Pharmaceutical CDMO Market Size, Share, By Product [(API (Synthetic API, and Natural API), Drug (Branded, and Generic))], By Service Type (Drug Development Services, Manufacturing Services, Packaging Services, Fill-Finish Services, and Others (Quality Control, Etc.)), By Dosage Form [(Solid (Tablets, Capsules, and Powder), Semi-solid (Cream, Paste, and Gel), Liquid (Injectable, Ampules, and Sterile Vials))], By Workflow, By Manufacturing, By Application ,By End User and By Region - Trends, Analysis, and Forecast till 2034

• In 2023, Pharmaceutical CDMO market was estimated to be worth USD 185.2 Billion.
• By 2034, the target market is expected to grow to USD 452.0 Billion.
• Target market is expanding at a CAGR of 8.2%

Market Overview:

Pharmaceutical CDMO Market plays crucial role in the pharmaceutical industry by offering end-to-end services which includes drug development, clinical trial support and commercial scale manufacturing. CDMOs enable pharmaceutical companies to outsource critical processes allowing them to focus on core activities such as R&D, marketing and also strategic growth.

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024.
• North America is projected to be the fastest-growing market in the coming years.
• By Product, the API segment accounted for the largest share of the Pharmaceutical CDMO market in 2024.
• CDMOs are adopting green manufacturing practices and implementing automation, AI, and data analytics to enhance efficiency and meet ESG goals.
• By Application, the Oncology segment dominated the market globally in 2024.

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Key Drivers of Target Market:

Surge in Clinical Trials and Innovation in Emerging Therapies:

Demand for CDMO is fueled by rising clinical trials globally especially in areas like oncology and rare diseases. The boost in therapies involving mRNA and monoclonal antibodies post COVID-19 has also provided growth opportunities.     

• For instance, According to data provided by EY, a global Organization, in July 2022, the last ten years have seen the emergence of novel modalities like cell therapies, gene therapies, or mRNA therapies and inventive vaccines necessitating a large investment in new manufacturing capabilities for viral vectors, cell manipulation, nucleic acids, and lipid-based formulations.

Emerging Markets and Biosimilars Growth:

Expanding production facilities in regions like Asia Pacific and the demand for biosimilars have contributed significantly to CDMO expansion. Lower manufacturing costs and favorable regulatory environments in these        

Restrains:

Decrease in Funding and Investment:

Some CDMOs are having trouble obtaining investments and funds for capacity development and innovation as a result of the overall economic slowdown. In the short term, target market demand is slowed down when profitability is prioritized over growth.       

• Counterbalance Statements: While there are decrease in funding and investment in certain areas the overall demand for outsourcing drug development and manufacturing services continues to rise. Pharmaceutical companies are increasingly turning to CDMOs to reduce costs accelerate time to market and access specialized expertise. This trend is expected to boost the target market growth potential funding challenges

The market is segmented based on Product, Service Type, Dosage Form, Workflow, Manufacturing, Application, and End User.

By Product	By Service Type	By Dosage Form	By Workflow
API Synthetic API Natural API Drug Branded Generic	Drug Development Services Manufacturing Services Packaging Services Fill-Finish Services Others (Quality Control, Etc.)	Solid Tablets Capsules Powder Semi-solid Cream Paste Gel Liquid Injectable Ampules Sterile Vials	Commercial Clinical

 

By Manufacturing	By Application	By End User
Batch Manufacturing Continuous Manufacturing	Infectious Diseases Oncology Neurological Disorders Cardiovascular Disease Diabetes Autoimmune Diseases Others	Biotechnology Firms Pharmaceutical Companies Research Institutes Others

Product Insights:

On the basis of Product, Pharmaceutical CDMO Market is segmented into API (Synthetic API, and Natural API), Drug (Branded, and generic). The complexity of drug formulations, the growing demand for pharmaceuticals and the requirement for specialized manufacturing capabilities that CDMOs offer are the main factors driving the expansion of the API industry for the target market.

Type Insights:

The Pharmaceutical CDMO market by Type is segmented into Drug Development Services, Manufacturing Services, Packaging Services, Fill-Finish Services, and Others (Quality Control, Etc.). Drug Development Services is expected to dominate the target market growth as this segment encompasses critical services such as clinical trial support, formulation development and also regulatory compliance which are essential for bringing new drugs to the market.

Dosage Form Insights:

The Pharmaceutical CDMO market by Dosage Form is segmented into Solid (Tablets, Capsules, and Powder), Semi-solid (Cream, Paste, and Gel), Liquid (Injectable, Ampules, and Sterile Vials). Solid dosage forms is expected to dominate the target market growth as it is driven by ongoing demand from pharmaceutical companies seeking reliable and efficient manufacturing solutions.

Workflow Insights:

The Pharmaceutical CDMO market by Workflow is segmented into Commercial, and Clinical. Commercial is expected to dominate the target market growth as this segment holds largest share of approximately 88.1% of the target market which is driven by increasing demand for large scale production and the continuous growth of commercial operations within the pharmaceutical industry.

Manufacturing Insights:

The Pharmaceutical CDMO market by Manufacturing is segmented into Batch Manufacturing, and Continuous Manufacturing. Batch manufacturing segment is expected to dominate the target market growth as this manufacturing remains prevalent due to its established processes and suitability for producing small to medium sized quantities of pharmaceutical particularly for complex formulations and specialized products.

Application Insights:

The Pharmaceutical CDMO market by Application is segmented into Infectious Diseases, Oncology, Neurological Disorders, Cardiovascular Disease, Diabetes, Autoimmune Diseases, and Others. Oncology is expected to dominate the target market growth it is driven by the increasing incidence of cancer globally and the rising need for innovative cancer therapies.

End User Insights:

The Pharmaceutical CDMO market by End User is segmented into Biotechnology Firms, Pharmaceutical Companies, Research Institutes, Others. Pharmaceutical Companies segment is expected to dominate the target market growth as this segment is characterized by a significant reliance on CDMOs for various services which includes drug development and manufacturing allowing pharmaceutical firm to optimize their operations and focus on core competencies.   

Regional Insights

Asia Pacific: This region holds the largest market share for target market accounting approximately 38% - 43% driven by lower manufacturing costs, skilled workforce and also favorable regulatory environments. 

North America: This region is also expected to boost the target market growth as it benefits from a well-established pharmaceutical industry high investment in research and development and a growing factor of outsourcing services.   

Pharmaceutical CDMO Market Report Scope:

Attribute	Details
Market Size 2024	USD 219.8 Billion
Projected Market Size 2034	USD 452.0 Billion
CAGR Growth Rate	8.2% (2024-2034)
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels, analyzing industry trends and opportunities across sub-segments from 2024 to 2034. It segments the market by Product, Service Type, Dosage Form, Workflow, Manufacturing, Application, and End User, and Region.

Segmentation:

By Product:

• API

• Synthetic API
• Natural API

• Drug

• Branded
• Generic

By Service Type:

• Drug Development Services
• Manufacturing Services
• Packaging Services
• Fill-Finish Services
• Others (Quality Control, Etc.)

By Dosage Form:

• Solid

• Tablets
• Capsules
• Powder

• Semi-solid

• Cream
• Paste
• Gel

• Liquid

• Injectable
• Ampules
• Sterile Vials

• Gas

By Workflow:

• Commercial
• Clinical

By Manufacturing:

• Batch Manufacturing
• Continuous Manufacturing

By Application:

• Infectious Diseases
• Oncology
• Neurological Disorders
• Cardiovascular Disease
• Diabetes
• Autoimmune Diseases
• Others

By End User:

• Biotechnology Firms
• Pharmaceutical Companies
• Research Institutes
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the Pharmaceutical CDMO Market include Adare Pharma Solutions, Inc., Cambrex Corporation, WuXi AppTec, Catalent, Inc., AbbVie Contract Manufacturing, Lonza Group AG, Evonik Industries AG, Patheon, Siegfried Holding AG, Recipharm AB, Aenova Group, CordenPharma International, Jubilant Life Sciences Ltd., Almac Group, Piramal Pharma Solutions, Fareva, Bushu Pharmaceuticals Ltd., Laboratory Corporation of America Holdings, Nipro Corporation, Thermo Fisher Scientific Inc., and Samsung Biologics.

