Contract Development & Manufacturing Organization (CDMO) Market to Grow at a CAGR of 8.7% During the Forecast Period; Growing Capital-Intensive Activities to Reduce Fixed Costs Propels Market Expansion

The Contract Development & Manufacturing Organization (CDMO) market size was valued at USD 199.27 billion in 2025. The market is expected to grow from USD 214.95 billion in 2026 to USD 419.93 billion by 2034, showing a CAGR of 8.7% during the forecast period.

Fortune Business Insights™ presents this information in its report titled, “Contract Development & Manufacturing Organization (CDMO) Market Size, Share & Industry Analysis, By Service (Contract Manufacturing {API Manufacturing, Finished Product [Solid Dosage Forms, Injectables, and Others], and Packaging}, and Contract Development {Formulation Development, Process Development & Scale-up, Analytical Method Development & Validation, Stability Testing, CMC & Regulatory Development Support, and Others}), By Molecule Type (Small Molecules, Biologics, Cell & Gene Therapies, and Others), By Therapeutic Area (Oncology, Infectious Diseases, Neurology, Cardiology, Immunology & Inflammation, Metabolic Disorders, and Others), and Regional Forecast, 2026-2034”. 

CDMO is referred to a firm that specializes in offering different outsourced drug development formulation, analytical testing, clinical and commercial manufacturing packaging, fill-finish and legal support services to biotechnology and pharmaceutical organizations. The market is noticing significant growth driven by surging demand for outsourcing complexes. Additionally, the capital-intensive activities to decrease fixed costs, improve development timelines and access advanced technology also boosts the overall market development.

Collaboration Between FUJIFILM Diosynth Biotechnologies and Regeneron Pharmaceuticals to Fuel Market Development

In April 2025, FUJIFILM Diosynth Biotechnologies and Regeneron Pharmaceuticals collaborated under a 10-year manufacturing supply agreement. This was valued at over USD 3.0 billion for U.S.-based production of Regeneron's biologic medicines including monoclonal antibodies.

Increasing in Outsourcing by Biotech and Pharma Sector Augments Market Growth

One of the prominent drivers for the Contract Development & Manufacturing Organization (CDMO) market growth is growing demand for outsourcing manufacturing and development processes from pharmaceutical and biotechnology companies. This is highly preferred over the expensive in-house infrastructure as it allows to save cost and focus on research and development. This demand is also growing owing to drug pipelines that are becoming more diverse with surging biologics volume, mRNA products and sterile injectables. For instance, Tonix Pharmaceuticals Holding Corp. nominated two Contract Manufacturing Organizations (CMOs) to launch and commercially produce Tonmya for the treatment of fibromyalgia.

On the other hand, higher capital investment and a long setup timeline is hindering market growth.

Top Players Focus on Expanding Facilities to Strengthen Their Market Presence

The market is characterized by the presence of significant key industry players. These companies are competing through their specialized capabilities including high-potency APIs, viral vectors, biologics, and integrated development-to-commercial manufacturing platforms. Additionally, other players are focusing on expanding their manufacturing capabilities through new facility launches and upgrading existing facilities.  

Notable Industry Development

• September 2025: FUJIFILM Biotechnologies extended its partnership with argenx. This aims to include U.S. manufacturing, manufacturing drug substances for argenx's efgartigimod (Vyvgart) at its Holly Springs, North Carolina facility starting in 2028.

List of the Companies Profiled in the Report

• Lonza (Switzerland)
• Thermo Fisher Scientific Inc. (U.S.)
• Catalent, Inc (U.S.)
• Samsung Biologics (South Korea)
• WuXi Biologics (China)
• Siegfried Holding AG (Switzerland)
• FUJIFILM Holdings Corporation (Japan)
• Boehringer Ingelheim International GmbH (Germany)
• Recipharm AB (Sweden)
• Cambrex Corporation (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/contract-development-and-manufacturing-organization-cdmo-outsourcing-market-102502

Further Report Findings

• North America held the largest Contract Development & Manufacturing Organization (CDMO) market share, due to the presence of pharmaceutical companies influencing CDMOs to partner, acquire and invest in modern capabilities.
• Market growth in Asia Pacific is driven by growing focus on expanding biologics manufacturing capabilities and cost saving.
• Market expansion in Europe is propelled by advanced biologics capabilities and a large base for specialized CDMOs.
• In terms of services, the contract manufacturing segment led the market as commercial-scale producing is cost effective and operationally a significant part of the pharmaceutical value chain.
• On the basis of molecular type, the small molecules segment dominates the market due to a large number of approved and pipeline medicines including the high-potency APIs that demand expertise in API synthesis.

Table of Segmentation