Contract Development and Manufacturing Organization Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Contract Development & Manufacturing Organization (CDMO and CMO) Market is projected to expand from USD 245.47 Billion in 2025 to USD 363.86 Billion by 2031, reflecting a Compound Annual Growth Rate of 6.78%. These organizations provide comprehensive services to the pharmaceutical sector, encompassing everything from early-stage drug development to commercial production and packaging. This growth is primarily driven by the rising complexity of biologic therapies and a strategic emphasis on operational efficiency, which prompts innovators to entrust manufacturing to specialized partners. This reliance on external expertise is bolstered by strong funding in drug discovery; the European Federation of Pharmaceutical Industries and Associations estimated that the research-based pharmaceutical industry invested 55 billion Euros in R&D in Europe in 2024, generating substantial demand for outsourced technical services.

However, the market faces significant hurdles regarding supply chain resilience and regulatory compliance. Escalating geopolitical tensions and shifting legislative frameworks are compelling companies to reorganize their global supply networks. This restructuring often results in capacity constraints and higher operational costs, which can delay project timelines and hinder the delivery of essential medicines.

Market Drivers

The rapid expansion of biologics and Advanced Therapy Medicinal Products is fundamentally transforming the market, creating a surge in demand for specialized manufacturing capabilities. As pharmaceutical companies focus on developing complex modalities like antibody-drug conjugates and GLP-1 agonists, they increasingly rely on external partners to overcome technical challenges and scale production. This trend is highlighted by significant sector consolidation to secure capacity; according to DCAT Value Chain Insights in December 2024, the largest market move was Novo Holdings' $16.5 billion acquisition of Catalent to support obesity treatment manufacturing. Major players are seeing direct financial benefits from this demand, with Samsung Biologics reporting a full-year consolidated revenue of KRW 4.55 trillion in January 2025, a 23% increase driven largely by expanded biologic production orders.

Simultaneously, the market is heavily influenced by small and emerging biotech companies that depend on contract partners for end-to-end development support. These smaller entities often lack the internal infrastructure to manage the entire drug lifecycle and rely on CDMOs to progress from clinical trials to commercialization. This segment's activity is closely linked to capital availability, which has recently improved. As noted in Lonza's 'Annual Report 2024' released in April 2025, venture capital funding in the biopharma sector rebounded significantly, showing over 20% year-on-year investment growth. This influx of capital allows emerging innovators to re-engage service providers, maintaining a robust pipeline of early-stage projects that fuels the broader contract manufacturing industry.

Market Challenges

Geopolitical tensions and the consequent need for strict regulatory compliance present a major barrier to the growth of the Global Contract Development and Manufacturing Organization market. As governments enforce tighter legislative frameworks regarding national security and supply chain independence, pharmaceutical innovators face intense pressure to restructure their existing manufacturing networks. This forced migration from established partnerships creates operational bottlenecks, as decoupling from integrated service providers disrupts project continuity and inflates procurement costs.

These disruptions directly impede market momentum by delaying clinical timelines and limiting available production capacity in alternative regions. The extent of this dependency highlights the difficulty of rapid diversification. Data from the Biotechnology Innovation Organization in 2024 revealed that approximately 79 percent of responding biopharmaceutical companies held at least one contract or product linked to a development or manufacturing partner in China. Such high reliance on specific geographies means that shifting supply chains is a capital-intensive and slow process, effectively stalling broader market expansion as funds are diverted toward risk mitigation rather than new development programs.

Market Trends

The Integration of Artificial Intelligence and Digital Twin Technology is rapidly reshaping the operational landscape of contract manufacturing, allowing providers to evolve from simple execution partners into strategic technical innovators. By utilizing predictive algorithms and virtual process modeling, CDMOs can significantly shorten technology transfer timelines and optimize batch yields before physical production begins. This digital maturity is becoming a key competitive factor, directly addressing the industry's need for efficiency and risk reduction in complex modalities. According to a September 2025 article in Contract Pharma titled 'AI in Pharma Manufacturing: Trends & Applications Shortening Timelines', a study indicated that 49% of respondents viewed operational benefits as the primary value sought from smart manufacturing strategies.

In parallel, the Implementation of Sustainable Green Chemistry Practices has become a critical requirement for market participants, driven by increasing regulatory pressure and client mandates to reduce Scope 3 emissions. Contract organizations are actively re-engineering synthetic pathways and adopting renewable energy sources to align with the decarbonization goals of their pharmaceutical partners. Despite this strategic focus, the transition remains capital-intensive and operationally challenging for many providers. As reported by CPHI Online in July 2025, the Pharmapack 2025 Strategic Insights & Research survey revealed that 76% of respondents cited resource constraints as the dominant barrier to effectively implementing sustainability initiatives.

Key Players Profiled in the Contract Development & Manufacturing Organization (CDMO and CMO) Market

• Lonza
• Catalent
• Thermo Fisher Scientific
• Samsung Biologics
• WuXi Biologics
• Recipharm
• Boehringer Ingelheim BioXcellence
• Jubilant Biosys / Jubilant Pharmova
• Fareva
• Rentschler Biopharma

Report Scope

In this report, the Global Contract Development & Manufacturing Organization (CDMO and CMO) Market has been segmented into the following categories:

Contract Development & Manufacturing Organization (CDMO and CMO) Market, by Service Type CMO:

• Active Pharmaceutical Ingredient (API) Manufacturing
• Finished Dosage Formulation (FDF) Development and Manufacturing
• Secondary Packaging

Contract Development & Manufacturing Organization (CDMO and CMO) Market, by Research Phase CRO:

• Pre-clinical
• Phase I
• Phase II
• Phase III
• Phase IV

Contract Development & Manufacturing Organization (CDMO and CMO) Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Contract Development & Manufacturing Organization (CDMO and CMO) Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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