Healthcare Contract Manufacturing Market Size, Share, Trends, & Industry Analysis Report
By Type, By Process Type, By End User, and By Region – Market Forecast, 2025–2034
- Published Date:Oct-2025
- Pages: 126
- Format: PDF
- Report ID: PM6509
- Base Year: 2024
- Historical Data: 2020-2023
Overview
The healthcare contract manufacturing market was valued at USD 211.11 billion in 2024 growing at a CAGR of 11.53% from 2025-2032. Rising chronic disease prevalence among aging population coupled with increasing outsourcing of drug production drives the market.
Key Insights
- Pharmaceutical segment led in 2024 due to high demand for chronic disease drugs and biologics.
- Medical devices segment to grow fastest with rising outsourcing and advanced production adoption.
- North America dominated in 2024 with established pharma and biotech presence.
- The U.S. led due to large-scale outsourcing and advanced manufacturing infrastructure.
- Asia Pacific fastest growing with expanding pharma industries and government support.
- India led APAC due to cost-effective manufacturing and skilled workforce.
Industry Dynamics
- Aging population and rising chronic disease prevalence are driving demand for healthcare contract manufacturing.
- Increasing outsourcing of drug production to reduce operational costs is accelerating partnerships with contract manufacturing organizations.
- Stringent regulatory compliance and quality control challenges remain key market restraints.
- Biologics development, personalized medicine, and the adoption of advanced manufacturing technologies are creating new growth opportunities.
Market Statistics
- 2024 Market Size: USD 211.11 Billion
- 2034 Projected Market Size: USD 627.55 Billion
- CAGR (2025-2034): 11.53%
- North America: Largest Market Share
Healthcare contract manufacturing is the outsourcing of drug manufacturing and related services to specialist companies, including active pharmaceutical ingredient (API) synthesis, formulation, and packaging. These services are instrumental in increasing operational efficiency, reducing production costs, and accelerating time-to-market, and are increasingly harnessing advanced manufacturing technologies, automation, and quality management systems.
Aging populations and rising prevalence of chronic diseases and also rising outsourcing of drug manufacturing to assist in managing operating costs are driving adoption for healthcare contract manufacturing. World Health Organization stated that one in six people globally is projected to be aged 60 or older by 2030. The number is expected to rise from 1 billion in 2020 to 1.4 billion, and is expected to reach 2.1 billion by 2050. People who are 80 and above projected to triple up to 426 million by 2050. Pharmaceutical and biotech firms are collaborating with contract manufacturing organizations (CMOs) to boost production, enhance efficiency, and meet growing world-wide demand.
Companies are offering end-to-end manufacturing solutions, advanced process technologies, and compliance solutions to meet evolving pharmaceutical manufacturing requirements. Growth in biologics, personalized medicine, and emerging markets with expanding healthcare infrastructure is creating new opportunities for market expansion.
Drivers & Opportunity
Aging population and rising chronic disease prevalence: The aging population is increasing demand for chronic disease medications. Over 35 million Americans live with chronic lung disease, asthma affecting 26.8 million, of which 4.5 million are kids, and COPD in about 11.7 million adults (4.6% of adults). Drug companies have to ramp up production in order to meet patient demand as reported by American Lung Association. Healthcare contract manufacturing ensures timely supply and consistent quality. Growing cases of cardiovascular, diabetes, and oncology conditions are accelerating adoption.
Increasing outsourcing of drug production to reduce operational costs: Pharma and biotech firms are outsourcing production to lower costs and reduce capital investment. Contract manufacturers provide advanced technology and capable expertise. Outsourcing allows for faster time-to-market without compromising on quality conformity. Flexibility in production volume hastens adoption globally. In 2023, North America represented 53.3% of world pharma sales against 22.7% of Europe, as per European Federation of Pharmaceutical Industries Associations (EFPIA). Also, according to IQVIA, 67.1% of new medicine sales occurred in the U.S., compared to 15.8% in Europe between 2018‑2023.
Segmental Insights
Type Analysis
Based on type, the segmentation includes medical devices and pharmaceutical. The pharmaceutical segment dominated the market in 2024 driven by rising chronic disease prevalence and increasing production of generic and specialty drugs. In addition, outsourcing to reduce operational costs is accelerating segment growth.
The medical devices segment is projected to grow at the fastest CAGR during the forecast period, due to rising demand for advanced diagnostic and therapeutic devices. Moreover, increasing hospital infrastructure investments and technological innovations in device manufacturing are further supporting market growth.
Process Type Analysis
Based on process type, the segmentation includes formulation development, packaging solutions, and manufacturing services. The formulation development segment led the market in 2024, led by the demand for consistent and quality drug products. Also, advanced technologies in formulation processes and regulatory compliance requirements are fostering adoption by pharmaceutical and biotech companies.
Manufacturing services segment is expected to achieve the highest growth over the forecast period, owing to increasing outsourcing of manufacturing operations. In addition, rising adoption of biologics, personalized medicines, and scalable production technologies is fueling market expansion.
End User Analysis
Based on end user, the segmentation includes pharmaceutical companies, biotechnology firms, medical device companies, and research institutions. Pharmaceutical companies dominated the market in 2024 due to rising outsourcing need for low-cost production and regulatory clearances. Furthermore, partnerships with contract manufacturers are making fast time-to-market and enhanced production efficiency.
Biotechnology firms are anticipated to grow at the highest CAGR, driven by increasing demand for biologics and novel therapies. Capitol Biologics CDMO was launched by BioFactura in September 2025 to support early-phase clinical manufacturing and development for government and biotech clients. In addition, reliance on specialty contract manufacturing organizations for flexible and scalable manufacturing is driving segment growth.
