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US Contract Manufacturing Services Industry Market Analysis The US contract manufacturing services industry is a rapidly growing market, with an estimated market size of X Million and a CAGR of 25.10%. This growth is being driven by a number of factors, including the increasing complexity of manufacturing processes, the need for greater flexibility and agility in the supply chain, and the rising costs of labor. Contract manufacturing services providers offer a range of services, including product design, engineering, prototyping, production, assembly, and testing. These services can help companies to reduce costs, improve quality, and bring products to market faster.
Key Trends and Drivers:
The key trends and drivers in the US contract manufacturing services industry include the growth of automation and digitalization, the increasing use of additive manufacturing, the rise of e-commerce, and the growing demand for customized products. Automation and digitalization are helping to improve efficiency and productivity, while additive manufacturing is making it possible to produce complex parts and products with greater flexibility. E-commerce is creating new opportunities for contract manufacturers to reach new customers, and the growing demand for customized products is driving the need for more agile and flexible manufacturing processes. Recent developments include: May 2022 - Lonza and Israel Biotech Fund Collaborated Framework Agreement to Support Biologics and Small Molecules Development and Manufacture for Portfolio Companies which Facilitate Access to Israeli Market for Lonza., July 2021 - Catalent Inc launched GPEx lightning, a next-generation cell lighting technology, and the new development would shorten the duration drug the timeline by three months.. Key drivers for this market are: Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs, Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers. Potential restraints include: Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs, Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers. Notable trends are: Growth of Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs.
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The Report Covers Contract Manufacturing Service Companies in US and the Market is Segmented by (Pharmaceutical, Food Processing & Manufacturing, Beverage, and Personal Care).
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Access North America Electronic Contract Manufacturing and Design Services Industry Overview which includes North America country analysis of (United States, Canada, Mexico), market split by Type, Industry Verticals, Technology
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The contract manufacturing industry is vital to countless businesses, providing the agility, expertise, and scalability that modern manufacturing demands. In an era where efficiency and specialization are critical, contract manufacturers enable companies to bring their products to market faster and often at a lower cost. This article will take an in-depth look at the key facts and trends surrounding this essential sector, explore some top contract manufacturers and provide expert guidance on choosing a contract manufacturer for your business.
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The Contract Manufacturing Market is Segmented by Industry / End-Use Sector (Pharmaceuticals, Healthcare & Medical Devices, and Others), by Contract Type (Long-Term Strategic Partnership, and Project-Based / Short-Term), and by Geography (North America, South America, Europe, Asia-Pacific, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).
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The US Pharma Contract Manufacturing (PCM) industry is experiencing robust growth, driven by several key factors. The increasing complexity of drug development, coupled with the rising demand for specialized services like High Potency API (HPAPI) manufacturing and advanced formulations (solid, liquid, and injectable doses), is fueling outsourcing. Pharmaceutical companies are increasingly focusing on core competencies, leading to a surge in demand for contract manufacturing services across all stages – from active pharmaceutical ingredient (API) production to secondary packaging. This trend is further amplified by the growing pipeline of novel therapies, particularly biologics and advanced therapies, which often require specialized manufacturing capabilities beyond the in-house expertise of many pharmaceutical companies. The North American market, particularly the US, holds a significant share of the global PCM market, benefiting from a strong regulatory framework, a well-established infrastructure, and a large pool of skilled labor. While the overall market size is not explicitly provided, considering a global CAGR of 5% and the significant US presence, a reasonable estimate for the US market in 2025 could be in the tens of billions of dollars. This estimate is further supported by the presence of major players like Thermo Fisher Scientific (Patheon), Catalent, and Lonza, which have substantial US operations and a significant market share.
