Peptide and Oligonucleotide CDMO Market Analysis

Peptide and Oligonucleotide CDMO Market Analysis

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Based on the product, the market is classified into peptide and oligonucleotides. Peptide dominated the market with revenue of USD 1.5 billion in 2023.
 

• Peptides play a crucial role in various therapeutic areas such as oncology, metabolic disorders, and infectious diseases, driving the demand for peptide-based drugs.
   
• Peptide therapeutics are also favored for their high specificity and lower toxicity compared to traditional small molecule drugs, making them an attractive option for drug developers.
   
• Additionally, advancements in peptide synthesis technologies have enabled the production of complex peptides with high purity and efficiency, further boosting their market presence.
   

Based on service type, the peptide and oligonucleotide CDMO market is segmented into contract manufacturing and contract development. The contract manufacturing segment held a dominant market share of 65.2% in 2023.
 

• The increasing demand for peptides and oligonucleotides in pharmaceuticals, diagnostics, and biotechnology drives the growth of contract manufacturing in this market.
   
• Contract manufacturing offers several advantages, including cost-effectiveness, expertise, and flexibility. Companies can benefit from the specialized knowledge and infrastructure of CDMOs without the need to invest in their own facilities.
   
• Additionally, outsourcing manufacturing allows companies to focus on their core competencies, such as research and development, while leaving the production to experts. These factors together aid in high segmental growth of contract manufacturing segment.
   

Based on application, the peptide and oligonucleotide CDMO market is classified into therapeutics, diagnostics, and research. The therapeutics segment is expected to reach USD 3.3 billion by 2032.
 

• Peptides and oligonucleotides are vital components in developing targeted therapies, such as peptide-based vaccines and nucleic acid-based therapeutics.
   
• Further, rising demand for personalized medicine and the increasing prevalence of chronic diseases necessitates development of novel therapies.
   
• Additionally, the increasing adoption of peptides and oligonucleotides in drug development pipelines by pharmaceutical and biotechnology companies further contributes to the segment's strong market position.
   

Based on end-use, the peptide and oligonucleotide CDMO market is classified into pharmaceutical companies, biopharmaceutical companies, and other end-users. The pharmaceutical companies segment dominated the market in 2023 and is anticipated to grow at a CAGR of over 12% through 2032.
 

• High segmental growth can be attributed to the increasing trend of outsourcing by pharmaceutical companies. These companies rely on CDMOs to access specialized expertise and infrastructure for the development and production of peptides and oligonucleotides.
   
• Secondly, outsourcing provides flexibility and scalability, allowing pharmaceutical companies to adjust their production capacity quickly in response to changing market demands without the need for significant investments in new facilities or equipment.
   
• Additionally, working with CDMOs helps pharmaceutical companies accelerate their development timelines and reduce costs. All these factors make pharmaceutical companies key end-users of CDMO services.
   

In 2023, North America region captured about 44.9% share of global peptide and oligonucleotide CDMO market and is expected to reach USD 2.8 billion by 2032.
 

• High reginal growth can be attributed to well-established pharmaceutical and biotechnology industries, advanced healthcare infrastructure, and strong regulatory framework.
   
• Additionally, the region benefits from a skilled workforce, technological advancements, and a high level of research and development activities.
   
• These factors contribute to the region's leading position in the global market, making it a key hub for companies looking to outsource these services.