The pharmaceutical manufacturing equipment market is estimated to be worth USD 14.5 billion in 2023 and is projected to reach USD 19.7 billion by 2028, at a CAGR of 6.3% during the forecast period.

Growing global demand for generics, rising necessity for adoption of flexible pharmaceutical manufacturing practices, rising potential of pharmaceutical manufacturing infrastructure worldwide, and growing implementation of government schemes and regulatory frameworks for quality assurance are some of the major factors driving the market growth globally.

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Driver: Rising demand for generics
As patents on branded drugs are expiring, the generic drug market is proliferating worldwide. One of the major factors driving the generic drug market is the implementation of favorable policy frameworks across regions aimed at reducing the overall cost of healthcare and check the spread of chronic diseases. In a time when pharmaceutical manufacturers are experiencing stagnation in developed economies, the growth opportunities in emerging markets, especially in Africa, seem enormous. Significant factors contributing to these opportunities include critical infrastructure improvements, extensive urbanization, rising demand for a diverse set of medications from the population, and growing investments in the healthcare sector. Moreover, there is a growing inclination toward injectable generics. Governments across the world are supporting the manufacturing of injectable generics as they offer benefits in terms of dosage, quality, strength, and less cost-intensive R&D cycle. Even in developed economies such as the US, the growing aging population, the expiration of patents for many popular drugs, and an exponential rise in chronic diseases are contributing to the growth of the generics market.

Restraint: Demand for refurbished equipment
For manufacturers to purchase and install new manufacturing equipment, many upfront costs are involved. In addition, manufacturing equipment can rapidly become outdated in a dynamic industry such as pharmaceuticals. Therefore, there is a growing demand for refurbished pharmaceutical manufacturing equipment across the globe. Refurbishment can be described as rebuilding or updating used equipment with new materials, technology, components, or parts to restore its condition to its original operating state and appearance. Moreover, refurbishment typically costs around half as much as acquiring new equipment. Therefore, refurbished manufacturing equipment helps the manufacturer by reducing upfront costs, providing flexibility for upgradation, and lessening costs by extending the equipment’s lifespan to realize maximum return on investment. One of the major factors for the growing demand for refurbished pharmaceutical manufacturing equipment in developing economies is the gap between demand and supply leading to limited accessibility of new equipment. Moreover, it becomes difficult for small and medium-sized pharmaceutical manufacturing plants to adopt and upgrade new equipment due to a limited purchasing budget. As a result, the global demand for refurbished pharmaceutical manufacturing equipment is increasing.

Opportunity:Adoption of pharmaceutical manufacturing equipment to enable first-to-market advantages
Rapidly growing demand for drugs and injectables has triggered competition among manufacturers to expedite the development and review pathways to reduce the demand and supply gap. In the pharmaceutical industry, there are many first-to-market benefits spanning across different market contexts and are more evident in cases of specialty areas with a small number of patients and prescribers and when the first mover is a well-established pharmaceutical manufacturer with experience in the product’s therapeutic area. Traditionally, pharmaceutical manufacturing has been executed through a combination of multiple facilities to perform different processes across the supply chain. But, as the competition to increase the speed to market has intensified, the project delays occurring due to transfers between different manufacturing sites are negatively hampering the manufacturers. This emphasizes the utilization of modern and advanced pharmaceutical manufacturing equipment, especially in modular setups, to enable the manufacturing of pharmaceuticals from one single diverse facility encompassing all supply chain processes. The use of modern pharmaceutical manufacturing equipment is helping manufacturers to cut down on lead times.

Challenge: Rising costs and expenditures related to usage of pharmaceutical manufacturing equipment
Pharmaceutical manufacturing equipment must comply with strict regulations and guidelines set by government agencies, such as the EMA and FDA. Adhering to multiple regulations and standards is a time-consuming process and increases capital expenditures. In addition, pharmaceutical manufacturing equipment is often expensive to purchase, operate, and maintain. The high upfront costs related to adherence to regulations and maintenance can hinder innovation and product development. They also threaten the entry of emerging or smaller players to enter the market. Moreover, to cater to the ever-changing market demand in the pharmaceutical industry, manufacturing equipment needs to be constantly evolving. It needs regular upgrades, which involves additional costs for pharmaceutical manufacturers. This poses a significant challenge for pharmaceutical players to adopt and maintain various pharmaceutical manufacturing equipment.