Market Overview
The
Global CDMO (Contract Development and Manufacturing Organization) Market size is estimated to reach USD 272.4 billion in 2024 and is expected to
reach USD 530.3 billion by 2033, growing at
a CAGR of 7.7% during the forecast period (2024-2033).
The Global CDMO marketplace refers back to the section of the pharmaceutical and biotechnology enterprise that gives outsourcing offerings for research & development as well as manufacturing of pharmaceutical products. The global CDMO marketplace gives diverse types of services to those industries, such as studies and development, medical trials, and raw substances for drug production. These corporations work on behalf of pharmaceutical and biotechnology agencies 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.
The global contract development and manufacturing enterprise (CDMO) market is subject to various dynamic factors that form the growth prospects of this market landscape. The CDMO market is anticipated to go through extensive market enlargement due to the growth in substantial research and development investments inside the pharmaceutical industry and the developing demand for
biopharmaceuticals. The growing old populace affords sparkling potentialities for drug improvement, which is expected to push the increase of the pharmaceutical market that allows you to undoubtedly affect the growth of the CDMO market as well. CDMO marketplace performs an essential role within the pharmaceutical enterprise as it provides cost-effective solutions and reduces the time it takes to launch a product with the aid of outsourcing the drug development process and manufacturing. In recent instances, pharmaceutical companies are frequently investing in research and development which leads to the discovery of recent scientific treatments and therapies.
Key Takeaways
- Market Size: The global CDMO market is projected to reach USD 530.3 billion in 2033 from a base value of USD 530.3 in 2024, at a CAGR of 7.7%.
- Market Definition: A CDMO (Contract Development and Manufacturing Organization) provides comprehensive offerings from drug improvement through production, allowing pharmaceutical and biotech corporations to outsource those processes for efficiency and expertise.
- By Service Type CMO Segment Analysis: Active Pharmaceutical Ingredient (API) manufacturing is expected to hold the largest market share of 43.7% in 2024 & is anticipated to dominate throughout the forecasted period.
- By Research Phase CRO Segment Analysis: Based on the clinical phase CRO, clinical research is expected to be a dominant segment in the market with the largest revenue share during the forecasted period.
- Regional Analysis: North America is expected to hold 37.2% of revenue share in the global CDMO market in 2024.
- Major Companies: 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
Use Cases
- Drug Development: CDMOs help in formulation, testing, and scaling up manufacturing of the latest prescription drugs from concept to market.
- Manufacturing Services: They handle large-scale production of medication, ensuring compliance with regulatory standards and quality control.
- Biologics Production: CDMOs specialize in producing complex biologics, such as cellular and gene therapies, leveraging advanced technology and understanding.
- Supply Chain Management: They offer integrated logistics, from uncooked cloth sourcing to distribution, ensuring green and well-timed delivery of products.
Market Dynamic
Recent Trends
Increased Biologic DemandThe global CDMO marketplace is experiencing a heightened demand for biologics, pushed through advancements in biotechnology and a growing pipeline of biopharmaceuticals. CDMO groups are increasing their capabilities to cater to these trends, emphasizing biological manufacturing. This shift significantly influences the pharmaceutical contract development and manufacturing panorama, highlighting biologics as a key marketplace segment in the CDMO industry.
Strategic Collaborations and Mergers
The CDMO market is witnessing a surge in strategic partnerships, mergers, and acquisitions. Large pharmaceutical corporations and CDMOs are collaborating to expand their capabilities, optimize the value chain, and expand market reach. This trend not only boosts CDMO marketplace increase but additionally consolidates the fragmented market, making it more competitive and innovative.
Growth Drivers
Pharma Companies' Trend of Outsourcing to CDMOs
Pharmaceutical agencies are increasingly more outsourcing their manufacturing and improvement processes to CDMOs to cognizance on center talents, lessen fees, and accelerate time-to-marketplace. This fashion is a considerable market driving force, propelling the increase of the global CDMO marketplace and increasing the pharmaceutical contract development and manufacturing offerings region.
Expansion of the Biopharmaceutical SectorThe rapid growth of the biopharmaceutical zone, driven by way of improvements in biologic drugs and personalised medicine, is a major driver for the CDMO market. The demand for specialized CDMO offerings, along with cellular and gene remedy production, is fueling market growth and main to large investments in superior production centers.
Growth Opportunities
Emerging Markets ExpansionThe CDMO market size is expected to expand significantly with their entry into emerging markets, particularly Asia-Pacific regions. These markets boast high growth potential thanks to increasing
healthcare investments, favorable regulatory environments, and growing pharmaceutical sales - creating lucrative opportunities for CDMO companies.
Technological Advancements
Integration of advanced technologies like automation, AI, and data analytics in CDMO services presents substantial growth potential. These technologies improve manufacturing efficiency while adhering to regulatory standards and improving product quality - thus driving market expansion over the forecast period.
Restraints
Regulatory Compliance Challenges
Strict regulatory requirements and compliance issues present formidable roadblocks to growth for CDMO markets. Navigating different regional regulatory environments can be both time-consuming and expensive for CDMO companies - this may slow their market expansion efforts as well as delay time-to-market for their new products.
Capital Investment Restrictions
A key challenge facing CDMO companies is their high capital expenditure requirements in creating state-of-the-art manufacturing facilities, which often limits small and midsized CDMO companies from competing with larger players in their markets while simultaneously hindering overall industry expansion.
Research Scope and Analysis
By Service Type CMO
In terms of Service Type CDMO market share, Active Pharmaceutical Ingredient (API) manufacturing was the dominant service type segment as it is projected to dominate this segment with 43.7% of market share in 2024. API manufacturing accounts for significant market growth between 2024-2033 as it forms one of the key elements in drug production that gives drugs their unique therapeutic properties and primary pharmacological activities. Pharmaceutical companies depend heavily on CDMOs to meet their API manufacturing needs. APIs are utilized across a wide array of therapeutic fields including oncology, cardiovascular diseases, and infectious diseases among others.
High-potency API production requires expert skill, stringent quality controls, and adherence to regulatory parameters and guidelines, making outsourcing to CDMOs increasingly attractive to pharmaceutical companies. CDMO markets offer flexibility in API production allowing pharmaceutical companies to scale up or down according to market demand without overproduction or stockpiling extra materials - something which contributes to continued expansion within this segment of the global CDMO market.
By Research phase CRO
Clinical (CROS) research phase services are projected to hold the largest market share when considering the research phase as a factor of CDMO market growth from 2024-2033. The clinical phase is an integral component of drug development. Here, the safety, efficacy, and performance of potential new treatments are rigorously assessed. Clinical trials can be one of the more expensive stages in drug development as they require extensive resources and financial investments. Furthermore, due to the inherent risks involved with clinical testing pharmaceutical companies frequently seek support and expertise from research phase CROs for this phase.
Pharmaceutical companies increasingly opt for CROs due to their global reach and local knowledge required for conducting trials internationally, with greater access to diverse patient populations. Therefore, CROs play an integral part in drug development processes by making the clinical phase an integral component of pharmaceutical and biotechnology industries; all this adds up to propelling this segment of 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
- Small Molecule
- Large molecule
- High Potency (HPAPI)
- Finished Dosage Formulation (FDF) Development and Manufacturing
- Solid Dose Formulation
- Liquid Dose Formulation
- Injectable Dose Formulation
- Secondary Packaging
By Research Phase CRO
- Discovery
- Pre-clinical
- Clinical
- Laboratory Services
Regional Analysis
North America is projected to dominate the global CDMO market as it
held 37.2% of the market share in 2024 and is expected to show significant growth in the upcoming period of 2024 to 2033.
North America dominates the CDMO market due to several key factors. First, the place is home to several major pharmaceutical & leading biotech corporations, creating a strong demand for contract development and manufacturing offerings. The presence of advanced infrastructure, cutting-edge technology, and a skilled workforce similarly enhances North America's function as a hub for pharmaceutical innovation and production. Additionally, the region benefits from favorable regulatory surroundings and sturdy intellectual property protection, which encourages investment and collaboration in the CDMO sector.
Moreover, North America's extensive network of research establishments and universities fosters a continuous pipeline of the latest drug R&D projects, using the need for specialized CDMO services. The marketplace is also bolstered by using large investments in biopharmaceuticals, which include cellular and gene cures, which require advanced manufacturing abilities that many North American CDMOs possess. As a result, the CDMO marketplace in North America is characterized by way of excessive growth, innovation, and a high market share, making it a dominant force within the global CDMO industry. 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
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 marketplace is characterized by using established international and regional CDMOs competing with each other for a share within the unexpectedly expanding pharmaceutical and biotech industries. Large contract development and production organizations which include Catalent, Lonza, and Thermo Fisher Scientific hold major market share in the global CDMO marketplace, as they offer an intensive variety of offerings. This marketplace additionally follows organic and inorganic techniques for increase like collaborations, mergers, and acquisitions.
The global CDMO marketplace is seeing continued acquisitions between large CDMOs and their smaller rivals to expand service offerings and global reach. Due to pandemic concerns, many pharmaceutical businesses delayed or scaled back outsourcing tasks they planned for outsourcing services. As the pandemic unfolded, however, global CDMO marketplace proved resilient and adaptive. They adjusted operations to ensure enterprise continuity while taking strict protective measures and adopting remote working practices to continue providing essential services to pharmaceutical clients.
However as the pandemic continued, the global CDMO marketplace confirmed resilience and flexibility. It restructured its operations to ensure enterprise continuity, applied stringent protection measures, and embraced remote working, permitting it to maintain presenting essential services to pharmaceutical clients.
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
Recent Developments
January 2024
- A new collaboration was announced jointly by FAMAR and Lavipharm, two leading pharmaceutical companies. FAMAR is a leading provider of development and manufacturing services for pharmaceutical and cosmetic products (CDMO) and one of the major CDMO players in Europe. Lavipharm is a research and development (R&D) company that manufactures, imports, sells, and distributes pharmaceuticals and healthcare products in Greece.
- Pluri, an Israeli biotechnology company, announced the launch of a new business division, “pluriCDMO," that will provide cell therapy manufacturing services as contract development and production organizations. The new division includes a 47,000-ft² good manufacturing practice (GMP) cell therapy production facility.
- Thermo Fisher Scientific’s GMP facility in Philadelphia bolsters its cell and gene therapy offerings, solidifying its prominent role in this transformative medical landscape.
December 2023
- Lonza’s collaboration with Evotec integrates CDMO proficiency and drug discovery platforms for comprehensive solutions in personalized medicine, amplifying industry impact.
November 2023
- Boehringer Ingelheim International GmbH expanded the usage of gene data biologics to DMPK operations.
- Lonza introduced the new GS Effex cell line with the intention of assisting biotech firms in developing more advanced therapeutic antibodies.
October 2023
- IQVIA announced a strategic collaboration with Argenx to advance the treatment of patients with rare autoimmune diseases through innovative and integrated technology-enabled pharmacovigilance (PV) safety services and solutions.
- Lonza signed a new commercial agreement with Vaxcyte for the global manufacturing of broad-spectrum pneumococcal conjugate vaccines (PCVs).
- Catalent’s acquisition of Metrics Contract Services enhances its clinical packaging and labeling, focusing on biologics for robust late-stage capabilities.
September 2023
- Samsung Biologics’ joint venture with Boehringer Ingelheim fortifies biosimilar development and manufacturing, combining Samsung’s CDMO strength with Boehringer Ingelheim’s biosimilar expertise.
August 2023
- AGC Biologics announced a new agreement with Asahi Kasei Pharma Corporation to produce clinical drug substances for antibody-based therapies.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 272.4 Bn |
| Forecast Value (2033) |
USD 530.3 Bn |
| CAGR (2024-2033) |
7.7% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| 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 |
HVMN Inc., Thync Global Inc., Apple Inc., Fitbit Inc., TrackmyStack, OsteoStrong, The ODIN, Thriveport LLC, Muse, Moodmetric, and Other Key Players |
Frequently Asked Questions
The Global CDMO (Contract Development and Manufacturing Organization) Market size is estimated at to reach USD 272.4 billion in 2024.
North America dominates the Global CDMO Market with 37.2% of the market share in 2024
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 7.7 percent over the forecasted period.