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Pharmaceutical CDMO Market: Catalyzing the Future of Drug Development and Manufacturing
Contract development and manufacturing organizations (CDMOs) are becoming integral partners in pharmaceutical development and production. In recent years, the pharmaceutical industry has generally inclined toward outsourcing non-core or innovative operational services, contributing to market expansion. The is expected to grow rapidly in various developed countries due to the rising demand for affordable biologic drugs. In addition, there is a high demand for vaccines, biologics, and personalized medicines, encouraging pharmaceutical companies to outsource manufacturing operations to CDMOs. Outsourcing production and manufacturing operations to CDMOs allows pharmaceutical companies to focus on other core areas and save resources.
Major Trends in the Pharmaceutical CDMO Market
Increasing Demand for Biologics and Biosimilars: The global surge in the demand for biologics and biosimilars is a major factor boosting the growth of the market. The recent WHO report highlighted that biologics capture a large share of the global pharmaceutical industry. CDMOs play a significant role in the early development and manufacturing of biologics and biosimilars. Biologics are complex molecules that need sophisticated and specialized methods for production. However, CDMOs often have specialized knowledge and are adept at navigating regulatory environments, which encourages pharmaceutical companies to outsource their manufacturing operations. Moreover, CDMOs are expanding their facilities to meet the growing demand for these complex products.
Cost-efficiency and Time-to-Market: Pharmaceutical companies are now outsourcing their operations to CDMOs due to their affordability and capacity to reduce drug production time. Through outsourcing manufacturing and development, pharmaceutical companies save on resources and infrastructures and scale their operations without investing significantly in equipment. According to the National Institutes of Health (NIH), the average cost of developing a new drug is more than USD 2.6 billion, and it can be reduced by outsourcing drug development operations to CDMOs. Additionally, it diversifies CDMO capabilities by contributing to processes that enable drug manufacturers and commercialization.
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Technological Advancements in Drug Manufacturing: Advancements in drug manufacturing technologies and the integration of AI, ML, and automation technologies are revolutionizing the pharmaceutical CDMO market landscape. AI and machine learning are gradually being integrated into all drug development activities to predict the structures of molecules and improve clinical trials. Technological advancement is enhancing the production line and minimizing the use of resources in drug preparation. The FDA pointed out that the use of AI is expected to enhance the speed of drug development and quality control.
Insights from Key Regions
Asia’s Sustain Dominance in the Market: What till 2034?
Asia Pacific dominated the pharmaceutical CDMO market in 2023. This is mainly due to the increased demand for novel drugs to curb the increasing burden of diseases. The region benefits from its expanding pharmaceutical industry and lower manufacturing costs. There is a high need for biologic drugs. China and India are leading the market due to the rising government regulations about the safety and quality of pharmaceutical products. Governments in the region are also investing heavily to boost the production of novel drugs, which is likely to contribute to regional market growth.
North America: The Fastest-growing Region
North America is anticipated to witness the fastest growth in the market during the forecast period. The regional market growth is attributed to the large number of manufacturers of pharmaceutical products and well-developed healthcare services, particularly in the U.S. The pharmaceutical CDMO market in the U.S. is expected to grow rapidly due to the rising government investments in the production of medicines. According to the report published by the U.S. Economic Development Administration (EDA) in September 2022, with USD 52.9 million in funding from the EDA, the Virginia Advanced Pharma Manufacturing (APM) and R&D Cluster will enhance the domestic supply chain for essential medicines and critical active pharmaceutical ingredients (APIs). Moreover, the region is at the forefront of technological advancements, transforming the regional market.
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Market Segmentation
- By product, the API segment dominated the market with the largest share in 2023 due to the increased need for APIs. Active pharmaceutical ingredients (APIs) are essential in drug development. Outsourcing API manufacturing to CDMOs allows pharmaceutical companies to accelerate drug development by focusing on other core areas.
- By workflow, the commercial segment led the market in 2023. Commercial segment involves the large-scale production of pharmaceuticals. The increased demand for generic and personalized medicine worldwide bolstered the segment.
- By application, the oncology segment dominated the pharmaceutical CDMO market in 2023. This is mainly due to the increased burden of cancer worldwide. Oncology CDMO services ensure the quality and efficacy of cancer medicines. As cancer cases increase, so does the need for effective cancer treatments, thus contributing to segmental growth.
- By end-user, the large pharmaceutical companies segment accounted for the largest market share in 2023 and is projected to maintain its dominance in the coming years. This is due to their increased need for efficient, scalable, and compliant manufacturing solutions. Moreover, large pharmacies often produce a large volume of pharmaceutical products, encouraging them to outsource operations to CDMOs to accelerate other processes.
