The global small molecule innovator API CDMO market size is expected to reach USD 47.14 billion by 2030, registering a CAGR of 6.38% from 2025 to 2030, according to a new report by Grand View Research, Inc. A growing outsourcing trend among pharmaceutical companies, increasing demand for small molecule drugs, and a surge in the number of clinical trials are anticipated to influence the market positively. The growing utilization of CDMOs in the pharmaceutical sector stems from various reasons, with cost-effectiveness as the prominent factor. Outsourcing emerges as an efficient strategy for pharmaceutical firms to reduce expenses by sidestepping the necessity for costly infrastructure and equipment investments. CDMOs offer the requisite expertise and infrastructure to deliver drug development and manufacturing services in a financially prudent manner.
Furthermore, enhanced efficiency serves as another pivotal driver for pharmaceutical outsourcing. With mounting pressure on pharmaceutical companies to expedite the introduction of new drugs to the market, outsourcing emerges as a solution to accelerate the drug development process. Leveraging their expertise, experience, and cutting-edge equipment, CDMOs facilitate the swift & efficient production of high-quality drugs, enabling pharmaceutical firms to adhere to their development schedules. In addition, several pharmaceutical companies prefer CDMOs to access advanced infrastructure and expertise due to the increasing influx of novel therapies & orphan drugs and higher returns on approved products. Moreover, continuous technological advancements among CDMOs offer innovative small molecule APIs to meet the growing demands for innovation, efficiency, and regulatory compliance in the healthcare industry.
The adoption of advanced technologies by companies enhances drug development, manufacturing processes, and productivity. The increasing demand for new small molecule innovator API in the pharmaceutical industry is encouraging commercial CDMOs to expand their capabilities, which is expected to boost market growth. For instance, in August 2023, Astex announced a research collaboration & license agreement with MSD to classify small molecule candidates with tumor suppressor proteins for cancer treatment. Under the agreement, the company will use its fragment-based drug discovery platform to develop compounds and provide MSD with main compounds for preclinical development & optimization.
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The clinical stage type segment led the small molecule innovator API CDMO industry and accounted for 54.56% of global revenue in 2024. The preclinical segment is anticipated to grow at a lucrative CAGR over the forecast period.
The pharmaceutical segment dominated the market in 2024, accounting for a revenue share of 91.07%. Small-molecule drugs have been the backbone of the pharmaceutical industry for nearly a century. The biotechnology segment's expansion is driven by rising demand for biotechnology and enhanced molecular efficiency.
The oncology segment dominated the small molecule innovator API CDMO market in 2024 and is expected to grow at the fastest CAGR of 6.80% during the forecast period. The infectious diseases market has witnessed dynamic trends and scenarios across various disease segments.
North America small molecule innovator API CDMO market is expected to grow at a CAGR of 5.91% over the forecast period. Asia Pacific held the largest market share of 41.74% in 2024.
Grand View Research has segmented global small molecule innovator API CDMO market report based on stage type, customer type, therapeutic area, and region:
Small Molecule Innovator API CDMO Stage Type Outlook (Revenue, USD Million, 2018 - 2030)
Preclinical
Clinical
Phase I
Phase II
Phase III
Commercial
Small Molecule Innovator API CDMO Customer Type Outlook (Revenue, USD Million, 2018 - 2030)
Pharmaceutical
Small
Medium
Large
Biotechnology
Small
Medium
Large
Small Molecule Innovator API CDMO Therapeutic Area Outlook (Revenue, USD Million, 2018 - 2030)
Cardiovascular Diseases
Oncology
Respiratory Disorders
Neurology
Metabolic Disorders
Infectious Diseases
Others
Small Molecule Innovator API CDMO Regional Outlook (Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Denmark
Sweden
Norway
Asia Pacific
China
Japan
India
Australia
South Korea
Thailand
Taiwan
Latin America
Brazil
Mexico
Argentina
Middle East and Africa (MEA)
South Africa
Saudi Arabia
UAE
Kuwait
Israel
List of Key Players of Small Molecule Innovator API CDMO Market
Lonza Group Ltd.
Novo Holdings (Catalent, Inc.)
Thermo Fisher Scientific, Inc.
Siegfried Holding AG
Recipharm AB
CordenPharma International
Samsung Biologics
Labcorp
Ajinomoto Bio-Pharma Services
Piramal Pharma Solutions
Jubilant Life Sciences (Jubilant Biosys Limited)
WuXi AppTec Co., Ltd.
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