PUBLISHER: Grand View Research | PRODUCT CODE: 1493199
PUBLISHER: Grand View Research | PRODUCT CODE: 1493199
The Japan CDMO market is expected to reach USD 19.49 billion by 2030 and is projected to register a CAGR of 6.8% from 2024 to 2030, according to a new report by Grand View Research, Inc. The increasing demand for biopharmaceuticals, a high burden of diseases, and the rising geriatric population are some of the key growth drivers. Growing investments by various Contract Development and Manufacturing Organizations (CDMOs) for facility and service expansion are likely to boost the market over the forecast period.
In addition, increasing pharmaceutical R&D investments are driving the market growth. As pharmaceutical companies invest more in R&D, they may seek external expertise and resources to accelerate drug development processes. CDMOs provide specialized services in drug development, manufacturing, and testing, making them valuable partners for pharmaceutical companies looking to outsource certain aspects of their R&D activities. Several players are investing in the R&D activities of pharmaceuticals. For instance, in March 2022, WuXi AppTec launched Tetracycline-Enabled Self-Silencing Adenovirus (TESSA) technology to accelerate the production of adeno-associated viruses for drugs in cell and gene therapy.
The increase in outsourcing services by pharmaceutical companies in the pharmaceutical industry has profoundly impacted the Japan market.The trend of outsourcing activities in the pharmaceutical domain is rising as companies find value in acquiring additional competencies essential for successful drug development & commercialization. Besides providing extended expertise & assisting in improved cash flow management, outsourcing brings significant manufacturing advantages, including reducing investment risks.
Notably, regulatory authorities in Japan have accelerated approval for regenerative medical and gene therapy products. For instance, the adoption of the Pharmaceuticals and Medical Devices Act (PMD Act), 21st Century Cures Act, and PRIME (Priority Medicines) Initiative has helped the country improve access to regenerative medicines. Such initiatives by regulatory agencies are expected to improve the demand for the development and manufacturing of regenerative medicines in the country.