Pharmaceutical CDMO Industry Overview

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

Furthermore, key initiatives undertaken by the companies in this sector are also expected to boost market growth. In January 2022, Lonza partnered with HaemaLogiX-a developer of monoclonal antibodies-to manufacture myeloma drug candidate KappaMab monoclonal antibody. In December 2023, Innovent Biologics, Inc. extended its licensing deal with Synaffix B.V., a part of Lonza dedicated to advancing its clinical-stage platform technology for creating ADCs characterized by a best-in-class therapeutic index. Such biopharmaceutical initiatives are expected to accelerate the market growth of pharmaceutical contract development and manufacturing and services.

Furthermore, in many pharmaceutical companies, innovations, and speed-to-clinic factors are of critical importance. Small companies and specialty pharmaceutical players increasingly depend on third-party service providers to meet crucial industry requirements. Numerous CROs and CDMOs are comprehensive solution providers following a one-stop-shop service model. In this model, a CRO manages everything from API development to dosage form development, covering early development stages to commercialization. To deliver such services effectively, a CDMO needs a diverse array of enabling technologies & specialized handling capabilities tailored to address specific challenges. While these services tackle numerous problem statements, there exists considerable variability in product design capabilities among different CDMO players, which can be pivotal in scaling a product concept and bringing it to market.

Moreover, the extensive range & proficiency of a CDMO's skills across various technology types empower it to address the requirements of diverse customers. There is a growing willingness among customers to invest more in top-notch, consistently dependable CDMO services. Particularly, major pharmaceutical players are keen to reduce supplier interactions to integrate multiple processes throughout the value chain seamlessly. This encourages CDMOs to offer comprehensive solutions, enabling clients to manage operations cohesively & effortlessly.

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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

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

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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