Cell Banking Outsourcing Market

Global Cell Banking Outsourcing Market Size (2023 to 2028)

The global cell banking outsourcing market size is predicted to value USD 21557 million by 2028 from USD 10606 million in 2023, growing at a CAGR of 15.24% from 2023 to 2028.

MARKET DRIVERS:

The rising demand for biopharmaceutical manufacturing targeting novel active sites, stem cell therapy, and gene therapy is driving the global cell banking outsourcing market. Cell banking is an integral part of the production of biopharmaceuticals. Several biopharmaceutical companies prefer outsourcing their cell banking activities to focus on their core activities of research, development, and commercialization.  On the other hand, stem cell therapy and gene therapy have evolved as promising fields to treat various diseases and regenerative medicine applications. Companies and research institutions that work with stem cell therapy and gene therapy use cell banking service providers to ensure the availability of high-quality stem cells when needed for therapeutic applications and in the production of genetically modified cells.

The growing number of clinical trials has helped expose the potential of stem cells and their related applications, which has fuelled the worldwide cell banking outsourcing market expansion. Similarly, growing government initiatives to encourage stem cell isolation and its associated benefits and increased awareness for stem cell banking across numerous emerging countries are expected to influence market expansion throughout the forecast period. Furthermore, rising research activities related to stem cell applications are likely to drive market expansion during the forecast period.

The technique for cell preservation entails initially proliferating cells, which subsequently multiply into many identical cells, which are then stored in cryovials for future use. Increased average life expectancy due to better medical research and improved population lifestyles, as well as simple laws for stem cell researchers, are predicted to offer enormous market potential during the forecast period. At the same time, the growing popularity of adipose tissue banking has also become a huge opportunity. The ever-increasing global demand for cell and gene-based medicines for various purposes motivates leading companies to reposition themselves and expand their regional reach. Recent mergers and acquisitions also influence the global cell banking outsourcing market through significant competitors. The global cell banking outsourcing market is also expected to be driven by rising stem cell usage and clinical trials.

MARKET RESTRAINTS:

Stringent regulatory requirements and evolving guidelines for cell banking and storage is one of the major impediments to the cell banking outsourcing market growth. The protection of intellectual property rights, maintaining consistent quality standards across different outsourcing partners and high costs involved including initial setup fees, ongoing storage fees, and associated logistics expenses further limits the growth rate of the market. The availability of specialized and reliable cell banking outsourcing providers in some countries and the protection of sensitive data and confidential information related to cell banking and proprietary technologies inhibit market growth.

Impact of COVID-19 on the global cell banking outsourcing market:

In the early stages of the pandemic, some industries ceased their assembly and supply activities. The majority of pharmaceutical businesses have suffered significant losses due to the coronavirus outbreak, which has hampered the cell banking outsourcing sector at first. During the early stages of the pandemic, several businesses shut down their manufacturing and supply activities. However, as medical professionals and health authorities in the affected nations take the necessary steps to combat the virus, the current COVID-19 situation is expected to revert to normal. Nonetheless, the present COVID-19 scenario is likely to stabilize as medical experts and health authorities across the globe take the necessary actions to combat the virus. Because of the widespread reliance on cell-based treatments for COVID-19 treatment, cell banking services such as processing and storage are likely to be in high demand. Therefore, COVID-19's increased prevalence is expected to impact market growth over the forecast period positively.

REPORT COVERAGE:

This research report on the global cell banking outsourcing market has been segmented and sub-segmented based on cell type, bank type, phase & region.

Cell Banking Outsourcing Market – By Bank Type:

• Master Cell Banking
• Working Cell Banking
• Viral Cell Banking

Based on the bank type, the master cell banking segment led the market in 2022 and the domination of the segment is expected in the coming years. Factors such as the growing demand for cell-based therapies, biologics, and vaccines that require a consistent and well-characterized cell line as the starting material, regulatory requirements for cell line authentication, quality control, and traceability that necessitate the establishment of robust master cell banks drive the growth of the master cell banking segment in the global market. The cost-effectiveness and time-saving benefits of outsourcing MCB services that enable companies to focus on core research and development activities contribute to the growth rate of the master cell banking segment.

The working cell banking segment is expected to account for a notable share of the global market during the forecast period owing to the rising demand for large-scale production of biologics, vaccines, and cell-based therapies that require a reliable and consistent supply of working cell stocks. Enhanced efficiency and cost-effectiveness of outsourcing WCB services and streamlined manufacturing processes facilitated by outsourcing WCB services further fuel the growth rate of the working cell banking segment.

Cell Banking Outsourcing Market – By Cell Type:

• Stem Cell Banking
  • Cord Stem Cell Banking
  • Embryonic Stem Cell Banking
  • Adult Stem Cell Banking
  • Dental Stem Cell Banking
  • IPS Stem Cell Banking
• Non-stem Cell Banking

Based on cell type, the stem cell banking segment is estimated to account for the leading share of the global market during the forecast period due to factors such as the growing research and therapeutic applications of stem cells in regenerative medicine, cell-based therapies and drug discovery and rising awareness among individuals about the potential benefits of preserving their own stem cells for future personalized medical treatments. The growing need for secure and reliable storage facilities with stringent quality control measures for maintaining the viability and functionality of stem cells further boosts segmental growth.

