PUBLISHER: Grand View Research | PRODUCT CODE: 1841941
PUBLISHER: Grand View Research | PRODUCT CODE: 1841941
The global healthcare contract development and manufacturing organization market size was estimated at USD 278.1 billion in 2024 and is projected to reach USD 648.2 billion by 2033, growing at a CAGR of 10.08% from 2025 to 2033. The market growth is driven by rising demand for outsourced services, expansion of product pipelines, and an increasing focus on cost optimization by life sciences companies.
Besides, the outsourcing strategies have been widely adopted as pharmaceutical and biotechnology companies seek to mitigate operational complexities while maintaining scalability and flexibility. Besides, the rising need for accelerated drug development timelines, the surge in biologics and biosimilars production, and the globalization of clinical & commercial supply chains contribute to market growth. In addition, the rapidly aging population, patent expirations, rising antibiotic resistance, and the rising need for personalized medicine are some of the key factors fueling the growth of the healthcare contract development and manufacturing organization industry.
In addition, for many pharmaceutical companies, innovation and speed to clinic are considered highly significant for market growth. Numerous small to mid-sized firms and specialty pharmaceutical players are dependent on achieving these critical requirements within the industry. Many CDMOs and CROs have positioned themselves as one-stop-shop providers, with the CRO model encompassing a range of services from API development to dosage form, and from early-stage development through commercialization. Thus, to deliver such comprehensive solutions, CDMOs are required to maintain a broad range of enabling technologies and specialized capabilities tailored to address complex challenges, further accelerating market entry.
Significant investments in capacity expansion, infrastructure modernization, and advanced technology integration within the CDMO sector support the market growth. In addition, companies are investing in R&D to discover new compounds and develop the next big blockbusters, significantly increasing the number of generic manufacturers. According to the American Journal of Managed Care, the pharmaceutical market will be driven by an unmet need in various disorders, and R&D activities for developing orphan therapies will increase because the orphan drug market is likely to reach USD 262 billion by 2024. The National Institutes of Health Office of Rare Diseases Research, as of 2019, has identified roughly 7,000 orphan diseases. About 1,043 projects on orphan diseases were reported to be in the development stage, of which 822 were in clinical development.
Furthermore, among pharmaceutical & medical devices companies, technological advancements have been incorporated with the support of CDMO services, enabling greater efficiency and precision in drug discovery, development, and manufacturing. Besides, automation, advanced analytics, and artificial intelligence have been increasingly adopted to streamline processes and reduce error rates.
Likewise, artificial intelligence and machine learning continue to be significant areas of interest for pharmaceutical investments, as they may support the identification & development of treatments in the field of preclinical validation, target identification, and efficiency of clinical development. Moreover, mergers and acquisitions are likely to increase between pharmaceutical and biopharmaceutical companies to diversify their product portfolio, expand their geographical footprint, and mitigate R&D risks. Such factors are expected to drive the market growth.
Global Healthcare Contract Development And Manufacturing Organization Market Report Segmentation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global healthcare contract development and manufacturing organization market report based on type, product, service, workflow, therapeutic area, end-use, and region: