Healthcare Contract Development And Manufacturing Organization Market To Reach $648.2 Billion By 2033

Healthcare Contract Development And Manufacturing Organization Market Growth & Trends

The global healthcare contract development and manufacturing organization market size is expected to reach USD 648.2 billion by 2033, registering a CAGR of 10.08% from 2025 to 2033, according to a new report by Grand View Research, Inc. The market is expected to show lucrative growth due to rising outsourcing trends and increasing R&D expenditure.

Healthcare contract development and manufacturing organization (CDMO) provide outsourcing services to various pharmaceutical industries on a contract basis. An increase in outsourcing by pharmaceutical companies, expansions in the pharmaceutical industry, and the support of CDMOs in reducing operational and capital expenses are some of the major factors anticipated to propel the market growth in the forecast period.

In addition, growing requirement among pharmaceutical and medical device companies to follow stringent timelines has increased the demand for outsourcing development and manufacturing activities to CDMOs. Further, due to the increasing demand for medical devices in emerging countries, various companies are shifting their focus on research and development activities for medical device contract development and manufacturing. Over the past 10 years, several pharmaceutical companies have turned to CMOs, CROs, and CDMOs to assist in pre-formulation and development & manufacturing of their novel innovations. Outsourcing is a high growth market, and most spending is focused on early development.

Around 75% of new drug pipelines come from small- and midsized biopharmaceutical companies. These companies have high profit margins, which make them easy targets for healthcare providers who are trying to reduce costs. Thus, instead of investing in establishing their own infrastructure, it is profitable for these companies to outsource services to third-party organizations that have expertise and the required equipment. Several pharmaceutical companies are seeking outsourced services for optimizing the development of their molecules. Furthermore, a large number of CDMO collaborations, expansions, mergers & acquisitions, and other strategic initiatives undertaken by market players operating in the country are anticipated to boost the market. For instance, In March 2023, Remedium Bio, a U.S.-based biotechnology company, entered into a collaboration agreement with Exothera, a Belgium-based CDMO, to scale up the production of Remedium’s lead gene therapy drug candidate, AAV2-FGF18 in the treatment of osteoarthritis. Similarly, in January 2024, Enzene Biosciences, a subsidiary of Alkem Labs announced the manufacturing site in the U.S. Such innovations are anticipated to drive the market.

However, increasing logistic costs, serialization issues faced by healthcare organizations, and the threat of infringement of Intellectual Property (IP) rights are anticipated to restrain the market growth for healthcare contract development & manufacturing organization over the forecast period.

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Healthcare Contract Development And Manufacturing Organization Market Report Highlights

• In 2024, the small molecule segment held the largest revenue share of 36.70%. The large molecule segment is expected to grow significantly during the forecast period.

• The pharmaceutical segment dominated the healthcare contract development and manufacturing organization industry with the largest revenue share in 2024. The medical devices segment is expected to grow significantly during the forecast period.

• The contract manufacturing segment accounted for the largest share of the healthcare contract development and manufacturing organization market in 2024 during the forecast period. The contract development segment is expected to grow significantly during the forecast period. 

• The commercial segment dominated the healthcare contract development and manufacturing organization industry with the largest revenue share in 2024. On the other hand, the clinical segment is projected to grow at a significant CAGR during the forecast period.

• The oncology segment accounted for the largest share of the CDMO industry in 2024 during the forecast period. The autoimmune diseases segment is expected to grow significantly during the forecast period.

• The pharmaceutical & biotechnology companies segment accounted for the largest share of the healthcare CDMO market in 2024 during the forecast period. The medical device companies segment is expected to grow at the second-highest CAGR during the forecast period.

Healthcare Contract Development And Manufacturing Organization Market Segmentation

Grand View Research has segmented global global healthcare contract development and manufacturing organization market report based on type, product, service, workflow, therapeutic area, end-use, and region:

Healthcare Contract Development And Manufacturing Organization Type Outlook (Revenue, USD Million, 2021 - 2033)

• Small Molecule

  • Branded

  • Generic

• Large Molecule

  • Biologics

  • Biosimilar

• Medical Device

  • Diagnostics

  • Therapeutics

Healthcare Contract Development And Manufacturing Organization Product Outlook (Revenue, USD Million, 2021 - 2033)

• Pharmaceutical

  • API

    • Traditional API

    • HP-API

    • Biologics

    • Others

  • Drug Product

    • Oral topical dose

    • Semi-solid dose

    • Liquid dose

    • Others

• Medical Devices

  • Class I

  • Class II

  • Class III

Healthcare Contract Development And Manufacturing Organization Service Outlook (Revenue, USD Million, 2021 - 2033)

• Contract Development   

  • Pre-formulation & Formulation Development Service

  • Process Development & Optimization

  • Analytical Testing & Method Validation

  • Scale-up & Tech Transfer

• Contract Manufacturing   

  • API Manufacturing

  • Finished drug products Manufacturing

  • Medical Devices & Combination Products

• Packaging and labelling   

• Regulatory Affairs   

• Others

Healthcare Contract Development And Manufacturing Organization Workflow Outlook (Revenue, USD Million, 2021 - 2033)

• Clinical

• Commercial

Healthcare Contract Development And Manufacturing Organization Therapeutic Area Outlook (Revenue, USD Million, 2021 - 2033)

• Oncology

• Infectious Diseases

• Neurological Disorders

• Cardiovascular Diseases

• Metabolic Disorders

• Autoimmune Diseases

• Respiratory Diseases

• Ophthalmology

• Gastrointestinal Disorders

• Orthopedic Diseases

• Dental Diseases

• Others

Healthcare Contract Development And Manufacturing Organization End-use Outlook (Revenue, USD Million, 2021 - 2033)

• Pharmaceutical & Biotechnology Companies

• Medical Device Companies

• Others

Healthcare Contract Development And Manufacturing Organization Regional Outlook (Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Sweden

  • Norway

• Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • Thailand

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • UAE

  • Saudi Arabia

  • Kuwait

  • Qatar

  • Oman

List of Key Players of Healthcare Contract Development And Manufacturing Organization Market

• Catalent Inc.

• Lonza

• Recipharm AB

• Siegfried Holding AG

• Thermo Fisher Scientific, Inc.

• Labcorp Drug Development

• Jabil Inc

• Syngene International Limited

• IQVIA Inc.

• Almac Group

• Ajinomoto Bio-Pharma

• Adare Pharma Solutions

• Alcami Corporation

• Vetter Pharma International