PUBLISHER: TechSci Research | PRODUCT CODE: 1763886
PUBLISHER: TechSci Research | PRODUCT CODE: 1763886
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The Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market was valued at USD 13.05 Billion in 2024 and is projected to reach USD 18.41 Billion by 2030, growing at a CAGR of 6.10% during the forecast period. Contract Development and Manufacturing Organizations (CDMOs) have become indispensable partners for pharmaceutical and biotechnology companies, offering capabilities in drug formulation, active pharmaceutical ingredient (API) production, and commercial-scale manufacturing. Increasingly, companies are outsourcing these operations to reduce capital investments, improve speed to market, and maintain agility in the face of evolving regulatory frameworks and market conditions. This trend is especially pronounced in the biopharmaceutical sector, where the complexity of producing biologics, biosimilars, and cell and gene therapies necessitates advanced technologies and rigorous quality standards. Although growth prospects are robust, market players must contend with rising regulatory complexity and the need for continuous investment in compliance infrastructure.
Market Overview | |
---|---|
Forecast Period | 2026-2030 |
Market Size 2024 | USD 13.05 Billion |
Market Size 2030 | USD 18.41 Billion |
CAGR 2025-2030 | 6.10% |
Fastest Growing Segment | Active Pharmaceutical Ingredients (API) |
Largest Market | North America |
Key Market Drivers
Growth in Healthcare Industry
The rapid expansion of the global healthcare sector, generating over USD 4 trillion in annual revenue, is a significant growth driver for the pharmaceutical and biopharmaceutical contract manufacturing market. With pharmaceuticals and biotechnology contributing nearly USD 850 billion and medical technology and diagnostics adding over USD 400 billion, the healthcare industry is witnessing a growing need for efficient drug production and scalable manufacturing capabilities. To meet these demands, drug developers are increasingly outsourcing to CDMOs, allowing them to focus on R&D and commercialization while leveraging external partners' infrastructure and regulatory expertise. The high costs and long development timelines associated with new drug development-ranging between USD 314 million and USD 4.46 billion-further incentivize the use of contract manufacturers to manage costs, accelerate production, and ensure compliance with evolving regulatory standards.
Key Market Challenges
Complexity in Biopharmaceutical Manufacturing
Biopharmaceutical manufacturing presents considerable complexity, making it a critical challenge for contract manufacturing organizations. Unlike conventional small-molecule drugs, biopharmaceuticals-such as monoclonal antibodies, vaccines, and cell and gene therapies-are derived from living organisms, making their production highly sensitive to variables like temperature, pH, and raw material quality. This complexity necessitates precise control of upstream and downstream processes, as even minor deviations can compromise product safety and efficacy. Consequently, CDMOs must make substantial investments in advanced infrastructure, process optimization, and quality management systems. These demands often lead to longer development cycles and increased operational costs, requiring CDMOs to maintain high levels of expertise and resource allocation.
Key Market Trends
Increased Focus on Cell and Gene Therapy Manufacturing
A defining trend in the market is the rising focus on cell and gene therapy manufacturing. With 76 such therapies launched globally by the end of 2023-more than double the number from a decade prior-this segment is gaining traction due to its promise of targeted, curative treatments for complex diseases. Unlike traditional drug manufacturing, cell and gene therapies involve highly specialized, patient-specific processes that require stringent quality control, cutting-edge bioprocessing, and regulatory precision. Due to these challenges, pharmaceutical companies are increasingly partnering with CDMOs that possess proven capabilities in handling advanced therapeutic modalities. These partnerships enable faster development timelines, greater scalability, and improved regulatory compliance, reinforcing the role of CDMOs as strategic allies in the evolving therapeutic landscape.
Report Scope
In this report, the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market.
Available Customizations
Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: