Contract Development and Manufacturing Organization (CDMO) Market Review 2025

The Contract Development and Manufacturing Organization (CDMO) market has been experiencing significant growth due to the increasing demand for outsourcing services in the pharmaceutical and biotechnology sectors. CDMOs provide a range of services, including drug development, manufacturing, and packaging, allowing companies to streamline operations and reduce costs. The market is projected to reach approximately $500 billion by 2025, growing at a CAGR of around 6.3% between 2021 and 2025.

The global CDMO market was valued at around $363 billion in 2025 and is expected to expand, reaching between $485 billion and $500 billion by 2025. This growth can be attributed to the increasing complexity of drug development and the need for specialized manufacturing capabilities. Additionally, the global pharmaceutical industry is projected to grow at a rate of 4% to 6% annually, further driving demand for CDMO services.

The CDMO market can be segmented by product type, key players, process, application, end-use, and region. The product types are classified into Clinical Trial Services, Small Molecule Manufacturing, and Biologics Manufacturing.

By Product Type

• Clinical Trial Services: This segment, accounting for approximately 30% of the market share, is projected to grow at a CAGR of 8% from 2025 to 2030, driven by the expansion of clinical trials globally.
• Small Molecule Manufacturing: Expected to account for around 25% of market share, this segment is projected to grow at a compound annual growth rate of 5% to 7% as a result of ongoing demand for generic drugs.
• Biologics Manufacturing: This sector is anticipated to dominate the CDMO market with a projected share of about 45%. The growth in this area is projected to achieve a CAGR of 9% to 11%, largely due to the rise of biologics in modern therapeutics.

By Key Players

Notable players in the CDMO market include:

• Lonza
• Catalent
• Patheon
• Fareva
• Jubilant LS
• Aenova
• Siegfried
• AMRI
• Recipharm
• FIS
• WuXi AppTec
• Asymchem
• Porton Pharma Solutions
• Zhejiang Jiuzhou Pharmaceutical
• Kingchem

The trends in the CDMO market include an increasing preference for outsourcing by pharmaceutical companies, a rise in drug complexity, and a growing number of biologics and biosimilars being developed. Furthermore, technological innovations in manufacturing processes, such as continuous manufacturing and single-use technologies, are enhancing efficiency while minimizing production costs.

By Process

The CDMO market can be segmented based on process into various categories, including:

• API Development and Manufacturing: This segment remains a crucial part of the CDMO market, accounting for about 40% of the market share.
• Formulation Development: This area gained traction due to the need for effective formulation methods and is expected to grow at a CAGR of 7% to 9%.
• Packaging: Although a smaller segment, packaging is essential and is projected to grow steadily due to regulatory requirements.

By Application

In terms of application, the CDMO market is segmented into several fields:

• Oncology: This application has witnessed rapid growth, with an expected CAGR of 10% through 2025.
• Cardiovascular: Accounting for about 20% of application share, this field benefits from ongoing innovations in drug development strategies.
• Central Nervous System (CNS): The CNS category presents a lucrative market with a steady growth forecast of around 5% to 8%.
• Others: Including endocrine, respiratory, and antimicrobial applications, this segment is showing considerable growth potential.

By End-Use

The end-use segments of the CDMO market include:

• Pharmaceutical Companies: Dominating the market share at approximately 70%, this segment is expected to continue leading due to the rise in drug approvals and R&D activities.
• Biotechnology Companies: This segment is projected to grow at a CAGR of 8% to 10%, driven by the increasing number of biotech firms seeking CDMO services.
• Others: This includes academic and research institutions, which are contributing to a growing demand for specialized CDMO services.

By Region

The CDMO market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

• North America: Expected to maintain the largest market share, driven by the high concentration of pharmaceutical companies and rapid advancements in drug development.
• Europe: Projected to follow closely with a sustained growth rate of around 6% to 8% due to stringent regulations and advancements in manufacturing technology.
• Asia-Pacific: Anticipated to experience the fastest growth rate of 10% to 12%, fueled by the rising outsourcing trend and increasing number of contract agreements.
• Latin America: This region is expected to grow but at a slower pace, reflecting a CAGR of around 4% to 6%.
• Middle East & Africa: Growth prospects remain modest but show promise due to increasing investment in healthcare infrastructure.

Recent policy changes, including stricter regulatory requirements for pharmaceuticals, are prompting CDMOs to adapt their operations to comply with global standards. Furthermore, companies are increasingly entering strategic collaborations to expand their service offerings and capabilities. For instance, in 2025, Catalent announced a partnership with a major biotech firm to develop a novel therapy, demonstrating the growing need for flexibility in service provision within the CDMO space.

Over the forecast period from 2025 to 2030, the overall CDMO market is anticipated to continue its upward trajectory with an estimated growth rate of around 6% to 8% annually. The biologics manufacturing segment is expected to lead growth, whereas small molecule manufacturing will stabilize as firms shift focus to more advanced therapeutic solutions. Regional discrepancies will also evolve, with Asia Pacific emerging as a significant hub for contract manufacturing due to lower operational costs and increasing skills availability.

The Contract Development and Manufacturing Organization (CDMO) market is positioned for substantial growth through 2025 and beyond. Key drivers include an increasing reliance on outsourcing by pharmaceutical and biotechnology companies, technological advancements, and a significant rise in drug development activities globally. Companies that adapt to changing consumer needs and regulatory environments will likely emerge as leaders in this dynamic market landscape.