Pharmaceutical CDMO Market Size, Trends, Report 2023-2032
The global pharmaceutical CDMO market was estimated at USD 135.88 billion in 2022 and it is expected to surpass around USD 246.34 billion by 2032, poised to grow at a CAGR of 6.13% from 2023 to 2032.
Key Pointers
Report Scope of the Pharmaceutical CDMO Market
| Report Coverage | Details |
| Revenue Share of Asia Pacific in 2022 | 37.45% |
| Revenue Forecast by 2032 | USD 246.34 billion |
| Growth Rate from 2023 to 2032 | CAGR of 6.13% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Bushu Pharmaceuticals Ltd.; Nipro Corporation; Thermo Fisher Scientific Inc; Samsung Biologics; Laboratory Corporation of America Holdings; Siegfried Holding Ag; Catalent, Inc; Lonza Group Ag; Recipharm Ab; Piramal Pharma Solutions; Cordenpharma International; Cambrex Corporation; Wuxi Apptec. |
Increasing demand for biologics, growing outsourcing of drug development and manufacturing activities, and rising investments in research and development (R&D) by pharmaceutical and biotechnology companies as key drivers of market growth. Additionally, the report highlights the emergence of small and mid-sized pharma and biotech companies and the shift towards personalized medicine as further factors expected to drive the market forward.
The rising demand for biologics, in particular is anticipated to significantly contribute to the expansion of the CDMO industry. The use of these complex molecules created by living things in the treatment of many ailments is becoming more and more crucial. Because many pharmaceutical and biotechnology companies lack the specific manufacturing capabilities needed for biologics, medication research, and manufacturing processes are increasingly being outsourced. Pharmaceutical and biotech firms are turning to CDMOs to assist lower costs and increase efficiency as the cost of drug development and production keeps rising.
The market for CDMOs is expanding because of a number of developments, including the expansion of small and mid-sized pharma and biotech firms, the trend toward personalized medicine, and the rising need for biologics. The COVID-19 pandemic provides a recent illustration of the demand for CDMO services. Several businesses lack the specific knowledge and manufacturing capabilities needed to develop and produce COVID-19 vaccines and treatments. As a result, some pharmaceutical firms have enlisted CDMOs' assistance in the development and manufacturing of vaccines and treatments.
For instance, Moderna, a biotech company, partnered with Lonza, a CDMO, to manufacture its COVID-19 vaccine. This partnership allowed Moderna to significantly increase its manufacturing capacity and produce millions of vaccine doses in a short amount of time, helping to address the urgent need for COVID-19 vaccines. This example highlights the important role that CDMOs play in drug development and manufacturing and how they are helping to address critical global health challenges.
Product Insights
With a growth rate of 6.31% in 2022, the API segment will hold the largest revenue share in the CDMO market. As APIs are an essential part of formulated pharmaceuticals, CDMOs, and CMO, have made major investments to increase their capacity for producing APIs in response to the rising demand for them. Nonetheless, the need for more qualified knowledge and insufficient manufacturing capacity continues to be major obstacles in this market. Companies like Recipharm have made considerable expenditures to increase their small-scale GMP API manufacturing capacity in order to address these issues, which is anticipated to affect the development of this market positively.
In addition, early solid-form investigations play a crucial role in the development of APIs and formulations. They serve as links between API development and formulation and help prevent issues in the late development stage, thereby reducing development costs. The outsourcing of these facilities to CDMOs presents significant opportunities for the pharmaceutical CDMO market, as pharmaceutical firms aim to reduce the cost of development. As a result, the CDMO market is poised to grow further, with numerous opportunities emerging in the API and solid form investigations segments.
Workflow Insights
Based on workflow, the pharmaceutical and biotechnology market is divided into commercial and clinical segments. In 2022, the commercial segment had the biggest market share, with 88.04%. The rising demand for generic medications, the acceptance of biosimilar medications, and regenerative therapies are all factors contributing to this growth. Companies must concentrate on GMP compliance, scaling up processes, and increasing QC testing facilities during the commercial phase to meet standards. This is where CDMOs may help by providing specialized knowledge, saving time, and being cost-effective. Over the projection period, the industry is anticipated to grow even more as the need for commercial pharma CDMO services rises.
The clinical market sector is expected to see the quickest CAGR of 7.46% for the forecast period of 2023-2032. Commercial lots are crucial to the future of the company, whereas commercial lots are key for its current performance. Mistakes throughout clinical programs could cause delays or stop items from moving forward in the clinic, which could negatively affect patients. Pharmaceutical and biotechnology companies carry out research-stage investigations, and as they advance through preclinical testing and early clinical trials, they increase their staff to assist development. Yet, due to the ongoing development of clinical manufacturing processes, compliance with GMPs is much more difficult for clinical operations than it is for commercial ones. In order to expedite the clinical process for APIs, CDMOs can offer expertise.
Application Insights
The oncology market had a value of USD 47,683.53 million in 2022 and is projected to expand at a CAGR of 7.52% during the forecast period. The oncology segment accounted for 35.15% of the market share in 2022 and is expected to continue its dominance. The increasing prevalence of cancer worldwide is driving market growth, with cancer being the leading cause of death and accounting for 10 million deaths globally in 2021. The demand for new cancer therapies is expected to rise, presenting opportunities for both pharmaceutical and CDMO companies. The pharmaceutical industry's pipeline for oncology treatments is predicted to account for around 30% of it in 2020. However, despite the advancements in diagnosis and treatment, the oncology field remains challenging, time-consuming, and continuously developing, with over 12.5 million new cases of cancer reported each year.
Due to this collaboration and outsourcing of services by pharmaceutical companies to CDMOs, the market is experiencing tremendous growth. The need for contract research and manufacturing services has increased due to the growing cancer burden in the world and the need for more effective and efficient therapies. By offering specialized services and knowledge, CDMOs are playing a crucial part in the development of innovative cancer medicines and drug delivery systems. Pharmaceutical companies are projected to continue outsourcing their services to CDMOs as a result of the rising demand for cancer medicines and the difficulties associated with oncology research, which is boosting the market for the latter.
Regional Insights
The market is segmented into various regions, with Asia Pacific holding the largest market share of 37.45% in 2022 and anticipated to grow at a fast CAGR of 6.91% during forecast period. The market growth in the APAC region can be attributed to cheaper manufacturing costs in comparison with North America and Europe, making it an attractive outsourcing hub for pharmaceutical development. The presence of university-affiliated pharmaceutical research clusters and a large amount of funding is also driving market growth in the region. India and China are leading the contract development and manufacturing organization market due to favorable legislation and significantly low production costs in North America and Europe.
In addition, the APAC market is anticipated to be driven by various factors, including an enhanced regulatory framework, significant scope for cost reduction, increased complexity, and a robust drug pipeline. The availability of skilled labor at prices cheaper than those in industrialized nations such as the U.S. is also a significant factor driving market growth in the region. While the contract manufacturing market in China is growing at a rate of around 15% annually, only some Western CDMOs have been successful in recruiting local businesses. Hence, there are significant opportunities in the region, and the growth in the APAC market is likely to continue in the coming years.
Pharmaceutical CDMO Market Segmentations:
By Product
By Workflow
By Application
By Regional
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers