New Delhi [India], February 9 : India's Contract Development and Manufacturing Organization (CDMO) market is poised for exponential growth, expected to expand from USD 7 billion to USD 14 billion by 2028, capturing 4-5 per cent of the global market, according to BCG report.
This surge is driven by India's strong position in Active Pharmaceutical ingredients (API) and generic drug manufacturing, along with cost advantages over China.
Some Indian CDMOs have witnessed a 50 per cent year-on-year increase in Requests for Proposals (RFPs) in 2024, as global pharmaceutical companies look to diversify supply chains beyond China. Indian pharma services are priced 20 per cent lower than their Chinese counterparts, making them a competitive alternative.
The biopharmaceutical sector is experiencing a shift towards innovative drug modalities that are expected to outpace traditional small-molecule drugs in the coming decade.
Key emerging modalities include Cell and Gene Therapy, projected to grow at 45 per cent CAGR, Antibody-Drug Conjugates (ADCs), expected to expand at 25 per cent CAGR, and Nucleic Acid Therapeutics, forecasted to grow at 36 per cent CAGR.
With the global CDMO market for new drug modalities expected to reach USD 20 billion by 2028, Asian CDMOs are emerging as key players, offering scalable, cost-effective solutions for global pharmaceutical companies.
The broader Asia-Pacific (APAC) healthcare sector is witnessing rapid transformation, with Foreign Direct Investment (FDI) in healthcare doubling since 2008.
The APAC healthcare market is projected to reach USD 5 trillion by 2030, contributing 40 per cent to global healthcare growth. This expansion is being fueled by rising income levels.
The number of high-income households (earning USD 30,000+ annually) in Asia is set to grow fivefold, from 34 million in 2000 to 175 million by 2030.
Trade between India and the US is expected to increase by USD 102 billion between 2022 and 2033, while US-China trade will decline.
India and the broader APAC region are expected to see significant growth across multiple healthcare sectors. Pharmaceuticals are projected to grow at 9 per cent CAGR over the next five years, while MedTech is expected to expand at 8 per cent CAGR.
Digital Health is witnessing a 9 per cent CAGR, and Diagnostic Services are forecasted to grow at 6 per cent CAGR.