The global pharmaceutical CDMO market size was valued at USD 184.90 billion in 2024 and is expected to surpass around USD 368.70 billion by 2034, growing at a CAGR of 7.2% from 2024 to 2034. The pharmaceutical CDMO market is growing due to the rising demand for advanced therapeutics.
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CDMOs provide access to expertise by offering researchers the required experience and skills at each drug development and manufacturing stage without increasing payroll costs. CMDOs allow pharmaceutical firms to stay active and lean by receiving extensive, differentiated drug development and support, which ensures greater flexibility and manageable cash flow than would be achievable internally. Moreover, outsourcing frees up drug discovery and marketing time and resources, pushing the pharmaceutical industry forward. Partnering with a CDMO eliminates the need to build and staff pharmaceutical manufacturing facilities and invest in expensive equipment.
• In February 2023, Cidara Therapeutics, Inc. and WuXi XDC declared an expansion of their collaboration. The new partnership investigational drug (IND) enables manufacturing and controls (CMC) development services for Cidara’s CD73 oncology DFC program.
Pharmaceutical CDMO Market Key Insights:
• Asia Pacific dominated the global pharmaceutical CDMO market with the largest market share of 42.4% in 2024.
• Europe is projected to expand at the fastest CAGR of 7.7% during the forecast period.
• By service type, the active pharmaceutical ingredient (API) manufacturing segment accounted for the highest market share of 63.6% in 2024.
• By service type, the finished dosage formulation (FDF) development and manufacturing segment is expected to grow at a solid CAGR of 7.9% during the forecast period.
• By research phase, the phase III segment contributed the biggest market share of 31.8^ in 2024.
• By research phase, the phase II segment is expanding at a notable CAGR of 7.5% during the forecast period.
Pharmaceutical CDMO Market Revenue Analysis by Segmentations from 2021 to 2023
Pharmaceutical CDMO Market Revenue (USD Billion), By Service Type 2021 to 2023
Service Type | 2021 | 2022 | 2023 |
Active Pharmaceutical Ingredient (API) Manufacturing | 97.5 | 103.7 | 110.4 |
Finished Dosage Formulation (FDF) Development and Manufacturing | 36.8 | 39.4 | 42.3 |
Liquid Dose Formulation | 12.9 | 13.9 | 14.9 |
Injectable Dose Formulation | 6.7 | 7.4 | 8.2 |
Secondary Packaging | 152.6 | 162.5 | 173.2 |
Pharmaceutical CDMO Market Revenue (USD Billion), By Research Phase 2021 to 2023
Research Phase | 2021 | 2022 | 2023 |
Pre-clinical | 18.4 | 19.6 | 20.9 |
Phase I | 22.9 | 24.4 | 26 |
Phase II | 34 | 36.3 | 38.8 |
Phase III | 48.6 | 51.7 | 55.1 |
Phase III | 28.7 | 30.5 | 32.4 |
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Top Trends in the Pharmaceutical CDMO Market
• Increasing production of specialty drugs: The rise of innovative therapies and personalized medicine will increase the need for specialized CDMOs that can handle complex modalities such as plasmid DNA, mRNA, and lentiviral vectors.
• Integration of AI and ML: Pharmaceutical companies use ML and AI for drug discovery, clinical trial design, and manufacturing optimization. Nowadays, CDMOs adapt these technological advancements to remain competitive.
• Demand for advanced drug formulation: The rise in biologics, cell and gene therapies, and personalized medicine is driving the demand for specialized contract manufacturing capabilities and more complex drug formulations.
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Pharmaceutical CDMO Market Regional Analysis
The Asia Pacific pharmaceutical CDMO market size is estimated to grow from USD 78.4 billion in 2024 to approximately USD 153.5 billion by 2034, growing at a CAGR of 7% from 2024 to 2034.
