The U.S. pharmaceutical contract manufacturing and research services market size was valued at USD 60.19 billion in 2023 and is projected to surpass around USD 105.77 billion by 2033, registering a CAGR of 5.8% over the forecast period of 2024 to 2033.
This growth is being driven by the cost and time savings associated with outsourcing. Companies are continually investing in facilities, staff, and technology in order to increase their portion of outsourcing revenue. The presence of comprehensive service providers, who provide additional services as part of a unified or risk-sharing business model, is expected to drive market expansion. However, the initial impact of the COVID-19 pandemic interrupted the supply chain, which could impede market expansion.
In 2023, the United States accounted for more than 24.5% of the global pharmaceutical contract manufacturing and research services market. Contract Manufacturing Organizations (CMOs) are expected to develop because to their extensive product offerings, which position them as a handy "one-stop-shop". Larger CMOs are turning their focus to specialized areas of pharmaceutical research and building regulatory paths for the production of medicines using transgenic technologies. Companies, on the other hand, tend to prefer in-house production for complicated and considerable components due to specific requirements, thus providing a challenge to the outsourcing industry.
Companies involved in R&D and production of healthcare products, including those that supply hardware and services, are boosting their investments in response to increased demand for rapid development, testing, and deployment of COVID-19 vaccine. Despite small setbacks, pharmaceutical contract manufacturers have continued to operate, and long-term capital-intensive mergers and acquisitions have increased. In addition, governments are collaborating with pharmaceutical companies to develop COVID-19 vaccines through projects such as Operation Warp Speed, which is funded by the US federal government.
COVID-19 has caused a surge in demand for treatments and vaccines as a result of the virus's broad transmission. As a result, many pharmaceutical companies have partnered with Contract Manufacturing Organizations (CMOs) to speed drug production. For example, in December 2020, Recipharm, a Contract Development and Manufacturing Organization (CDMO), formed a cooperation with Moderna, a pharmaceutical business. Under this deal, Recipharm assisted the fill-finish process for Moderna's COVID-19 vaccine, which is intended for distribution outside of the United States. Furthermore, several public entities have provided funds to support research of COVID-19 vaccines.
Report Attribute | Details |
Market Size in 2024 | USD 63.68 Billion |
Market Size by 2033 | USD 105.77 Billion |
Growth Rate From 2024 to 2033 | CAGR of 5.8% |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | Service |
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; Pfizer (CentreOne); Charles River Laboratories International, Inc.; Albany Molecular Research, Inc.; Laboratory Corporation of America Holdings (LabCorp); IQVIA; Baxter BioPharma Solutions; Lingand Pharmaceuticals; Thermo Fisher Scientific, Inc.; AbbVie, Inc.; West Pharmaceutical Services |
Manufacturing dominated the market and held the largest revenue share of over 66.85% in 2023, owing to a rising trend of companies choosing to outsource the production of drug substances, APIs, and completed drug products or clinical trial materials. Contract manufacturers offer a range of services to the pharmaceutical industry, such as safety evaluation, development of dosage and formulation, regulatory support, development of analytical assays, and conducting release and stability tests. These contract manufacturers are frequently selected as a temporary fix for limitations in production capacity.This sector is further divided into several sub-sectors, including manufacturing of API/bulk drugs, the creation of advanced drug delivery formulations, packaging, and production of finished dose formulations. Companies are actively involved in establishing large-scale manufacturing facilities, both at the pilot and commercial levels.
Research is anticipated to witness the fastest CAGR during the forecast period. The growth in this segment is driven by the presence of numerous multinational and established contract service providers, such as Charles River Laboratories, Pharmaceutical Product Development Inc. (PPD), Covance, and Quintiles. These market players are poised to gain from the increasing trend of outsourcing. The Contract Research Organization (CRO) sector has seen a surge in mergers and acquisitions, leading to heightened competition among CROs. This has spurred the CROs to enhance their capabilities to cater to the needs of drug developers. Services provided by CROs span from the inception of drug development to the final marketing approval. The segment is further divided into oncology, vaccines, inflammation & immunology, cardiology, neuroscience, and others.
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 U.S. Pharmaceutical Contract Manufacturing And Research Services market.
