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The contract development and manufacturing organization outsourcing market size is forecast to increase by USD 186.4 billion, at a CAGR of 19.5% between 2024 and 2029.
Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The contract development and manufacturing organization (CDMO) outsourcing market continues to evolve, driven by the dynamic nature of pharmaceutical research and development. Small molecule drugs, novel drug delivery systems, and gene therapy are just a few of the applications where CDMOs play a pivotal role. Project management, regulatory affairs, and targetted drug delivery are integral components of CDMO services, ensuring seamless integration of technology transfer, virtual drug development, and machine learning in pharmaceutical research. API synthesis, pharmaceutical packaging, and process automation are essential services offered by CDMOs, enabling the production of generic pharmaceuticals. Data analytics, supply chain management, and digitalization in pharma are transforming CDMO operations, enhancing efficiency and reducing costs.
GMP manufacturing, scale-up manufacturing, sterile manufacturing, and process development are critical areas where CDMOs excel, providing clinical trial management and drug product services. Cell therapy, drug formulation, inventory management, and drug discovery are additional applications where CDMOs offer expertise. Quality assurance (QA), single-use technology, continuous manufacturing, biotechnology services, and pharmaceutical outsourcing are evolving trends shaping the market. Stability testing, pharmaceutical development services, personalized medicine, analytical services, drug delivery systems, and commercialization support are some of the value-added services CDMOs offer. The CDMO market is a continuously unfolding landscape, with new patterns emerging as technology and industry needs evolve.
The contract development and manufacturing organization outsourcing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
The small molecules segment is estimated to witness significant growth during the forecast period.
Small molecule drugs, which are naturally occurring compounds re-synthesized or isolated in laboratories, are gaining significant attention in the pharmaceutical industry due to their numerous benefits. Unlike large biologics, small molecules are not dependent on the manufacturing process and can be formulated into orally delivered doses, offering better patient compliance and lower costs compared to injectables. Their small structure allows them to penetrate cell membranes easily, enhancing their therapeutic efficacy in certain cases. The increasing prevalence of chronic diseases, such as cancer and diabetes, is driving the demand for small molecule drugs. Furthermore, advancements in technology, including process automation, digitalization in pharma, and continuous manufacturing, are streamlining the production process and reducing costs.
Additionally, the integration of biotechnology services, such as gene therapy and cell therapy, is expanding the application scope of small molecules in drug discovery and development. Project management, regulatory affairs, and quality assurance (QA) are crucial aspects of the pharmaceutical industry that ensure the safety and efficacy of small molecule drugs. Data analytics and supply chain management optimize the production process, while clinical trial management and inventory management ensure timely delivery of drugs to patients. Pharmaceutical outsourcing and technology transfer enable collaboration between organizations, accelerating the development of new drugs. Moreover, the use of novel drug delivery systems, such as targeted drug delivery and drug formulation, enhances the therapeutic potential of small molecules.
Personalized medicine and analytical services tailor treatments to individual patients, improving outcomes and reducing side effects. The integration of machine learning (ML) and artificial intelligence (AI) in pharmaceutical research and preclinical development expedites the discovery and development of new drugs. In conclusion, the small molecule drug market is experiencing significant growth due to their numerous benefits and increasing applications in the treatment of chronic diseases. Advancements in technology, integration of biotechnology services, and collaboration between organizations are driving the market forward. The use of novel drug delivery systems, personalized medicine, and AI in drug discovery and development are further expanding the potential of small molecule drugs.
The Small molecules segment was valued at USD 56.70 billion in 2019 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 38% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The North American contract development and manufacturing organization (CDMO) outsourcing market is experiencing growth due to the rising prevalence of chronic diseases in the US and Canada. Chronic diseases, including Type 2 diabetes, obesity, hypertension, and cardiovascular diseases, are on the rise as a result of poor lifestyle choices such as overconsumption of alcohol, smoking, lack of physical activity, poor diet, and inadequate stress relief. These conditions necessitate the development and manufacturing of various pharmaceutical products, leading to increased demand for CDMO services. CDMOs offer a range of services, from drug substance production and novel drug delivery systems to project management, regulatory affairs, gene therapy, and API synthesis.
Pharmaceutical packaging, process automation, and supply chain management are also critical aspects of CDMO operations. Digitalization in pharma, including data analytics and machine learning, is increasingly important for process optimization and commercialization support. Biotechnology services, such as cell therapy and gene therapy, are gaining popularity due to their potential to treat previously untreatable conditions. Personalized medicine, another emerging trend, requires specialized CDMO capabilities in drug discovery, formulation, and manufacturing. Regulatory compliance, including GMP manufacturing, scale-up manufacturing, sterile manufacturing, and process development, is essential for CDMOs to meet the stringent requirements of regulatory agencies. Clinical trial management, stability testing, and pharmaceutical development services are also crucial components of CDMO offerings.
The CDMO market is evolving, with trends towards single-use technology, continuous manufacturing, and virtual drug development. Biopharmaceutical manufacturing, validation services, and quality control are also essential aspects of CDMO operations. As the pharmaceutical industry continues to innovate, CDMOs must adapt to meet the changing needs of their clients.
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
In the dynamic and competitive landscape of the contract development and manufacturing organization (CDMO) outsourcing market, pharmaceutical and biotech companies turn to specialized CDMOs for their research and development (R&D) and manufacturing needs. These CDMOs offer innovative solutions, from early-stage R&D and clinical trials to commercial manufacturing and packaging. By leveraging advanced technologies such as continuous manufacturing, automation, and digitalization, CDMOs ensure regulatory compliance, cost savings, and faster time-to-market. Their expertise in various therapeutic areas, including oncology, rare diseases, and vaccines, adds value to the outsourcing partnership. CDMOs also provide flexibility in capacity, enabling clients to scale up or down based on demand. Collaborative partnerships between CDMOs and their clients drive success in the CDMO outsourcing market.
The contract development and manufacturing organization outsourcing market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the contract development and manufacturing organization outsourcing market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, contract development and manufacturing organization outsourcing market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Aenova Holding GmbH - The company boasts an extensive network of pharmaceutical manufacturing facilities, encompassing a comprehensive range of capabilities.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Contract Development And Manufacturing Organization Outsourcing Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
216 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.5% |
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Market growth 2025-2029 |
USD 186.4 billion |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
14.8 |
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Key countries |
US, China, Germany, Canada, Switzerland, India, France, South Korea, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Product
9 Market Segmentation by Service
10 Market Segmentation by End-user
11 Market Segmentation by Therapeutic Area
12 Customer Landscape
13 Geographic Landscape
14 Drivers, Challenges, and Opportunity/Restraints
15 Competitive Landscape
16 Competitive Analysis
17 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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