Pharmaceutical Contract Development & Manufacturing Organization Market Size, Share, Trends, Industry Analysis Report
By Type (Small Molecule and Large Molecule), By Product, By Service, By Workflow, By Therapeutic Area, By End Use, and By Region – Market Forecast, 2025–2034
- Published Date:Oct-2025
- Pages: 126
- Format: PDF
- Report ID: PM6512
- Base Year: 2024
- Historical Data: 2020-2023
What is the Current Market Size?
The global pharmaceutical contract development & manufacturing organization market size was valued at USD 192.19 billion in 2024, growing at a CAGR of 8.11% from 2025 to 2034. Rising R&D expenditure to expand product pipelines along with increasing burden of chronic diseases is propelling the market growth.
Key Insights
- The small molecule segment led the market in 2024, supported by its extensive use in generic drugs and oral formulations, which continue to dominate global prescription volumes.
- The drug product segment had the highest share in 2024, driven by escalating demand for formulation development, packaging, and finishing operations in both solid dosage and injectable dosage forms.
- North America led the CDMO market in 2024, fueled by the superior presence of large pharmaceutical and biotech players outsourcing to save money and speed up time-to-market.
- The U.S. dominated the region, driven by stringent regulatory requirements and increasing collaborations with qualified CDMOs for quality control.
- Asia Pacific is expected to expand rapidly, propelled by international CDMOs expanding their bases in China and India.
- India led the market in Asia Pacific due to government support for local biopharmaceutical production and cost-effective manufacturing solutions.
- Key players operating in the market include Boehringer Ingelheim International GmbH, Catalent, Inc., FAMAR Health Care Services, FUJIFILM Diosynth Biotechnologies U.S.A., Inc., Jubilant Pharmova Limited, Lonza Group AG, Patheon Inc. (Thermo Fisher Scientific Inc.), Pfizer CentreOne (Pfizer Inc.), Recipharm AB, Samsung Biologics Co., Ltd., Siegfried Holding AG, Syngene International Limited, Wuxi AppTec Co., Ltd., Vetter Pharma-Fertigung GmbH & Co. KG, and Zhejiang Hisun Pharmaceutical Co., Ltd.
Industry Dynamics
- Increasing R&D spending is compelling outsourcing to CDMOs, led by the demand for quicker and more cost-effective drug development and manufacturing.
- Rising chronic disease burden is generating therapeutic demand, compelling companies to increase outsourcing for drug development and manufacturing.
- High initial and operational costs continue to be a constraint for small and medium sized organizations.
- Drug development using AI are likely to create future opportunities by facilitating process optimization, predictive analytics, and accelerated formulation design.
Market Statistics
- 2024 Market Size: USD 192.19 Billion
- 2034 Projected Market Size: USD 418.65 Billion
- CAGR (2025–2034): 8.11%
- North America: Largest Market Share
What Does the Current Market Landscape Look for Pharmaceutical Contract Development & Manufacturing Organization?
The pharmaceutical contract development & manufacturing organization (CDMO) market includes specialty service providers that assist pharmaceutical firms in drug development, formulation, and bulk production. The firms are extensively involved in process improvement, analytical testing, and regulatory affairs to improve time-to-market and decrease operating expenses. Ongoing innovation in biologics manufacturing, sterile fill-finish services, and integrated outsourcing models is enhancing quality and efficiency.
Increasing demand for biologics, biosimilars, and intricate drugs is driving the demand for innovative manufacturing capabilities, propelling growth for pharmaceutical CDMOs. Such companies offer expert skills in process optimization, sterile manufacturing, and regulatory compliance in new classes of drugs. In May 2025, Lonza unveiled its new Design2Optimize platform for optimizing process development and manufacturing of small molecule APIs, moving a step closer to more flexible and more efficient CDMO services.
Small and medium-sized pharmaceutical firms are collaborating with CDMOs for end-to-end drug development and production services. This is necessitated by the imperative to speed up time-to-market, decrease capital investment, and take advantage of expert technical capabilities. CDMOs that provide integrated development, formulation, and manufacturing solutions are increasingly becoming strategic players in international pharmaceutical supply chains.
Drivers & Opportunities
What are the Factors Driving the Market Expansion?
Rising R&D Expenditure to Expand Product Pipelines: Pharmaceutical and biotech companies are accelerating R&D spending to create new therapeutics and enrich their product pipelines. As per International Federation of Pharmaceutical Manufacturers and Associations report, the largest 50 pharmaceutical companies together incurred USD 167 billion in R&D expenditure in 2022 an increase of almost 60% in the last decade. This increase in innovation is creating greater demand for CDMO services to develop complex drugs and scale up production.
Increasing Burden of Chronic Diseases Boosting Therapeutic Demand: The rising incidence of chronic and lifestyle diseases is fueling demand for innovative and customized medicines, thereby driving the pharmaceutical CDMO market. According to the World Health Organization, noncommunicable diseases such as cardiovascular conditions, cancer, diabetes, and chronic respiratory diseases are responsible for about 74% of total mortality across the globe. The increasing burden of disease emphasizes the need for increased drug delivery manufacturing capabilities and therapeutic expertise.
What are the Segmental Insights of the Market?
By Type
Based on type, the pharmaceutical contract development and manufacturing organization (CDMO) market is divided into small molecule and large molecule. The small molecule segment had the highest share in 2024, driven by its extensive application in generic medications and oral drugs, which remain the most prevalent prescription volumes around the world.
Large molecules are expected to post robust growth in the forecast period. The increasing pipeline expansion of biologics, biosimilars, and cell and gene therapy drive growth. Drugmakers are outsourcing the manufacture of complex biologics to experienced specialist CDMOs in order to boost efficiency while cutting costs.
By Product
By product, the market is segmented into API and drug product. The API segment accounted for a major share in 2024 as a result of pharmaceutical companies depending on CDMOs for large-scale, compliant, and economical manufacturing of active pharmaceutical ingredients.
The drug product area is anticipated to grow steadily, driven by increasing formulation development, packaging, and finishing demand for solid and injectable dosage forms. Integrated service models integrating API and drug product manufacturing are further increasing collaboration throughout the value chain.
By Service
Based on service, the pharmaceutical CDMO market is segmented into contract development, contract manufacturing, API manufacturing, finished drug products manufacturing, packaging and labelling, regulatory affairs, and others. In 2024, contract manufacturing led the market share, driven by rising production outsourcing to minimize capital investment and comply with regulations.
Contract development is anticipated to grow robustly, led by early-stage formulation and analytical development services.
By Workflow
Based on workflow, the market is classified into clinical and commercial. The commercial segment had the bigger share in 2024 due to well-established pharmaceutical firms outsourcing bulk production to accommodate worldwide demand effectively.
The clinical segment is expected to grow steadily due to the increasing number of clinical trials, early-stage development of molecules, and the need for agile small-batch production among small biotech companies.
By Therapeutic Area
By therapeutic area, the market spans oncology, infectious diseases, neurological disorders, cardiovascular disease, metabolic disorders, autoimmune diseases, respiratory diseases, ophthalmology, gastrointestinal disorders, orthopedic diseases, dental diseases, and others. Oncology led the market in 2024 due to growth in targeted therapy and biologic development for the treatment of cancer.
Infectious diseases are anticipated to grow rapidly, due to function of continued innovation in personalized and chronic disease treatments.
By End Use
By end use, the market is segmented into small, medium, and large pharmaceutical companies. Large pharmaceutical companies dominated the market share in 2024, propelled by ongoing collaboration with CDMOs to increase production and expedite time-to-market for large as well as small molecule therapeutics.
Medium pharmaceutical companies are anticipated to see robust growth, driven by CDMO expertise in regulatory affairs and advanced manufacturing capabilities.
What Factors are Contributing to Regional Expansion?
North America dominated the CDMO market owing to the dominant presence of top pharmaceutical and biotechnology firms that are outsourcing drug development and production. Increasing biologics, cell, and gene therapy pipelines within the region are propelling the demand for advanced CDMO services with sophisticated technologies and regulatory support.
The U.S. Pharmaceutical Contract Development & Manufacturing Organization Market Overview
The U.S. dominated the market within North America, driven by stringent regulatory compliance standards and the need for quality assurance are encouraging partnerships with experienced and certified CDMOs. In June 2025, Thermo Fisher Scientific expanded its collaboration with Sanofi through the acquisition of Sanofi’s sterile manufacturing facility in Ridgefield, New Jersey. This expansion complemented Thermo Fisher's national fill-finish network in North Carolina and Massachusetts, boosting its Accelerator Drug Development 360° platform to facilitate end-to-end CDMO and CRO services.
Asia Pacific Pharmaceutical Contract Development & Manufacturing Organization Market Insights
Asia Pacific is experiencing fast expansion in the CDMO market, driven by the rise in number of international CDMOs developing production facilities in China and India to cater to foreign customers. The regional increase in demand for generics, biosimilars, and low-cost manufacturing is sustaining large-scale development and manufacturing outsourcing.
India Pharmaceutical Contract Development & Manufacturing Organization Market Analysis
India is leading the Asia Pacific market, due to the robust government incentives and support and domestic biopharmaceutical manufacturing promotion. In August 2024, the Union Cabinet cleared the BioE3 (Biotechnology for Economy, Environment, and Employment) Policy, with the aim of establishing India as a biotech manufacturing hub for the world. The policy targets developing high-performance biomanufacturing, improving export, and employment generation across the biotechnology landscape.
Europe Pharmaceutical Contract Development & Manufacturing Organization Market Assessment
Europe held substantial market share propelled by strong regulatory framework that secures high production standards and inspires process innovation. Growing demand for contract-based R&D and manufacturing of advanced therapies, such as Advanced Therapy Medicinal Products (ATMPs), is promoting CDMOs to broaden their service offerings. The growing emphasis of the region on GMP compliance and technology integration keeps global pharmaceutical innovators seeking partnerships.
Key Players & Competitive Analysis
The global pharmaceutical contract development & manufacturing organization (CDMO) market is dominated by intense competition and strategic buildup among leading players aimed at providing end-to-end drug development and manufacturing services. Market leaders are making significant investments in biologics manufacturing, innovative formulation technologies, and regulatory-approved infrastructure to cater to rising demand for small- and large-molecule therapies.
Key players operating in the global pharmaceutical contract development & manufacturing organization market include Boehringer Ingelheim International GmbH, Catalent, Inc., FAMAR Health Care Services, FUJIFILM Diosynth Biotechnologies U.S.A., Inc., Jubilant Pharmova Limited, Lonza Group AG, Patheon Inc. (Thermo Fisher Scientific Inc.), Pfizer CentreOne (Pfizer Inc.), Recipharm AB, Samsung Biologics Co., Ltd., Siegfried Holding AG, Syngene International Limited, Wuxi AppTec Co., Ltd., Vetter Pharma-Fertigung GmbH & Co. KG, and Zhejiang Hisun Pharmaceutical Co., Ltd.
Key Players
- Boehringer Ingelheim International GmbH
- Catalent, Inc.
- FAMAR Health Care Services
- FUJIFILM Diosynth Biotechnologies U.S.A., Inc.
- Jubilant Pharmova Limited
- Lonza Group AG
- Patheon Inc. (Thermo Fisher Scientific Inc.)
- Pfizer CentreOne (Pfizer Inc.)
- Recipharm AB
- Samsung Biologics Co., Ltd.
- Siegfried Holding AG
- Syngene International Limited
- Wuxi AppTec Co., Ltd.
- Vetter Pharma-Fertigung GmbH & Co. KG
- Zhejiang Hisun Pharmaceutical Co., Ltd.
Pharmaceutical Contract Development & Manufacturing Organization Industry Developments
In August 2025, Polpharma Biologics and Fresenius Kabi entered into a global licensing agreement for PB016, a proposed vedolizumab biosimilar. Under the deal, Polpharma oversaw development and manufacturing, while Fresenius Kabi managed global commercialization, excluding the MENA region.
In April 2025, Thermo Fisher introduced an enhanced CHO K-1 cell line that shortened IND timelines from 13 to nine months, improved protein expression levels, and accelerated biologics development through its integrated CDMO, CRO, and bioprocessing capabilities.
Pharmaceutical Contract Development & Manufacturing Organization Market Segmentation
By Type Outlook (Revenue, USD Billion, 2020–2034)
- Small Molecule
- Branded
- Generic
- Large Molecule
- Biologics
- Biosimilar
By Product Outlook (Revenue, USD Billion, 2020–2034)
- API
- Traditional Active Pharmaceutical Ingredient (Traditional API)
- Highly Potent Active Pharmaceutical Ingredient (HP-API)
- Biologics
- Others
- Drug Product
- Oral solid dose
- Semi-solid dose
- Liquid dose
- Others
By Services Outlook (Revenue, USD Billion, 2020–2034)
- Contract Development
- Contract Manufacturing
- API Manufacturing
- Finished Drug Products Manufacturing
- Packaging and Labelling
- Regulatory Affairs
- Others
By Workflow Outlook (Revenue, USD Billion, 2020–2034)
- Clinical
- Commercial
By Therapeutic Area Outlook (Revenue, USD Billion, 2020–2034)
- Oncology
- Infectious Diseases
- Neurological Disorders
- Cardiovascular Disease
- Metabolic Disorders
- Autoimmune Diseases
- Respiratory Diseases
- Ophthalmology
- Gastrointestinal Disorders
- Orthopedic Diseases
- Dental Diseases
- Others
By End Use Outlook (Revenue, USD Billion, 2020–2034)
- Small Pharmaceutical Companies
- Medium Pharmaceutical Companies
- Large Pharmaceutical Companies
By Regional Outlook (Revenue, USD Billion, 2020–2034)
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Pharmaceutical Contract Development & Manufacturing Organization Market Report Scope
|
Report Attributes |
Details |
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Market Size in 2024 |
USD 192.19 Billion |
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Market Size in 2025 |
USD 207.47 Billion |
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Revenue Forecast by 2034 |
USD 418.65 Billion |
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CAGR |
8.11% from 2025 to 2034 |
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Base Year |
2024 |
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Historical Data |
2020–2023 |
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Forecast Period |
2025–2034 |
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Quantitative Units |
Revenue in USD Billion, Volume in Kilotons 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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