The global healthcare contract development and manufacturing organization market size was valued at USD 250.19 billion in 2023 and is anticipated to reach around USD 630.87 billion by 2033, growing at a CAGR of 9.69% from 2024 to 2033.
The increase in the uptake of outsourcing services by pharmaceutical & medical devices companies and growth in R&D investments are expected to drive the market. Besides, rapidly aging population, expiring patents, increased antibiotic resistance, and the advent of personalized medicine are a few factors responsible for the growth prospects of the pharmaceutical sector. In addition, many pharmaceutical companies seek external manufacturing partners to keep up with the rising demands.
Furthermore, among pharmaceutical & medical devices companies, technological advancements in R&D are rapidly being adopted, resulting in innovations. Moreover, companies are investing in R&D to discover new compounds and develop the next big blockbusters, resulting in a significant increase in the number of generic manufacturers. According to the American Journal of Managed Care, the pharmaceutical market will be driven by an unmet need in various disorders, and R&D activities for developing orphan therapies will increase because the orphan drug market is likely to reach USD 262 billion by 2024. The National Institutes of Health Office of Rare Diseases Research, as of 2019, has identified roughly 7,000 orphan diseases. About 1,043 projects on orphan diseases were reported to be in the development stage, out of which 822 were in clinical development.
In addition, for many pharmaceutical companies, innovations and speed to the clinic are of significantly important. A number of small to mid-sized companies & specialty pharmaceutical players rely upon delivering these important requirements within the industry. Many CDMOs and CROs promote themselves as one-stop-shop companies. The one-stop-shop service model among CRO is based on handling manufacturing process from API to dosage form and early development to commercialization. To provide these services, a CDMO must have a wide range of enabling technologies & specialized capabilities to address specific problems. Although these services address many problems, there is a wide range of product design capabilities among CDMO players that can be critical in scaling a product concept & bringing it to the market.
Likewise, artificial intelligence and machine & deep learning will continue to be major areas of interest for pharmaceutical investments, as they may support the identification & development of new breakthrough treatments, especially in the field of preclinical validation, target identification, and efficiency of clinical development. Moreover, M&A are likely to increase between pharmaceutical and biopharmaceutical companies for them to diversify product portfolio, expand geographical footprint, and mitigate R&D risks. Increase in collaborations and M&A will be driven by policy-driven changes in healthcare spending and significance of generic competition.
| Report Attribute | Details |
| Market Size in 2024 | USD 274.43 Billion |
| Market Size by 2033 | USD 630.87 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 9.69% |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | Services, and region |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | Catalent Inc.; Lonza; Recipharm AB; Siegfried Holding AG; Thermo Fisher Scientific; Inc.; Labcorp Drug Development; Jabil Inc; Syngene International Limited; IQVIA Inc.; Almac Group; Ajinomoto Bio-Pharma; Adare Pharma Solutions; Alcami Corporation; Vetter Pharma International among others. |
The U.S. Healthcare contract development and manufacturing organization market size was estimated at USD 71.19 billion in 2023 and is projected to hit around USD 179.84 billion by 2033, growing at a CAGR of 9.71% during the forecast period from 2024 to 2033.
North America healthcare contract development and manufacturing organization market accounted for the largest share of 41.56% of the global healthcare CDMO industry. Besides, several established pharmaceutical, medical device, and biotechnology companies characterize the market growth. Furthermore, rising investments by life sciences and pharmaceutical companies in R&D are anticipated to increase the region's contract manufacturing demand. In addition, to meet the high demand for efficient healthcare in the region, emerging growth in medical device manufacturing is expected to be one of the major factors contributing to market growth in North America. The development of cost-effective equipment is likely to impact the market during the forecast period positively. Moreover, medical device manufacturers focus on North America due to its booming healthcare industry. Thus, North America is anticipated to dominate the global market during the forecast period.
U.S. Healthcare Contract Development And Manufacturing Organization Market Trends
The healthcare contract development and manufacturing organization market in the U.S. held the largest share in 2023. The country accounts for the highest share of the North American Healthcare contract development and manufacturing organization industry owing to increasing outsourcing practices by pharmaceutical companies. Besides, the CDMOs' support in reducing operational and capital expenses is among the key factors responsible for its lucrative growth. Medical device companies in the U.S. are popular globally for their technologically advanced products. In addition, strong R&D practices in the country and the promotion of new therapies have significantly contributed to the market share held by the U.S.
Europe Healthcare Contract Development And Manufacturing Organization Market Trends
The healthcare contract development and manufacturing organization market in Europe is expected to grow significantly due to the presence of established market players coupled with superior manufacturing capabilities. Furthermore, increasing investments by multinational companies are anticipated to boost the market.
Germany healthcare contract development and manufacturing organization market held the largest share in 2023. The medical device industry in Germany is known for producing high-quality medical equipment. It is the third-largest market for medical devices globally. Besides, the demand for healthcare CDMOs in the country has increased considerably over recent years. Increasing complexity in product designs and stringent regulatory norms are key factors anticipated to propel the market during the forecast period.