Competitive Landscape
Key players operating in the pharmaceutical CDMO market include Veranova, Sterling, Fareva, Pfizer Centre One, AjiBio, Uquifa, Farmhispania, Carbogen Amcis, Evonik, FIS - Fabbrica Italiana Sintetici S.p.A., Almac, Dottikon, Curia, CordenPharma International, Piramal Pharma Solutions, Samsung Biologics, WuXi AppTec, Inc., Siegfried Holding AG, Cambrex Corporation, Bushu Pharmaceuticals Ltd., EuroAPI, Laboratory Corporation of America Holdings (LabCorp), Sequens, Hovione, Nipro Corporation, Catalent, Inc., Thermo Fisher Scientific, Inc., Recipharm AB, Axplora, and Lonza. These companies continuously expand their service offerings, focus on technological advancements, and expand their global footprints to meet the growing demand for CDMO services.
- In June 2024, Veranova, a global leader in the development and manufacturing of specialist and complex APIs for the pharmaceutical and biotech sectors, today announced the initiation of a major expansion of its antibody-drug conjugate (ADC) and highly potent compound development and manufacturing capabilities at its Devens, MA facility.
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· The global upstream bioprocessing market was evaluated at US$ 24.15 billion in 2023 and is expected to attain around US$ 105.46 billion by 2034, growing at a CAGR of 14.34% from 2024 to 2034.
· The global cell separation technologies market size is calculated at USD 15.84 billion in 2024, grew to USD 18.32 billion in 2025, and is projected to reach around USD 67.75 billion by 2034. The market is expanding at a CAGR of 15.64% between 2024 and 2034.
· The global infertility treatment market size is calculated at USD 1.70 billion in 2024 and is expected to be worth USD 3.65 billion by 2034, expanding at a CAGR of 7.9% from 2024 to 2034.
· The global electronic health records market size is calculated at USD 28.60 billion in 2024 and is expected to be worth USD 43.66 billion by 2034, expanding at a CAGR of 4.32% from 2024 to 2034.
· The global regenerative medicine market size is calculated at USD 20.09 billion in 2024 and is expected to be worth USD 139.70 billion by 2034, expanding at a CAGR of 21.4% from 2024 to 2034.
· The global medical imaging informatics market was predicted at US$ 5.5 billion in 2023 and is projected to grow to US$ 11.4 billion by 2034, rising at a compound annual growth rate (CAGR) of 6.85% from 2024 to 2034.
· The global sequencing consumables market size is calculated at US$ 8.54 billion in 2024, grew to US$ 10.49 billion in 2025, and is projected to reach around US$ 66.79 billion by 2034. The market is expanding at a CAGR of 22.84% between 2024 and 2034.
· The global cardiac biomarkers market size is calculated at USD 21.27 billion in 2024, grew to USD 24.39 billion in 2025, and is projected to reach around USD 83.54 billion by 2034.
· The global biosimulation market size is calculated at USD 3.97 billion in 2024, grew to USD 4.64 billion in 2025, and is projected to reach around USD 18.97 billion by 2034. The market is expanding at a CAGR of 16.94% between 2024 and 2034.
· The global health insurance market size is calculated at USD 1.78 trillion in 2024 and is expected to be worth USD 3.63 trillion by 2034, expanding at a CAGR of 7.4% from 2024 to 2034.
Recent Developments
- In November 2024, FUJIFILM Diosynth Biotechnologies, a contract development and manufacturing organization (CDMO) for biologics, vaccines, advanced therapies, and oncolytic viruses, announced that the first phase of its expansion at the Hillerød site is complete and ready to bring the new production capacity into operation.
- In June 2024, Asahi Kasei Medical's U.S. subsidiary, Bionova Scientific, a full-service biologics CDMO, is set to launch a new business line focused on plasmid DNA services and establish a dedicated facility in Texas. This expansion is part of Asahi Kasei Medical's bioprocess business, one of the 10 Growth Gears (GG10) under the company's medium-term management plan, "Be a Trailblazer." Asahi Kasei Medical is seizing new opportunities by entering the CRO and CDMO sectors, leveraging its customer base and brand strength, alongside its established Planova virus removal filters.
Segments Covered in the Report
By Product
- API
- Type
- Traditional Active Pharmaceutical Ingredient (Traditional API)
- Highly Potent Active Pharmaceutical Ingredient (HP-API)
- Antibody Drug Conjugate (ADC)
- Others
- Synthesis
- Synthetic
- Solid
- Liquid
- Biotech
- Drug
- Innovative
- Generics
- Manufacturing
- Continuous manufacturing
- Batch manufacturing
- Drug Product
- Oral solid dose
- Semi-solid dose
- Liquid dose
- Others
By Workflow
- Commercial
- Clinical
By Application
- Oncology
- Small Molecules
- Biologics
- Infectious Diseases
- Neurological Disorders
- Cardiovascular Disease
- Metabolic Disorders
- Autoimmune Diseases
- Respiratory Diseases
- Ophthalmology
- Gastrointestinal Disorders
- Hormonal Disorders
- Hematological Disorders
- Others
By End-use
- Large Pharmaceutical Companies
- Medium Pharmaceutical Companies
- Small Pharmaceutical Companies
By Region
- Asia Pacific
- North America
- Europe
- Latin America
- Middle East and Africa (MEA)
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Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations. We are a global strategy consulting firm that assists business leaders in gaining a competitive edge and accelerating growth. We are a provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations.
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