The industry's growth trajectory is projected to continue throughout the forecast period (2025-2033), albeit potentially at a slightly moderated CAGR. Factors such as stringent regulatory requirements, increasing competition among contract manufacturers, and potential supply chain disruptions could act as restraints. However, the long-term outlook remains positive, fueled by ongoing innovation in drug delivery technologies, the increasing prevalence of chronic diseases requiring long-term medication, and a steady stream of new drug approvals. Segmentation within the US PCM market shows a high demand for services across all stages, with potentially faster growth in specialized areas like HPAPI and advanced formulations, reflecting the trends towards more complex and potent pharmaceuticals. Competition among established players and the emergence of new specialized contract manufacturers will likely shape the industry landscape in the coming years.
This comprehensive report delves into the dynamic landscape of the US pharma contract manufacturing industry, providing a detailed analysis of its current state and future trajectory. Covering the period from 2019 to 2033, with a base year of 2025 and a forecast period spanning 2025-2033, this research offers invaluable insights for stakeholders across the pharmaceutical value chain. The report leverages rigorous data analysis to provide a 360-degree view of this multi-billion dollar market, encompassing key players like Thermo Fisher Scientific Inc (Patheon Inc), Siegfried AG, Aenova Group, Lonza Group AG, Pfizer CentreSource (Pfizer Inc), Jubilant Life Sciences Ltd, Catalent Inc, AbbVie Contract Manufacturing, Boehringer Ingelheim Group, Recipharm AB, and Baxter Biopharma Solutions (Baxter International Inc).
Key drivers for this market are: , Increasing Emphasis on Drug Discovery and Outsourcing of Manufacturing; Strong R&D Investments. Potential restraints include: Increasing Lead Time and Logistics Costs, Stringent Regulatory Requirements; Capacity Utilization Issues Affecting the Profitability of CMOs. Notable trends are: Increasing Demand of API to Witness Significant Market Growth.
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The global metal contract manufacturing market size was estimated at USD 142.3 billion in 2023 and is projected to reach USD 215.8 billion by 2032, growing at a CAGR of 4.7% during the forecast period. The significant growth of this market can be attributed to the rising demand for precision components and the increasing outsourcing trends among original equipment manufacturers (OEMs) to achieve cost efficiency and operational flexibility.
One of the primary growth factors for the metal contract manufacturing market is the substantial rise in demand from the automotive and aerospace sectors. These industries require highly specialized and precise components, which metal contract manufacturers can provide at a competitive cost due to economies of scale and advanced technological capabilities. The increasing complexity of products and the need for lightweight, durable materials in these sectors further drive the market's growth, as manufacturers seek to leverage the expertise of contract manufacturers to meet stringent quality and regulatory standards.
Another driving factor is the technological advancements in manufacturing processes, such as CNC machining, laser cutting, and additive manufacturing. These technologies enable contract manufacturers to produce high-quality, intricate parts with greater efficiency and precision. The integration of automation and IoT in manufacturing processes also enhances productivity and reduces the time to market for new products, making contract manufacturing an attractive option for OEMs. Additionally, the adoption of Industry 4.0 practices facilitates better supply chain management, real-time monitoring, and predictive maintenance, further propelling the market's growth.
The trend of outsourcing manufacturing activities to focus on core competencies is also significantly influencing the market. Companies across various industries are increasingly relying on contract manufacturers to handle their production needs, thereby reducing overhead costs and capital investments. This trend is particularly evident in the electronics and medical device sectors, where rapid technological advancements and frequent product launches necessitate flexible and scalable manufacturing solutions. By partnering with contract manufacturers, companies can quickly adapt to market changes and meet the demands of a competitive global market.
Regionally, the Asia Pacific region dominates the metal contract manufacturing market, driven by rapid industrialization, a large consumer base, and favorable government initiatives encouraging manufacturing activities. Countries like China, India, and Japan are major contributors to the market, owing to their robust manufacturing infrastructure and skilled labor force. North America and Europe also hold significant market shares, supported by the presence of leading aerospace, automotive, and medical device manufacturers who extensively utilize contract manufacturing services. Meanwhile, the Latin America and Middle East & Africa regions are expected to witness moderate growth, as economic diversification and industrial development initiatives gain momentum.
The metal contract manufacturing market is segmented by service type into machining, fabrication, assembly, and others. The machining segment holds a substantial share of the market, driven by the high demand for precision machining services in industries like automotive, aerospace, and electronics. Machining services, which include CNC milling, turning, and grinding, are essential for producing high-precision parts with tight tolerances. The increasing complexity of components and the need for high-performance materials further boost the demand for advanced machining capabilities. With continuous advancements in CNC technology and automation, the machining segment is expected to maintain its dominance throughout the forecast period.
Fabrication services, which encompass processes such as welding, cutting, bending, and forming, are also a crucial part of the metal contract manufacturing market. This segment caters to industries requiring large, custom metal structures and assemblies, such as construction, industrial machinery, and heavy equipment manufacturing. The demand for fabricated metal products is driven by infrastructure development projects and the need for durable, high-strength components in various applications. The adoption of advanced fabrication techniques, such as laser cutting and robotic welding, further enhances the efficiency and quality of fabricated products, cont
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The US Medical Sector Contract Electronic Manufacturing industry can be segmented by product type, including surgical appliances and medical instruments, electro-medical apparatus, diagnostics, irradiation apparatuses, and dental equipment and supplies. Surgical appliances and medical instruments are the largest segment of the market, and they are expected to continue to dominate the market over the forecast period. The electro-medical apparatus segment is also expected to grow significantly over the forecast period, driven by the increasing demand for medical imaging and monitoring equipment. Key drivers for this market are: Increasing demand for advanced medical technologies, including wearable devices, diagnostic equipment, and minimally invasive surgical instruments. Potential restraints include: high capital investment required for medical-grade manufacturing facilities. Notable trends are: Increasingly sophisticated medical devices, prompting manufacturers to seek external partners who specialize in electronics manufacturing. .
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The US contract manufacturing services (CMS) industry is experiencing robust growth, driven by several key factors. The pharmaceutical segment, encompassing small and large molecule APIs, HPAPIs, and diverse finished dosage forms (solid, liquid, and injectable), is a significant contributor. Increased demand for outsourcing by pharmaceutical companies seeking efficiency and cost optimization fuels this expansion. Furthermore, the rising complexity of drug development and manufacturing necessitates specialized expertise readily available through contract manufacturers. The burgeoning biologics market, particularly large molecule APIs and HPAPIs, further boosts demand for sophisticated CMS capabilities. Within the food processing and manufacturing sector, the CMS industry benefits from trends in convenience foods, personalized nutrition, and the growing demand for specialized packaging solutions. The beverage industry's reliance on contract manufacturers for efficient production and distribution of bottled water, carbonated drinks, and other beverages, also contributes significantly to market growth. Finally, the personal care sector's expansion, coupled with the increasing demand for customized and high-quality products, drives demand for contract manufacturing services in skincare, haircare, and cosmetics. Considering the provided CAGR of 25.10% and a market size (let's assume a starting point of $50 Billion for the US market in 2025 based on global trends and available data on similar industries), the US CMS market demonstrates substantial potential for expansion. This robust growth is projected to continue throughout the forecast period (2025-2033). However, challenges remain. Competition among CMS providers is fierce, demanding continuous innovation and investment in advanced technologies to maintain a competitive edge. Regulatory complexities and stringent quality standards in the pharmaceutical and food sectors necessitate significant compliance investments for contract manufacturers. Furthermore, fluctuations in raw material prices and global supply chain disruptions can impact profitability. Despite these challenges, the overall positive market outlook is driven by the increasing outsourcing trend across diverse industries, a growing preference for specialized services, and the persistent need for efficient and cost-effective manufacturing solutions. The ongoing expansion of the pharmaceutical, food and beverage, and personal care sectors underpin the long-term growth trajectory of the US contract manufacturing services industry. Recent developments include: May 2022 - Lonza and Israel Biotech Fund Collaborated Framework Agreement to Support Biologics and Small Molecules Development and Manufacture for Portfolio Companies which Facilitate Access to Israeli Market for Lonza., July 2021 - Catalent Inc launched GPEx lightning, a next-generation cell lighting technology, and the new development would shorten the duration drug the timeline by three months.. Key drivers for this market are: Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs, Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers. Potential restraints include: Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs, Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers. Notable trends are: Growth of Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs.
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The IVD contract manufacturing market had an estimated market share worth US$ 12.9 billion in 2023, and it is predicted to reach a global market valuation of US$ 46 billion by 2034, growing at a CAGR of 12.1% from 2024 to 2034.
Report Attribute | Details |
---|---|
Estimated Market Value in 2023 | US$ 12.9 billion |
Expected Market Value in 2024 | US$ 14.7 billion |
Projected Forecast Value in 2034 | US$ 46 billion |
Anticipated Growth Rate from 2024 to 2034 | 12.1% |
IVD Contract Manufacturing Market Historical Analysis 2019 to 2023 Vs. Forecast Outlook 2024 to 2034
Historical CAGR 2019 to 2023 | 15.1% |
---|---|
Forecast CAGR 2024 to 2034 | 12.1% |
Category wise Insights
Device Type | IVD Equipment |
---|---|
CAGR from 2024 to 2034 | 11.8% |
Technology | Immunoassay |
---|---|
CAGR from 2024 to 2034 | 11.5% |
Region wise Analysis
Countries | Forecast CAGR from 2024 to 2034 |
---|---|
The United States | 11.9% |
The United Kingdom | 12.9% |
China | 12.7% |
Japan | 13% |
South Korea | 14.1% |
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The Report Covers US Pharma Contract Manufacturing Companies and the market is segmented by Service Type (Active Pharmaceutical Ingredient (API) Manufacturing, Finished Dosage Formulation (FDF) Development and Manufacturing, and Secondary Packaging).
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The report analyzes different aspects of electronics contract manufacturing (with a focus on North America), the companies involved in contract manufacturing, and identifies the areas where growth and improvement are needed. Includes forecasts through 2018.
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US Contract Manufacturing Services Market size was valued at USD 225.8 Billion in 2024 and is projected to reach USD 393.81 Billion by 2032, growing at a CAGR of 7.2% from 2026 to 2032.
Key Market Drivers: Increasing Demand for Outsourced Manufacturing: Companies are increasingly outsourcing production to concentrate on core strengths and cut operational costs. The North American contract manufacturing services market was valued at USD 64.5 Billion in 2024 and is expected to reach USD 101.6 Billion by 2030, increasing at a 6.8% CAGR between 2025 and 2030. Advancements in Technology: Technological advancements include the Internet of Things (IoT), artificial intelligence (AI), and Industry 4.0, which are revolutionizing the contract manufacturing industry. These developments allow for more efficient and flexible manufacturing processes, which attracts corporations to outsource production. The contract manufacturing and design services market was worth USD 565.90 Billion in 2023 and is predicted to expand to USD 1,312.70 Billion by 2032, with a 9.8% CAGR over the forecast period.
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The North America Contract Manufacturing report provides a detailed analysis of emerging investment pockets, highlighting current and future market trends. It offers strategic insights into capital flows and market shifts, guiding investors toward growth opportunities in key industry segments and regions.
Plastic Contract Manufacturing Market Size 2024-2028
The plastic contract manufacturing market size is forecast to increase by USD 12.43 billion, at a CAGR of 10.87% between 2023 and 2028.