The healthcare contract development and manufacturing organization market in the UK is anticipated to grow over the forecast period. The presence of various multinational CDMOs in the country is anticipated to contribute to market growth. Some of the key CDMOs present in the country are Catalent, Inc., Almac Group Ltd., GlaxoSmithKline Plc, and PCI Pharma Services. Such factors are
Asia Pacific Healthcare Contract Development And Manufacturing Organization Market Trends
The healthcare contract development and manufacturing organization market in Asia Pacific is expected to grow at a CAGR of 10.60% during the forecast period. The healthcare contract development and manufacturing organization market in Asia Pacific has witnessed significant growth due to increased complexity in product designs, improved regulatory framework, and a growing number of regional medical device companies expected to drive the market. Furthermore, the availability of a skilled workforce in the region at a lower cost than the U.S. is anticipated to propel the market.
China healthcare contract development and manufacturing organization market is expected to grow over the forecast period due to the growing geriatric population, and the presence of a large middle-income group is likely to boost the demand for innovative and cost-effective medical equipment, attracting major medical device companies to the country.
The healthcare contract development and manufacturing organization marketin Japan held the largest share in 2023 due to rapid technological advancements and high healthcare expenditure. Besides, the presence of a stringent regulatory framework and high standards for medical device manufacturing is leading to an increase in overall costs, thus increasing the need to maintain standards while reducing healthcare expenditure.
India healthcare contract development and manufacturing organization market is anticipated to grow at the fastest CAGR over the forecast period. Low labor costs, improvements in infrastructure, and easy availability of technical expertise are some of the major drivers of this market.
Market growth stage is stable and is expected to accelerate over the estimated period. The healthcare contract development and manufacturing organization (CDMO) market is characterized by regulatory considerations, technologies, and globalization & outsourcing of product processes to influence advantages and specialized capabilities.
Healthcare contract development and manufacturing organization innovations are continuously evolving to meet the industry’s demands due to the increased burden of diseases. Besides, several advancements have shaped the healthcare contract development & manufacturing organization market, drug development, manufacturing processes, and roductivity. Furthermore, rising number OEMs buying other OEMs, contract manufacturers are encouraged to expand their capabilities and act as strategic partners to OEMs is expected to drive the market.
The presence of agencies, such as the WHO and Agencia Nacional de Medicamentos (ANAMED), that are engaged in regulation and inspection of pharmaceuticals is expected to boost growth of pharmaceutical contract manufacturing market in the coming years.
Healthcare contract development and manufacturing organization players in the market leverage strategies such as partnerships, collaborations, and acquisitions to promote the reach of their offerings and increase their product capabilities globally. In addition, increasing mergers between pharmaceutical companies and CDMOs are paving the way for introduction of novel therapies.
Increasing number of mergers & acquisitions, R&D activities and growing disease burden can influence market dynamics positively.
The local presence of several established pharmaceuticals & medical devices companies, the rising burden of diseases, and growing cost-effective solutions offered by its CDMOs fuel market growth. Other factors contributing to the growth are the increase in the number of new regional players venturing into the pharmaceutical & medical device markets.
Based on services, the market is segregated into contract development and contract manufacturing. The contract manufacturing segment accounted for the largest revenue share of 74.12% in 2023. Furthermore, contract manufacturing is further classified into small molecule, large molecule, high potency API, finished dose formulations, and medical devices. In contract manufacturing, the medical device segment accounted for the largest market share of 34.99% in 2023. The medical device segment is further sub-segmented into Class I, Class II, and Class III devices. Besides, rising advancement in manufacturing technologies, cost-effectiveness, and the growing number of CMOs are key factors fueling the segment’s growth.
In addition, the growing trend of outsourcing, the increasing use of medical devices due to the rising prevalence of various chronic diseases, and the complexity of manufacturing devices are driving the healthcare contract manufacturing organization market. In addition, macroeconomic factors such as the increasing geriatric population globally and the rising number of noninvasive surgeries are boosting the demand for medical devices.
Likewise, several key strategic initiatives undertaken by major players include investment funding, pharmaceutical capacity expansion, strategic partnerships/acquisitions, etc. For instance, in February 2023, Elektrofi and Thermo Fisher Scientific mentioned a contract manufacturing agreement to innovate Elektrofi’s company's ultra-high concentration subcutaneous products.
The contract development segment is anticipated to grow at the fastest CAGR of 9.52%over the forecast period. Global pharmaceutical & biotech companies are outsourcing drug development activities to CROs and academics as a strategy to stay competitive and flexible in a world of increasingly sophisticated technologies, and exponentially growing knowledge. Hence, contract development offers several benefits over in-house development of drugs, such as access to industry experts, less time to market, cost-effectiveness, and more focus on core competencies. Most small-sized pharmaceutical and biopharmaceutical companies prefer outsourcing their drug development activities due to the need for internal capabilities. This is expected to drive the market over the forecast period.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the Healthcare Contract Development And Manufacturing Organization market.
By Services
By Region
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
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Additional Countries (Apart
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Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers