Cell & Gene Therapy Manufacturing Services Market

Cell & Gene Therapy Manufacturing Services Market Size, Share & Trends

The size of global cell & gene therapy manufacturing services market in terms of revenue was estimated to be worth $5.1 billion in 2022 and is poised to reach $11.5 billion by 2027, growing at a CAGR of 17.5% from 2022 to 2027. The comprehensive research encompasses an exhaustive examination of industry trends, meticulous pricing analysis, patent scrutiny, insights derived from conferences and webinars, identification of key stakeholders, and a nuanced understanding of market purchasing dynamics. Growing prevalence of cancer and other other diseases, the surge in pharmaceutical R&D spending along with partnerships and agreements between pharmaceutical companies and CDMOs are some of the factors driving the market growth.  On the contrary, the significant operational costs associated with cell and gene therapy manufacturing is expected to negatively impact the cell & gene therapy manufacturing market during the forecast period.

Cell & Gene Therapy Manufacturing Services Market Trends

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Cell & Gene Therapy Manufacturing Services Market Dynamics

Increasing private and public investments in cell and gene therapy industry  

Despite the limited number of approvals, cell and gene therapy companies are attracting an increasing amount of private and public investment. Private equity and capital investment in life sciences have increased rapidly over the last decade. Similarly, the growth of investment in cell and gene therapy companies is also significant. For instance, there is a steep rise in investment from USD 362 million in 2020 to nearly USD 68 billion in 2021. This is expected to increase the demand for outsourcing, thereby increasing the growth of cell and gene therapy manufacturing services.

High operational costs associated with cell & gene therapy manufacturing

Due to the complexity of both the cells (product) and treatment logistics, relatively low production volumes and the large number of manual manipulations involved with current methods, cell therapies are expensive to produce. The manufacturing costs of cell therapy treatments are estimated to be more than USD 100,000 per patient whereas the cost of manufacturing for gene therapy can be between USD 500,000 and USD 1 million, excluding the costs for R&D. Thus, the affordability of cell and gene therapy products will be an important issue and challenge for both manufacturers and healthcare providers..

Expansion of cell and gene therapy manufacturing capacities by CDMOs

Cell and gene therapy manufacturing has evolved rapidly owing to the surge in demand for cell and gene therapies. The wider application of these therapies (for example, to more common diseases) necessitates higher yields and lower product costs (COGs). Large contract development and manufacturing organizations (CDMOs) have made significant investments in this space in recent years, with a number of large acquisitions and geographic expansions by installing production capacities. These expansions will support the manufacturing of cell and gene therapies and provide growth opportunities for CDMOs providing these services.

The cell therapy segment dominated the cell & gene therapy manufacturing services market in 2021.

Based on type, the global market is classified into cell therapy and gene therapy. The cell therapy segment dominated this market with the highest share. The potential applications of cell therapies in the treatment of cancers, autoimmune diseases, urinary problems, and infectious diseases and other diseases is driving the cell therapy segment growth.  In addition availability of funding for new cell lines, increasing organic and inorganic growth strategies by companies  to boost their cell therapy manufacturing capabitlities are some additional factors fueling the segment growth.

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North America was the largest regional market for cell & gene therapy manufacturing services market in 2021.

Geographically, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In 2021, North America accounted for the largest share of this market, followed by Europe and the Asia Pacific. The large share of the North American market is attributed to the rising incidence of cancer and growing research activity in cancer and stem cells.

Key players in the cell & gene therapy manufacturing services market include Lonza (Switzerland), Catalent (US), Thermo Fisher Scientific (US), Charles River Laboratories (US), WuXi AppTec (China), Merck KGaA (Germany), Takara Bio Inc. (Japan), Nikon Corporation (Japan), FUJIFILM Holdings Corporation (Japan), Oxford Biomedica plc (UK), and Cell and Gene Therapy Catapult (UK).

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Scope of the Report

This report categorizes the cell & gene therapy manufacturing services market into the following segments and subsegments

By Type

• Cell Therapy
  • Allogeneic
    • Mesenchymal Stem Cells
    • T-cells
    • Induced Pluripotent Stem Cells
    • Natural Killer Cells
    • Hematopoietic Stem Cells
    • Other Allogeneic Cells
  • Autologous
    • T-cells
    • Hematopoietic Stem Cells
    • Mesenchymal Stem Cells
    • Natural Killer Cells
    • Other AutologousCells
  • Viral Vector
    • Retroviral Vectors
    • Adeno-associated Virus Vectors
    • Other Viral Vectors
• Gene Therapy
  • Viral Vector
    • Retroviral Vectors
    • Adeno-associated Virus Vectors
    • Other Viral Vectors
  • Non-viral Vector
    • Oligonucleotides
    • Other Non-viral Vectors

By Indication

• Oncology Diseases
• Cardiovascular Diseases
• Orthopedic Diseases
• Ophthalmology Diseases
• Central Nervous System Disorders
• Infectious Diseases
• Other Indications

By Application

• Clinical Manufacturing
• Commercial Manufacturing

By End User

• Pharmaceutical & Biotechnology Companies
• Academic & Research Institutes
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of Asia Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLA)
• Middle East and Africa

Recent Developments

• In 2021, Charles River Laboratories acquired a cell & gene therapy CDMO—Cognate BioServices—to increase its cell and gene therapy manufacturing capabilities.
• In 2021, Thermo Fisher Scientific acquired Henogen S.A., Novasep's viral vector manufacturing business in Belgium, for approximately USD 859.7 million. This acquisition will increase its presence in the cell & gene therapy manufacturing therapy market.
• In 2019, Thermo Fisher Scientific acquired Brammer Bio, a company engaged in viral vector manufacturing for gene and cell therapies, for USD 1.7 billion.

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