Market Overview
The Global CDMO (Contract Development and Manufacturing Organization) Market size is estimated
at USD 252.4 billion in 2023 and is expected to reach
USD 478.8 billion by 2032, growing at a
CAGR of 7.4% during the forecast period (2023-2032).
The Global CDMO market refers to the segment of the pharmaceutical and biotechnology industry that provides outsourcing services for research & development as well as manufacturing of pharmaceutical products. The global CDMO market offers various types of services to these industries, including research and development, clinical trials, and raw materials for drug production. These organizations work on behalf of pharmaceutical and biotechnology companies as they help in the development process & release of new drugs and therapies to the global market. The global CDMO market comprises various types of pharmaceutical and biotechnology companies that specialize in various fields of drug development and manufacturing processes. This market also plays an important role in drug formulation, its development, clinical trials, and large-scale manufacturing of active pharmaceutical ingredients drugs.
Market Dynamic
The global contract development and manufacturing organization (CDMO) market is subject to various dynamic factors that shape the growth prospects of this market landscape. The CDMO market is expected to go through significant market expansion due to the increase in substantial research and development investments in the pharmaceutical industry and the growing demand for biopharmaceuticals.
The ageing population presents fresh prospects for drug development, which is expected to push the growth of the pharmaceutical market which will positively influence the growth of the CDMO market as well. CDMO market plays a vital role in the pharmaceutical industry as it provides cost-effective solutions and reduces the time needed to launch a product by outsourcing the drug development process and manufacturing. In recent times, pharmaceutical companies are frequently investing in research and development leading to the discovery of new medical treatments and therapies.
Research Scope and Analysis
By Service Type CMO
In service type segment, Active Pharmaceutical Ingredient (API) manufacturing dominates the global CDMO market as it holds 43.7% of the market share in 2023 and is projected to show significant growth in the upcoming period of 2023 to 2032. Active Pharmaceutical Ingredient is one of the essential components in drug manufacturing that gives drugs their specific therapeutic properties. They are responsible for the primary pharmacological activity of a drug. As a result, pharmaceutical companies rely heavily on CDMOs to manufacture APIs to meet their specific requirements. APIs are used in a wide range of therapeutic areas such as oncology, cardiovascular diseases, infectious diseases, and others.
The production of high-potency APIs (HPAPI) is sensitive and requires specialized expertise, precise quality control, and adherence to regulatory guidelines and parameters, that is why many pharmaceutical companies prefer to outsource the production of high-potency APIs (HPAPI) to established CDMOs. CDMO market offers flexibility in API production, allowing pharmaceutical companies to scale up or down the production of pharmaceutical products based on market demand, avoiding overproduction and stocking excess materials. This diversity in the applications of APIs ensures the continuous growth of this segment in the global CDMO market.
By Research phase CRO
Clinical research services dominate the global CDMO market on the basis of the research phase, as it holds the highest portion in this market and is expected to show subsequent growth in the forthcoming period of 2023 to 2032. The clinical phase refers to the critical phase in the drug development process, where the safety, efficacy, and overall performance of potential new treatments are strictly evaluated. Clinical trials are one of the costliest stages of drug development as they require a large amount of resources for trials. They need a substantial and stable financial investment as these trials have inherent risks associated with clinical testing driving pharmaceutical companies to seek the expertise and support of research phase CROs.
Additionally, pharmaceutical companies prefer CROs as they have more global reach and local knowledge that is needed to conduct trials internationally, facilitating access to different patient populations. So, CROs play a vital role in the drug development process, making the clinical phase a central and influential component of the pharmaceutical and biotechnology industries. These factors altogether push the growth of this segment in the global CDMO market further.
The CDMO Market Report is segmented on the basis of the following:
By Service Type CMO
• 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
Tablets
Others
o Liquid Dose Formulation
o Injectable Dose Formulation
• Secondary Packaging
By Research Phase CRO
• Discovery
• Pre-clinical
• Clinical
• Laboratory Services
Regional Analysis
North America dominated the global CDMO market as it held 37.2% of the market share in 2023 and is expected to show significant growth in the upcoming period of 2023 to 2032.
The reason North America dominate the global CDMO market as it is the home of many biotechnology and pharmaceutical companies, research institutions, and academic organizations which are pioneer in the area of research and development of pharmaceutical products. This well-grown ecosystem of these institutions in this region generates a significant demand for CDMOs to support drug development and manufacturing. This region has various regulatory organizations like FDI that impose high-quality and safety standards in the pharmaceutical industry that facilitate the growth of the CDMO market, as it helps it in compliance with these safety standards.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Competitive Landscape
The competitive landscape of the Contract Development and Manufacturing Organization market is characterised by a mix of established global and regional CDMOs competing with each other for a share in the rapidly expanding pharmaceutical and biotech industries. Large contract development and manufacturing organizations such as Catalent, Lonza, and Thermo Fisher Scientific hold significant market share in the global CDMO market, as they offer an extensive range of services. This market also follows the organic and inorganic strategies for growth like collaborations, mergers and acquisitions. Collaborations between pharmaceutical companies and CDMOs are common as in these partnerships pharmaceutical companies leverage the expertise of CDMOs to support drug development and manufacturing. The global CDMO market is witnessing ongoing acquisitions, with larger CDMOs acquiring smaller ones to expand service offerings and global reach.
Some of the prominent players in the Global CDMO Market are:
• Bushu Pharmaceuticals Ltd.
• Nipro Corporation
• Thermo Fisher Scientific Inc.
• Samsung Biologics
• Laboratory Corporation of America Holdings
• Siegfried Holding Ag
• Catalent Inc.
• Lonza Group AG
• Recipharm Ab
• Piramal Pharma Solutions
• Cordenpharma International
• Cambrex Corporation
• Wuxi Apptec
• Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global CDMO Market:
The COVID-19 pandemic and the associated economic recession have had a notable impact on the global contract development and manufacturing organization market. In the initial phase of the pandemic, the CDMO market faced challenges due to supply chain disruptions, as most of the vital resources for the development and manufacturing of pharmaceutical products were diverted toward COVID-19 research and treatments. Many pharmaceutical companies delayed or scaled back their outsourcing projects due to the pandemic. However as the pandemic persisted, the global CDMO market demonstrated resilience and adaptability.
It restructured its operations to ensure business continuity, implemented stringent safety measures, and embraced remote work, allowing it to continue providing essential services to pharmaceutical clients. During this phase various governments around the world supported the pharmaceutical and CDMO industries with funding and expedited regulatory processes, further driving the growth of the global CDMO market.
Report Characteristics |
Market Size (2023) |
USD 252.4 Bn |
Forecast Value (2032) |
USD 478.8 Bn |
CAGR (2023-2032) |
7.4% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Service Type CMO (Active Pharmaceutical
Ingredient (API) Manufacturing, Finished Dosage
Formulation (FDF) Development and Manufacturing
and Secondary Packaging), By Research Phase CRO
(Discovery, Pre-clinical, Clinical and Laboratory
Services) |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Bushu Pharmaceuticals Ltd., Nipro Corporation,
Thermo Fisher Scientific Inc., Samsung Biologics,
Laboratory Corporation of America Holdings,
Siegfried Holding Ag, Catalent Inc., Lonza Group AG,
Recipharm Ab, Piramal Pharma Solutions,
Cordenpharma International, Cambrex Corporation,
Wuxi Apptec, and Other Key Players |
Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global CDMO (Contract Development and Manufacturing Organization) Market size is estimated at
USD 252.4 billion in 2023.
North America dominates the Global CDMO Market with 37.2% of the market share in 2023.
Some of the major key players in the Global CDMO Market are Bushu Pharmaceuticals Ltd., Nipro
Corporation, Thermo Fisher Scientific Inc., Samsung Biologics, Laboratory Corporation of America
Holdings, Siegfried Holding Ag, Catalent Inc. and others
The market is growing at a CAGR of 7.4 percent over the forecasted period.