PUBLISHER: Grand View Research | PRODUCT CODE: 1446479
PUBLISHER: Grand View Research | PRODUCT CODE: 1446479
The global active pharmaceutical ingredient CDMO market size was valued at USD 164.5 billion in 2030 and is projected to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2030. Increasing pharmaceutical R&D investments, patent expirations, and a rise in demand for generic drugs and biologic innovations propelling outsourcing are the factors driving the market.
The growth of small molecules, rising active pharmaceutical ingredient (API) complexity and the need to reduce costs are factors contributing to the rapid expansion of outsourcing services in the pharmaceutical sector. Only a few companies have achieved global reach and scale in the contract development and manufacturing organization (CDMO) sector, which is still fragmented. Besides, many companies are providing one-stop-shop solutions as an integrated source of APIs and formulations.
As the healthcare industry is undergoing a process of dynamic change, factors such as rapid technological advancements (e.g., automation & AI), the need for CROs/CMOs/CDMOs, and rising investments in research are influencing the healthcare market. The outsourcing of activities is benefitting many pharmaceutical companies in improving their operational efficiencies, expanding their geographical presence, decreasing resource costs, gaining therapeutic expertise, and enhancing on-demand services.
The COVID-19 pandemic placed unprecedented expectations on API makers, as evidenced by the substantial increase in demand for medications required to manage critically ill patients on mechanical ventilation. As a result, the sudden need to rapidly increase production has emphasized the need for adaptability for API CDMOs in maintaining drug supply, with some companies proving to be better prepared to withstand the pressures of quick scale-up than others. Growing demand for new therapies worldwide and an increase in the conduction of clinical research in the post-pandemic period are expected to support the market in the coming years.