Market Size of Healthcare CDMO Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.20 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Healthcare CDMO Market Analysis
The healthcare contract development and manufacturing organization (CDMO) market was valued at USD 273.21 billion in the current year and is expected to reach USD 432.03 million by the end of the forecast period, registering a CAGR of 8.02%.
COVID-19 has had a significant impact on the healthcare CDMO market owing to the high demand for vaccine development by various pharmaceutical and biotechnology companies in the past three years. For instance, in July 2021, ExeVir and Mithra, a CDMO, collaborated to utilize the fill and finish capabilities for ExeVir's therapies at Mithra's integrated R&D and manufacturing platform to accelerate the development of XVR011 for the potential treatment and prevention of COVID-19. Furthermore, as per a study published in the World Economic Journal in February 2022, companies like Lonza and Catalent played critical roles in manufacturing COVID19 vaccines during the pandemic. Some major pharmaceutical companies like Pfizer and GlaxoSmithKline (GSK) also developed business operations to offer CDMOlike services to other firms to better manage their capacity during the initial phase of the pandemic. Hence, the increased demand for COVID-19 vaccines led to increased outsourced manufacturing agreements for CDMOs, contributing to the market's growth. Therefore, the pandemic positively affected the healthcare contract development and manufacturing organization market.
The significant factors that drive the market's growth include the increasing research and development (R&D) activities by the pharmaceutical and medical devices company, as well as increasing demand for advanced diagnostic and therapeutic products.
Outsourcing activities benefit many healthcare companies by improving operational efficiencies, expanding geographical presence, decreasing resource costs, gaining therapeutic expertise, and enhancing on-demand services. For instance, in May 2023, an article published in Akums Pharmaceutical stated that outsourcing API expertise in drug development offers numerous benefits for pharmaceutical companies. It includes various services such as technical expertise, regulatory compliance, and efficient manufacturing processes, enabling pharmaceutical companies to focus on their core competencies, such as R&D. Additionally, by outsourcing API manufacturing, pharmaceutical companies can accelerate their drug development timelines, access new technologies, and ensure consistent quality control. Outsourcing API expertise provides pharmaceutical companies with strategic advantages, allowing them to optimize resources, enhance efficiency, and bring high-quality drugs to market. Thus, owing to the benefits offered by the CDMO, the adoption of outsourcing is increasing by pharmaceutical companies, thereby contributing to market growth.
Moreover, increasing investment in R&D also propels the growth of the market. For instance, in January 2023, GenScript's Biologics subsidiary ProBio notched its fundraising round and raised about USD 224 million. The investment will help ProBio with further research and development, expanding its manufacturing capacity and developing its CDMO business. Similarly, in June 2022, Jubilant Pharma Limited announced that the Government of Quebec had granted them a loan of USD 18 million to fund the capacity expansion of the contract manufacturing facility in Montreal.
Market players are also adopting several strategies, such as mergers, acquisitions, and collaboration, which are expected to boost the healthcare CDMO market growth over the forecast period. For instance, in July 2023, Societal CDMO Inc. announced the expansion of its broad suite of CDMO services to address the biopharmaceutical industry's expanding activity in psychedelic drug development. Similarly, in October 2022, Terumo Pharmaceutical Solutions (TPS), a division of Terumo Corporation, announced that it would expand its contract development and manufacturing services for parenteral drugs to global customers.
Hence, growing investment in research and development, increasing outsourcing by pharmaceutical, biopharmaceutical, and medical devices companies, and strategic activities undertaken by market players are expected to boost the market growth over the forecast period. However, compliance issues while outsourcing, the changing scenario of outsourcing in developing countries, and regulatory and legal compliance are expected to restrain the market over the forecast period.
Healthcare CDMO Industry Segmentation
Healthcare contract development and manufacturing organization (CDMO) provides services to pharmaceutical, biotechnology, and medical device companies. These services often include developing, manufacturing, and testing medical products. CDMOs play a crucial role in the healthcare industry by offering specialized expertise and infrastructure to help bring new drugs and medical devices to market efficiently and safely.
The Healthcare Contract Development and Manufacturing Organization Market is Segmented By Services (Contract Development (Small Molecule (Preclinical (Bioanalysis and DMPK Studies, Toxicology Testing, and Other Preclinical Services) Clinical (Phase I, Phase II, Phase III, and Phase IV), Large Molecule (Cell Line development, Process Development (Upstream (Microbial, Mammalian, and Others), and Downstream (MABs, Recombinant Proteins, and Others) and Others) and (Contract Manufacturing (Small Molecule, Large Molecule (MABs, Recombinant Protein, and Others), High Potency API, Finished Dose Formulations (Solid Dose Formulation, Liquid Dose Formulation, and Injectable Dose Formulation), and Medical Devices (Class I, Class II, and Class III)), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report offers the value (in USD) for the above segments. The report also covers the estimated market sizes and trends for 17 countries across major regions globally.
