharmaceutical contract manufacturing market in EMEA is growing at a fast pace, but relatively slower than APAC. The market will typically witness significant growth in countries such as Germany, the UK, Spain, France, and Italy. In Europe, physicians are offered incentives for substituting branded drugs with generics, which contributes to the growth of the pharmaceutical contract manufacturing market in the region.
“Moreover, rising government support post the financial crisis along with a strong pipeline of patent expiries of top-selling branded drugs will have a positive impact on the growth of the pharmaceutical contract manufacturing market in Europe during the forecast period,” says Sapna. In MEA as well, the outsourcing companies are expanding their capacity to make the process of clinical trials more efficient.
The top vendors in the global pharmaceutical contract manufacturing market as highlighted in the report are:
- Catalent
- Lonza
- Pfizer CentreOne
Browse Related Reports:
- Global Pharmaceutical Caps and Closures Market 2016-2020
- Regenerative Medicine Market in Japan 2016-2020
- Global Biologic Therapeutics Market 2015-2019
Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