The market is experiencing significant growth due to the rise in demand for electronic devices and the development of high-quality plastic components in various industries. Polystyrene, polyethylene, polyvinyl chloride (PVC), and other rigid plastics are widely used in consumer electronics, computer-aided design, and household appliances. In the food and beverage industry, there is a growing trend toward using biodegradable plastics for packaging, particularly for rigid plastic containers and protective packaging. Key materials like acrylonitrile, butadiene, and polypropylene are used in insulation, construction, and aerostructures. Moreover, the adoption of advanced technologies such as computer-aided design, cloud computing, automation, and additive manufacturing is driving innovation in plastic contract manufacturing.
The use of bioplastics and biodegradable materials is also gaining popularity due to increasing environmental concerns and regulations against pollution. The medical devices sector is another significant end-user, with a growing demand for plastic components in healthcare services. In the satellite industry, plastic components are used extensively due to their lightweight and durability. Overall, the market is expected to continue its growth trajectory, driven by these trends and the increasing demand for high-quality plastic components in various industries.
What will be the Size of the Plastic Contract Manufacturing Market During the Forecast Period?
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The market encompasses the production of various plastic products for numerous industries, including household appliances, electronics, healthcare services, and medical devices. Polystyrene, polyethylene, polypropylene, polyurethane, acrylonitrile butadiene styrene, and other lightweight plastics are commonly used materials in this sector. Market dynamics continue to evolve, with trends leaning towards eco-friendly and recyclable plastics, such as biodegradable polymers, to address environmental concerns. The integration of advanced technologies, like 3D printing and computer-aided design, streamlines manufacturing processes and enhances product customization. Several industries, including aerospace and defense, electronics, and consumer electronics, rely on plastic contract manufacturing for producing components and end-products.
Notable applications include smartwatches, healthcare devices, video recorders, and various electronic gadgets. The market is expected to grow significantly due to the increasing demand for high-performance, cost-effective, and customizable plastic solutions. The market's expansion is driven by technological advancements, evolving consumer preferences, and the continuous development of new applications across various industries.
How is this Plastic Contract Manufacturing Industry segmented and which is the largest segment?
The plastic contract manufacturing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Type
Polypropylene
Acrylonitrile butadiene styrene (ABS)
Polyethylene
Others
End-user
Consumer goods
Automotive
Medical
Others
Geography
APAC
China
Japan
North America
US
Europe
Germany
UK
South America
Middle East and Africa
By Type Insights
The polypropylene segment is estimated to witness significant growth during the forecast period.
The polypropylene segment is projected to experience the fastest growth in the market. Polypropylene is a versatile plastic widely used in various industries, including household appliances, electronics, healthcare, and aerospace. Its desirable properties, such as excellent rigidity, stiffness, and load-bearing capacity, make it an ideal choice for these applications. In the food and beverage sector, polypropylene's low density (0.895 g/cm-0.92 g/cm) and resistance to chemical corrosion and moisture make it a preferred material for producing food containers. The expanding base of small and medium-sized enterprises (SMEs) In the food and beverage industry is anticipated to fuel the demand for polypropylene plastic contract manufacturing services. Additionally, the adoption of lightweight and eco-friendly materials, such as polypropylene, in various industries is gaining momentum due to increasing environmental concerns and regulatory pressures. This trend is expected to further boost the market growth.
Get a glance at the Plastic Contract Manufacturing Industry report of various segments Request Free Sample
The polypr
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The Medical Device Contract Manufacturing Market is Segmented by Device (In-Vitro Diagnostic Devices, Drug-Delivery Devices {Syringes, Pen Injectors, and More} and More), Service (Device Development & Manufacturing Services {Device Engineering, and More}, Quality Management Services, and More), and Geography (North America, Europe, Asia-Pacific, and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD).
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The report on U.S. Pharmaceutical Contract Manufacturing Organization covers a summarized study of several factors supporting market growth, such as market size, market type, major regions, and end-user applications. The report enables customers to recognize key drivers that influence and govern the market.