Regional Analysis
North America dominated the market in 2024 owing to presence of mature biotech and pharma industries. Furthermore, the prevalence of increasing chronic disorders is driving the demand for contract manufacturing services. In addition, advanced regulatory regimes and effective R&D investments are supporting market growth.
The U.S. Healthcare Contract Manufacturing Market Insights
The U.S. dominated the healthcare contract manufacturing industry high outsourcing of drug production and significant investment in biologics and specialty medicines. For instance, in October 2025, Cambrex is investing USD 120 million in constructing U.S. API manufacturing, strengthening contract manufacturing capacity and drug supply resiliency. In addition, state-of-the-art manufacturing infrastructure supports manufacturing at scale.
Europe Healthcare Contract Manufacturing Market Insights
Europe holds the substantial share in the healthcare contract manufacturing market propelled by strong pharmaceutical R&D infrastructure and established CMOs. Moreover, rising demand for biologics and personalized medicine is encouraging outsourcing. In addition, regulatory support for advanced manufacturing is boosting market penetration.
Asia Pacific Healthcare Contract Manufacturing Market Insights
Asia Pacific is the fastest growing market owing to expanding pharmaceutical and biotechnology industries in emerging economies. Moreover, increasing government incentives for manufacturing and regulatory support are facilitating outsourcing growth. Additionally, the growing demand for low-cost drugs is increasing market adoption.
India Healthcare Contract Manufacturing Market Insights
India is experiencing high growth owing to low-cost manufacturing capabilities and the availability of skilled manpower. Moreover, increasing pharmaceutical exports and government initiatives to promote contract manufacturing are driving market expansion. According to Indian Ministry of Commerce and Industry, India’s drug and pharmaceutical exports rose from USD 24.44 billion in FY21 to USD 27.82 billion in FY24, an increase of 13.8% over the period of three years. In addition, rising chronic disease prevalence is further increasing demand for outsourced production.
Key Players & Competitive Analysis Report
The healthcare contract manufacturing market is moderately competitive, with companies offering advanced formulation, manufacturing, and flexible packaging solutions to improve production efficiency and quality. Additionally, collaborations with pharmaceutical and biotechnology companies, technology providers, and regulatory bodies support scalability, adoption, and global expansion.
Key players in the market for healthcare contract manufacturing are Lonza Group, Catalent, Inc., Samsung Biologics Co., Ltd., WuXi Biologics, Thermo Fisher Scientific Inc., Recipharm AB, Boehringer Ingelheim International GmbH, Pfizer Inc., AGC Biologics, Jabil Inc., Novartis AG., Integer Holdings Corporation, Freudenberg Medical, Sterling Industries, Tegra Medical, and Scapa Healthcare.
Key Players
- AGC Biologics
- Boehringer Ingelheim International GmbH
- Catalent, Inc.
- Freudenberg Medical
- Integer Holdings Corporation
- Jabil Inc.
- Lonza Group
- Novartis AG
- Pfizer Inc.
- Recipharm AB
- Samsung Biologics Co., Ltd.
- Scapa Healthcare
- Sterling Industries
- Tegra Medical
- Thermo Fisher Scientific Inc.
- WuXi Biologics
Industry Development
- October 2025: Samsung Biologics launched ExellenS, a standardized manufacturing framework to ensure consistent quality, faster tech transfers, and scalable contract manufacturing for clients.
- October 2025: Recipharm has inaugurated advanced parenteral development and sterility laboratories at its Bengaluru site in India, enhancing its contract development and manufacturing services for injectable pharmaceuticals.
- July 2025: WuXi Biologics is building a 30,000 sqm modular drug product facility in Singapore to expand its contract manufacturing capabilities, with operations expected in 2027.
Healthcare Contract Manufacturing Market Segmentation
By Type (Revenue, USD Billion, 2020–2034)
- Medical Devices
- Therapeutic Area
- Oncology
- Infectious Diseases
- Neurological Disorders
- Cardiovascular Disease
- Metabolic Disorders
- Autoimmune Diseases
- Respiratory Diseases
- Ophthalmology
- Gastrointestinal Disorders
- Hormonal Disorders
- Hematological Disorders
- Others
- Service
- Accessories manufacturing
- Assembly manufacturing
- Component manufacturing
- Device manufacturing
- Therapeutic Area
- Pharmaceutical
- API/Bulk Drugs
- Advanced drug delivery formulations
- Packaging
- Finished dose formulations
- Solid
- Liquid
- Semi-solid formulations
By Process Type (Revenue, USD Billion, 2020–2034)
- Formulation Development
- Packaging Solutions
- Manufacturing Services
By End User (Revenue, USD Billion, 2020–2034)
- Pharmaceutical Companies
- Biotechnology Firms
- Medical Device Companies
- Research Institutions
By Region (Revenue, USD Billion, 2020–2034)
- North America
- The U.S.
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherland
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Malaysia
- South Korea
- Indonesia
- Australia
- Rest of Asia Pacific
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
- Latin America
- Saudi Arabia
- UAE
- South Africa
- Israel
- Rest of South Africa
Healthcare Contract Manufacturing Market Report Scope
|
Report Attributes |
Details |
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Market Size in 2024 |
USD 211.11 Billion |
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Market Size in 2025 |
USD 234.98 Billion |
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Revenue Forecast by 2034 |
USD 627.55 Billion |
|
CAGR |
11.53% from 2025 to 2034 |
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Base Year |
2024 |
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Historical Data |
2025-2034 |
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Forecast Period |
2025-2034 |
|
Quantitative Units |
Revenue in USD Billion and CAGR from 2025 to 2034 |
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Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors and Industry Trends |
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Segments Covered |
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Regional Scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions and segmentation. |
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