By Service
Chapter 1. Methodology and Scope
1.1. Market Segmentation & Scope
1.2. Segment Definitions
1.2.1. Service
1.2.2. Estimates and forecasts timeline
1.3. Research Methodology
1.4. Information Procurement
1.4.1. Purchased database
1.4.2. nova one advisor. internal database
1.4.3. Secondary sources
1.4.4. Primary research
1.4.5. Details of primary research
1.4.5.1. Data for primary interviews in U.S.
1.5. Information or Data Analysis
1.5.1. Data analysis models
1.6. Market Formulation & Validation
1.7. Model Details
1.7.1. Commodity flow analysis (Model 1)
1.7.2. Approach 1: Commodity flow approach
1.8. List of Secondary Sources
1.9. List of Primary Sources
1.10. Objectives
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segment Outlook
2.2.1. Service Outlook
2.3. Competitive Insights
Chapter 3. U.S. Pharmaceutical Contract Manufacturing and Research Services Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.1.1. Parent market outlook
3.1.2. Related/ancillary market outlook
3.2. Market Dynamics
3.2.1. Market driver analysis
3.2.1.1. Drug shortage driving demand for pharmaceutical development
3.2.1.2. Commercial success of biologics for clinical use
3.2.1.3. Lower manufacturing costs and improving economic condition of BRIC
3.2.2. Market restraint analysis
3.2.2.1. Limited outsourcing opted by big pharma companies
3.2.2.2. Regulatory issues pertaining to the drug approval
3.3. U.S. Pharmaceutical Contract Manufacturing and Research Services Market Analysis Tools
3.3.1. Industry Analysis - Porter’s Five Forces
3.3.1.1. Bargaining power of buyers
3.3.1.2. Bargaining power of suppliers
3.3.1.3. Competitive rivalry
3.3.1.4. Threat of new entrant
3.3.1.5. Threat of substitutes
3.3.2. PESTEL Analysis
3.3.2.1. Political & legal landscape
3.3.2.2. Economic landscape
3.3.2.3. Technological & social landscape
Chapter 4. U.S. Pharmaceutical Contract Manufacturing and Research Services Market: Service Estimates & Trend Analysis
4.1. U.S. Pharmaceutical Contract Manufacturing and Research Services Market: Service Dashboard
4.2. U.S. Pharmaceutical Contract Manufacturing and Research Services Market: Service Movement Analysis
4.3. U.S. Pharmaceutical Contract Manufacturing and Research Services Market Size & Forecasts and Trend Analyses, 2018 to 2030 for the following
4.4. Manufacturing
4.4.1. Market estimates and forecasts 2021 to 2033
4.4.2. API/Bulk Drugs
4.4.2.1. Market estimates and forecasts 2021 to 2033
4.4.3. Advanced Drug Delivery Formulations Packaging
4.4.3.1. Market estimates and forecasts 2021 to 2033
4.4.4. Packaging
4.4.4.1. Market estimates and forecasts 2021 to 2033
4.4.5. Finished Dose Formulations
4.4.5.1. Market estimates and forecasts 2021 to 2033
4.4.5.2. Solid Formulations
4.4.5.2.1. Market estimates and forecasts 2021 to 2033
4.4.5.3. Liquid Formulations
4.4.5.3.1. Market estimates and forecasts 2021 to 2033
4.4.5.4. Semi-solid Formulations
4.4.5.4.1. Market estimates and forecasts 2021 to 2033
4.5. Research
4.5.1. Market estimates and forecasts 2021 to 2033
4.5.2. Oncology
4.5.2.1. Market estimates and forecasts 2021 to 2033
4.5.3. Vaccines
4.5.3.1. Market estimates and forecasts 2021 to 2033
4.5.4. Inflammation & Immunology
4.5.4.1. Market estimates and forecasts 2021 to 2033
4.5.5. Cardiology
4.5.5.1. Market estimates and forecasts 2021 to 2033
4.5.6. Neuroscience
4.5.6.1. Market estimates and forecasts 2021 to 2033
4.5.7. Others
4.5.7.1. Market estimates and forecasts 2021 to 2033
Chapter 5. Competitive Landscape
5.1. Recent Developments & Impact Analysis, By Key Market Participants
5.2. Company/Competition Categorization
5.3. Vendor Landscape
5.3.1. List of key distributors and channel partners
5.3.2. Key customers
5.3.3. Key company market share analysis, 2023
5.3.4. Catalent
5.3.4.1. Company overview
5.3.4.2. Financial performance
5.3.4.3. Product benchmarking
5.3.4.4. Strategic initiatives
5.3.5. Pfizer (CentreOne)
5.3.5.1. Company overview
5.3.5.2. Financial performance
5.3.5.3. Product benchmarking
5.3.5.4. Strategic initiatives
5.3.6. Charles River Laboratories International, Inc.
5.3.6.1. Company overview
5.3.6.2. Financial performance
5.3.6.3. Product benchmarking
5.3.6.4. Strategic initiatives
5.3.7. Albany Molecular Research, Inc.
5.3.7.1. Company overview
5.3.7.2. Financial performance
5.3.7.3. Product benchmarking
5.3.7.4. Strategic initiatives
5.3.8. Laboratory Corporation of America Holdings (LabCorp)
5.3.8.1. Company overview
5.3.8.2. Financial performance
5.3.8.3. Product benchmarking
5.3.8.4. Strategic initiatives
5.3.9. IQVIA
5.3.9.1. Company overview
5.3.9.2. Financial performance
5.3.9.3. Product benchmarking
5.3.9.4. Strategic initiatives
5.3.10. Baxter BioPharma Solutions
5.3.10.1. Company overview
5.3.10.2. Financial performance
5.3.10.3. Product benchmarking
5.3.10.4. Strategic initiatives
5.3.11. Lingand Pharmaceuticals
5.3.11.1. Company overview
5.3.11.2. Financial performance
5.3.11.3. Product benchmarking
5.3.11.4. Strategic initiatives
5.3.12. Thermo Fisher Scientific, Inc.
5.3.12.1. Company overview
5.3.12.2. Financial performance
5.3.12.3. Product benchmarking
5.3.12.4. Strategic initiatives
5.3.13. AbbVie, Inc.
5.3.13.1. Company overview
5.3.13.2. Financial performance
5.3.13.3. Product benchmarking
5.3.13.4. Strategic initiatives
5.3.14. West Pharmaceutical Services
5.3.14.1. Company overview
5.3.14.2. Financial performance
5.3.14.3. Product benchmarking
5.3.14.4. Strategic initiatives