Contract Development and Manufacturing Organization Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service Type CMO, By Research Phase CRO, By Region & Competition, 2021-2031F

Description

The Global Contract Development & Manufacturing Organization (CDMO and CMO) Market is projected to expand from USD 245.47 Billion in 2025 to USD 363.86 Billion by 2031, reflecting a Compound Annual Growth Rate of 6.78%. These organizations provide comprehensive services to the pharmaceutical sector, encompassing everything from early-stage drug development to commercial production and packaging. This growth is primarily driven by the rising complexity of biologic therapies and a strategic emphasis on operational efficiency, which prompts innovators to entrust manufacturing to specialized partners. This reliance on external expertise is bolstered by strong funding in drug discovery; the European Federation of Pharmaceutical Industries and Associations estimated that the research-based pharmaceutical industry invested 55 billion Euros in R&D in Europe in 2024, generating substantial demand for outsourced technical services.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 245.47 Billion
Market Size 2031	USD 363.86 Billion
CAGR 2026-2031	6.78%
Fastest Growing Segment	Finished Dosage Formulation (FDF) Development and Manufacturing
Largest Market	North America

However, the market faces significant hurdles regarding supply chain resilience and regulatory compliance. Escalating geopolitical tensions and shifting legislative frameworks are compelling companies to reorganize their global supply networks. This restructuring often results in capacity constraints and higher operational costs, which can delay project timelines and hinder the delivery of essential medicines.

Market Driver

The rapid expansion of biologics and Advanced Therapy Medicinal Products is fundamentally transforming the market, creating a surge in demand for specialized manufacturing capabilities. As pharmaceutical companies focus on developing complex modalities like antibody-drug conjugates and GLP-1 agonists, they increasingly rely on external partners to overcome technical challenges and scale production. This trend is highlighted by significant sector consolidation to secure capacity; according to DCAT Value Chain Insights in December 2024, the largest market move was Novo Holdings' $16.5 billion acquisition of Catalent to support obesity treatment manufacturing. Major players are seeing direct financial benefits from this demand, with Samsung Biologics reporting a full-year consolidated revenue of KRW 4.55 trillion in January 2025, a 23% increase driven largely by expanded biologic production orders.

Simultaneously, the market is heavily influenced by small and emerging biotech companies that depend on contract partners for end-to-end development support. These smaller entities often lack the internal infrastructure to manage the entire drug lifecycle and rely on CDMOs to progress from clinical trials to commercialization. This segment's activity is closely linked to capital availability, which has recently improved. As noted in Lonza's 'Annual Report 2024' released in April 2025, venture capital funding in the biopharma sector rebounded significantly, showing over 20% year-on-year investment growth. This influx of capital allows emerging innovators to re-engage service providers, maintaining a robust pipeline of early-stage projects that fuels the broader contract manufacturing industry.

Market Challenge

Geopolitical tensions and the consequent need for strict regulatory compliance present a major barrier to the growth of the Global Contract Development and Manufacturing Organization market. As governments enforce tighter legislative frameworks regarding national security and supply chain independence, pharmaceutical innovators face intense pressure to restructure their existing manufacturing networks. This forced migration from established partnerships creates operational bottlenecks, as decoupling from integrated service providers disrupts project continuity and inflates procurement costs.

These disruptions directly impede market momentum by delaying clinical timelines and limiting available production capacity in alternative regions. The extent of this dependency highlights the difficulty of rapid diversification. Data from the Biotechnology Innovation Organization in 2024 revealed that approximately 79 percent of responding biopharmaceutical companies held at least one contract or product linked to a development or manufacturing partner in China. Such high reliance on specific geographies means that shifting supply chains is a capital-intensive and slow process, effectively stalling broader market expansion as funds are diverted toward risk mitigation rather than new development programs.

Market Trends

The Integration of Artificial Intelligence and Digital Twin Technology is rapidly reshaping the operational landscape of contract manufacturing, allowing providers to evolve from simple execution partners into strategic technical innovators. By utilizing predictive algorithms and virtual process modeling, CDMOs can significantly shorten technology transfer timelines and optimize batch yields before physical production begins. This digital maturity is becoming a key competitive factor, directly addressing the industry's need for efficiency and risk reduction in complex modalities. According to a September 2025 article in Contract Pharma titled 'AI in Pharma Manufacturing: Trends & Applications Shortening Timelines', a study indicated that 49% of respondents viewed operational benefits as the primary value sought from smart manufacturing strategies.

In parallel, the Implementation of Sustainable Green Chemistry Practices has become a critical requirement for market participants, driven by increasing regulatory pressure and client mandates to reduce Scope 3 emissions. Contract organizations are actively re-engineering synthetic pathways and adopting renewable energy sources to align with the decarbonization goals of their pharmaceutical partners. Despite this strategic focus, the transition remains capital-intensive and operationally challenging for many providers. As reported by CPHI Online in July 2025, the Pharmapack 2025 Strategic Insights & Research survey revealed that 76% of respondents cited resource constraints as the dominant barrier to effectively implementing sustainability initiatives.

Key Market Players

Lonza
Catalent
Thermo Fisher Scientific
Samsung Biologics
WuXi Biologics
Recipharm
Boehringer Ingelheim BioXcellence
Jubilant Biosys / Jubilant Pharmova
Fareva
Rentschler Biopharma

Report Scope

In this report, the Global Contract Development & Manufacturing Organization (CDMO and CMO) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Contract Development & Manufacturing Organization (CDMO and CMO) Market, By Service Type CMO

Active Pharmaceutical Ingredient (API) Manufacturing
Finished Dosage Formulation (FDF) Development and Manufacturing
Secondary Packaging

Contract Development & Manufacturing Organization (CDMO and CMO) Market, By Research Phase CRO

Pre-clinical
Phase I
Phase II
Phase III
Phase IV

Contract Development & Manufacturing Organization (CDMO and CMO) Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Contract Development & Manufacturing Organization (CDMO and CMO) Market.

Available Customizations:

Global Contract Development & Manufacturing Organization (CDMO and CMO) 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:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Service Type CMO (Active Pharmaceutical Ingredient (API) Manufacturing, Finished Dosage Formulation (FDF) Development and Manufacturing, Secondary Packaging)
- 5.2.2. By Research Phase CRO (Pre-clinical, Phase I, Phase II, Phase III, Phase IV)
- 5.2.3. By Region
- 5.2.4. By Company (2025)
5.3. Market Map

6. North America Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Service Type CMO
- 6.2.2. By Research Phase CRO
- 6.2.3. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Service Type CMO
    - 6.3.1.2.2. By Research Phase CRO
- 6.3.2. Canada Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Service Type CMO
    - 6.3.2.2.2. By Research Phase CRO
- 6.3.3. Mexico Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Service Type CMO
    - 6.3.3.2.2. By Research Phase CRO

7. Europe Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Service Type CMO
- 7.2.2. By Research Phase CRO
- 7.2.3. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Service Type CMO
    - 7.3.1.2.2. By Research Phase CRO
- 7.3.2. France Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Service Type CMO
    - 7.3.2.2.2. By Research Phase CRO
- 7.3.3. United Kingdom Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Service Type CMO
    - 7.3.3.2.2. By Research Phase CRO
- 7.3.4. Italy Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Service Type CMO
    - 7.3.4.2.2. By Research Phase CRO
- 7.3.5. Spain Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Service Type CMO
    - 7.3.5.2.2. By Research Phase CRO

8. Asia Pacific Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Service Type CMO
- 8.2.2. By Research Phase CRO
- 8.2.3. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Service Type CMO
    - 8.3.1.2.2. By Research Phase CRO
- 8.3.2. India Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Service Type CMO
    - 8.3.2.2.2. By Research Phase CRO
- 8.3.3. Japan Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Service Type CMO
    - 8.3.3.2.2. By Research Phase CRO
- 8.3.4. South Korea Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Service Type CMO
    - 8.3.4.2.2. By Research Phase CRO
- 8.3.5. Australia Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Service Type CMO
    - 8.3.5.2.2. By Research Phase CRO

9. Middle East & Africa Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Service Type CMO
- 9.2.2. By Research Phase CRO
- 9.2.3. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Service Type CMO
    - 9.3.1.2.2. By Research Phase CRO
- 9.3.2. UAE Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Service Type CMO
    - 9.3.2.2.2. By Research Phase CRO
- 9.3.3. South Africa Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Service Type CMO
    - 9.3.3.2.2. By Research Phase CRO

10. South America Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Service Type CMO
- 10.2.2. By Research Phase CRO
- 10.2.3. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Service Type CMO
    - 10.3.1.2.2. By Research Phase CRO
- 10.3.2. Colombia Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Service Type CMO
    - 10.3.2.2.2. By Research Phase CRO
- 10.3.3. Argentina Contract Development & Manufacturing Organization (CDMO and CMO) Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Service Type CMO
    - 10.3.3.2.2. By Research Phase CRO

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Contract Development & Manufacturing Organization (CDMO and CMO) Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Lonza
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Catalent
15.3. Thermo Fisher Scientific
15.4. Samsung Biologics
15.5. WuXi Biologics
15.6. Recipharm
15.7. Boehringer Ingelheim BioXcellence
15.8. Jubilant Biosys / Jubilant Pharmova
15.9. Fareva
15.10. Rentschler Biopharma