Inhalation CDMO Market Report 2025

The inhalation CDMO market size has grown strongly in recent years. It will grow from $2.08 billion in 2024 to $2.2 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to rising prevalence of respiratory disorders, growing demand for personalized medicine, increasing outsourcing by pharmaceutical companies, growth of the biopharmaceutical industry.

The inhalation CDMO market size is expected to see strong growth in the next few years. It will grow to $2.84 billion in 2029 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to focus on precision medicine and targeted therapies, rapid expansion of biopharmaceutical inhalation therapies, focus on patient-centric solutions, global market expansion and emerging market opportunities, regulatory support for inhalation drug development. Major trends in the forecast period include increasing demand for digital health solutions, biologic inhalation therapies, focus on sustainable inhaler technologies, integration of artificial intelligence (AI) and machine learning, collaborations and partnerships.

The forecast of 6.5% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff escalations are likely to burden U.S. pharmaceutical manufacturers by increasing the cost of contract development and manufacturing services for inhalation devices sourced from Germany and the Netherlands, exacerbating drug delivery system development costs and delaying respiratory therapy innovations. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing incidence of respiratory disorders is expected to drive the expansion of the inhalation CDMO market. Respiratory disorders encompass a range of medical conditions that impact the respiratory system, which includes the organs and structures involved in breathing. Inhalation CDMOs play a critical role in the development and manufacturing of treatments for respiratory conditions due to their expertise in formulating and delivering medications directly to the lungs. They provide specialized knowledge, infrastructure, and resources to pharmaceutical companies looking to develop innovative inhalation therapies. For example, according to the Australian Bureau of Statistics (ABS), a government agency in Australia, 8.5 million Australians (34%) reported having chronic respiratory conditions, including 2.8 million people (11%) with asthma and 638,000 people (2.5%) with COPD. As a result, the rising prevalence of respiratory disorders is driving growth in the inhalation CDMO market.

Major companies in the inhalation CDMO industry are increasingly adopting a strategic partnership approach to offer specialized drug development and delivery services. These partnerships are long-term, mutually beneficial arrangements between companies working together to achieve shared goals. For example, in May 2023, Hovione, a Portugal-based Contract Development and Manufacturing Organization, collaborated with H&T Presspart, a UK-based manufacturer of high-precision metal and plastic components for the pharmaceutical industry. Their partnership aims to develop Presspart's Sunrise Capsule-based Dry Powder Inhaler platform, focusing on creating new technologies for delivering higher doses of drugs and improving the efficiency of drug delivery to the lungs.

In June 2022, Kindeva Drug Delivery L.P., a US-based drug delivery and manufacturing company, acquired iPharma Labs, Inc., for an undisclosed sum. This strategic acquisition aimed to bolster Kindeva's presence in the expanding market for inhaled drug delivery technologies. iPharma Labs Inc., based in the US, specializes in providing contract development and manufacturing services for inhaled medicines.

Major companies operating in the inhalation CDMO market report are Pfizer Inc., Merck KGaA, Baxter’s BioPharma Solutions, Lonza Group AG, Catalent Inc., AptarGroup Inc., Samsung Biologics Co. Ltd., Siegfried Holding AG, Recipharm AB, Stevanato Group SpA, Cambrex Corporation, CordenPharma, Nemera, Hovione FarmaCiencia SA, Vectura Group Ltd., CARBOGEN AMCIS, Kindeva Drug Delivery Ltd., Frontage Laboratories Inc, Formosa Laboratories Inc, Sanner GmbH, H&T Presspart Ltd., Astech Projects Ltd, Cliantha Research, Dipharma Francis Srl, Copley Scientific.

North America was the largest region in the inhalation contract development and manufacturing organization (CDMO) market in 2024. The regions covered in the inhalation cdmo market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the inhalation cdmo market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The inhalation contract development and manufacturing organization (CDMO) market includes revenues earned by providing services such as formulation development, analytical testing, device compatibility testing, process development and optimization, scale-up, and manufacturing. The market value includes the value of related goods sold by the service provider or included within the service offering. The inhalation contract development and manufacturing organization (CDMO) market also includes sales of metered-dose inhalers, dry powder inhalers, and inhalation suspension products. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the pharmaceutical sector. Companies are grappling with higher costs on imported active pharmaceutical ingredients (APIs), glass vials, and laboratory equipment - many of which have limited alternative sources. Generic drug manufacturers, already operating with minimal profit margins, are particularly affected, with some scaling back production of low-margin medications. Biotech firms are also experiencing delays in clinical trials due to shortages of specialized reagents linked to tariffs. In response, the industry is shifting API production to regions like India and Europe, building up inventory reserves, and advocating for tariff exemptions on essential medicines.

The inhalation CDMO market research report is one of a series of new reports that provides inhalation CDMO market statistics, including inhalation CDMO industry global market size, regional shares, competitors with an inhalation CDMO market share, detailed inhalation CDMO market segments, market trends and opportunities, and any further data you may need to thrive in the inhalation CDMO industry. This inhalation CDMO market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An inhalation contract development and manufacturing organization (CDMO) is a specialized entity that offers comprehensive services to pharmaceutical and biotechnology firms for the development and production of inhalable drugs. These services are tailored to meet the specific requirements of inhalation products and may include formulation development, analytical testing, process optimization, scale-up, and commercial manufacturing.

The primary products of inhalation CDMOs include dry powder inhalers (DPIs), metered dose inhalers (MDIs), nebulizers, and soft mist inhalers. DPIs are devices used to deliver medication to the lungs in the form of a dry powder and are utilized for various diseases such as asthma, COPD, pulmonary arterial hypertension, acute respiratory distress syndrome, and pulmonary fibrosis. These products are categorized by technology, including manual inhalers and digital inhalers, and are used by a variety of pharmaceutical companies, including large, small, and medium-sized pharmaceutical companies, as well as generic pharmaceutical companies.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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