Asia-Pacific has dominated the pharmaceutical CDMO market by the expansion of pharmaceutical firms that are outsourcing drug development and manufacturing. This is because of strong government support that attracts foreign investments. With regulatory-compliant facilities, a talented and technically skilled workforce, and a competitive cost base, India offers reliable partners for clinical supplies and commercial production. It is already the world’s largest producer of generic medications.
• The rising demand for biopharmaceutical drugs in Japan to diagnose & treat various chronic diseases is actively involved in improving access to biopharmaceutical drugs. Moreover, rapid advancements in drug delivery technology, such as targeted drug delivery, drive the pharmaceutical CDMO market growth. Major players in the market include Corden Pharma and Wuxi AppTec.
• In March 2024, Bushu Pharmaceuticals clinched two significant titles at the Healthcare Asia Pharma Awards 2024 for its various efforts and innovations in “creating a healthier tomorrow” for the healthcare industry.
As India grows its pharma and overall drug development sector, the CDMO industry is gaining attention. India carries multiple large-scale as well as small-scale contract manufacturing companies including Wellmed Pharma, Sunwin Healthcare, Prakruti Life Science and RealMed Pharma Ltd. Recently, Strides Pharma Science announced that it has received equity commitment of Rs.801 Crore from domestic and foreign institutional investors.
Europe’s pharmaceutical CDMO market is expected to grow significantly during the forecast period as there is an increasing healthcare expenditure, a rise in R&D investments, and the advancement of biologics and biosimilars. Germany has specialized healthcare systems, which patients with chronic cancer conditions usually use. The healthcare system is looking at standardization. However, German hospitals oppose this move. Germany is expanding in the pharmaceutical CDMO market due to increased chronic disease treatment. The contract development and manufacturing department is responsible for drug research and manufacturing, as well as technological advances in the pharmaceutical business.
• The North America pharmaceutical CDMO market size is worth USD 46.5 billion in 2024 and is expected to cross around USD 94.52 billion by 2034, growing at a CAGR of 7.4% from 2024 to 2034.
• The Europe pharmaceutical CDMO market size is calculated at USD 42.6 billion in 2024 and is projected to surpass around USD 88.8 billion by 2034, expanding at a CAGR of 7.7% from 2024 to 2034.
• The LAMEA pharmaceutical CDMO market size is predicted to grow from USD 17.3 billion in 2024 to approximately USD 31.8 billion by 2034, growing at a notable CAGR during the forecast period.
Recent Advancements to Open Doors for the Market
Rising demand for oncology drugs is one of the significant growth opportunities for the pharmaceutical CDMO market. The increasing need for cancer care and the growing number of patients suffering from cancer are the prominent reasons for the higher demand for CDMOs specializing in cancer drug development and manufacturing. Increasing investments in anti-cancer medications and financing for cancer research are being witnessed.
Governments and private organizations are the primary sources of R&D financing. There has been a rising focus on the R&D of treatments and therapies for lung, multiple myeloma, colorectal, and prostate cancer. The increase in the demand for precision medicine and generic drugs will grow the contract development and manufacturing organization market.
High capital investment Act as a Constraint
Pharmaceutical companies face higher expenses in the long run, as they must make an initial investment once the product is developed; they may depend on the CDMO’s ability to successfully develop and market the product. CDMOs might struggle to expand their operations to meet the needs of larger projects, which could affect their ability to deliver on time and within budget.
Pharmaceutical companies generally experience poor communication. Also, there is a lack of transparency when working with larger CDMOs, which leads to project delays and misunderstandings. Further, smaller CDMOs may not have the same resources or capacity as larger organizations, potentially limiting their ability to handle large-scale projects.
Pharmaceutical CDMO Market Report Coverage
Coverage | Details |
Market Size in 2024 | USD 184.9 Billion |
Market Size by 2033 | USD 345.6 Billion |
Growth Rate from 2024 to 2033 | 7.2% |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Leading Region | Asia Pacific |
Dominating Country | China |
Fastest Growing Country | India |
Fastest Growing Region | Europe |
Segments Covered | By Service Type, By Research Phase and By Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
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Pharmaceutical CDMO Market Segments Analysis
By Service Type Analysis
The active pharmaceutical ingredient (API) manufacturing segment dominated the pharmaceutical CDMO market as approximately 60 million people worldwide are diagnosed with heart disease every year. The increasing incidence of chronic diseases and mortality rates is boosting the demand for CDMO operations in producing active pharmaceutical ingredients (APIs) at a larger scale.
• In July 2024, Eurofins CDMO Alphora Inc. expanded its API capacity and capabilities by completing its new API manufacturing facility. The new API facility complements Eurofins CDMO Alphora’s existing API and drug substance manufacturing capabilities.
The finished dosage formulation (FDF) development and manufacturing segment is observed to be the fastest growing in the pharmaceutical CDMO market as CDMOs work with pharmaceutical firms to develop strong and scalable formulations, including pre-formulation studies, drug delivery system optimization, and excipient compatibility testing, ensuring the final product is effective, safe, and stable. It supports the production of clinical trial materials that meet regulatory standards and are available in sufficient quantities for clinical studies.
This phase is crucial for the success of clinical trials and later during the drug’s approval. These are the major applications of finished dosage formulation (FDF) development and manufacturing, i.e., advanced microencapsulation techniques, enhanced skin permeation, smart polymer systems, and customized formulation development.
By Research Phase Analysis
The phase III segment dominated the pharmaceutical CDMO market due to the pharmaceutical industries are extensively regulated, and companies must comply with different safety, quality, and efficacy requirements. It ensures the client’s products meet by providing expertise in quality control and regulatory compliance. Many companies are outsourcing drug projects to CDMOs, from development through commercialization. Financial considerations, supply chain concerns, and the need for specialized skills drive this segment.
The phase II segment is observed to be the fastest growing in the pharmaceutical CDMO market as the rising number of clinical trials is boosting the need for pharmaceutical CDMO services, mainly due to the growing complexity of drug development and the fact that the drug is ready for commercial purposes.
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Key Players of the Market
• Bushu Pharmaceuticals Ltd.
• Nipro Corporation
• Thermo Fisher Scientific Inc.
• Catalent, Inc
• Lonza Group AG
• Recipharm Ab
• Piramal Pharma Solutions
• Cordenpharma International
• Cambrex Corporation
• Wuxi Apptec
• Samsung Biologics
• Laboratory Corporation of America Holdings
• Siegfried Holding Ag
Recent News in the Pharmaceutical CDMO Market
• In September 2024, Wanbury disclosed the launch of its new active pharmaceutical ingredients (API) product portfolio for FY24-25. The firm outlined a range of products to be commercialized, which cover therapeutic areas, including anti-diabetics, antihistamines, antitussives, analgesics, antidepressants, anti-inflammatory drugs, and anesthetics.
• In April 2023, CordenPharma declared the opening of a Drug Product Innovation Centre of Excellence with the latest Bioavailability Enhancement capabilities to produce Oral Solid Dose (OSD) Drug Products that contain low bioavailability APIs at our CordenPharma Plankstadt facility.
• In September 2022, Medipost declared that its latest GMP facilities will house ten cleanrooms and production facilities equipped with up-to-date equipment entirely for CDMO, marking the launch of its CDMO business for cell and gene therapy products in Korea.
The research report categorizes the pharmaceutical CDMO market into the following segments and subsegments:
By Service Type
• Active Pharmaceutical Ingredient (API) Manufacturing
o Small Molecule
o Large Molecule
o High Potency (HPAPI)
• Finished Dosage Formulation (FDF) Development and Manufacturing
o Solid Dose Formulation
o Tablets
o Others (Capsules, Powders, etc.)
• Liquid Dose Formulation
• Injectable Dose Formulation
• Secondary Packaging
By Research Phase
• Pre-clinical
• Phase I
• Phase II
• Phase III
• Phase IV
By Geography
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)
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