India Poised To Capture 8-10% Of Global CDMO Outsourcing By 2033
According to a McKinsey analysis, by 2033, India could potentially account for 8-10% share of work outsourced to CDMOs globally.
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India could potentially account for 8-10% of work share outsourced to CDMOs globally by 2033, an outcome of a significant amount of work shifting from EU and the US to Asia, a report by McKinsey & Company has said. The global CRDMO (Contract Research Development & Manufacturing Organisation) industry is about to witness a re-distribution of outsourcing work across several Asian countries, with India and Korea emerging as new powerhouses by 2033, the report said.
According to a McKinsey analysis, by 2033, India could potentially account for 8-10% share of work outsourced to CDMOs globally.
"This growth is largely driven by the evolving geopolitical environment with most Indian CRDMOs expecting 20-40% of their new business to stem from these changes," the survey stated.
As per market estimates, the global CDMO industry is estimated at $224 billion which is expected to rise to $465 billion by 2032.
McKinsey & Company Partner Anirudh Roy Popli said the biopharma industry is increasingly recognising the value Indian CDMOs bring to the table.
"With a strong focus on value and innovation, Indian CDMOs are well-positioned to play a pivotal role in shaping the future of healthcare," he added.
Eight Roads Ventures Senior Partner, Head of India & India Healthcare Investments Prem Pavoor said the living geopolitical landscape and impending legislation presents a significant opportunity for the Indian CDMO industry, one that could be truly transformative.
"We’re already seeing leading Indian bio-pharmaceutical companies receive more request-for-proposals, especially from US customers. Though these customers may be adopting a wait-and- watch approach for now, it’s clear that, amidst global uncertainties, they will seek to diversify their outsourcing footprint," he added.
This creates a huge opportunity for India, but also a challenge because Indian CDMOs will need to be prepared with the right infrastructure and services to meet this increased demand, Pavoor said.
