The global advanced therapeutics pharmaceutical outsourcing market is expected to surge at a CAGR of 4.4% in the assessment period 2024 to 2034. The market value is projected to increase from USD 7,592.8 million in 2024 to USD 11,698.1 million by 2034. The advanced therapeutics pharmaceutical outsourcing market was valued at USD 7,197.8 million in 2023 and is anticipated to exhibit a y-o-y growth of 4.5% in 2024.
| Attributes | Key Insights |
|---|---|
| Advanced Therapeutics Pharmaceutical Outsourcing Market Size in 2023 | USD 7,197.8 million |
| Estimated Advanced Therapeutics Pharmaceutical Outsourcing Market Value (2024E) | USD 7,592.8 million |
| Projected Advanced Therapeutics Pharmaceutical Outsourcing Market Revenue (2034F) | USD 11,698.1 million |
| Value-based CAGR (2024 to 2034) | 4.4% |
The increasing complexity of advanced therapeutic modalities, such as gene editing, cell therapy, and mRNA-based drugs, requires specialized knowledge and sophisticated manufacturing capabilities. Pharmaceutical companies are turning to outsourcing partners with advanced technical expertise to navigate the complexities of these novel therapies.
The growing pipeline of advanced therapeutic products, driven by breakthroughs in biotechnology and genomics, has led to a surging demand for outsourcing services. As pharmaceutical companies focus on expanding their portfolios with innovative therapies, outsourcing provides a scalable and cost-effective solution for development and production.
The globalization of clinical trials for advanced therapeutics requires a network of partners with a global presence. Outsourcing facilitates access to diverse patient populations, regulatory environments, and manufacturing capabilities worldwide, supporting efficient and accelerated clinical development.
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The global advanced therapeutics pharmaceutical outsourcing market recorded a historical CAGR of 3.3% from 2019 to 2023. The proliferation of cell and gene therapies represents a transformative shift in healthcare, offering innovative solutions for previously untreatable diseases. The increasing number of companies investing in developing these therapies has created a surge in demand for specialized expertise in manufacturing, quality control, and regulatory compliance.
Cell and gene therapies often involve intricate manufacturing processes, including gene editing, viral vector production, and cell culturing. Outsourcing allows pharmaceutical companies to tap into the specialized capabilities of contract manufacturing organizations (CMOs) with advanced facilities and expertise in these complex processes.
The variability in the production scale for cell and gene therapies, ranging from patient-specific treatments to large-scale manufacturing, necessitates a flexible and scalable approach. Outsourcing allows companies to adjust production volumes based on the specific requirements of their therapies without significant capital investment.
The regulatory landscape for cell and gene therapies is evolving rapidly. Outsourcing partners with a deep understanding of regulatory requirements can guide pharmaceutical companies through the complex approval processes, ensuring compliance and facilitating a smoother path to market.
The increasing adoption of cell and gene therapies is a pivotal driver propelling the growth of the advanced therapeutics pharmaceutical outsourcing market. As pharmaceutical companies prioritize these revolutionary treatment modalities, outsourcing partners equipped with specialized capabilities are becoming indispensable contributors to the successful development and commercialization of advanced therapeutics.
A notable opportunity in the advanced therapeutics pharmaceutical outsourcing market lies in the expanding landscape of mRNA therapies. The increasing focus on mRNA therapies in cancer, infectious diseases, and genetic disorders presents a compelling opportunity for outsourcing partners. As pharmaceutical companies diversify their portfolios, outsourcing providers can offer specialized support in developing and manufacturing mRNA-based treatments.
The versatility of mRNA technology allows for developing a wide range of therapeutic applications. Outsourcing partners can capitalize on this diversity by providing tailored solutions for different mRNA-based treatments, contributing to expanding treatment options available to patients.
mRNA therapies often require specialized expertise in formulation and delivery methods to enhance efficacy and safety. Outsourcing providers focusing on mRNA can offer valuable insights and capabilities in optimizing these critical aspects of therapeutic development.
Principal Consultant
The advanced therapeutics pharmaceutical outsourcing market, while experiencing significant growth opportunities, is also subject to several restrictive factors that pose challenges to its seamless development. When collectively considered, these factors can impact the market dynamics and hinder the full realization of its potential.
The primary restrictive factors is the complex and evolving regulatory landscape governing advanced therapeutics. Regulatory agencies face challenges in establishing clear guidelines as these therapies often involve cutting-edge technologies such as gene editing and cell therapy. This uncertainty can lead to delays in approvals and increase compliance burdens, impacting the speed at which outsourcing services can be leveraged.
The intricate nature of advanced therapeutics, including gene and cell therapies, demands sophisticated scientific expertise and technological capabilities. Finding outsourcing partners with the requisite knowledge in these rapidly advancing fields can be challenging. Technical challenges in scaling up production, maintaining quality, and ensuring consistency also contribute to the complexity.
While outsourcing can offer cost efficiencies, the initial investment in advanced therapeutic technologies and the need for specialized facilities can pose financial challenges. Companies can grapple with the cost of technology transfer, validation, and establishing robust quality control measures with outsourcing partners.