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Healthcare CDMO Market Size Summary
The healthcare contract development and manufacturing organization (CDMO) market is experiencing significant growth, driven by increased demand for vaccine development and advanced therapeutic products. The COVID-19 pandemic has notably accelerated this growth, as pharmaceutical and biotechnology companies sought to rapidly develop and manufacture vaccines, leading to a surge in outsourced manufacturing agreements with CDMOs. This trend has been further supported by the rising research and development activities within the pharmaceutical and medical devices sectors, which are increasingly outsourcing to improve operational efficiencies, expand their geographical presence, and enhance their service offerings. The strategic advantages of outsourcing, such as accessing new technologies and ensuring consistent quality control, are encouraging more companies to engage CDMOs, thereby fueling market expansion.
Investment in research and development is a key driver of the healthcare CDMO market, with significant funding directed towards expanding manufacturing capacities and developing CDMO businesses. Market players are actively pursuing mergers, acquisitions, and collaborations to enhance their service offerings and address the growing demand in the biopharmaceutical industry. The North American region, in particular, is witnessing robust growth due to established research facilities, high R&D investments, and a strong presence of key market players. The increasing incidence of chronic diseases, such as cancer, is further propelling the demand for novel therapies and, consequently, CDMO services. As the market continues to evolve, the focus on providing comprehensive, one-stop-shop services is expected to intensify, with major players like Catalent Inc., Lonza, and Thermo Fisher Scientific leading the charge.
Healthcare CDMO Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Outsourcing Services by Pharmaceutical, Biotechnology, and Medical Devices Companies
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1.2.2 Rising Investment in Research and Development
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1.2.3 Growing Demand for Advanced Diagnostic and Therapeutic Products
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1.3 Market Restraints
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1.3.1 Compliance Issues While Outsourcing
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1.3.2 Regulatory and Legal Compliance
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD)
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2.1 By Services
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2.1.1 Contract Development
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2.1.1.1 Small Molecule
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2.1.1.1.1 Preclinical
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2.1.1.1.1.1 Bioanalysis and DMPK Studies
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2.1.1.1.1.2 Toxicology Testing
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2.1.1.1.1.3 Other Preclinical Services
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2.1.1.1.2 Clinical
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2.1.1.1.2.1 Phase I
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2.1.1.1.2.2 Phase II
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2.1.1.1.2.3 Phase III
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2.1.1.1.2.4 Phase IV
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2.1.1.2 Large Molecule
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2.1.1.2.1 Cell Line development
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2.1.1.2.2 Process Development
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2.1.1.2.2.1 Upstream
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2.1.1.2.2.1.1 Microbial
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2.1.1.2.2.1.2 Mammalian
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2.1.1.2.2.1.3 Others
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2.1.1.2.2.2 Downstream
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2.1.1.2.2.2.1 MABs
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2.1.1.2.2.2.2 Recombinant Proteins
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2.1.1.2.2.2.3 Others
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2.1.2 Contract Manufacturing
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2.1.2.1 Small Molecule
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2.1.2.2 Large Molecule
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2.1.2.2.1 MABs
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2.1.2.2.2 Recombinant Proteins
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2.1.2.2.3 Others
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2.1.2.3 High Potency API
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2.1.2.4 Finished Dose Formulations
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2.1.2.4.1 Solid Dose Formulation
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2.1.2.4.2 Liquid Dose Formulation
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2.1.2.4.3 Injectable Dose Formulation
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2.1.2.5 Medical Devices
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2.1.2.5.1 Class I
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2.1.2.5.2 Class II
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2.1.2.5.3 Class III
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2.2 By Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.1.3 Mexico
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2.2.2 Europe
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2.2.2.1 United Kingdom
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2.2.2.2 Germany
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2.2.2.3 France
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2.2.2.4 Spain
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2.2.2.5 Italy
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2.2.2.6 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 India
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2.2.3.2 Japan
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2.2.3.3 China
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2.2.3.4 Australia
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2.2.3.5 South Korea
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2.2.3.6 Rest of Asia-Pacific
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2.2.4 Middle East & Africa
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2.2.4.1 GCC
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2.2.4.2 South Africa
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2.2.4.3 Rest of the Middle East & Africa
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2.2.5 South America
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2.2.5.1 Brazil
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2.2.5.2 Argentina
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2.2.5.3 Rest of South America
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Healthcare CDMO Market Size FAQs
What is the current Healthcare CDMO Market size?
The Healthcare CDMO Market is projected to register a CAGR of 8.20% during the forecast period (2024-2029)
Who are the key players in Healthcare CDMO Market?
Catalent Inc., Lonza, Recipharm AB, Thermo Fisher Scientific, Inc and Labcorp Drug Development are the major companies operating in the Healthcare CDMO Market.
