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CDMO Services for Pharma and Biotech Market Expands in 2025 as Small Molecules...

CDMO Services for Pharma and Biotech Market Leads North America with 44.1% in 2024

Based on forecasts, the CDMO services for pharma and biotech market is expanding due to increasing outsourcing as well as rising cancer treatment approaches. North America led the market due to the presence of well-developed industries.     

Category: Healthcare Services Insight Code: 5801 Format: PDF / PPT / Excel

CDMO Services for Pharma and Biotech Market Strategic Collaborations and AI Adoption Accelerate Global Expansion

The CDMO services for pharma and biotech market is experiencing substantial growth from 2024 to 2034, driven by increasing outsourcing trends among pharmaceutical and biotech companies. The demand for end-to-end drug development, manufacturing efficiency, and regulatory compliance support is accelerating market expansion. Innovations in biologics, personalized medicine, and complex therapeutics are prompting firms to seek specialized CDMO partnerships. Emerging economies are also contributing significantly, offering cost-effective manufacturing hubs and expanding healthcare infrastructure.

The use of CDMO services in pharma and biotech companies is increasing due to growing innovative treatment approaches and diseases. This, in turn, is leading to new collaborations as well as the launch of new CDMOs and the products developed. At the same time, the use of AI in CDMO is enhancing its workflow. Its use in different regions is also increasing due to increasing innovations, industries, and expanding healthcare. Thus, all these developments are promoting the market growth.

CDMO Services for Pharma and Biotech Market Size and Overview

Key Takeaways

  • North America dominated the global CDMO services for pharma and biotech market with 44.1% in 2024.
  • Asia Pacific is expected to be the fastest-growing from 2025 to 2030.
  • By service type, the API manufacturing segment dominated the market in 2024 with 41.3% market share and is expected to grow at the fastest CAGR during the forecast period.
  • By molecule type, the small molecules segment dominated the market with 58.2% in 2024.
  • By molecule type, the advanced therapies segment is expected to be the fastest growing during the forecast period.
  • By phase type, the commercial segment dominated the market with 64.7% in 2024.
  • By phase type, the clinical segment is expected to be the fastest growing during the forecast period.
  • By end user, the pharmaceutical companies segment dominated the global CDMO services for pharma and biotech market with 69.5% in 2024.
  • By end user, the biotechnology companies segment is expected to be the fastest growing during the forecast period.
  • By therapeutic area type, the oncology segment dominated the market with 33.8% in 2024.
  • By therapeutic area type, the rare diseases segment is expected to be the fastest growing during the forecast period.

What are CDMO Services for Pharma and Biotech?

The CDMO services for pharma and biotech market encompasses third-party organizations that provide comprehensive drug development and manufacturing services to pharmaceutical and biotechnology companies. CDMOs assist from early-stage development (R&D, formulation) to large-scale commercial manufacturing across small-molecule drugs, biologics, vaccines, and advanced therapies (e.g., cell & gene therapies). Moreover, it also provides advanced synthesis techniques and expertise to enhance the production. At the same time, the product quality, tech transfer process, and regulatory compliance are also provided by CDMO, facilitating the entry of the products into the market.

Expanding CDMOs

The graph represents the total investment plans of CDMOs for their expansion. It indicates that there is a rise in the expansion of CDMO services. Hence, they will enhance the biomanufacturing of the products from pharma and biotech companies. Thus, this in turn will ultimately promote the market growth.

  • In June 2025, a collaboration between TAG1 Inc., which is a distributor of clinical quantities of medical isotopes, and PharmaLogic, which is a leading contract development and manufacturing organization (CDMO) specialized in radiopharmaceuticals, was announced. This collaboration is focusing on enhancing the accessibility and availability of TAG1's proprietary Pb-212 generator platform and alpha isotopes. (Source: Finance Yahoo)
  • In June 2025, a collaboration between OneSource Specialty Pharma Limited, which is a contract development and manufacturing organization (CDMO), and Sweden-headquartered biotech company Xbrane Biopharma AB was announced. They will work on the manufacturing of the biosimilar portfolio of Xbrane Biopharma AB. (Source: The Hindu BusinessLine)

Why is the Use of AI Increasing in the CDMO Services for Pharma and Biotech Market?

The use of AI is increasing in the CDMOs as it enhances the quality and efficiency, along with minimizing the time-to-market, improving the drug development and manufacturing. Moreover, the conditions for drug development and production can be optimized with the help of AI, predictive analytics, and machine learning algorithms. Thus, it minimizes downtime and waste, resulting in cost efficiency. Hence, the use of AI in CDMO serves as a critical tool in improving drug development, its effectiveness, and efficiency, and is anticipated to provide more such applications in upcoming years.

Market Dynamics

Driver

Growing Outsourcing

The increasing outsourcing of products is increasing the demand for CDMO services. The CDMO helps to decrease the risk involved in the production or during the scaling up of the product. Moreover, it also provides expertise during the development process and is in compliance with the regulations laid by regulatory bodies. At the same time, to accelerate the clinical trials, the pharma and biotech companies are collaborating with CDMOs. Thus, this promotes the CDMO services for pharma and biotech market growth.

Restraint

Lack of infrastructure

The lack of infrastructure in CDMO can affect the outsourcing, as well production of the companies. At the same time, advanced therapies may require a specialized environment and equipment, which may be difficult to provide by the CDMO. Thus, due to limited infrastructure, the services provided by CDMO may be restricted, affecting the market growth.

Opportunity

Increasing cancer treatment approaches

The growing advancements in the development of novel treatment approaches for cancer are increasing the use of CDMO services by the pharma and biotech companies. The growing therapies require sterile conditions and specialized equipment, which are offered by CDMOs. Moreover, it also helps in enhancing the production of these treatment approaches. Additionally, it also helps in clinical trials and the commercialization of them as they comply with the regulatory standards. Thus, this promotes the CDMO services for pharma and biotech market growth.

For instance,

  • In June 2025, to hasten the development of recombinant protein-based cancer therapies, an initiative of €500,000 that is an oncology services contest was launched by Mabion, which is a biotech-focused CDMO, at the BIO International Convention 2025. (Source: Contract Pharma

Segmental Insights

Why the API Manufacturing Segment Dominated in the CDMO services for Pharma and Biotech Market?

By service type, the API manufacturing segment led the market in 2024 with 41.3% and is expected to sustain the position during the predicted time. The use of API is crucial in the development of all medicines. Thus, their manufacturing, production, and outsourcing were efficiently conducted with the help of CDMO. Moreover, it also helps in reducing the cost associated with it.

How Small Molecules Segment Dominated the CDMO Services for Pharma and Biotech Market in 2024?

By molecule type, the small molecules segment held the largest share of the market with 58.2% in 2024. The growing development of small molecules has increased the demand for CDMO services. At the same time, it provided various facilities to enhance their quality and production. Thus, this contributed to the market growth.

By molecule type, the advanced therapies segment is expected to show the highest growth during the upcoming years. The growing incidence of chronic diseases is increasing the development of advanced therapies. Therefore, the collaborations with CDMOs are also increasing.

Which Phase Type Segment Held the Dominating Share of the CDMO Services for Pharma and Biotech Market in 2024?

By phase type, the commercial segment held the dominating share of the market with 64.7% in 2024. The large-scale manufacturing and outsourcing services were provided by the CDMO during the commercial phase, along with enhanced quality and regulatory standards. This enhanced the market growth.

By phase type, the clinical segment is expected to show the fastest growth rate during the forthcoming years. The growing clinical trials is increasing the demand for CDMO services. They help in reducing the time as well as cost, and also offer regulatory guidance from experts, enhancing the approval rates.

Why Did the Pharmaceutical Companies Segment Dominate in the CDMO Services for Pharma and Biotech Market in 2024?

By end user, the pharmaceutical companies segment led the global market with 69.5% in 2024. The pharmaceutical companies showed continuous drug development and production, which in turn increased the demand for the use of CDMO services. Thus, the scale-up of the products, approval, and commercialization were supported by them, increasing their use.

