The Latest Contract Manufacturing Industry Statistics Explained
The global contract manufacturing market size was valued at $919.9 billion in 2019.
The statistic states that the total value of the global contract manufacturing market was $919.9 billion in the year 2019. This figure represents the total monetary value of all contracts for manufacturing services that were outsourced by companies worldwide during that year. Contract manufacturing involves one company (the contract manufacturer) providing manufacturing services, such as production, assembly, and packaging, on behalf of another company (the client). The substantial market size highlights the significance of outsourcing manufacturing activities to specialized firms and indicates the scale of operations and investments involved in this industry on a global scale in 2019.
The contract manufacturing market for pharmaceuticals is expected to increase at a CAGR of 7.3% from 2020 to 2027.
This statistic indicates that the contract manufacturing market for pharmaceuticals is projected to experience a Compound Annual Growth Rate (CAGR) of 7.3% between the years 2020 and 2027. This suggests a steady and robust growth trajectory for the market over the specified time period. A CAGR of 7.3% implies that the market is expected to expand consistently at an average annual rate of 7.3%, reflecting increasing demand for pharmaceutical contract manufacturing services. This growth rate signifies opportunities for companies operating in this sector to capitalize on the expanding market and potentially generate higher revenues and profits.
North America dominated the contract manufacturing market in 2019, with 44.5% of global revenue.
The statistic ‘North America dominated the contract manufacturing market in 2019, with 44.5% of global revenue’ indicates that North America had the largest share of revenue generated in the contract manufacturing industry worldwide in 2019. This means that nearly half of the total revenue in the contract manufacturing market came from North American companies. This dominance suggests that North America was a key player in providing manufacturing services for other companies on a contractual basis. The statistic highlights the significant contribution of North American firms to the global contract manufacturing sector and underscores the region’s importance in this industry during the specified time period.
Consumer electronics segment held the largest market share in the electronic contract manufacturing services industry, with over 26.8% share in 2019.
This statistic indicates that the consumer electronics segment dominated the electronic contract manufacturing services industry in 2019 by holding the largest market share of 26.8%. This means that a significant portion of the electronic manufacturing services revenue in that year came from the production of consumer electronic products. The strong market share of the consumer electronics segment suggests that there was high demand for electronic products such as smartphones, laptops, and other consumer gadgets, which drove the growth and success of electronic contract manufacturers specializing in this sector. Businesses operating in the electronic manufacturing industry may use this information to strategize their production and marketing efforts, with a focus on the consumer electronics segment to capture a larger market share and potentially increase their revenue.
The medical device contract manufacturing market is predicted to reach $91.3 billion by 2024.
The statistic “The medical device contract manufacturing market is predicted to reach $91.3 billion by 2024” suggests that there is expected substantial growth in the market for contract manufacturing of medical devices over the next few years. This projection indicates a significant increase in the demand for outsourcing the manufacturing of medical devices to specialized companies. The market reaching $91.3 billion by 2024 signifies the potential for major expansion and highlights the importance of contract manufacturing in the healthcare industry. This statistic could indicate opportunities for companies operating in this sector to capitalize on this growth trend and invest in expanding their capabilities to meet the increasing demand for medical device manufacturing services.
About three-fourths of American dietary supplement companies use contract manufacturers.
This statistic indicates that approximately 75% of American dietary supplement companies rely on contract manufacturers to produce their products. Contract manufacturing involves outsourcing the manufacturing process to specialized third-party companies, allowing dietary supplement companies to focus on research, development, and marketing aspects of their business. This practice is common in the dietary supplement industry as it provides companies with cost-effective solutions, specialized expertise, and flexibility in production capacity. By leveraging contract manufacturers, American dietary supplement companies can streamline their operations, maintain quality control, and meet consumer demand efficiently.
Asia Pacific region is projected to exhibit significant growth in the global contract manufacturing market, with a CAGR of approximately 13.91% for the forecast period between 2018 and 2026.
This statistic highlights the anticipated strong performance of the contract manufacturing market in the Asia Pacific region, with a projected Compound Annual Growth Rate (CAGR) of around 13.91% from 2018 to 2026. This growth rate signifies a substantial increase in the market size and value of contract manufacturing services within the region over the forecast period. The statistic suggests that the Asia Pacific region is expected to experience above-average growth compared to other regions globally. Factors contributing to this growth may include a favorable business environment, increasing demand for outsourcing manufacturing services, cost-effectiveness, technological advancements, and the presence of a skilled workforce. Overall, this projection indicates promising opportunities and potential for businesses operating in or looking to enter the contract manufacturing sector in the Asia Pacific region.
In 2020, the electronic contract manufacturing and design services market in APAC was valued at $318.4 billion.
The statistic indicates that in 2020, the electronic contract manufacturing and design services market in the Asia-Pacific region (APAC) generated a total revenue of $318.4 billion. This figure represents the combined value of services related to outsourcing the production and design of electronic products to third-party contractors in the APAC region. The significant market value highlights the strong demand for outsourcing services within the electronics industry in APAC, reflecting the region’s importance in the global electronics supply chain. This statistic provides valuable insight into the scale and economic significance of electronic contract manufacturing and design services in APAC during the specified period.
About 90% of all North American OEMs outsource at least some of their manufacturing needs to contract manufacturers.
The statistic that about 90% of all North American OEMs outsource at least some of their manufacturing needs to contract manufacturers indicates a widespread trend in the manufacturing industry. Original Equipment Manufacturers (OEMs) are companies that design and produce products using components from various suppliers. By outsourcing manufacturing to contract manufacturers, OEMs can benefit from cost efficiencies, access specialized skills or technologies, and focus on their core competencies. This statistic underscores the strategic importance of outsourcing for a majority of North American OEMs in optimizing their production processes and staying competitive in a global market.
In 2019, 75% of medical device companies partnered with contract manufacturers for prototyping.
The statistic “In 2019, 75% of medical device companies partnered with contract manufacturers for prototyping” indicates that a significant majority of medical device companies sought external partnership for the prototyping process that year. This statistic suggests that the majority of medical device companies recognized the benefits of collaborating with contract manufacturers to design and develop prototypes of their products. By outsourcing prototyping to specialized manufacturers, these companies likely aimed to leverage the expertise and resources of such partners to efficiently and effectively bring their medical devices to market. The high percentage of companies engaging in such partnerships points to a prevalent industry practice and underscores the importance of collaboration in the medical device sector.
Contract manufacturing in food industry is projected to reach $129.4 billion by 2025.
The statistic indicates that the contract manufacturing sector within the food industry is expected to grow significantly, with an estimated market value of $129.4 billion by the year 2025. This projection suggests that more food companies are opting to outsource their manufacturing processes to specialized contract manufacturers rather than producing goods in-house. The growth in contract manufacturing can be attributed to various factors such as cost-efficiency, access to specialized expertise, and the flexibility it offers in scaling production capacity. This trend underscores the increasing importance of outsourcing in the food industry and highlights the opportunities for contract manufacturers to expand their market presence and service offerings in the coming years.
The contract manufacturing organizations market size in the US is expected to grow at a CAGR of over 9% during the period 2019-2025.
This statistic indicates that the market size of contract manufacturing organizations (CMOs) in the United States is projected to experience a Compound Annual Growth Rate (CAGR) of over 9% between the years 2019 and 2025. This growth rate suggests a steady and consistent increase in the market size of CMOs over the specified period. The CAGR metric is commonly used to measure the average annual growth rate of a market or industry, providing a more accurate representation of growth compared to simple annual growth rates. The anticipated growth in the US CMO market indicates a positive outlook for the industry, potentially driven by factors such as increasing demand for contract manufacturing services, advancements in technology, and evolving market trends.
As of 2018, 42% of all active pharmaceutical ingredient (API) manufacturing was done via the contract manufacturing route.
The statistic “As of 2018, 42% of all active pharmaceutical ingredient (API) manufacturing was done via the contract manufacturing route” indicates that nearly half of API production in the pharmaceutical industry was outsourced to contract manufacturers by 2018. This suggests a significant reliance on external partners for API manufacturing, which can offer benefits such as cost savings, flexibility, and access to specialized expertise and technologies. Contract manufacturing allows pharmaceutical companies to focus on their core competencies like drug development and marketing, while leveraging the capabilities of specialized manufacturers for API production. The increasing trend of outsourcing API manufacturing highlights the importance of collaborative relationships and strategic partnerships within the pharmaceutical supply chain to ensure the efficient and reliable production of high-quality pharmaceutical products.
Among all major manufacturing industries, 52% of medical equipment manufacturers outsourced a significant percentage of their production to contract manufacturing organizations (CMO) in 2016.
This statistic indicates that in 2016, 52% of medical equipment manufacturers, within all major manufacturing industries, outsourced a significant portion of their production to contract manufacturing organizations (CMOs). This suggests that a majority of medical equipment manufacturers sought external assistance in manufacturing their products, likely to leverage the expertise and capabilities of CMOs, which specialize in providing manufacturing services to various industries. Outsourcing manufacturing to CMOs may offer benefits such as cost savings, access to specialized technology or skills, and increased flexibility in production capacity. The high percentage of medical equipment manufacturers utilizing CMOs highlights the prevalence of this outsourcing practice within the industry, suggesting a common strategy for optimizing production processes and efficiencies.
In 2019, large-molecule contract manufacturing accounted for 28% of the overall biopharmaceutical contract manufacturing market.
The statistic states that in 2019, the segment of large-molecule contract manufacturing comprised 28% of the entire biopharmaceutical contract manufacturing market. This suggests that a significant proportion of biopharmaceutical manufacturing activities involved the outsourcing of the production of large-molecule drugs to contract manufacturing organizations rather than being conducted in-house by biopharmaceutical companies. This statistic underscores the growing trend of biopharmaceutical companies relying on external partners for the manufacturing of complex large-molecule drugs, reflecting the specialized expertise and resources required for their production. The prominence of large-molecule contract manufacturing in the biopharmaceutical market highlights the importance of strategic collaborations and outsourcing in the pharmaceutical industry to efficiently and effectively meet the demands for innovative and diverse drug products.
In 2020, automotive industries accounted for 17.8% of global contract manufacturing market share.
The statistic “In 2020, automotive industries accounted for 17.8% of global contract manufacturing market share” indicates the proportion of contract manufacturing activities attributed to the automotive sector out of the total market in 2020. This means that nearly one-fifth of all contract manufacturing services were related to automotive production, showcasing the significance of the automotive industry in the global manufacturing landscape. This statistic highlights the reliance of automotive companies on outsourcing manufacturing processes to third-party suppliers, underscoring the importance of efficient collaboration and quality assurance in maintaining industry operations and meeting consumer demands.
As of 2018, contract manufacturers produced about 25% of all dietary supplements sold.
The statistic ‘As of 2018, contract manufacturers produced about 25% of all dietary supplements sold’ indicates that a significant portion of dietary supplements available in the market were manufactured by companies that specialize in producing goods for other brands under contract. This suggests that a large number of dietary supplement brands outsource their production to contract manufacturers, potentially due to cost-effectiveness, expertise in production processes, or capacity constraints. The statistic implies that the dietary supplements industry is reliant on contract manufacturers to meet the demand for these products, showcasing the importance of these manufacturers in the supply chain of the dietary supplements market.
Conclusion
The statistics presented in this blog post illustrate the significant growth and evolving trends within the contract manufacturing industry. As businesses continue to outsource their manufacturing processes, the global market is experiencing a rise in demand for contract manufacturing services. By understanding these statistics and staying informed on industry developments, companies can make strategic decisions to stay competitive and capitalize on the opportunities this fast-paced industry has to offer.
References
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