Contract Development and Manufacturing Organization (CDMO) Market Size, Share & Industry Analysis, By Service (CMO [API Manufacturing, Finished Product Manufacturing {Solid Dosage Forms, Injectables, and Others}, and Packaging] and CRO [Early Phase Development Services {Chemistry, Manufacturing, and Controls (CMC), Preclinical Service, and Discovery}, Clinical {Phase 1, Phase 2, Phase 3, and Phase 4}, Laboratory Service, and Others]), and Regional Forecast, 2025-2032

The global Contract Development and Manufacturing Organization (CDMO) market size was valued at USD 238.92 billion in 2024. The market is projected to grow from USD 255.01 billion in 2025 to USD 465.24 billion by 2032, exhibiting a CAGR of 9.0% during the forecast period. North America dominated the contract development and manufacturing organization (CDMO) market with a market share of 38.59% in 2024.

Contract Development and Manufacturing Organizations (CDMOs) are service provider organizations that provide comprehensive services to pharmaceutical and biotechnology companies. The services provided by these organizations include both drug development and manufacturing, from initial research to commercial production. The growing demand for effective therapeutics and the limited availability of in-house manufacturing capabilities and manufacturing processes in small & mid-sized companies are among the major factors that are expected to fuel the market growth throughout the forecast period.

• For instance, in March 2024, Alcami Corporation announced a partnership with Tanvex CDMO, a biologics developer offering preclinical to commercial biologic CDMO services. Through this partnership, both companies started offering their clients a complete solution, from bulk drug substance production to finished drug products.

Furthermore, the increasing focus of healthcare firms on investment in the R&D of advanced therapeutics, along with the growing government efforts to improve the healthcare infrastructure and supply chain, are some of the additional factors contributing to the expansion of the market in the key regions.

• For example, in August 2023, the U.S. Department of Health and Human Services granted over USD 1.00 billion to four BARDA Clinical Trial partners to back vaccine Phase IIb clinical trial studies.

Contract Development and Manufacturing Organization Market Overview

Market Size & Forecast:

• 2024 Market Size: USD 238.92 billion
• 2025 Market Size: USD 255.01 billion
• 2032 Forecast Market Size: USD 465.24 billion
• CAGR: 9.0% from 2025–2032

Market Share:

• North America dominated the Contract Development and Manufacturing Organization (CDMO) market with a 38.59% share in 2024, driven by a well-established network of CDMOs, a high number of clinical trials, and strong pharma-biotech partnerships.
• By service, the Contract Manufacturing Organization (CMO) segment held the largest share in 2024, attributed to increasing strategic alliances between pharmaceutical/biotechnology firms and CDMOs for manufacturing finished products and APIs.

Key Country Highlights:

• Japan: Growth driven by increased R&D expenditure in biologics and growing demand for outsourced manufacturing from emerging biotech companies. Emphasis on quality and regulatory compliance further boosts CDMO adoption.
• United States: Dominant due to the presence of major CDMO companies and a large number of ongoing clinical trials. For example, according to WHO, over 5,999 clinical trials were registered in the U.S. in 2024. Strategic partnerships, such as those by Lonza and Thermo Fisher, further strengthen the U.S. market.
• China: Rapid market growth supported by increasing investments in biopharmaceuticals, expansion of CDMO service capacity, and favorable government support for clinical trials and vaccine manufacturing. For instance, Boehringer Ingelheim expanded its CDMO services in China in partnership with Sino Biopharmaceutical.
• Europe: The second-largest regional market in 2024. Growth supported by increased presence at biotech forums and events, such as Scinai Immunotherapeutics showcasing services at BIO-Europe Spring 2025, as well as regulatory alignment with international standards facilitating easier expansion.

Market Dynamics

Market Drivers

Increasing Outsourcing of Clinical Trials and Medicines Production has been Fueling Market Growth

The Contract Development and Manufacturing Organization (CDMO) market growth has been significant in the past few years, driven by the outsourcing of clinical trials and manufacturing processes. It allows pharmaceutical companies to reduce operational costs. By leveraging the expertise and resources of CDMOs, companies can avoid heavy investments in infrastructure and personnel.

Moreover, CDMOs often have specialized knowledge and cutting-edge technology that may not be available for pharma and biotech companies in their in-house facility. This access can be crucial for the successful development and manufacturing of complex drugs, especially biologics and advanced therapies. The growing partnerships among CDMOs and pharmaceutical companies are boosting market growth.