By end user, the biotechnology companies segment is expected to show the highest growth during the predicted time. The increasing development of biologics, gene therapies, etc, in biotechnology companies is increasing the demand for CDMOs. Thus, they are offering a favourable environment and facilities to enhance their development.

What Made Oncology the Dominant Segment in the CDMO Services for Pharma and Biotech Market in 2024?

By therapeutic area type, the oncology segment held the largest share of the market with 33.8% in 2024. Various cancer treatment options are being developed, which require specialized manufacturing facilities and expertise. Thus, the use of CDMO services increased. They helped in their manufacturing as well as in clinical trials, promoting the market growth.

By therapeutic area type, the rare diseases segment is expected to show the fastest growth rate during the upcoming years. Increasing incidences of rare diseases are driving the development of treatment approaches. Thus, this leads to growing collaboration with CDMO to enhance their production, clinical trials, approvals, and commercialization.

Regional Insights

Advanced Industries Drives North America

North America dominated the CDMO services for pharma and biotech market in 2024. North America consisted of well-developed industries, which in turn, enhanced the production of various products along with outsourcing, leading to a rise in CDMO services. Thus, this contributed to the market growth.

The U.S. CDMO Services for Pharma and Biotech Market Trends

The industries in the U.S. are focusing on the development of various traditional approaches. This, in turn, is increasing the demand for CDMO for advanced infrastructure to enhance the manufacturing and development process. At the same time, growing investments are also contributing to the same.

The Canada CDMO Services for Pharma and Biotech Market Trends

The growing interest in the development of cancer treatment approaches, such as gene therapies, CAR-T, etc., is increasing in Canada. This, in turn, increases the collaboration of companies with CDMO to utilize the services for their development. Thus, they provide companies with well-suited infrastructure.

Advancing Healthcare Boosts the Asia Pacific

Asia Pacific is expected to host the fastest-growing CDMO services for the pharma and biotech market during the forecast period. The healthcare sector in Asia Pacific is advancing with the growing adoption of advanced technologies, research, and development. This, in turn, increases the demand for CDMO by the pharma and biotech companies, enhancing the market growth.

The China CDMO Services for Pharma and Biotech Market Trends

With the growing research and development in China, there is a rise in various diagnostic and treatment approaches. Thus, to enhance production, approval, and commercialization, the adoption of CDMO services is increasing. Moreover, to support them, the investments are also provided by the government.

The India CDMO Services for Pharma and Biotech Market Trends

The growing production rates, as well as the biologics and generic drugs development, are increasing in India, promoting the use of CDMO services by the pharma and biotech companies. Moreover, the increasing clinical trials and investments by companies are also contributing to the same.

Europe Driven by Growing Drug Development

Europe is expected to grow significantly in the CDMO services for the pharma and biotech market during the forecast period. To deal with the growing incidence of diseases, the pharma and biotech companies in Europe are increasing the development of various treatment approaches. Thus, this promotes the market growth.

The Germany CDMO Services for Pharma and Biotech Market Trends

The industries as well as the institutes in Germany are focused on developing innovative approaches for the diagnosis and treatment of rising diseases. Thus, to support this development, the adoption of CDMO is growing. Furthermore, to accelerate their clinical trials and approval, their adoption is increasing.

The UK CDMO Services for Pharma and Biotech Market Trends

To deal with the rising outsourcing and development of products in the UK, the demand for CDMO services is increasing. At the same time, they are also supporting the research and development for rare diseases and cancer. Furthermore, the guidance by the experts is promoting the formulation and development process.

Top Companies in the CDMO Services for Pharma and Biotech Market

CDMO Services for Pharma and Biotech Market Companies

  • Lonza Group AG
  • Catalent Inc.
  • Thermo Fisher Scientific (Patheon)
  • WuXi AppTec
  • Samsung Biologics
  • Recipharm AB
  • Siegfried Holding AG
  • Fujifilm Diosynth Biotechnologies
  • Boehringer Ingelheim BioXcellence
  • Cambrex Corporation
  • Jubilant Biosys / Jubilant Pharmova
  • Piramal Pharma Solutions
  • