Active Pharmaceutical Ingredient CDMO Market To Reach $209.85 Billion By 2033

Active Pharmaceutical Ingredient CDMO Market Growth & Trends

The global active pharmaceutical ingredient CDMO market size is estimated to reach USD 209.85 billion by 2033, registering to grow at a CAGR of 7.85% from 2025 to 2033, according to a new report by Grand View Research, Inc. Increasing pharmaceutical R&D investments, patent expirations, and a rise in demand for generic drugs and biologic innovations propelling outsourcing are the factors driving the market.

The growth of small molecules, rising active pharmaceutical ingredient (API) complexity and the need to reduce costs are factors contributing to the rapid expansion of outsourcing services in the pharmaceutical sector. Only a few companies have achieved global reach and scale in the contract development and manufacturing organization (CDMO) sector, which is still fragmented. Besides, many companies are providing one-stop-shop solutions as an integrated source of APIs and formulations.

As the healthcare industry is undergoing a process of dynamic change, factors such as rapid technological advancements (e.g., automation & AI), the need for CROs/CMOs/CDMOs, and rising investments in research are influencing the healthcare market. The outsourcing of activities is benefitting many pharmaceutical companies in improving their operational efficiencies, expanding their geographical presence, decreasing resource costs, gaining therapeutic expertise, and enhancing on-demand services.

The COVID-19 pandemic placed unprecedented expectations on API makers, as evidenced by the substantial increase in demand for medications required to manage critically ill patients on mechanical ventilation. As a result, the sudden need to rapidly increase production has emphasized the need for adaptability for API CDMOs in maintaining drug supply, with some companies proving to be better prepared to withstand the pressures of quick scale-up than others. Growing demand for new therapies worldwide and an increase in the conduction of clinical research in the post-pandemic period are expected to support the market in the coming years.

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Active Pharmaceutical Ingredient CDMO Market Report Highlights

• The traditional active pharmaceutical ingredient segment dominated the market and accounted for the largest revenue share of 44.52% in 2024, due to the high adoption of traditional API in majority of pharmaceuticals.

• Based on drug, the market is segregated into innovative and generic. The innovative segment accounted for the largest revenue share in 2024.

• The oncology segment registered the largest market share in 2024, this is due to the increasing demand for highly potent APIs for cancer therapy.

• The biotech segment is expected to grow at the fastest rate of 7.0% over the forecast period, owing to the high adoption of biopharmaceuticals in the treatment of chronic and infectious diseases.

• The clinical workflow segment is anticipated to witness the fastest CAGR of 7.3% over the forecast period. An increase in the number of clinical research studies supporting the demand for APIs is one of the key factors driving segment growth.

• In Asia Pacific, the market is expected to register the fastest CAGR of 9.1% over the forecast period. Due to the extreme growth in the number of pharmaceutical companies and contract manufacturing organizations in developing countries such as India and China, the region is likely to overtake Europe and North America in the near future.

Active Pharmaceutical Ingredient CDMO Market Segmentation

Grand View Research has segmented the global active pharmaceutical ingredient CDMO based on product, synthesis, drug, application, workflow, and region:

Active Pharmaceutical Ingredient CDMO Product Outlook (Revenue, USD Billion, 2021 - 2033)

• Traditional Active Pharmaceutical Ingredient (Traditional API)

• Highly Potent Active Pharmaceutical Ingredient (HP-API)

• Biologics

Active Pharmaceutical Ingredient CDMO Synthesis Outlook (Revenue, USD Billion, 2021 - 2033)

• Synthetic

• Biotech

Active Pharmaceutical Ingredient CDMO Drug Outlook (Revenue, USD Billion, 2021 - 2033)

• Innovative

• Generics

Active Pharmaceutical Ingredient CDMO Workflow Outlook (Revenue, USD Billion, 2021 - 2033)

• Clinical

• Commercial

Active Pharmaceutical Ingredient CDMO Application Outlook (Revenue, USD Billion, 2021 - 2033)

• Oncology

• Hormonal

• Glaucoma

• Cardiovascular disease

• Diabetes

• Others

Active Pharmaceutical Ingredient CDMO Regional Outlook (Revenue, USD Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Norway

  • Sweden

• Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • South Korea

  • Thailand

• Latin America

  • Brazil

  • Argentina

• Middle East and Africa (MEA)

  • South Africa

  • Saudi Arabia

  • UAE

  • Kuwait

  • Oman

  • Qatar

List of Key Players in Active Pharmaceutical Ingredient CDMO Market

• Cambrex Corporation

• Recipharm AB

• Thermo Fisher Scientific Inc.

• CordenPharma International

• Samsung Biologics

• Lonza

• Catalent, Inc

• Siegfried Holding AG

• Piramal Pharma Solutions

• Boehringer Ingelheim International GmbH