Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Size (2024 - 2029)

The pharmaceutical contract development and manufacturing organization (CDMO) market is experiencing growth driven by advancements in manufacturing techniques and the increasing demand from small and mid-sized pharmaceutical firms. The shift towards personalized medicine and the integration of new technologies are enhancing the efficiency and effectiveness of contract research organizations, contributing to market expansion. Additionally, the evolution of pharmaceutical outsourcing from basic processes to more complex value-added services is redefining the industry landscape. The COVID-19 pandemic has further highlighted the importance of CDMOs in addressing global health challenges, impacting supply chain logistics and drug distribution.

Market Size of Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Industry

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Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 243.29 Billion
Market Size (2029) USD 331.98 Billion
CAGR (2024 - 2029) 6.41 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Analysis

The Pharmaceutical Contract Development And Manufacturing Organization Market size is estimated at USD 243.29 billion in 2024, and is expected to reach USD 331.98 billion by 2029, growing at a CAGR of 6.41% during the forecast period (2024-2029).

Advanced manufacturing techniques and processes will help the CMO market grow. CMOs are expected to improve the efficiency of their manufacturing processes, minimizing waste and lowering costs, owing to new operational strategies, such as continuous manufacturing. The growth of small and mid-sized pharmaceutical firms, which are in charge of an expanding portion of new drug approvals and frequently lack manufacturing capacity, is anticipated to be a driving force behind CMOs adopting new manufacturing technologies.

  • With the rise of personalized medicine, the industry is trying to make clinical trials more accessible and patient-friendly. Technology has become a key element in contract research organizations. CROs are at the forefront of implementing the newest technologies and tools to maintain a competitive edge and ensure they can provide customers with the full range of solutions. Adopting these new technologies has been helping CROs be more effective and increase research speed, driving the CRO market's growth.CROs continue to face challenges ranging from commoditization and changing patient engagement models to pressure from the competition. As larger companies share more market, market stratification forces smaller CROs to subcontract or niche down.
  • Pharmaceutical outsourcing evolved from basic processes, namely bottling, to more value-added techniques, such as medical device engineering and R&D. The active process-outsourcing experience, the increase in patients subject to medical procedures, and the improvements in illness detection and diagnosis in developing countries are the factors propelling the growth of this market.
  • There has been a gradual change in the working principles of the companies in the market. The pattern shift from cost-control to re-emphasis on value-added services has led to the redefining of CMOs to CDMOs (contract development and manufacturing organizations) and allowed their integration into the value chain of companies.
  • The costs invested in R&D are continuously increasing, yet the valuable results from these processes are becoming rarer. Many companies have realized that moving this part of the business overseas and taking advantage of the still-emerging pharmaceutical markets effectively reduces costs. Despite the evidence regarding cost savings and competencies that can be accrued, many companies are reluctant to give up that control. However, the scenario is changing gradually. The pressure on reducing the length of the supply chain and improving lead-time efficiency is forcing the companies to take various measures to meet the demand, turning contract manufacturing into a bottleneck in the supply chain.
  • The COVID-19 pandemic has exposed significant gaps in the global health systems and disrupted the distribution of medicines, particularly in low and middle-income countries. Governments and industries faced new access-to-medicine challenges as the COVID-19 control effort picked up speed, along with developing new COVID-19 medicines and distributing them worldwide at an unprecedented rate. The CMO/CDMO service industry was in a unique position to help drug developers overcome some of the difficulties brought on by the COVID-19 pandemic. The pandemic impacted the pharma and biopharma industries in many ways, including supply chain logistics, drug development, clinical trials, supplies, and manufacturing.

Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Industry Segmentation

The study tracks and analyzes the demand for outsourcing CMO and CRO activities within the pharmaceutical industry based on the current trends and market dynamics. The market numbers are derived by tracking the revenue generated by the players operating in the market who are providing CRO & CMO services. The study provides a detailed breakdown of various research phases and service types. This report analyzes the factors based on the prevalent base scenarios, key themes, and end-user vertical-related demand cycles.

The pharmaceutical contract development and manufacturing organization market is segmented by service type CMO segment (active pharmaceutical ingredient (API) manufacturing (small molecule, large molecule, and high potency (HPAPI)), finished dosage formulation (FDF) development and manufacturing (solid dose formulation (tablets), liquid dose formulation, injectable dose formulation), secondary packaging), research phase CRO segment (pre-clinical, phase I, phase II, phase III, phase IV), pharmaceutical CMO geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Italy, and Rest of Europe], Asia-Pacific [China, India, Japan, Australia, and the Rest of Asia-Pacific], Latin America [Brazil, Mexico, Argentina, and the Rest of Latin America], and the Middle East and Africa [United Arab Emirates, Saudi Arabia, South Africa, and the Rest of Middle-East and Africa]), and pharmaceutical CRO geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The market sizes and forecasts are provided in terms of value USD for all the above segments.

By Service Type CMO Segment
Active Pharmaceutical Ingredient (API) Manufacturing
Small Molecule
Large Molecule
High Potency (HPAPI)
Finished Dosage Formulation (FDF) Development and Manufacturing
Solid Dose Formulation
Tablets
Others (Capsules, Powders, etc.)
Liquid Dose Formulation
Injectable Dose Formulation
Secondary Packaging
By Research Phase CRO Segment
Pre-clinical
Phase I
Phase II
Phase III
Phase IV
By Geography - Pharmaceutical CMO***
North America
United States
Canada
Europe
United Kingdom
Germany
France
Italy
Asia
China
India
Japan
Australia and New Zealand
Latin America
Brazil
Mexico
Argentina
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
By Geography - Pharmaceutical CRO
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Size Summary

The CDMO market is poised for significant growth, driven by advancements in manufacturing techniques and the increasing demand for personalized medicine. As pharmaceutical companies focus on scientific research and marketing, CDMOs are becoming essential partners, integrating into the value chain and offering value-added services. The shift towards continuous manufacturing and the adoption of new technologies are expected to enhance efficiency, reduce costs, and minimize waste. This evolution is further fueled by the growth of small and mid-sized pharmaceutical firms, which are increasingly relying on CDMOs to meet their manufacturing needs. The COVID-19 pandemic highlighted the critical role of CDMOs in supporting drug developers and addressing global health challenges, thereby reinforcing their importance in the pharmaceutical industry.

The market landscape is characterized by high fragmentation, with major players dominating the market share. The competitive environment is intensified by the presence of numerous vendors offering a wide range of services, from cloud-based data management to specialized solution providers. Regions like Asia-Pacific are witnessing rapid growth due to lower costs and the increasing privatization of clinical trials, attracting organizations to conduct research in countries like China and India. The market dynamics are shaped by strategic collaborations, mergers, and acquisitions, as companies seek to expand their capabilities and enhance their service offerings. As the demand for complex and high-potency compounds rises, CDMOs are expected to leverage advanced technology and expertise to maintain a competitive edge.

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Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Porter's Five Forces Analysis for CMO

      2. 1.2.2 Porter's Five Forces Analysis for CRO

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Industry Policies

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Type CMO Segment

      1. 2.1.1 Active Pharmaceutical Ingredient (API) Manufacturing

        1. 2.1.1.1 Small Molecule

        2. 2.1.1.2 Large Molecule

        3. 2.1.1.3 High Potency (HPAPI)

      2. 2.1.2 Finished Dosage Formulation (FDF) Development and Manufacturing

        1. 2.1.2.1 Solid Dose Formulation

          1. 2.1.2.1.1 Tablets

          2. 2.1.2.1.2 Others (Capsules, Powders, etc.)

        2. 2.1.2.2 Liquid Dose Formulation

        3. 2.1.2.3 Injectable Dose Formulation

      3. 2.1.3 Secondary Packaging

    2. 2.2 By Research Phase CRO Segment

      1. 2.2.1 Pre-clinical

      2. 2.2.2 Phase I

      3. 2.2.3 Phase II

      4. 2.2.4 Phase III

      5. 2.2.5 Phase IV

    3. 2.3 By Geography - Pharmaceutical CMO***

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 Germany

        3. 2.3.2.3 France

        4. 2.3.2.4 Italy

      3. 2.3.3 Asia

        1. 2.3.3.1 China

        2. 2.3.3.2 India

        3. 2.3.3.3 Japan

        4. 2.3.3.4 Australia and New Zealand

      4. 2.3.4 Latin America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Mexico

        3. 2.3.4.3 Argentina

      5. 2.3.5 Middle East and Africa

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 South Africa

    4. 2.4 By Geography - Pharmaceutical CRO

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia

      4. 2.4.4 Australia and New Zealand

      5. 2.4.5 Latin America

      6. 2.4.6 Middle East and Africa

Pharmaceutical Contract Development And Manufacturing Organization (CDMO) Market Size FAQs

The Pharmaceutical Contract Development And Manufacturing Organization Market size is expected to reach USD 243.29 billion in 2024 and grow at a CAGR of 6.41% to reach USD 331.98 billion by 2029.

In 2024, the Pharmaceutical Contract Development And Manufacturing Organization Market size is expected to reach USD 243.29 billion.

CDMO Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)