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• In October 2024, Thermo Fisher Scientific is launching Accelerator Drug Development, described as the company’s 360° contract development and manufacturing organization and contract research organization drug development solutions, as part of its showcase at CPHI Milan 2024, happening in Milan, Italy. The company claims that because Accelerator Drug Development offers clinical supply chain services, clinical research, and customizable manufacturing for small molecules, biologics, and cell and gene therapies, it will have an influence on the pharmaceutical value chain for both biotech and large pharmaceutical companies. 
• In July 2024, Navin Molecular, a Madhya Pradesh-headquartered Contract Development and Manufacturing Organisation (CDMO), has announced a significant investment of Rs 288 crore (approximately $35 million) to expand its GMP manufacturing plant in Dewas. The site's overall capacity will be roughly doubled to 420 cubic meters with the new 9,000-square-meter facility, supporting current commercial-scale projects and satisfying future demand as the business expands its clientele worldwide.
• In May 2024, Enzene Biosciences announced the launch of a new drug discovery division. This further expands the CDMO's breadth of services to the biotech industry and complements its EnzeneXTM equipped biologics manufacturing site. The CDMO is introducing its new discovery arm to provide end-to-end integrated discovery services in response to rapidly growing industry demands.
• In March 2024, During its full-year results presentation, CDMO and API supplier EuroAPI announced the launch of Focus-2027, a comprehensive project that will seek to unlock profitable growth and increase returns.
• In January 2024, EXO Biologics SA, a Belgian biotech company committed to developing biopharmaceuticals using exosomes to treat rare diseases with high unmet medical needs, has launched ExoXpert, a contract development and manufacturing organization (CDMO) specializing in exosomes. ExoXpert offers an MSC-based exosome manufacturing platform used in European clinical trials and is a wholly owned subsidiary of EXO Biologics.
• In October 2023, Evaluate, a Norstella company, has announced the launch of its CDMO Intelligence solution. It will provide contract development and manufacturing organisations (CDMOs), biopharma companies and financial firms with comprehensive and unbiased market intelligence to make informed decisions and optimise long term strategies in the complex and rapidly expanding pharmaceutical CDMO market.
• According to research article by Aragen Life Sciences Ltd., in November 2023, for CROS and CDMOs, the growing trend of outsourcing services in the pharmaceutical sector has created substantial growth potential. For R&D and manufacturing requirements, more pharmaceutical and biotech businesses are depending on outside service providers.
• In May 2022, Hanmi Fine Chemical (Hanmi FC), a subsidiary of Hanmi Pharmaceutical Group, specializes in active pharmaceutical ingredients (APIs) development and production but is launching a new business to expand into the contract development manufacturing organization (CDMO) space.

Analyst View:

The demand for cutting-edge treatments and prospects for regional expansion will drive the pharmaceutical CDMO market's steady growth in the upcoming years. By upgrading their facilities and engaging in M&A, some of the top CDMOs are aggressively diversifying their service offerings. Additionally, these expenditures put them in a position to increase their market share in high-growth sectors including cell treatments and biosimilars.

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Potential Drug Therapy Market

• Adare Pharma Solutions
• Cambrex Corporation
• WuXi AppTec
• Catalent, Inc.
• AbbVie Contract Manufacturing
• Lonza Group AG
• Evonik Industries AG
• Patheon
• Siegfried Holding AG
• Recipharm AB
• Aenova Group
• CordenPharma International
• Jubilant Life Sciences Ltd.
• Almac Group
• Piramal Pharma Solutions
• Cambrex Corporation
• Fareva
• Bushu Pharmaceuticals Ltd.
• Laboratory Corporation of America Holdings
• Nipro Corporation
• Thermo Fisher Scientific Inc.
• Samsung Biologics