February 2024
07 Jun 2024
The global pharmaceutical CDMO market revenue was valued at USD 100.02 billion in 2023 and is poised to grow from USD 106.23 billion in 2024 to USD 172.02 billion by 2032, at a CAGR of 6.21% during the forecast period 2023 - 2032. The increasing demand for pharmaceutical products is expected to drive the growth and demand for the pharmaceutical CDMO market.
The pharmaceutical CDMO market deals with specialized companies that provide testing of biopharmaceutical products, testing, and services for development. The pharmaceutical involves complex drugs manufactured from organisms and living cells, which are the major focus. These organizations aid biopharmaceutical companies in several stages of drug improvement by offering expertise in regulatory compliance, analytical testing, and process development.
The increasing demand for novel therapies and rising investments by contract development and manufacturing organizations (CDMO) to expand new drug development are anticipated to drive the growth of the market. In addition, increasing major pharmaceutical initiatives undertaken by the companies, increasing geriatric population, rising advancements in API manufacturing, and rising growth of the biopharmaceutical sector are further attributed to the growth of the pharmaceutical CDMO market during the forecast period.
Increasing demand for pharmaceuticals and cost-efficiency and flexibility to fuel market growth
The pharmaceutical industry is facing an increasing demand for pharmaceuticals due to their efficiency in treating complicated diseases. Pharmaceutical CDMOs are necessary to address this demand and provide specialized expertise in the intricate production procedures needed for these advanced therapeutic items.
The collaborative efforts between pharmaceutical CDMOs and pharmaceutical companies have become a cornerstone of modern medicine and contribute to expanding treatment options and addressing patient needs. In addition, pharmaceutical CDMOs offer cost-effective services for drug manufacturers by providing access to developed skilled personnel, equipment, and facilities. Outsourcing to these organizations enables companies to reduce overall development costs and avoid substantial upfront capital investments. In addition, the flexibility provided by pharmaceutical CDMOs allows companies to adapt efficient resource utilization, responding to market fluctuations and production capacities quickly in a rapidly developing pharmaceutical landscape.
However, complex manufacturing processes and regulatory hurdles may restrain the growth of the market. The intricate nature of sophisticated purification steps involving living cells and biologics manufacturing creates challenges in maintaining reproducibility and consistency. Variability in purification yields, cell cultures, and other factors can affect product quality and monitoring to ensure robust production and require advanced process control.
In addition, due to the sensitivity and complexity of therapeutic products, strict regulatory oversight is inherent in the pharmaceutical industry. The quality standards demand substantial investments, so staying abreast of evolving guidelines and navigating diverse global regulatory landscapes in validation and documentation may restrain market growth. Any regulatory missteps can result in increased costs and delays in the production of pharmaceutical products. These restraining factors may hinder the growth of the pharmaceutical CDMO market.
| Report Attribute | Key Statistics |
| Market Revenue in 2024 | USD 106.23 Billion |
| Market Revenue by 2032 | USD 172.02 Billion |
| Market CAGR | 6.21% from 2023 to 2032 |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | Asia-Pacific |
| Base Year | 2023 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Recent Innovation in the Pharmaceutical CDMO Market by Evaluate
Recent Innovation in the Pharmaceutical CDMO Market by Abzena
Asia Pacific dominated the pharmaceutical CDMO market in 2023. The increasing personalized medicines, geriatric population, the development of manufacturing organizations and contract development market, lower cost of the manufacturing industries, beneficial government regulations, and lower labor costs in the region are expected to accelerate the growth of the pharmaceutical CDMO market. China, India, Japan, and South Korea are the major leading countries in the Asia Pacific region. China-based CDMO companies are expanding their footprints to overseas markets and expanding service width through M&As.
China-based CDMO companies have sufficient capital funding, given their improving technology and strong competition benefits over overseas peers. China’s pharmaceutical sector is making the continuous transition from low to innovative products and technologies. China plays an important role in the development of new drugs. The high complex disease burden supports the demand for manufacturing and drug development and further enhances the growth of the pharmaceutical CDMO market in the Asia Pacific region. China’s CDMOs are continuously improving the production capacity of API to address future demands.
North America also significantly contributes to the growth of the pharmaceutical CDMO market in 2023. The increasing expansion of manufacturing units of pharmaceutical industries, growing geriatric population, rising technological advancements in the pharmaceutical industry, and well-developed healthcare infrastructure with increasing favorable government strategies in developing healthcare services are expected to enhance the growth of the pharmaceutical CDMO market in North America. The U.S. and Canada are the major countries in North America.
Growing demand for cell and gene therapies
Cell and gene therapies are highly established and can significantly meet unmet medical needs regarding treating various diseases. Many pharmaceutical investors and companies have invested funds into commercializing and developing these therapies due to their therapeutic significance. The demand for facilities that offer production services for these therapies increases due to the increasing number of cell therapy individuals, their complex manufacturing process, and their quick progression through the various stages of clinical development. These are the major opportunities expected to enhance the growth of the pharmaceutical CDMO market in the coming years.
Market Segmentation
By Product
By Drug Product
By Dosage Form
By Indication
By End-User
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