Healthcare Contract Development And Manufacturing Organization Market To Reach USD 471.0 Billion By 2030

Healthcare Contract Development and Manufacturing Organization Market Growth & Trends

The global healthcare contract development and manufacturing organization market size is expected to reach USD 471.0 billion by 2030, growing at a CAGR of 9.68% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is expected to show lucrative growth due to rising outsourcing trends and increasing R&D expenditure.

Healthcare contract development and manufacturing organization (CDMO) provide outsourcing services to various pharmaceutical industries on a contract basis. An increase in outsourcing by pharmaceutical companies, expansions in the pharmaceutical industry, and the support of CDMOs in reducing operational and capital expenses are some of the major factors anticipated to propel the market growth in the forecast period.

In addition, growing requirement among pharmaceutical and medical device companies to follow stringent timelines has increased the demand for outsourcing development and manufacturing activities to CDMOs. Further, due to the increasing demand for medical devices in emerging countries, various companies are shifting their focus on research and development activities for medical device contract development and manufacturing. Over the past 10 years, several pharmaceutical companies have turned to CMOs, CROs, and CDMOs to assist in pre-formulation and development & manufacturing of their novel innovations. Outsourcing is a high growth market, and most spending is focused on early development.

Around 75% of new drug pipelines come from small- and midsized biopharmaceutical companies. These companies have high profit margins, which make them easy targets for healthcare providers who are trying to reduce costs. Thus, instead of investing in establishing their own infrastructure, it is profitable for these companies to outsource services to third-party organizations that have expertise and the required equipment. Several pharmaceutical companies are seeking outsourced services for optimizing the development of their molecules. Furthermore, a large number of CDMO collaborations, expansions, mergers & acquisitions, and other strategic initiatives undertaken by market players operating in the country are anticipated to boost the market. For instance, In March 2023, Remedium Bio, a U.S.-based biotechnology company, entered into a collaboration agreement with Exothera, a Belgium-based CDMO, to scale up the production of Remedium’s lead gene therapy drug candidate, AAV2-FGF18 in the treatment of osteoarthritis. Similarly, in January 2024, Enzene Biosciences, a subsidiary of Alkem Labs announced the manufacturing site in the U.S. Such innovations are anticipated to drive the market.

However, increasing logistic costs, serialization issues faced by healthcare organizations, and the threat of infringement of Intellectual Property (IP) rights are anticipated to restrain the market growth for healthcare contract development & manufacturing organization over the forecast period.

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Healthcare Contract Development and Manufacturing Organization Market Report Highlights

• Based on services, the contract manufacturing segment dominated the market with a revenue share of 73.50% in 2023 due to increase in the outsourcing of manufacturing services by pharmaceutical and medical device companies.In addition, cost-effectiveness, and the increasing number of CMOs are some of the key factors that are positively affecting the market growth
• By small molecule contract development sub-segment, the preclinical/segment is expected to register the highest CAGR of 9.53% in the forecast period due to the rising pipeline of novel therapeutics
• North America dominated the healthcare contract development and manufacturing organization industry with the largest revenue share of 40.91%in 2023. High shares of the region are majorly due to the presence of a large number of actively functioning CROs and CMOs in the region, especially across the U.S.

Healthcare Contract Development and Manufacturing Organization Market Segmentation

For this study, Grand View Research has segmented the healthcare contract development and manufacturing organization market based on services and region:

Healthcare CDMO Services Outlook (Revenue, USD Billion, 2018 – 2030)

• Contract Development
  • Small Molecule
    • Preclinical
      • Bioanalysis and DMPK Studies
      • Toxicology Testing
      • Other Preclinical Services
    • Clinical
      • Phase I
      • Phase II
      • Phase III
      • Phase IV
    • Laboratory Services
      • Bioanalytical Services
      • Analytical Services
  • Large Molecule
    • Cell Line development
    • Process Development
      • Upstream
        • Microbial
        • Mammalian
        • Others
      • Downstream
        • MABs
        • Recombinant Proteins
        • Others
    • Others
• Contract Manufacturing
  • Small Molecule
  • Large Molecule
    • MABs
    • Recombinant Proteins
    • Others
  • High Potency API
  • Finished Dose Formulations
    • Solid Dose Formulation
    • Liquid Dose Formulation
    • Injectable Dose Formulation
  • Medical Devices
    • Class I
    • Class II
    • Class III

Healthcare CDMO Regional Outlook (Revenue, USD Billion, 2018 – 2030)

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
  • Belgium
  • Denmark
  • Norway
  • Sweden
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Malaysia
  • New Zealand
  • Singapore
  • Philippines
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Israel
  • Kuwait

List of Key Players in the Healthcare CDMO Market

• Catalent Inc.
• Lonza
• Recipharm AB
• Siegfried Holding AG
• Thermo Fisher Scientific, Inc.
• Labcorp Drug Development
• Jabil Inc
• Syngene International Limited
• IQVIA Inc.
• Almac Group
• Ajinomoto Bio-Pharma
• Adare Pharma Solutions
• Alcami Corporation
• Vetter Pharma International

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