• For example, in October 2024, Acumen Pharmaceuticals, a clinical-stage biopharmaceutical company developing a novel therapeutic that targets toxic soluble amyloid beta (Aβ) oligomers (AβOs) for the treatment of Alzheimer's disease, announced that it had extended its collaboration with Lonza, a global manufacturing partner to the pharmaceutical, biotech and nutraceutical markets to enable the potential future commercial launch of sabirnetug (ACU193).

Also, the growing strategic collaborations among pharma companies and CDMOs for a wide range of services, including clinical trial material manufacturing, regulatory support, and sometimes even full clinical trial execution, allow them to support the entire drug development process from research to commercialization, boosting market growth.

• For example, in June 2024, Essential Pharma collaborated with AGC Biologics, a global biopharmaceutical CDMO, to accelerate the development and production of promising neuroblastoma therapy Hu14.18. Essential Pharma further used this drug candidate in its clinical trials.

Market Restraints

Stringent Regulatory Scenarios in Different Regions have been Restricting Market Growth

The Contract Development and Manufacturing Organization (CDMO) market has experienced significant growth due to increasing demand for outsourced pharmaceutical development and manufacturing services. However, stringent regulatory scenarios can pose challenges that limit the growth and operational flexibility of CDMOs.

The CDMOs must ensure that their facilities and processes comply with GMP standards set by regulatory bodies such as the U.S. FDA (Food and Drug Administration) and EMA (European Medicines Agency). These regulations require rigorous documentation, validation, and quality control processes. Failure to comply can lead to fines, product recalls, or even facility shutdowns.

Additionally, the approval of new drugs or biologics often requires extensive clinical trials and documentation, which can delay timelines for CDMOs. For instance, if a pharmaceutical company partners with a CDMO for the development of a new biologic, the CDMO must navigate complex regulatory pathways, including Investigational New Drug (IND) applications and New Drug Applications (NDA). Any delays in these processes can adversely affect the CDMO's operational timelines and revenue.

• For example, in June 2024, AbbVie announced that it had received a Complete Response Letter (CRL) from the U.S. FDA (Food and Drug Administration) regarding its New Drug Application (NDA) for ABBV-951 (foscarbidopa) for the treatment of motor fluctuations in advanced Parkinson's disease. The CRL from the FDA did not identify any issues with ABBV-951 itself but rather with the third-party manufacturer.

Market Opportunities

Rising Drug Development & Manufacturing Costs Coupled with Collaborations & Partnerships will Create Lucrative Opportunities

Over the recent years, the pharmaceutical industry has been facing several external challenges, including rapidly growing global demand, changing product landscapes, supply chain pressures, inflation, and workforce shortage. These challenges are driving up drug development and manufacturing costs for pharmaceutical and biotechnological companies.

The development and manufacturing of several drugs requires specialized equipment, materials, testing equipment, and reagents, which can be expensive for some pharmaceutical firms. This is expected to shift these companies towards contract development & manufacturing organizations (CDMOs) that specialize in complex drug development and manufacturing processes.

• For instance, as per the data provided by the 2024 annual report of Johnson & Johnson Services, Inc.', the total R&D expenditure of Johnson & Johnson Services, Inc. in 2024 was USD 17,232.0 million, accounting for 19.4% of all the sales of 2024.

Market Challenges

Fragmented Market and Presence of Various Small and Mid-sized Companies act as a Challenge for Market Players Growth

The global Contract Development and Organization (CDMO) market is a highly fragmented market with the presence of many small and mid-sized companies. Moreover, the emergence of many start-ups with similar offerings has been fueling the competition in the market.

Talent and Skill Shortage

As demand for complex biologics and cell therapies grows, there is a shortage of qualified professionals in process development, quality, and regulatory compliance.

Contract Development and Manufacturing Organization (CDMO) Market Trends

Growing Mergers and Acquisitions among CDMOs is Identified as a Key Market Trend

Currently, the competitive landscape of the market for Contract Development and Manufacturing Organization (CDMO) is fragmented. Pharmaceutical companies are largely focusing on providing rapid innovations to improve the drug development and manufacturing process. Numerous contract development and manufacturing organizations are seeking to enhance their service offerings by merging with both small and large pharmaceutical companies, biotech firms, and many life science companies.

• In July 2021, ICON plc announced the acquisition of PRA Health Sciences. Both companies have kept the name ICON plc and transferred 38,000 employees to 47 countries, establishing the world's most advanced healthcare intelligence and clinical research organization.

Moreover, market players have also been focusing on initiatives for their geographical expansion in key regions.

• For example, in February 2024, Ergomed Group revealed that it is increasing its footprint in the U.S. by opening a new office at Kendall Square in Cambridge, Massachusetts. This growth strategy boosted customer service and increased presence in important biotech and pharma hubs throughout the U.S.

Other Trends

Increased Outsourcing by Life science Companies across Value Chain

Pharmaceutical companies, including Big Pharma and biotech startups, increasingly outsource to reduce time-to-market, mitigate risk, and cut capital investment costs. This trend is particularly strong in biologics, biosimilars, and personalized medicines.

Rise of End-to-End Service Providers

CDMOs offering integrated services (from discovery through commercialization) are preferred. These one-stop solutions streamline regulatory processes and reduce transfer-related delays.

Increasing Digitalization & Smart Manufacturing

AI, machine learning, digital twins, and process automation are revolutionizing the CDMO landscape. These technologies optimize production and enhance real-time decision-making.

Increasing Adoption of Green & Sustainable Manufacturing

CDMOs are adopting green chemistry, energy-efficient equipment, and zero-waste goals in response to regulatory and societal pressures.

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Impact of COVID-19

Due to the COVID-19 pandemic, the market for Contract Development and Manufacturing Organization (CDMO) experienced a slightly moderate positive growth in 2020 than the previous year. As a result of this pandemic, the progress of drug development was impeded in the first half of the fiscal year 2020. However, many biopharmaceutical and pharmaceutical industry players ramped up their research and production efforts in the latter part of 2020 to create and distribute testing kits, vaccines, and medications for the SARS-CoV-2 virus.

After the COVID-19 pandemic, there was significant growth in the CDMO services market. This was caused by the resumption of postponed early-phase development and clinical trial services and the increased awareness regarding the outsourcing of clinical trials and manufacturing, especially biologics. Such factors are expected to support the Contract Development and Manufacturing Organization (CDMO) industry growth.

Segmentation Analysis

By Service

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Increasing Partnerships and Collaborations between Life Sciences Companies and CMOs is Responsible for Segment's Dominance

Based on service, the market is divided into CMO and CRO. The CMO segment is further categorized into API manufacturing, finished product manufacturing, and packaging. Moreover, the finished product manufacturing segment is further divided into solid dosage forms, injectables, and others.

On the other hand, the CRO segment is divided into early phase development services, clinical, laboratory service, and others. The early phase development services segment is further categorized into Chemistry, Manufacturing, and Controls (CMC), preclinical service, and discovery. Moreover, the clinical segment is sub-segmented into phase 1, phase 2, phase 3, and phase 4.

The CMO segment dominated the market by accounting for the major proportion of the global Contract Development and Manufacturing Organization (CDMO) market share in 2024. The segment's growth is attributed to the growing strategic partnerships among CDMOs and pharmaceutical/biotechnological companies for the manufacturing of novel therapeutics.

• For example, in May 2023, Catalent, Inc. partnered with Siren Biotechnology to support the development and manufacturing of Siren Biotechnology's AAV immuno-gene therapies.

The CRO segment is expected to grow at the fastest CAGR during the forecast period. The growth of the segment is attributed to the increasing focus of pharmaceutical, biotechnology, and medical device companies and research institutes on outsourcing their clinical trial activities.

• For instance, in December 2023, Thermo Fisher Scientific Inc.'s PPD clinical research business was selected by the Biomedical Advanced Research and Development Authority (BARDA) to conduct the first BARDA-supported phase 2 clinical trial to treat Acute Respiratory Distress Syndrome (ARDS).

Contract Development and Manufacturing Organization (CDMO) Market Regional Outlook

Based on region, the market for Contract Development and Manufacturing Organization (CDMO) is studied across North America, Europe, Asia Pacific, and the rest of the world.

North America

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North America held the largest market share in 2024 by generating a revenue of USD 92.22 billion, and in 2023, the regional value stood at USD 87.03 billion. Throughout the forecast period, the region is anticipated to hold a leading position in the market mainly due to the presence of well-established CDMOs in this region. Along with this factor, increasing partnerships between pharmaceutical companies and CDMOs for providing a wide range of pharmaceutical products is an additional factor responsible for the dominant share of the market.

Moreover, the market in the U.S. is expected to grow significantly during the forecast period. The segment's growth is attributed to the increasing number of clinical trials in the country. The U.S. market size is estimated to hit USD 89.88 billion in 2025.

• For instance, according to the data published by the World Health Organization (WHO) 2024, around 5,999 clinical trials were registered in 2024, experiencing a growth of 240.5% from 2000.

Europe

The market in Europe accounted for the second largest share in 2024. The region is anticipated to account for the second-highest market size of USD 64.24 billion in 2025, exhibiting the second-fastest growing CAGR of 8.7% during the forecast period. The market's growth in the region is attributed to the increasing focus of market players on participating in medical conferences to create awareness about their contract development and manufacturing services in the European market is one of the main factors boosting market growth in this region.

• For example, in March 2025, Scinai Immunotherapeutics Ltd., a biopharmaceutical company specializing in Inflammation and Immunology (I&I) biological products and in providing CDMO services through its Scinai Bioservices unit, showcased its innovative I&I product pipeline in partnership meetings and exhibited its CDMO boutique services at the BIO-Europe Spring 2025 conference, took place from 17th to 19th March in Milan, Italy.

The market in U.K. is estimated to be USD 12.08 billion in 2025. On the other hand, Germany is anticipated to hit USD 15.9 billion and France is projected to be USD 8.68 billion in 2025.

Asia Pacific

Asia Pacific is anticipated to witness stellar growth in the forthcoming years. The region is set to be the third-largest market with a value of 64.15 billion in 2025. The increasing focus of pharmaceutical companies on expanding their investment in R&D and increasing demand for effective therapeutics for chronic diseases are some of the factors responsible for the market's growth in the region. The market for China is expected to hit USD 18.7 billion in 2025. Meanwhile, India is projected to be USD 15.99 billion and Japan is expected to reach USD 11.34 billion in 2025.

Rest of the World

Furthermore, the market in the rest of the world is expected to grow throughout the forecast period. The market growth in the region is due to the increasing preference of the market players for conducting clinical trials in the region due to the cost-effectiveness in the region as compared to other developed countries.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Focus of Market Players on Strategic Partnerships to Enhance Product Offerings is Responsible for Revenue Growth

The global Contract Development & Manufacturing Organization (CDMO) market consists of key companies, such as Boehringer Ingelheim International GmbH, IQVIA Inc., and ICON plc. These players have been focusing on strategic partnerships to enhance their service offerings.

• For example, in July 2024, Boehringer Ingelheim International GmbH announced a partnership with Sino Biopharmaceutical Co., Ltd. to expand contract development and manufacturing services in the Chinese market.

In addition, some of the prominent companies operating in the global market include Unither, Parexel International Corporation, Thermo Fisher Scientific Inc., and Vetter. These companies are concentrating on various strategic developments such as service expansion, partnerships, and collaborations.

LIST OF KEY CONTRACT DEVELOPMENT AND MANUFACTURING ORGANIZATION (CDMO) COMPANIES PROFILED

• IQVIA (U.S.)
• ICON plc (Ireland)
• Syneos Health (U.S.)
• Vetter (Germany)
• Parexel International (MA) Corporation (U.S.)
• Recipharm AB (Sweden)
• Curia Global, Inc. (U.S.)
• Thermo Fisher Scientific Inc. (U.S.)
• Unither Pharmaceuticals (France)
• DPT Laboratories, LTD. (U.S.)
• NextPharma Technologies (U.S.)
• Lonza (Switzerland)

KEY INDUSTRY DEVELOPMENTS

• March 2025 - ICON plc announced a partnership with Mural Health Technologies, Inc., a clinical trial technology company, to utilize the participant management and payments platform Mural Link in ICON plc's upcoming clinical trials.
• February 2024 - ONCOVITA, a biotechnology company specializing in innovative vaccine development and a spin-off from the Institut Pasteur, and Unither Pharmaceuticals announced a strategic partnership to develop and produce a new combined prophylactic vaccine for the prevention of infectious diseases in children.
• February 2024 - Novo Holdings announced the acquisition of Catalent, Inc., a contract development manufacturing organization, at USD 16.5 billion.
• November 2023 - Syneos Health signed an agreement with P3 Research Ltd Network. The agreement helped the company expand its clinical trial capabilities in New Zealand (NZ) across varied therapeutic areas.
• May 2023 - Worldwide Clinical Trials collaborated with NEXT Oncology in Spain and Pratia Research through its Site Alliance Collaboration. This collaboration expanded the company's presence outside the U.S.

REPORT COVERAGE

The global Contract Development and Manufacturing Organization (CDMO) market report provides an in-depth analysis of the industry. It offers the global market forecast in relation to the current market dynamics, the impact of COVID-19, and the latest market trends. In addition, the report consists of several factors that have contributed to the market's growth. The report also provides the competitive landscape of the market.

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Report Scope & Segmentation