PUBLISHER: Grand View Research | PRODUCT CODE: 1842389
PUBLISHER: Grand View Research | PRODUCT CODE: 1842389
The global healthcare contract manufacturing market size was estimated at USD 213.06 billion in 2024 and is projected to reach USD 566.16 billion by 2033, growing at a CAGR of 11.7% from 2025 to 2033. The market is driven by the expanding biologics and biosimilars market, increasing regulatory complexity, and the commercial success of biologics for clinical use.
Contract manufacturers with established biologics platforms support pharmaceutical companies in scaling up complex biologic drug manufacturing, including monoclonal antibodies, vaccines, and cell and gene therapies. As patents expire for blockbuster biologics, biosimilars gain prominence, creating outsourcing opportunities for CMOs/CDMOs with flexible capacity. Their expertise in process development, large-scale production, and quality management positions them as critical partners in meeting rising global demand for biologics and biosimilars, significantly driving the healthcare contract manufacturing market's growth.
Furthermore, organizations such as the FDA, EMA, and WHO have strict and changing regulations for the global healthcare industry. A substantial investment in data integrity, quality assurance, and Good Manufacturing Practices (GMP) is necessary to meet manufacturing compliance. Many businesses, particularly new biopharma and medtech enterprises lack the internal infrastructure and knowledge necessary to meet these criteria. A dependable option is provided by contract manufacturers with proven compliance frameworks, regulatory approvals, and inspection histories. Businesses reduce risks, prevent expensive delays, and guarantee quicker market access through outsourcing. Global demand for contract manufacturing partnerships is significantly fueled by the growing complexity of regulations.
The need for pharmaceutical medications and medical equipment is being driven by the increasing frequency of noninvasive surgical operations. OEMs are progressively outsourcing non-core manufacturing tasks in order to handle this growth, which allows for lower labor costs, better capital utilization, increased productivity, and shorter lead times. For pharma companies of all sizes, outsourcing has become a cost-effective strategy, particularly as fixed costs for biologics manufacturing-representing nearly 60-70% of the Cost of Goods Sold (COGS)-remain unavoidable even during idle production periods. This makes outsourcing an economically viable option to balance efficiency, scalability, and cost management in a competitive healthcare landscape.
Furthermore, the adoption of multi-product facilities for biologics manufacturing has demonstrated both economic efficiency and safety, as risks of product carryover are negligible, thereby driving market growth. However, rapid supply chain adaptation is a difficulty for the heavily regulated medical device business. Although the FDA actively monitors and responds to shortages, U.S. manufacturers are not required to notify the agency of any actual or prospective shortages. Aluminum, integrated circuits, lithium-ion batteries, and specialty parts such as platinum, pneumatic fittings, and black body radiation sources are among the items in short supply. According to Medical Product Outsourcing, outsourcing should result in lower costs and a quicker time to market, which is expected to support the expansion of the healthcare CRO market.
Global Healthcare Contract Manufacturing Market Report Segmentation
This report forecasts revenue growth at 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 manufacturing market report based on type, end use, and region: