Japan CDMO Market Size To Reach $20.76 Billion By 2030

Japan Contract Development & Manufacturing Organizations Market Growth & Trends

The Japan contract development and manufacturing organizations market size is estimated to reach USD 20.76 billion by 2030, expanding at a CAGR of 7.77% from 2025 to 2030, according to a new report by Grand View Research, Inc. The increasing demand for biopharmaceuticals, a high burden of diseases, and the rising geriatric population are some of the key growth drivers. Growing investments by various Contract Development and Manufacturing Organizations (CDMOs) for facility and service expansion are likely to boost the market over the forecast period.

In addition, increasing pharmaceutical R&D investments are driving 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 the R&D activities of pharmaceuticals. For instance, in March 2022, WuXi AppTec launched Tetracycline-Enabled Self-Silencing Adenovirus (TESSA) technology to accelerate the production of adeno-associated viruses for drugs in cell and gene therapy.

The increase in outsourcing services by pharmaceutical companies in the pharmaceutical industry has profoundly impacted the Japan market. The trend of outsourcing activities in the 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, regulatory authorities in Japan have accelerated approval for regenerative medical and gene therapy products. For instance, the adoption of the Pharmaceuticals and Medical Devices Act (PMD Act), 21st Century Cures Act, and PRIME (Priority Medicines) Initiative has helped the country improve access to regenerative medicines. Such initiatives by regulatory agencies are expected to improve the demand for the development and manufacturing of regenerative medicines in the country.

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Japan Contract Development & Manufacturing Organizations Market Report Highlights

• The active pharmaceutical ingredient (API) segment dominated the market with a share of 81.14% in 2024. 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 the increasing geriatric population are some of the key factors propelling segment growth

• Based on 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.

• Based on application, the oncology segment dominated the Japan CDMO industry in 2024, owing to the high cancer burden in the country. Approval of regenerative products and virotherapy for cancer treatment can further support market growth and the segment is further driven by increasing number of cancer cases globally. In addition, increasing pharmaceutical R&D investments, patent expirations, and demand for oncology drugs & biologic innovations are the factors driving the oncology segment growth

Japan Contract Development & Manufacturing Organizations Market Segmentation

Grand View Research has segmented the Japan contract development and manufacturing organizations market based on product, workflow, application, service, and end use:

Japan Contract Development & Manufacturing Organizations Product Outlook (Revenue, USD Million, 2018 - 2030)

• API

  • Synthesis

    • Synthetic

      • Solid

      • Liquid

    • Biotech

  • Type

    • Traditional Active Pharmaceutical Ingredient (Traditional API)

    • Highly Potent Active Pharmaceutical Ingredient (HP-API)

    • Antibody Drug Conjugate (ADC)

    • Others

  • Drug

    • Innovative

    • Generic

  • Manufacturing

    • Continuous manufacturing

    • Batch manufacturing

• Drug Product

  • By Drug Type

    • Oral solid dose

    • Semi-Solid Dose

    • Liquid Dose

    • Others

  • By Type

    • Innovative

    • Generic

  • By Molecule

    • Small Molecule

    • Large Molecule

Japan Contract Development & Manufacturing Organizations Workflow Outlook (Revenue, USD Million, 2018 - 2030)

• Clinical

• Commercial

Japan Contract Development & Manufacturing Organizations Application Outlook (Revenue, USD Million, 2018 - 2030)

• Oncology

• Hormonal

• Glaucoma

• Cardiovascular Diseases

• Diabetes

• Others

Japan Contract Development & Manufacturing Organizations Service Outlook (Revenue, USD Million, 2018 - 2030)

• Contract Development

• Contract Manufacturing

• Packaging

• Quality Control and Assurance

  • Visual Inspection

  • Others

• Others

Japan Contract Development & Manufacturing Organizations End Use Outlook (Revenue, USD Million, 2018 - 2030)

• Pharmaceutical Companies

• Biotechnology Companies

• Others

List of Key Players in Japan Contract Development & Manufacturing Organizations Market

• LabCorp

• Wuxi AppTec, Inc.

• Lonza

• Recipharm AB

• Samsung Biologics

• Catalent, Inc.

• CordenPharma International

• Cambrex Corporation

• Thermo Fisher Scientific, Inc.

• FUJIFILM Diosynth Biotechnologies

• Sumitomo Chemical Company, Limited

• CMIC HOLDINGS Co., LTD.

• Bushu Pharmaceuticals Ltd.

• Nipro Corporation