The global oral solid dosage (OSD) CDMO market size was estimated at USD 46.37 billion in 2025 and is projected to reach USD 77.06 billion by 2033, expanding at a CAGR of 6.58% from 2026 to 2033. The market’s growth is primarily fueled by the increasing need for cost-efficient and time-effective drug development processes, prompting pharmaceutical and biotechnology companies to outsource more extensively to CDMOs. Rising consumption of tablets and capsules especially for chronic and lifestyle-related conditions further amplifies demand, as these forms offer ease of administration, accurate dosing, and strong patient compliance. Additional key growth drivers include the expansion of generic drug production, patent expiries that pave the way for new entrants, and the growing need for flexible and scalable manufacturing capacities. CDMOs have become essential partners, providing advanced formulation expertise, efficient production scale-up capabilities, and robust regulatory support to help companies navigate complex quality standards. Furthermore, technological advancements and the growing reliance on end-to-end OSD development and manufacturing services are strengthening the overall market trajectory.

The increasing prevalence of chronic and infectious diseases continues to fuel demand for innovative therapies, as these conditions require long-term treatment and continuous drug supply. A growing geriatric population more susceptible to multiple chronic diseases further drives the need for new and improved treatment options, reinforcing the relevance of OSD formats. Adverse reactions to certain existing drugs have also heightened the need for novel therapeutics with better safety and efficacy profiles, creating additional opportunities in the OSD CDMO space.

Moreover, advancements in drug delivery technologies have expanded the diversity of solid dosage forms available in the market. Growing investments from CDMOs aimed at enhancing OSD development capabilities, coupled with increasing demand for differentiated therapies, continue to propel industry growth. These investments enable the creation of more sophisticated formulations, including modified-release products and specialized dosage formats, which align with evolving therapeutic requirements.

Innovations such as 3D printing in OSD manufacturing allow for customization of dosage forms, precise drug release control, and patient-specific formulations, supporting more personalized drug therapies. This technology facilitates complex product designs that would otherwise be challenging to achieve using traditional manufacturing methods. Meanwhile, controlled-release technologies enhance treatment outcomes by ensuring sustained therapeutic efficacy, reducing dosing frequency, and improving patient adherence. The integration of digital technologies, automation, and data analytics is also transforming CDMO operations by optimizing process monitoring, enhancing quality control, and creating more transparent and data-driven manufacturing ecosystems. Collectively, these advancements are expected to significantly strengthen market growth over the forecast period.

Key Market Trends & Insights:

• The Asia Pacific oral solid dosage CDMO market held the largest share of 36.89% in 2024, supported by the strong presence of India and China as major manufacturing hubs offering highly competitive pricing. These countries have extensive capabilities in OSD production, supported by skilled labor, established pharmaceutical ecosystems, and favorable manufacturing costs. China’s OSD CDMO market is projected to grow notably over the forecast period due to its expanding capacity and increasing global demand for cost-effective development and manufacturing solutions.
• In Europe, the oral solid dosage CDMO market is expected to grow significantly, driven by the strong presence of leading pharmaceutical companies and multinational CDMOs operating in the region. The UK market, in particular, is poised for growth due to its concentration of global CDMOs and its advanced regulatory and research environment, which supports innovation and high-quality production.
• By Product: The tablet segment accounted for the largest market share of 32.05% in 2024, propelled by broad applicability, formulation flexibility, global acceptance, and strong patient preference. In contrast, the capsules segment is expected to grow at the fastest CAGR during the forecast period, driven by advantages such as ease of swallowing, rapid disintegration, taste masking capability, and improved absorption characteristics.
• By Mechanism: The controlled-release segment held the largest market share in 2024, supported by benefits such as improved patient compliance, enhanced therapeutic efficacy, better safety profiles, and reduced dosing frequency. Meanwhile, the immediate-release segment is projected to grow at the fastest CAGR, fueled by rising demand for rapid drug absorption and quick onset of action, especially for acute and fast-acting treatments.
• By Service: The contract development segment dominated the market in 2024 due to increasing reliance on CDMOs for formulation design, analytical testing, and early-stage development. The contract manufacturing segment is expected to record the fastest growth as expanding pharmaceutical pipelines drive demand for large-scale commercial production of tablets and capsules.
• By End Use: The medium & small-sized companies segment accounted for the highest market share in 2024 and is expected to grow the fastest, as an increasing number of emerging pharmaceutical companies outsource development and manufacturing to CDMOs to reduce costs and accelerate timelines. The large-sized companies segment is also expected to grow rapidly, driven by rising outsourcing of high-volume production to optimize internal resources and enhance operational flexibility.
• By Drug Potency: The low-potency drugs segment dominated the market in 2024 due to the large number of conventional medications formulated in standard dosages. Conversely, the high-potency drugs segment is forecast to grow the fastest, supported by the rising development of targeted therapies and the growing need for specialized containment and handling capabilities.

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Market Size & Forecast:

• 2025 Market Size: USD 43.37 Billion
• 2033 Projected Market Size: USD 77.06 Billion
• CAGR (2025-2033): 6.58%
• Asia Pacific: Largest market in 2025
• Europe: Fastest growing market

Key Companies & Market Share Insights:

Market players are engaging in strategic initiatives including product innovation, partnerships, mergers, acquisitions, and expansions to strengthen service portfolios and enhance competitive positioning. For example, in January 2024, Alcami Corporation acquired Pacific Pharmaceutical Services, Inc., a cGMP-compliant pharma storage and services provider, enabling Alcami to broaden its service offerings and expand its market reach.

Lonza, one of the global leaders in the CDMO industry, operates more than 30 sites across Europe, North America, and Asia and offers comprehensive end-to-end services for OSD drugs. Its capabilities span drug formulation development, clinical trial supply, commercial-scale manufacturing, and packaging, making it a preferred partner for companies seeking integrated solutions.

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Conclusion:

The global oral solid dosage CDMO market is set to experience steady and sustained growth as pharmaceutical and biotechnology companies increasingly rely on outsourcing to optimize costs, enhance flexibility, and accelerate drug development. Rising prevalence of chronic and infectious diseases, coupled with the expanding need for patient-friendly dosage forms such as tablets and capsules, continues to strengthen market demand. Technological advancements including 3D printing, controlled-release systems, and data-driven manufacturing are further transforming OSD development, enabling greater precision, customization, and efficiency. Additionally, strong contributions from emerging markets, particularly in Asia Pacific, and strategic expansions by major CDMOs are expected to reinforce the industry’s global footprint. Overall, the market is poised for significant progress as innovation, outsourcing trends, and therapeutic needs converge to support long-term growth.