Pharmaceutical Contract Development And Manufacturing Organization Market To Reach $293.6 Billion By 2033

Pharmaceutical Contract Development And Manufacturing Organization Market Growth & Trends

The global pharmaceutical contract development and manufacturing organization market size is expected to reach USD 293.6 billion by 2033, registering a CAGR of 7.38% from 2025 to 2033, according to a new report by Grand View Research, Inc. A growing consumption of biopharmaceuticals, rising demand for advanced therapeutics, demand for orphan drug discovery, upsurge number of clinical trials and increasing demand for one-stop-shop CDMOS are anticipated to influence the global market positively.

In addition, increasing pharmaceutical R&D investments can drive the market growth. As pharmaceutical companies invest more in R&D, they may seek external expertise and resources to accelerate drug development processes. CDMOs provide specialized services in drug development, manufacturing, and testing, making them valuable partners for pharmaceutical companies looking to outsource certain aspects of their R&D activities. Several players are investing in R&D activities of pharmaceuticals. For instance, in 2022, F. Hoffmann La Roche increased its R&D spending to USD 14.7 billion from USD 13.3 billion in the previous year. Another major player in pharmaceutical R&D expenditures for the same period was Merck & Co., allocating USD 13.5 billion to R&D. Janssen, the pharmaceutical arm of Johnson & Johnson, followed with an investment of USD 11.6 billion, slightly lower than the previous year's USD 11.9 billion.

Besides, increasing outsourcing services by pharmaceutical companies in the pharmaceutical industry has profoundly impacted the market. The trend of outsourcing activities in pharmaceutical domain is rising as companies find value in acquiring additional competencies essential for successful drug development & commercialization. Besides providing extended expertise & assisting in improved cash flow management, outsourcing brings significant manufacturing advantages, including reducing investment risks.

Notably, in the context of early-stage technologies and products, establishing expensive in-house capabilities entails substantial risks across product development phases. At the same time, outsourcing serves as a risk-averse alternative. In addition, having a limited understanding of the required scale for current & future product offerings or market penetration poses significant hurdles in designing and scaling manufacturing for in-house production. Consequently, the preference for outsourcing has grown as an effective strategy until market demand for products becomes well-established & understood.

Furthermore, the global distribution of clinical trials is expected to boost market growth. Clinical trials are executed globally, and their geographical distribution is shaped by diverse factors such as disease prevalence, regulatory conditions, population demographics, healthcare infrastructure, and cost considerations. As of February 2024, there is a discernible trend towards a more globalized approach to clinical trials. Over half of all registered studies are conducted outside the U.S. Meanwhile, over 35% of trials are exclusively conducted within the U.S. This emphasizes increasing international collaboration in collective pursuit of medical advancement.

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Pharmaceutical Contract Development And Manufacturing Organization Market Report Highlights

• Based on product, the active pharmaceutical ingredient (API) segment led the market. The segment growth is driven by competitive drug development and growing demand for end-to-end Contract Development & Manufacturing Organization (CDMO) services. In addition, advancements in API manufacturing, growth of the biopharmaceutical sector, and increasing geriatric population are some of the key factors propelling segment growth

• Based on the workflow, the commercial segment held the largest market share in 2024 attributed to robust demand for pharmaceutical products, such as biosimilar medications, generic medications, and regenerative therapies. This is where commercial CDMOs may help by providing knowledge, saving time, and being cost-effective

• On the basis of therapeutic area, the oncology segment accounted for the largest share in 2024. The segment's market is likely to expand with the rising development of oncology drugs, growing preclinical research to clinical trial material supply & commercial manufacturing, and increasing cancer cases globally

• Asia Pacific dominated the market with the revenue share of 37.90% in 2024. The presence of various factors, such as improved social insurance schemes & constantly improving economic conditions, which allow patients to pay out-of-pocket pharmaceutical costs is expected to drive market significantly

Pharmaceutical Contract Development And Manufacturing Organization Market Segmentation

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

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

• Small Molecule

  • Branded

  • Generic

• Large Molecule

  • Biologics

  • Biosimilar

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

• 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

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

• Contract Development  

  • Pre-formulation & Formulation Development Services

  • Process Development & Optimization

  • Analytical Testing & Method Validation

  • Scale-up & Tech Transfer

• Contract Manufacturing  

  • API Manufacturing

  • Finished Drug Products Manufacturing

• Packaging and Labelling  

• Regulatory Affairs  

• Others

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

• Clinical

• Commercial

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

• Oncology

• Infectious Diseases

• Neurological Disorders

• Cardiovascular Disease

• Metabolic Disorders

• Autoimmune Diseases

• Respiratory Diseases

• Ophthalmology

• Gastrointestinal Disorders

• Orthopedic Diseases

• Dental Diseases

• Others

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

• Small Pharmaceutical Companies

• Medium Pharmaceutical Companies

• Large Pharmaceutical Companies

Pharmaceutical 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

  • China

  • India

  • Japan

  • Australia

  • South Korea

  • Thailand

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • UAE

  • Saudi Arabia

  • Kuwait

  • Qatar

  • Oman

List Of Key Players Pharmaceutical Contract Development And Manufacturing Organization Market

• Thermo Fisher Scientific, Inc

• Lonza

• Recipharm AB

• Catalent, Inc

• WuXi AppTec, Inc

• Samsung Biologics

• Piramal Pharma Solutions

• Siegfried Holding AG

• Corden Pharma International

• Cambrex Corporation

• Vetter Pharma

• Delpharm

• Jubilant Pharmova / HollisterStier

• Eurofins CDMO

• Almac Pharma Services