The global pharmaceutical CDMO market size was estimated at USD 146.0 billion in 2023 and is projected to grow at a CAGR of 7.2% from 2024 to 2030. Market growth can be attributed to the rising investments by CDMOs to expand new drug development and increasing demand for novel therapies. In addition, rising pharmaceutical Research & Development investments, the demand for genetic drugs, prevalence of cancer & age-related disorders, and the rising need for advanced therapeutics are key factors driving market growth.
In addition, market growth of biosimilars, biologics, personalized medicine, orphan drugs, companion diagnostics, and adaptive trial designs, among others, is anticipated to boost the demand for pharmaceutical CDMO. As companies explore new frontiers, the escalating requirement to adhere to regulations drives increased demand for specialized service providers proficient in contract development and manufacturing affairs.
Gather more insights about the market drivers, restrains and growth of the Pharmaceutical CDMO Market
Detailed Segmentation:
Application Insights
Based on application, the oncology segment led the market with the largest revenue share of 21.82% in 2023 and is expected to grow at the fastest CAGR of 8.1% during the forecast period. The market is segregated into oncology, infectious diseases, neurological disorders, cardiovascular diseases, metabolic disorders, autoimmune diseases, respiratory diseases, ophthalmology, gastrointestinal disorders, hormonal disorders, hematological disorders, and others. Oncology is further sub-segmented into small molecules and biologics. Growth in the segment can be attributed to the increasing prevalence of cancer, growing demand for innovative & effective treatments, and favorable regulatory pathways.
Product Insights
Based on product, the active pharmaceutical ingredient (API) segment led the market with the largest revenue share of 81.20% in 2023. The market is segregated into API, and drug product. The active pharmaceutical ingredient (API) is further sub-segmented into type, synthesis, drug, and manufacturing. Market growth in this segment can be attributed to diverse formulations, accelerated demand for manufacturing processes, customer preference, and global acceptance. Moreover, increasing CDMOs focusing on new drug formulations is another factor propelling segment growth.
Work Flow Insights
Based on work-flow, The commercial segment led the market with the largest revenue share of 87.93% in 2023. The market is segregated into clinical and commercial. Some key factors contributing to the growth are strong CDMOs' expertise in drug development and manufacturing, integration of advanced drug development and manufacturing technologies in CDMOs, increasing R&D of innovative therapies, and expanding product portfolio. Moreover, commercial CDMOs cater cost-effective services within the reduced timeline, which is expected to contribute to market growth.
Regional Insights
The pharmaceutical CDMO market in North America is expected to grow at the fastest CAGR of 6.5% over the forecast period. This can be attributed to a growing investment in R&D of new drugs by pharmaceutical companies, which boosts the demand for pharmaceutical contract development and manufacturing services. The growth of pharmaceutical industry in the U.S. and Canada is a key factor contributing to market growth. In addition, the substantial presence of key market players and clinical trials are anticipated to drive market growth. In addition, stringent regulatory requirements, particularly in the U.S. & Canada, necessitate specialized knowledge & compliance expertise, making CDMOs an attractive option for navigating regulatory hurdles.
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List of Key Players in the Pharmaceutical CDMO Market
- Lonza
- Thermo Fisher Scientific, Inc.
- Recipharm AB
- Laboratory Corporation of America Holdings (LabCorp)
- Catalent, Inc.
- WuXi AppTec, Inc.
- Samsung Biologics
- Piramal Pharma Solutions
- Siegfried Holding AG
- CordenPharma International
- Cambrex Corporation
- Bushu Pharmaceuticals Ltd.
- Nipro Corporation
Pharmaceutical CDMO Market Segmentation
Grand View Research has segmented the pharmaceutical CDMO market report based on product, workflow, application, end-use, and region:
Pharmaceutical CDMO Product Outlook (Revenue, USD Million, 2018 - 2030)
- API
- Type
- Traditional Active Pharmaceutical Ingredient (Traditional API)
- Highly Potent Active Pharmaceutical Ingredient (HP-API)
- Antibody Drug Conjugate (ADC)
- Others
- Synthesis
- Synthetic
- Solid
- Liquid
- Biotech
- Drug
- Innovative
- Generics
- Manufacturing
- Continuous manufacturing
- Batch manufacturing
- Drug Product
- Oral solid dose
- Semi-solid dose
- Liquid dose
- Others
Pharmaceutical CDMO Workflow Outlook (Revenue, USD Million, 2018 - 2030)
- Clinical
- Commercial
Pharmaceutical CDMO Application Outlook (Revenue, USD Million, 2018 - 2030)
- Oncology
- Small Molecules
- Biologics
- Infectious Diseases
- Neurological Disorders
- Cardiovascular Disease
- Metabolic Disorders
- Autoimmune Diseases
- Respiratory Diseases
- Ophthalmology
- Gastrointestinal Disorders
- Hormonal Disorders
- Hematological Disorders
- Others
Pharmaceutical CDMO End-use Outlook (Revenue, USD Million, 2018 - 2030)
- Small Pharmaceutical Companies
- Medium Pharmaceutical Companies
- Large Pharmaceutical Companies
Pharmaceutical CDMO Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Denmark
- Sweden
- Norway
- Asia Pacific
- Japan
- China
- India
- Australia
- South Korea
- Thailand
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East and Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Kuwait
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Recent Developments
• In April 2023, Corden Pharma established a drug product innovation center of excellence with bioavailability enhancement capabilities for Oral Solid Dosage (OSD) manufacturing drug products, especially for low bioavailability APIs in Germany. This expansion broadened the company's operation capabilities in the significant market
• In October 2023, the Cambrex Corporation company successfully concluded a USD 38 million capacity expansion at its small molecule API manufacturing facility in High Point, North Carolina. This enhancement resulted in a twofold increase in the facility's manufacturing capacity. The expansion included cutting-edge analytical and chemical development laboratories, two additional clinical manufacturing suites, and the establishment of a small-scale commercial manufacturing operation featuring three work centers and 2,000 L reactors
• In February 2023, the WuXi AppTec company and Cidara Therapeutics expanded their collaboration to advance Cidara's Oncology DFC Program. The agreement extends existing collaboration, encompassing CMC development and GMP manufacturing-initially focused on Cidara's CD388 drug-Fc conjugate (DFC) for influenza-to include the oncology program
