Enjoy complimentary customisation on priority with our Enterprise License!
The contract development and manufacturing organization (CDMO) outsourcing market is estimated to grow at a CAGR of 12.76% between 2022 and 2027. The size of the market is forecast to increase by USD 84.14 billion. The growth of the market depends on several factors, including the growing pharmaceutical industry, the increasing demand for one-stop-shop CDMOs, and the support of CDMO in reducing operational and capital expenses.
This report extensively covers market segmentation by product (small molecules and biologics), service (api/bulk drugs, drug product manufacturing, and packaging), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
Our researchers analyzed the data with 2022 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.
The growing pharmaceutical industry will fuel the growth of the contract development and manufacturing organization outsourcing market. To cater to the high-volume demand for pharmaceuticals, pharma and biotech enterprises require sufficient manufacturing capabilities to produce the expected quantity and meet the quality levels at controlled costs. Some of the small pharma and biotech enterprises cannot cater to the demand growth from their existing facilities, and they do not have enough funds to invest in the expansion of their manufacturing facilities.
The small enterprises outsource some of the processes to CDMOs as it will help them to cater to the growing demand in the market. Such factors will help enterprises to manufacture a large number of drugs or medicines in a short period, which, in turn, will drive the growth of the global CDMO outsourcing market during the forecast period.
Growing use of analytics by CDMOs is the primary trend for the contract development and manufacturing organization outsourcing market growth. There are many analytical tools and techniques that can be used by CDMOs. The use of analytics by CDMOs will aid enterprises to enhance productivity and efficiency by discovering meaningful patterns in the data using forecast analytics, charts, percentage change analytics, and numerical analytics. The use of analytics by CDMOs can be a complex process as it needs to be executed in real-time and in a dynamic framework.
This solution also helps CDMOs to develop and utilize methods that can make the development process of a product more efficient. Various CDMOs are using analytics to offer their customers better solutions. The growing use of analytics by CDMOs will lead to the growth of the global CDMO market during the forecast period.
Threat of infringement of intellectual property (IP) rights is one of the key challenges hindering the CDMO market growth. Developing a new drug or medicine and successfully launching it in the market is a lengthy and expensive process. Hence, they strongly protect their IP such as patents of drugs or medicines across the globe until they expire. Enterprises outsource the manufacturing of patented drugs or medicines to CDMOs to speed up the production process and make the patented product available in the market quickly before the IP rights expire. This will help them to gain market share and get the maximum return on investment before patent expiry. Outsourcing can cause a threat to its IP.
CDMOs might not have an appropriate strategy for preserving and protecting critical IPs, which can cause the infringement of the IP rights of the drug or medicine. The infringement of the IP rights of the drug or medicine can impact the trust of pharma and biotech enterprises over CDMOs, which, in turn, can impact the growth of the global CDMO market during the forecast period.
The report includes the adoption lifecycle of the CDMO 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Contract Development and Manufacturing Organization (CDMO) Outsourcing Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the CDMO market.
Alcaminow - The company offers a broad range of pharma manufacturing facilities. Also, Under this segment, the company offers complete contract development, testing, and manufacturing services to pharma and biotech companies
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key CDMO market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the small molecules segment will be significant during the forecast period. Small molecules are naturally occurring compounds that have been re-synthesized or isolated in laboratories. Most of these small molecules are independent of the manufacturing process. They can be formulated into orally delivered doses that offer better compliance and involve lower costs than injectables. They have the ability to reach almost any desired destination inside the body, owing to their small size. Also, their small structure helps them to penetrate cell membranes easily, which makes them more effective in some cases. Owing to these benefits, the demand for small molecules is expected to grow exponentially during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The small molecules segment was valued at USD 48.14 billion in 2017 and continue to grow by 2021. Furthermore, due to the increasing demand for small molecules, various CDMOs are investing in expanding their facilities to cater to the large market or are acquiring new vendors to enhance their product offerings. For instance, in May 2021, Enteris BioPharma Inc. announced the expansion of its Boonton, NJ manufacturing facility and the launch of its CDMO business segment. This was aimed to provide custom solutions for the formulation, development, and manufacturing of solid oral doses, as it is difficult to formulate BCS III and IV compounds, including peptides and highly potent compounds. All these factors are expected to increase the demand for small molecules, which, in turn, will lead to the growth of the global CDMO market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 33% 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 CDMO outsourcing market in North America is expected to grow due to the increase in the number of people with chronic diseases in countries such as the US and Canada. Poor lifestyle choices, such as the overconsumption of alcohol, smoking, lack of physical activity, poor diet, and inadequate relief from chronic stress are some of the reasons for the rise in the number of people with chronic disease. These factors lead to the development and progression of chronic diseases, such as Type 2 diabetes, obesity, hypertension, and cardiovascular diseases. This, in turn, will lead to the growth of the CDMO outsourcing market in North America during the forecast period.
This report forecasts the contribution of all the segments to the growth of the CDMO market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for North America. In 2021, mass vaccination drives and other government initiatives resulted in the relaxation of lockdown restrictions and the resumption of business operations. Moreover, with the advent of COVID-19 vaccines, primarily in the US and Canada, business operations resumed, and the market in focus in North America is expected to recover during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Contract Development And Manufacturing Organization (CDMO) Outsourcing Market Scope
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.76% |
Market growth 2023-2027 |
USD 84.14 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
12.15 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alcami Corp., Almac Group Ltd., Boehringer Ingelheim International GmbH, Catalent Inc., Celonic AG, Corden Pharma International GmbH, Eurofins Scientific SE, FAMAR Health Care Services, FUJIFILM Holdings Corp, Lonza Group Ltd., Piramal Enterprises Ltd., Recipharm AB, Siegfried Holding AG, The Lubrizol Corp., Thermo Fisher Scientific Inc., Aenova Holding GmbH, Curia Inc., Laboratory Corp. of America Holdings, NextPharma GmbH, and Vetter Pharma-Fertigung GmbH & Co. KG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.