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The table below shows the estimated growth rates of the top five countries. China, Japan, and Spain are set to record high CAGRs of 7.0%, 3.2%, and 2.6%, respectively, through 2034.
| Countries | Value CAGR |
|---|---|
| United States | 1.7% |
| China | 7.0% |
| Japan | 3.2% |
| Germany | 1.6% |
| Spain | 2.6% |
The United States dominated the global market with a 32.6% market share in 2023. The country is expected to exhibit a CAGR of 1.7% throughout the forecast period. The growing demand for personalized medicine and targeted therapies has fueled the development of advanced therapeutics. Outsourcing partners in the United States are well-positioned to support pharmaceutical companies in meeting the demands of a rapidly expanding market for personalized treatments.
The regulatory environment in the United States has increasingly supported advanced therapeutic products. Regulatory bodies, such as the United States Food and Drug Administration (FDA), have implemented expedited pathways and initiatives to facilitate the development and approval of innovative therapies. This regulatory support provides a conducive ecosystem for outsourcing partners to navigate regulatory requirements efficiently.
In 2023, China held a dominant global revenue in East Asia’s market and contributed a share of 7.9% worldwide. The market is expected to grow at a CAGR of 7.0%.
China has witnessed rapid advancements in biotechnology and pharmaceutical research, leading to the development of cutting-edge technologies in gene and cell therapies. The country's commitment to innovation and growing expertise in advanced therapeutics, attract pharmaceutical companies seeking outsourcing partners with specialized capabilities.
China-based outsourcing partners increasingly participate in global clinical trials, allowing sponsors to conduct studies with a more diverse patient population. This globalization trend aligns with the growing emphasis on multi-regional clinical trials, enhancing the attractiveness of China as a destination for outsourcing services.
Germany held 4.4% share in the global market in 2023 and is expected to grow at a CAGR of 1.6% during the forecasted period. Germany has established itself as a leading hub for biopharmaceutical innovation, focusing on advanced therapeutics. The country has a thriving biotechnology sector, research institutions, and a collaborative ecosystem that attracts domestic and international companies seeking outsourcing partners with expertise in cutting-edge therapies.
Germany is investing significantly in biopharmaceutical infrastructure, including state-of-the-art manufacturing facilities and research centers. This infrastructure supports outsourcing partners by providing access to cutting-edge technologies and specialized capabilities required for developing and manufacturing advanced therapeutics.
Contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs) are frequently used by pharmaceutical corporations to outsource different phases of the development process in Japan. Clinical trials, preclinical development, early-stage research, and commercial production are a few examples of these services.
Demand for cutting-edge treatments, such as gene and cell therapies, has increased in Japan. Pharmaceutical companies have been compelled by this demand to look outside for resources and experience to expedite development timeframes and manage the challenges of bringing new medicines to market.
In sophisticated therapies, pharmaceutical companies frequently collaborate strategically with outsourcing partners in Spain. These partnerships seek to maximize resources, take advantage of each other's expertise, and hasten the creation and introduction of novel treatments. Technological developments like automation, analytics, and process optimization help manufacturers of advanced treatments operate more profitably and efficiently in Spain.
The below section shows the commercial manufacturing and packaging segment dominated by phases category. It is forecast to thrive at an 4.0% CAGR between 2024 and 2034. Based on therapy, the gene therapy segment is anticipated to hold a dominant share through 2034. It is set to exhibit a CAGR of 3.8% during the forecast period.
| Segment | Value CAGR |
|---|---|
| Commercial Manufacturing and Packaging (Phases) | 4.0% |
| Gene Therapy (Therapy) | 3.8% |
| Oncology (Indication) | 4.0% |
| Contract Development and Manufacturing Organizations (CDMOs) (Service Type) | 3.7% |
The contract development and manufacturing organizations (CDMOs) held 56.8% market share in 2023. CDMOs offer scalability and flexibility in manufacturing, allowing pharmaceutical companies to adapt production volumes based on the specific requirements of their therapies.
This flexibility is particularly crucial in the dynamic landscape of advanced therapeutics, where production needs may vary widely. CDMOs lead in the advanced therapeutics pharmaceutical outsourcing market due to their specialized expertise, developed infrastructure, flexibility, risk mitigation capabilities, regulatory compliance, cost efficiency, global reach, and collaborative approach to innovation.
The oncology market share in advanced therapeutics pharmaceutical outsourcing was 46.1% in 2023. The oncology pipeline is rich with innovative therapies, including gene therapies, CAR-T cell therapies, and mRNA-based treatments.
The diverse nature of these therapies necessitates specialized expertise and infrastructure, making outsourcing a strategic choice for pharmaceutical companies looking to bring novel oncology treatments to market. This trend will continue as the oncology landscape evolves with ongoing scientific and technological advancements.
Commercial manufacturing and packaging have a considerable presence in the advanced therapeutics pharmaceutical outsourcing market, accounting for 54.9% share in 2023. The commercial manufacturing and packaging services lead the market due to their pivotal role in scaling up production, managing supply chains, and contributing to the overall success of bringing advanced therapeutic products from development to commercialization.
Commercial manufacturing and packaging services are essential for scaling up production from clinical to commercial levels. As advanced therapeutic products progress through clinical trials and receive regulatory approval, the demand for large-scale manufacturing increases, making outsourcing partners with scale-up capabilities indispensable.
Collaborations and acquisitions are the growth strategies that leading companies employ to enhance their capabilities, service offerings, and stay competitive in the dynamic landscape of advanced therapeutics.
| Attribute | Details |
|---|---|
| Estimated Market Size (2024) | USD 7,592.8 million |
| Projected Market Size (2034) | USD 11,698.1 million |
| Anticipated Growth Rate (2024 to 2034) | 4.4% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; East Asia; South Asia and Pacific; Western Europe; Eastern Europe; Central Asia; Russia and Belarus; Balkan and Baltic Countries; Middle East and Africa |
| Key Countries Covered | United States, Canada, Mexico, Brazil, Chile, China, Japan, South Korea, Germany, France, Spain, Italy, BENELUX, Nordic Countries, United Kingdom, BENELUX, Poland, Hungary, Romania, India, Association of Southeast Asian Nations Countries, Australia and New Zealand, GCC Countries, South Africa, Türkiye |
| Key Market Segments Covered | Service Type, Indication, Therapy, Phases, and Region |
| Key Companies Profiled | Croda International Plc; Charles River Laboratories International, Inc.; Catalent, Inc.; QuintilesIMS (IQVIA); Parexel International Corporation; ICON plc; PPD, Inc. (Thermo Fisher Scientific); LabCorp (Laboratory Corporation of America Holdings); Syneos Health; WuXi AppTec; Lonza Group; Piramal Pharma Solutions; SGS SA; Evotec SE; CMC Biologics (Now AGC Biologics); Marken (A UPS Company); Cytovance Biologics; Samsung Biologics; CordenPharma; Recipharm AB; Vetter Pharma International GmbH; Cryoport Systems, Inc.; ProPharma Group; Fujifilm Diosynth Biotechnologies; Medpace; Novotech Pty Ltd.; Axcella Health Inc.; CelerionAshland |
| Report Coverage | Market Forecast, Competition Intelligence, Market Dynamics and Challenges, Strategic Growth Initiatives |
The global market was valued at USD 7,197.8 million in 2023.
The global market is set to reach a valuation of around USD 11,698.1 million in 2034.
Demand in the global market increased at a 3.3% CAGR from 2019 to 2023.
The global market is estimated to reach USD 7,592.8 million by 2024.
The United States accounted for around 32.6% share of the global market in 2023.
Germany held around 4.4% share in the global market in 2023.
China accounted for a market value share of around 7.9% in 2023 in the global market.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Value Added Insights 5. Market Background 6. Global Market Demand (in Value or Size in USD million) Analysis 2019 to 2023 and Forecast, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Service Type 7.1. Contract Research Organizations (CROs) 7.2. Contract Development and Manufacturing Organizations (CDMOs) 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Indication 8.1. Oncology 8.2. Neurology 8.3. Cardiology 8.4. Infectious Diseases 8.5. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Therapy 9.1. Cell Therapy 9.2. Gene Therapy 9.3. RNA-based Therapies 9.4. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Phases 10.1. Preclinical Services 10.2. Clinical Services 10.3. Commercial Manufacturing and Packaging 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. East Asia 11.4. South Asia and Pacific 11.5. Western Europe 11.6. Eastern Europe 11.7. Middle East and Africa 12. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034 13. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034 15. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034 16. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034 17. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034 18. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034 19. Market Structure Analysis 20. Competition Analysis 20.1. Charles River Laboratories International, Inc. 20.2. Catalent, Inc. 20.3. QuintilesIMS (IQVIA) 20.4. Parexel International Corporation 20.5. ICON plc 20.6. PPD, Inc. (Thermo Fisher Scientific) 20.7. LabCorp (Laboratory Corporation of America Holdings) 20.8. Syneos Health 20.9. WuXi AppTec 20.10. Lonza Group 20.11. Piramal Pharma Solutions 20.12. SGS SA 20.13. Evotec SE 20.14. CMC Biologics (Now AGC Biologics) 20.15. Marken (A UPS Company) 20.16. Cytovance Biologics 20.17. Samsung Biologics 20.18. CordenPharma 20.19. Recipharm AB 20.20. Vetter Pharma International GmbH 20.21. Cryoport Systems, Inc. 20.22. ProPharma Group 20.23. Fujifilm Diosynth Biotechnologies 20.24. Medpace 20.25. Novotech Pty Ltd. 20.26. Axcella Health Inc. 20.27. Celerion 21. Assumptions and Acronyms Used 22. Research Methodology
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Advanced Therapeutics Pharmaceutical Outsourcing Market
