Peptide and Oligonucleotide CDMO Trends and Forecast
The future of the global peptide and oligonucleotide CDMO market looks promising with opportunities in the pharmaceutical company and biopharmaceutical company markets. The global peptide and oligonucleotide CDMO market is expected to reach an estimated $5.0 billion by 2030 with a CAGR of 11.3% from 2024 to 2030. The major drivers for this market are growing popularity of customized medicine, increasing concern towards uncommon diseases, and rise in emphasis on peptide antivirals.
• Lucintel forecasts that, within the product category, peptide segment will remain larger segment over the forecast period.
• Within the end use category, biopharmaceutical company will remain larger segment over the forecast period.
• In terms of regions, North America will remain the largest region over the forecast period.
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Emerging Trends in the Peptide and Oligonucleotide CDMO Market
New developments in the CDMO market for peptides and oligonucleotides are indicating technological development, affordability, and acceptability of regulations. The rising popularity of personalized medicine as well as complex biologics is making the improvement of production methods as well as strategic partnerships more feasible.
• Automation in Manufacturing: Increased automation of production processes enhances efficiency, consistency, and scalability, reducing human error and ensuring high-quality output. This trend aligns with the rising demand for cost-effective, large-scale peptide and oligonucleotide production, especially for biologics and personalized medicine.
• Adoption of Continuous Manufacturing: The move toward continuous manufacturing is gaining traction in both peptide and oligonucleotide production. This method improves production efficiency, reduces costs, and shortens time-to-market, a crucial factor in competitive markets where speed and cost-efficiency are essential.
• Sustainability Initiatives: CDMOs are focusing on sustainability by reducing waste, cutting energy consumption, and applying green chemistry principles in the production of peptides and oligonucleotides. These practices help meet the growing demand for environmentally friendly manufacturing processes in the pharmaceutical industry.
• Expansion of RNA-Based Therapeutics: The rise of RNA therapeutics, such as mRNA vaccines, has spurred investments in the development of oligonucleotide synthesis capabilities. CDMOs are increasingly involved in the RNA drug development market, expanding their services to meet the growing need for gene therapies and vaccines.
• Global Regulatory Alignment: As CDMOs seek to expand into international markets, complying with varying global regulatory standards becomes crucial. Aligning with international regulations ensures that companies can scale operations and tap into a broader customer base in the biologics and oligonucleotide sectors.
Such tendencies are modifying the peptide and oligonucleotide CDMO market as well as spurring growth in the areas of automation, green technology, continuous manufacturing as well as RNA therapeutics development. Regulatory alignment focus equally presents an opportunity for market growth with the rising demand globally.
Recent Developments in the Peptide and Oligonucleotide CDMO Market
The peptide and oligonucleotide CDMO market is strengthening arguably through upgrading of production capabilities, incorporating new technologies and entering into partnerships. Such evolution is improving the industry’s response to the increased necessity for personalized and biologic therapies.
• Expansion of Manufacturing Facilities: Major CDMOs are investing in state-of-the-art facilities to boost production capacity for peptide and oligonucleotide-based therapies. These expansions aim to accelerate time-to-market and meet increasing demand, particularly for biologics and RNA therapies.
• Automation in Synthesis: CDMOs are enhancing their automated systems to streamline peptide and oligonucleotide synthesis, reducing manual intervention, and improving quality and reproducibility. This is essential for meeting the rigorous standards of large-scale production and fast turnaround times.
• Strategic Collaborations for R&D: CDMOs are increasingly collaborating with biotech and pharmaceutical companies to advance the development of peptide and oligonucleotide therapies. These partnerships are aimed at accelerating research and development timelines, facilitating faster market entry for new treatments.
• Adoption of Continuous Manufacturing: The shift to continuous manufacturing is becoming more prominent among CDMOs to enhance production efficiency and reduce overhead costs, particularly in emerging markets that demand faster delivery times and cost-effective solutions.
• Quality Control and Compliance Management: CDMOs are focusing on strengthening their quality assurance systems to ensure compliance with international regulations for peptide and oligonucleotide products. This focus on quality control is crucial for maintaining high standards and meeting regulatory requirements, especially for complex biologics and gene therapies.
These advancements are fueling growth in the demand for peptide and oligonucleotide CDMO services with newer technologies like automation, additional floor space, more elements of continuous manufacturing and enhanced quality assurance capabilities all improving production capabilities in this market and preparing it for further growth.
Strategic Growth Opportunities for Peptide and Oligonucleotide CDMO Market
The peptide and oligonucleotide CDMO market is creating strategic growth opportunities across many applications, particularly personalized medicine, RNA drugs, and biologics. These opportunities are unique and are helping the market in both growth and innovation in therapeutics manufacture.
• Personalized Medicine: The rise of personalized medicine, which tailors treatments to individual patientsÄX%$%X genetic profiles, presents a significant growth opportunity. CDMOs can capitalize on this by offering customized synthesis services for peptides and oligonucleotides tailored to specific patient needs.
• RNA-Based Therapeutics: The growing importance of RNA-based drugs, such as mRNA vaccines, presents a significant opportunity for CDMOs that can expand their capabilities in RNA synthesis and manufacturing. This sector is expected to grow rapidly due to the increasing demand for gene therapies and vaccines.
• Biologics Manufacturing: The ongoing shift toward biologics, particularly monoclonal antibodies and fusion proteins, offers an opportunity for CDMOs to enhance their manufacturing capabilities. By supporting the production of complex biologics, CDMOs can become key players in the global biopharmaceutical supply chain.
• Gene Therapy Development: The burgeoning field of gene therapy is driving demand for advanced peptide and oligonucleotide synthesis capabilities. CDMOs specializing in gene therapy technologies are well-positioned to meet the needs of the expanding gene therapy market.
• Strategic Partnerships: CDMOs can grow their market share by forming partnerships with biopharmaceutical companies. These collaborations can speed up the development of innovative therapies and help CDMOs gain access to new markets and technologies.
The personalized medicine opportunities, the opportunities in RNA therapeutics, biologics, and gene therapy are the market drivers for the growth of the peptide and oligonucleotide CDMO market, making CDMOs the market holders in the pharmaceutical and biotechnology industry.
Peptide and Oligonucleotide CDMO Market Driver and Challenges
The peptide and oligonucleotide CDMO sector is likewise shaped/generated by the dynamic interplay of technological, economic, and regulatory forces. Since there is an increasing demand for tailor-made drugs and therapies, these factors have remained very important in the evolution and working environment of the industry. Below is an evaluation of the fundamental causes that have been fuelling the industry and the barriers that should be overcome.
The factors responsible for driving the peptide and oligonucleotide CDMO market include:
• Technological Advancements: One of the factors contributing to growth in the CDMO sector is the additional new technologies in the synthesis of peptides and oligonucleotides. The introduction of new technologies like automated synthesis devices and better purification enhances efficiency and expedites the increase of production. Such technological enhancements minimize the time and cost incurred in the development of drugs which means that the CDMO’s will be in a position to satisfy the growing requirements for advanced therapeutics and to take on the business of personalized medicine, therefore widening the niches available.
• Growing Demand for Personalized Medicine: This increasing trend towards personalized medicine is one of the attractive factors for the peptide and oligonucleotide CDMO market. Peptide and oligonucleotide therapies require specific products as they seek to treat individual patients based on their baseline genotypes. This demand is encouraging growth in the CDMO market as firms look to use such specialized CDMOs to create and produce these tailored products, creating a need for more sophisticated adaptable manufacturing facilities.
• Expansion of Biopharmaceutical R&D: The increasing amount of funding allocated to biopharmaceutical R&D is increasing the need for peptide and oligonucleotide contract development and manufacturing organizations. As new active substances are searched which includes the likes of novel peptides and nucleic acids, the pharmaceutical companies depend on CDMOs for the manufacture of these complex constructs. Such trends are proving to be beneficial as CDMOs are being incorporated into the development timelines for sophisticated biopharmaceuticals.
• Regulatory Support and Incentives: Regulatory frameworks and incentives for peptide and oligonucleotide therapies are beneficial for the market for CDMO services. The approval process is being made easier by the various syn-biotic authorities and developments of new drugs are being promoted, creating a favorable environment for investment in peptide and oligonucleotide drugs. This regulatory framework makes it easy for the time to market for a new treatment to be reduced thus creating a demand for CDMO services.
• Rising Outsourcing Trends: To concentrate on their core functions and minimize operational expenditure, pharmaceutical firms are resorting to the outsourcing of manufacturing functions to CDMO organizations. By outsourcing, companies are able to utilize the market competencies and structural resources of the CDMO, which is useful especially in the intricate context of peptide and oligonucleotide manufacturing. This trend is widening limits even further for CDMOs to grab a higher market share.
Challenges in the peptide and oligonucleotide cdmo market are:
• Regulatory Complexity: The regulatory landscape for peptides and oligonucleotides is highly complex, with different standards and requirements in various markets. Navigating these regulations can be time-consuming and costly, creating challenges for CDMOs aiming to expand globally.
• High Production Costs: The advanced technologies and raw materials required for peptide and oligonucleotide synthesis are expensive, which increases production costs. CDMOs must find ways to manage these costs without compromising on quality or efficiency.
• Intellectual Property (IP) Issues: Managing intellectual property rights in collaborative efforts between CDMOs and their partners is a delicate issue. Ensuring proper IP management is essential to avoid legal disputes and protect proprietary technologies.
The framework of peptide and oligonucleotide CDMO market is characterized by the rapid technological progress, growing trend of certain personalized therapeutics, increasing R&D expenditures, supportive policies, and rising trends in outsourcing. On the downside, though, there are some regulatory complexity, production costs and IP concerns, that need to be managed in an effective way. All of them, positive and negative ones, form the development vector of the sector, determining how the CDMOs are going to change and work within this changing market.
List of Peptide and Oligonucleotide CDMO Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies peptide and oligonucleotide CDMO companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the peptide and oligonucleotide CDMO companies profiled in this report include-
• PolyPeptide Group
• STA Pharmaceutical
• Bachem
• Creative Peptides
• Aurigene Pharmaceutical Services
• Merck
• EUROAPI
• Curia Global
• CordenPharm
• Sylentis
Peptide and Oligonucleotide CDMO by Segment
The study includes a forecast for the global peptide and oligonucleotide CDMO by product, service type, end use, and region.
Peptide and Oligonucleotide CDMO Market by Product [Analysis by Value from 2018 to 2030]:
• Peptides
• Oligonucleotides
Peptide and Oligonucleotide CDMO Market by Service Type [Analysis by Value from 2018 to 2030]:
• Contract Development
• Contract Manufacturing
Peptide and Oligonucleotide CDMO Market by End Use [Analysis by Value from 2018 to 2030]:
• Pharmaceutical Companies
• Biopharmaceutical Companies
• Others
Peptide and Oligonucleotide CDMO Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Peptide and Oligonucleotide CDMO Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major peptide and oligonucleotide CDMO producers in key regions: the USA, China, India, Japan, and Germany
• United States: CDMOs in the U.S. are expanding to meet the increasing demand for RNA drugs, gene therapies, and biologics. Automation and process optimization are key focuses, as companies aim to reduce costs while increasing production capacity.
• China: China’s government policies supporting biotech innovation have spurred rapid growth in the peptide and oligonucleotide CDMO market. New facilities focused on low-cost generic APIs are helping China become a competitive player in the global market.
• Germany: Germany is investing heavily in precision manufacturing technologies and continuous manufacturing for biologics. CDMOs in Germany are focused on meeting the high regulatory standards in Europe while optimizing production efficiency.
• India: IndiaÄX%$%Xs peptide and oligonucleotide CDMO market benefits from cost-effective production, particularly for small-scale peptide manufacturing. CDMOs in India are focusing on meeting the needs of R&D and clinical trials while maintaining low production costs.
• Japan: Japan is investing in automation and bioprocessing technologies to enhance the purity and yield of therapeutic peptides and oligonucleotides. CDMOs in Japan are well-positioned to cater to the growing demand for R&D-based therapies.
Features of the Global Peptide and Oligonucleotide CDMO Market
Market Size Estimates: Peptide and oligonucleotide CDMO market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecasts (2024 to 2030) by various segments and regions.
Segmentation Analysis: Peptide and oligonucleotide CDMO market size by product, service type, end use, and region in terms of value ($B).
Regional Analysis: Peptide and oligonucleotide CDMO market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different products, service types, end uses, and regions for the peptide and oligonucleotide CDMO market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the peptide and oligonucleotide CDMO market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the peptide and oligonucleotide CDMO market size?
Answer: The global peptide and oligonucleotide CDMO market is expected to reach an estimated $5.0 billion by 2030.
Q2. What is the growth forecast for peptide and oligonucleotide CDMO market?
Answer: The global peptide and oligonucleotide CDMO market is expected to grow with a CAGR of 11.3% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the peptide and oligonucleotide CDMO market?
Answer: The major drivers for this market are growing popularity of customized medicine, increasing concern towards uncommon diseases, and rise in emphasis on peptide antivirals.
Q4. What are the major segments for peptide and oligonucleotide CDMO market?
Answer: The future of the peptide and oligonucleotide CDMO market looks promising with opportunities in the pharmaceutical company and biopharmaceutical company markets.
Q5. Who are the key peptide and oligonucleotide CDMO market companies?
Answer: Some of the key peptide and oligonucleotide CDMO companies are as follows:
• PolyPeptide Group
• STA Pharmaceutical
• Bachem
• Creative Peptides
• Aurigene Pharmaceutical Services
• Merck
• EUROAPI
• Curia Global
• CordenPharm
• Sylentis
Q6. Which peptide and oligonucleotide CDMO market segment will be the largest in future?
Answer: Lucintel forecasts that peptide segment will remain larger segment over the forecast period.
Q7. In peptide and oligonucleotide CDMO market, which region is expected to be the largest in next 5 years?
Answer: North America will remain the largest region over the forecast period.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the peptide and oligonucleotide CDMO market by product (peptides and oligonucleotides), service type (contract development and contract manufacturing), end use (pharmaceutical companies, biopharmaceutical companies, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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