The non-stem cell banking segment is expected to witness a healthy pace during the forecast period owing to the rising demand for non-stem cells in research, drug discovery, toxicology studies, and bioproduction processes and the increasing need for reliable and quality-controlled repositories of well-characterized non-stem cell lines for scientific and commercial purposes.

Cell Banking Outsourcing Market – By Phase:

• Cell Bank Storage
• Bank Characterization and Testing
• Cell Bank Preparation

Based on the phase, the cell bank preparation segment is anticipated to capture the leading share of the global market during the forecast period owing to the growing demand for standardized and well-characterized cell banks for research, drug development, and bioproduction processes and the rising need for specialized expertise and facilities to expand cell lines, optimize growth conditions, and ensure the consistent quality and stability of cell banks.

The cell bank storage segment is expected to witness a healthy CAGR during the forecast period. The growing demand for secure and reliable storage facilities to preserve valuable cell lines, regulatory requirements for the storage of cell banks, cost savings and scalability benefits of outsourcing cell bank storage drive the growth of the cell bank storage segment in the global market.

Cell Banking Outsourcing Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America led cell banking outsourcing market in 2022. The domination of the North American region in the worldwide market is predicted to continue throughout the forecast period. The availability of a well-established healthcare infrastructure, a strong presence of pharmaceutical and biotechnology companies and rapid adoption of advanced technologies and cell-based therapies primarily drive the North American market growth. Stringent regulatory standards, rising focus on quality control and compliance, increasing research and development activities in the field of regenerative medicine and cell-based therapies and the availability of skilled professionals and advanced research facilities further fuel the growth rate of the North American market. The U.S. held the major share of the North American market in 2022, followed by Canada.

Europe is a notable regional market for cell banking outsourcing and had the second-largest share of the worldwide market in 2022. The European cell banking outsourcing market is anticipated to grow at a notable CAGR during the forecast period. Strong pharmaceutical and biotechnology industry presence, particularly in countries like Germany, France and the UK, supportive regulatory frameworks for cell-based therapies and biologics and increasing investment in stem cell research and regenerative medicine drive the European market growth. Collaboration between research institutes, academic centers, and industry players for advancing cell banking technologies and rising emphasis on personalized medicine and the use of cell-based therapies in healthcare further propel the European market growth.

APAC is the most lucrative regional market for cell banking outsourcing and is predicted to register the highest CAGR among all the regions in the worldwide market during the forecast period. The rapidly growing healthcare infrastructure, rising healthcare expenditures, increasing investments in biotechnology and pharmaceutical sectors and rising awareness and acceptance of cell-based therapies majorly propel the APAC market growth. The presence of a large patient population and favorable government initiatives and policies promoting biotechnology and healthcare innovation further fuel the growth rate of the APAC market. China dominated the cell banking outsourcing market in the Asia-Pacific region in 2022 and is expected to continue the momentum during the forecast period.

Latin America is anticipated to hold a considerable share of the global cell banking outsourcing market during the forecast period. The growth of the Latin American market is driven by the growing focus on research and development in the biotechnology and pharmaceutical sectors, increasing demand for personalized medicine and cell-based therapies, rising number of collaborations between international and regional companies for outsourcing services and the expansion of clinical trials and research studies involving cell banking. Brazil led the market in Latin America in 2022, followed by Mexico.

MEA had a moderate share of the global market in 2022 and is expected to grow at a steady CAGR during the forecast period. The rising interest in biotechnology and cell-based therapies, the expansion of academic and research institutions focusing on cell banking and regenerative medicine, increasing support and initiatives for the development of the biotechnology sector from the countries of the MEA region and the potential for medical tourism drive the MEA market growth. UAE and Saudi Arabia are likely to grab a major chunk of the MEA market in the coming years.

KEY MARKET PARTICIPANTS:

SGS Life Sciences, Lonza, CCBC, Vcanbio, AMAG Pharmaceuticals, ViaCord, Thermo Fisher, Wuxi Apptec, Lifecell, Cryo-Cell, Toxikon, CordLife, Esperite, Reliance Life Sciences, Goodwin Biotechnology, Texcell, and Cryo Stemcell are some of the prominent companies operating in the global cell banking outsourcing market profiled in this report.

RECENT HAPPENINGS IN THIS MARKET:

• Paragon Biosciences (US) founded CiRC Biosciences in February 2021, a cell therapy firm focused on diseases with high unmet needs, with an initial focus on eye diseases.
• Hope Biosciences (US), clinical-stage biotech focusing on creating cell-based therapies, gained FDA permission for a Phase II clinical trial assessing the efficacy of its product in April 2020.
• WuXiAppTec (China) announced the acquisition of OXGENE, a UK-based contract research and development company specializing in gene therapy technology, in March 2021. WuXiAppTec will be able to extend its production capabilities as a result of this acquisition.