Global Custom Synthesis Market

Global Custom Synthesis Market Size, Share, Growth & Trends Analysis Report By Type Of Product (Small Molecules, Large Molecules, And Others) By Application (Drug Discovery, Chemical Development, And Others) And Regional Outlook, Growth Potential & Forecast, 2023 – 2030  

Industry Prospective:

Category:

Overview:

The global custom synthesis market is experiencing significant growth, driven by the increasing demand for custom-synthesized chemicals and pharmaceutical intermediates. Custom synthesis is the process of designing and manufacturing molecules according to the specific needs of a customer. It involves the development of new compounds, modification of existing molecules, and scale-up production of small molecules. The pharmaceutical and biotech industries are the major end-users of custom synthesis services, accounting for a significant share of the market. The increasing prevalence of chronic diseases and the demand for personalized medicine are driving the growth of the pharmaceutical industry, which, in turn, is boosting the demand for custom synthesis services.

Global Custom Synthesis Market the Asia Pacific region is expected to witness the highest growth during the forecast period due to the presence of a large number of contract research organizations (CROs) and the outsourcing of drug discovery and development activities by pharmaceutical companies.

In summary, the global custom synthesis market is expected to grow at a significant rate in the coming years, driven by the increasing demand for custom-synthesized chemicals and pharmaceutical intermediates. The market is highly competitive, with key players investing in R&D to develop innovative and cost-effective solutions to meet the evolving needs of the industry.

Covid-19 Impact:

The COVID-19 pandemic has had a significant impact on the global economy, including the custom synthesis market. The pandemic has disrupted supply chains, reduced demand for custom synthesis services, and forced companies to adopt new working practices to comply with social distancing measures. One of the key challenges faced by the custom synthesis market during the pandemic has been the disruption of supply chains. Many companies rely on raw materials sourced from overseas, and disruptions to global shipping and trade have made it difficult to maintain a reliable supply of these materials.

Additionally, lockdowns and travel restrictions have made it difficult for companies to access the skilled labor required for custom synthesis projects. Another challenge faced by the custom synthesis market during the pandemic has been the reduction in demand for custom synthesis services. The pandemic has led to a slowdown in research and development activities, as companies have had to redirect their resources towards pandemic-related efforts. Additionally, the economic downturn caused by the pandemic has led to budget cuts in many industries, reducing the availability of funding for custom synthesis projects.

To overcome these challenges, companies in the custom synthesis market have had to adopt new working practices to comply with social distancing measures. This has included remote working arrangements, increased use of automation and digital technologies, and changes to manufacturing processes to reduce the risk of virus transmission.

Despite these challenges, the custom synthesis market has remained resilient during the pandemic and is expected to continue to grow in the coming years. As the world begins to recover from the pandemic, the demand for custom synthesis services is expected to rebound, driven by the growing need for personalized medicine, innovation in the chemical and pharmaceutical industries, and increasing investment in research and development.

Growth Drivers:

Increasing demand for innovative drugs:

The rising prevalence of chronic diseases and the increasing demand for new and innovative drugs are driving the demand for custom synthesis services. Custom synthesis allows pharmaceutical companies to produce new and unique compounds that are not commercially available or are too expensive to be produced in-house.

Growth of the pharmaceutical and biotechnology industries:

The pharmaceutical and biotechnology industries are growing rapidly, driven by the increasing demand for drugs to treat chronic diseases. This growth is expected to drive the demand for custom synthesis services, as pharmaceutical companies seek to develop new and innovative compounds to meet the needs of patients.

Outsourcing of research and development activities:

Pharmaceutical companies are increasingly outsourcing their research and development activities to third-party contract research organizations (CROs) to reduce costs and increase efficiency. This trend is expected to drive the demand for custom synthesis services, as CROs often require custom synthesis services to produce new and unique compounds for their clients.

Restraining factors:

High cost of custom synthesis:

Custom synthesis services can be expensive, particularly for complex and novel compounds. This can limit the demand for custom synthesis services, particularly among small and medium-sized pharmaceutical companies that may not have the financial resources to invest in custom synthesis.

Stringent regulatory requirements:

The custom synthesis industry is highly regulated, with strict requirements for safety and quality. Meeting these requirements can be time-consuming and expensive, which can limit the growth of the custom synthesis market.

Intellectual property concerns:

Intellectual property is a major concern in the custom synthesis industry, particularly for pharmaceutical companies that are developing new and innovative compounds. Protecting intellectual property can be difficult, particularly when working with third-party vendors, which can limit the growth of the custom synthesis market.

Opportunity factors:

Increasing demand for personalized medicine:

Personalized medicine involves the customization of treatments to individual patients based on their genetic makeup, lifestyle, and other factors. Custom synthesis plays a key role in the development of personalized medicine, as it allows for the production of customized compounds for individual patients. The increasing demand for personalized medicine is expected to drive the growth of the custom synthesis market.

Growing demand for biologics:

Biologics are complex molecules derived from living cells, and their production often requires custom synthesis services. The demand for biologics is growing rapidly, driven by the increasing prevalence of chronic diseases and the need for more effective treatments. This growth is expected to drive the demand for custom synthesis services.

Increasing use of contract research organizations (CROs):

Pharmaceutical companies are increasingly outsourcing their research and development activities to CROs, which often require custom synthesis services. The increasing use of CROs is expected to drive the demand for custom synthesis services.

Challenges:

Competition from in-house production:

Pharmaceutical companies may choose to produce compounds in-house rather than outsourcing to custom synthesis providers, particularly if the compounds are relatively simple or if the company has the necessary expertise and resources. This competition from in-house production could limit the growth of the custom synthesis market.

Ethical and safety concerns:

The custom synthesis industry is subject to ethical and safety concerns, particularly when it comes to the production of new and novel compounds. These concerns can lead to regulatory scrutiny and may limit the growth of the custom synthesis market.

Limited availability of raw materials:

Some compounds require rare or difficult-to-source raw materials, which can limit the ability of custom synthesis providers to produce them. Limited availability of raw materials can also drive up costs, which can limit demand for custom synthesis services.

Segmentation:

By Type Of Product, the market is segmented into Small Molecules, Large Molecules, And Others. Small molecules generally have a molecular weight of less than 900 daltons and are often used in the development of drugs for treating diseases such as cancer, diabetes, and cardiovascular diseases. Large molecules, on the other hand, are often proteins or peptides and are used in the development of biologics, such as vaccines and monoclonal antibodies. The “Others” category includes other types of molecules, such as nucleotides and carbohydrates, which are also used in drug development.

By Application, the market is segmented into Drug Discovery, Chemical Development, And Others. Drug discovery involves the identification of new drug candidates through the screening of compounds, and custom synthesis services are often used to produce these compounds for further testing. Chemical development involves the optimization of the chemical processes used to produce drugs, and custom synthesis services are often used to develop and produce these processes. The “Others” category includes other applications of custom synthesis services, such as the production of specialty chemicals and materials for use in industries such as electronics and agriculture.

Regional Insights:

North America: North America is a major player in the custom synthesis market, driven by the presence of a large pharmaceutical industry and a highly skilled workforce. The United States is the largest market in the region, accounting for a significant share of the global custom synthesis market.

Europe: Europe is another significant market for custom synthesis, driven by the presence of a large pharmaceutical industry and a favorable regulatory environment. The United Kingdom, Germany, and France are the major markets in the region.

Asia-Pacific: Asia-Pacific is a rapidly growing market for custom synthesis, driven by the growth of the pharmaceutical industry and increasing demand for innovative drugs. China and India are the major markets in the region, with both countries investing heavily in the development of their pharmaceutical industries.

Rest of the World: The rest of the world, including Latin America, the Middle East, and Africa, is a relatively small market for custom synthesis but is expected to see significant growth in the coming years. The growth of the pharmaceutical industry in these regions, combined with increasing demand for new and innovative drugs, is expected to drive the demand for custom synthesis services.

Competitive Analysis:

Thermo Fisher Scientific Inc., Merck KGaA, Evonik Industries AG, Siegfried AG, Lonza Group AG, Catalent, Inc., Gilead Sciences, Inc., Curia Global, Inc., Wuxi AppTec Co., Ltd., Pfizer Inc

Recent Developments:

1. Thermo Fisher Scientific Inc.: In 2021, Thermo Fisher announced the acquisition of PPD, a leading global provider of clinical research services, to expand its offerings in the pharmaceutical and biotech industries.
2. Merck KGaA: In 2021, Merck announced the launch of a new custom synthesis platform called Syntlite, which provides a comprehensive range of custom synthesis services for pharmaceutical and chemical companies.
3. Evonik Industries AG: In 2020, Evonik announced the launch of a new online platform called CUSTOMIZE, which allows customers to order custom synthesis services online and track the progress of their orders in real-time.
4. Siegfried AG: In 2021, Siegfried announced the acquisition of Alliance Medical Products, a leading provider of contract manufacturing services for the pharmaceutical industry, to expand its offerings in the United States.
5. Lonza Group AG: In 2021, Lonza announced the acquisition of Parchem Fine & Specialty Chemicals, a leading global supplier of specialty chemicals, to expand its offerings in the chemical and life sciences industries.
6. Catalent, Inc.: In 2020, Catalent announced the expansion of its biologics manufacturing facility in Madison, Wisconsin, to meet growing demand for biologics and gene therapies.
7. Gilead Sciences, Inc.: In 2021, Gilead announced the acquisition of MYR GmbH, a German biotech company specializing in the development of antiviral therapies, to expand its offerings in the infectious diseases market.
8. Curia Global, Inc.: In 2021, Curia (formerly AMRI) announced the acquisition of the biologics manufacturing facility of Takeda Pharmaceuticals in Dunboyne, Ireland, to expand its offerings in the biologics market.
9. Wuxi AppTec Co., Ltd.: In 2021, Wuxi AppTec announced the completion of its acquisition of OXGENE, a UK-based biotech company specializing in gene therapy and gene editing technologies.

• Pfizer Inc.: In 2021, Pfizer announced the acquisition of Amplyx Pharmaceuticals, a biotech company specializing in antifungal therapies, to expand its offerings in the infectious diseases market.

Scope and Segment

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