Healthcare Contract Manufacturing Outsourcing (CMO) Market - Forecasts from 2025 to 2030

The Healthcare Contract Manufacturing Outsourcing (CMO) Market is expected to grow from US$200.627 billion in 2025 to US$290.176 billion in 2030, at a CAGR of 7.66%.

Like every other business, the Healthcare Sector also leverages the outsourcing process in the manufacture of drugs or medical devices. Contract manufacturing is a method for getting drugs and devices manufactured by an outsourcing firm specializing in that business. The increasing number of patients puts pressure on hospitals to maintain appropriate facilities to meet expectations in terms of infrastructure, workforce, medicine, and equipment. Outsourcing of some of the processes, like drug or medical device manufacturers, is being demanded by the healthcare sector to be able to focus on core competencies while minimizing the cost of operations.

Healthcare Contract Manufacturing Outsourcing (CMO) Market Trends:

Experience and expertise in the Healthcare outsourcing manufacturing market are driving the demand for such a market. On top of that, healthcare providers can avoid unnecessary capital investments, which might strain their resources. New players, willing to enter the healthcare market, can outsource the manufacture of drugs and devices to sustain their existence while providing quality services. The cost factor is the major reason for the booming Healthcare CMO market. Bypassing the process of hiring experts and saving time is an added advantage for the customers of this market.

Healthcare Contract Manufacturing Outsourcing Market Growth Drivers:

• The increased productivity while reducing the probability of errors is contributing to the market growth in the forecast period.

Mistakes in the healthcare sector can be fatal for the patient and destroy the hard-earned earnings of the service provider. Healthcare CMO companies tend to remain up-to-date with the latest changes in the industry and can provide optimal solutions to their customers. This adds to the growth of the companies in this sector. Drug R&D is an expensive endeavor, which is one of the primary reasons why the Healthcare CMO Industry is thriving.

Besides, governmental pressure to remain competitive and efficient while ensuring the safety of patients is shaping the way the healthcare sector is transforming. Patent expiration is also a major reason why companies are resorting to a healthcare CMO. Due to economies of scale, CMO companies are able to minimize the cost of drug production and can maintain their profits while letting the healthcare service provider maintain their incremental profit.

Healthcare Contract Manufacturing Outsourcing Market Geographical Outlook:

• The Asia Pacific region is expected to show higher growth prospects in the forecast period due to high dependence on healthcare CMO firms from developed countries.

To meet the rising demand for medical equipment for surgeries and other medical aids, countries, such as India, are outsourcing the manufacture of these devices while maintaining their quality standards. Developed countries, such as America, have significantly invested in updating and upgrading their facilities and enhancing production more efficiently. America shares a substantial portion of the pie of this market due to the presence of a large number of pharmaceutical companies. The European region also holds a major portion of the market due to high governmental support and the booming biopharmaceutical sector.

Healthcare Contract Manufacturing Outsourcing Market Product Offerings:

• Lonza cGMP Manufacturing: Autologous and allogeneic cell treatments, as well as viral vector gene therapy, are all covered by cGMP manufacturing capabilities, which span three continents. It can aid in the commercialization of novel treatments at various phases of their clinical development. The NPI program uses experience and decades of expertise in building cGMP manufacturing standards, combining corporate and local quality standards, tailored for cell and gene therapies, to reduce the risk associated with clients' path to commercialization.
• AGC Biologics (AGC Inc) formulation development: AGC Biologics creates formulations for lyophilized drug products, liquid drug substances, and drug products (together with optimized lyophilization cycles). Utilizing Design of Experiment (DOE) principles, they create extensive, quick excipient screening experiments to find excipients and circumstances that promote the greatest possible product stability. To produce an ideal formulation, they carefully examine various excipients and circumstances in combination using real-time and expedited stability studies. Formulations are created at dosage concentrations ranging from micrograms to >175 mg/mL.

Healthcare Contract Manufacturing Outsourcing Market Companies:

• Pfizer Inc.
• Lonza Group
• AGC Biologics (AGC Inc)
• Recipharm AB
• Catalent, Inc. (Novo Holding A/S)

Healthcare Contract Manufacturing Outsourcing (CMO) Market Segmentation

By Service

• Pharmaceutical CMO
• Active Pharmaceutical Ingredients (API) Manufacturing
• Final Dose Formulation (FDF) Mnuafacturing
• Packaging
• Medical Device (CMO)
• Design Outsourcing
• Device Manufacturing
• Final Goods Assembly

By Product Type

• Sterile
• Non-Sterile

By End-User

• Pharmaceutical Companies
• Medical Device Companies
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Indoensia
• Thailand
• Others