The global pharmaceutical contract development and manufacturing organization (CDMO) market size was estimated at USD 155.5 billion in 2024 and is projected to reach USD 293.6 billion by 2033, growing at a CAGR of 7.38% from 2025 to 2033. This robust growth is primarily driven by increasing investments made by CDMOs to support new drug development pipelines and meet the rising demand for novel and specialty therapies. Additionally, major factors such as expanding pharmaceutical R&D spending, the increasing need for genetic and biologic drugs, and the rising prevalence of cancer and age-related disorders are strengthening market expansion. As healthcare systems worldwide shift toward more advanced and targeted treatment options, CDMOs are becoming essential partners for pharmaceutical companies seeking scalable, cost-efficient, and specialized development and manufacturing support.

The pharmaceutical industry is undergoing a major transformation as it shifts from traditional small-molecule drugs toward more complex biopharmaceuticals. These include monoclonal antibodies, recombinant proteins, vaccines, and emerging modalities such as mRNA therapeutics. This transition is fueled by the rising global burden of chronic illnesses, an aging population requiring long-term disease management, and the growing availability of precision therapies offering improved efficacy and reduced side effects compared to conventional treatments. As a result, the demand for advanced biologic manufacturing capabilities continues to rise, driving pharmaceutical companies to increasingly rely on CDMOs that can provide specialized expertise and cutting-edge infrastructure.

According to data published by IQVIA in January 2024, global medicine spending at list prices is expected to increase by 38% between 2024 and 2028, with biologics contributing over 40% of that total growth, underscoring their expanding influence in modern therapeutics. Regulatory bodies such as the U.S. FDA are also accelerating innovation, having approved 50 novel drugs in 2024 alone many of which were advanced biologics and specialty therapies supported by a strong first-cycle approval rate of 74%. More than half of the late-stage development pipeline now consists of biopharmaceuticals, including GLP-1 agonists for diabetes and obesity, cell and gene therapies for rare genetic disorders, and monoclonal antibody–based oncology treatments. In this evolving environment, CDMOs are indispensable, as biologics production requires sophisticated technologies including single-use bioreactors, continuous bioprocessing platforms, and extensive cold chain logistics, all of which demand specialized knowledge and significant capital investments.

Key Market Trends & Insights:

• The Asia Pacific pharmaceutical CDMO market held the largest share at 37.90% of the global market in 2024. The region has emerged as a major hub for global drug development and manufacturing due to its cost-effective production capabilities, increasingly skilled scientific workforce, and expanding regional demand for innovative biopharmaceutical products.
• By type, the small molecule segment led the market with a revenue share of 65.63% in 2024, although the large molecule segment which includes biologics, monoclonal antibodies, and cell and gene therapies is expected to expand rapidly over the forecast period.
• By product, the API segment accounted for the largest share in 2024, while the drug product segment comprising oral solid dose, liquid dose, semisolid dose, and other formulations is projected to experience substantial growth in the coming years.
• By service, the contract manufacturing segment led the market in 2024, whereas the contract development segment is anticipated to grow significantly as demand rises for early-stage drug development, formulation expertise, and process optimization.
• By workflow, the commercial segment held the highest market share in 2024, while the clinical segment is expected to grow at a notable CAGR as clinical trial pipelines expand globally.
• By therapeutic area, oncology dominated the market in 2024, reflecting the high incidence of cancer and increased demand for advanced targeted therapies, while the autoimmune diseases segment is expected to grow rapidly.
• By end-use, large pharmaceutical companies accounted for the highest market share in 2024 due to their reliance on CDMOs for both capacity expansion and specialized expertise. Meanwhile, medium-sized pharmaceutical companies are projected to record strong growth as they increasingly outsource development and manufacturing to remain competitive.

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Market Size & Forecast:

• 2024 Market Size: USD 155.5 Billion
• 2033 Projected Market Size: USD 293.6 Billion
• CAGR (2025-2033): 7.38%
• Asia Pacific: Largest market in 2024

Key Players

• Thermo Fisher Scientific, Inc
• Lonza
• Recipharm AB
• Catalent, Inc
• WuXi AppTec, Inc
• Samsung Biologics
• Piramal Pharma Solutions
• Siegfried Holding AG
• Corden Pharma International
• Cambrex Corporation
• Vetter Pharma
• Delpharm
• Jubilant Pharmova / HollisterStier
• Eurofins CDMO
• Almac Pharma Services

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Conclusion:

The global pharmaceutical CDMO market is positioned for strong long-term growth as the industry increasingly shifts toward complex biologics, advanced therapeutics, and high-value specialty medicines. Rising R&D investments, combined with the growing prevalence of chronic and age-related diseases, continue to drive demand for outsourced development and manufacturing expertise. CDMOs are becoming essential partners as pharmaceutical companies seek scalable, cost-efficient solutions supported by state-of-the-art technologies such as single-use bioreactors, continuous bioprocessing, and advanced cold chain systems. Rapid innovation in drug development, coupled with accelerating regulatory approvals for biologics, is further expanding market opportunities. Regions like Asia Pacific are strengthening their global footprint due to cost advantages and expanding scientific capabilities. Additionally, increasing demand from both large and mid-sized pharmaceutical companies underscores the importance of flexible outsourcing models. Overall, the market is set to expand as CDMOs play an increasingly integral role in accelerating drug pipelines and enabling the delivery of next-generation therapies worldwide.