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The US pharma contract manufacturing market is experiencing robust growth, driven by several key factors. The increasing complexity of drug development, coupled with the rising demand for specialized manufacturing capabilities, is compelling pharmaceutical companies to outsource manufacturing processes. This trend is further amplified by the growing adoption of advanced technologies like continuous manufacturing and personalized medicine, requiring significant capital investment and specialized expertise that many companies choose to access through contract manufacturers. The market's focus is shifting towards biologics and complex drug formulations, demanding highly skilled personnel and sophisticated facilities, and leading to increased operational complexity. Furthermore, regulatory pressures and the need for compliance with stringent quality standards are pushing companies to partner with established contract manufacturing organizations (CMOs) possessing the requisite expertise and infrastructure. Based on a 5% CAGR and assuming a 2025 market size of $XX million (replace XX with a realistic market size estimate based on publicly available reports of similar markets. For example, if a similar sector reported a market size of $100 Billion in 2025, it's possible that the pharma contract manufacturing sector could be a fraction of that, for example $20 billion), the market is projected to exceed $XX million by 2033 (calculate this value using the CAGR). This substantial growth presents lucrative opportunities for established players like Thermo Fisher Scientific (Patheon), Siegfried AG, Aenova Group, Lonza Group AG, and Catalent Inc., as well as emerging CMOs. Competition is expected to intensify, with companies focusing on strategic partnerships, acquisitions, and technological advancements to maintain a competitive edge. The market will likely witness consolidation as larger companies seek to expand their service portfolios and geographical reach. The ongoing demand for innovative therapies and the increasing complexity of pharmaceutical manufacturing will ensure the continued expansion of the US pharma contract manufacturing industry over the next decade. Regional variations will exist, with regions boasting robust life sciences clusters likely exhibiting faster growth. Key drivers for this market are: , Increasing Emphasis on Drug Discovery and Outsourcing of Manufacturing; Strong R&D Investments. Potential restraints include: Increasing Lead Time and Logistics Costs, Stringent Regulatory Requirements; Capacity Utilization Issues Affecting the Profitability of CMOs. Notable trends are: Increasing Demand of API to Witness Significant Market Growth.
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The North America IVD Contract Manufacturing report provides a detailed analysis of emerging investment pockets, highlighting current and future market trends. It offers strategic insights into capital flows and market shifts, guiding investors toward growth opportunities in key industry segments and regions.
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The North America Pharmaceutical Contract Manufacturing Market is segmented by Service Type (Active Pharmaceutical Ingredient (API) Manufacturing, Finished Dosage Formulation (FDF) Development and Manufacturing, Secondary Packaging), and Country.
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US Contract Manufacturing Services Industry Market Analysis The US contract manufacturing services industry is a rapidly growing market, with an estimated market size of X Million and a CAGR of 25.10%. This growth is being driven by a number of factors, including the increasing complexity of manufacturing processes, the need for greater flexibility and agility in the supply chain, and the rising costs of labor. Contract manufacturing services providers offer a range of services, including product design, engineering, prototyping, production, assembly, and testing. These services can help companies to reduce costs, improve quality, and bring products to market faster.
Key Trends and Drivers:
The key trends and drivers in the US contract manufacturing services industry include the growth of automation and digitalization, the increasing use of additive manufacturing, the rise of e-commerce, and the growing demand for customized products. Automation and digitalization are helping to improve efficiency and productivity, while additive manufacturing is making it possible to produce complex parts and products with greater flexibility. E-commerce is creating new opportunities for contract manufacturers to reach new customers, and the growing demand for customized products is driving the need for more agile and flexible manufacturing processes. Recent developments include: May 2022 - Lonza and Israel Biotech Fund Collaborated Framework Agreement to Support Biologics and Small Molecules Development and Manufacture for Portfolio Companies which Facilitate Access to Israeli Market for Lonza., July 2021 - Catalent Inc launched GPEx lightning, a next-generation cell lighting technology, and the new development would shorten the duration drug the timeline by three months.. Key drivers for this market are: Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs, Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers. Potential restraints include: Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs, Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers. Notable trends are: Growth of Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs.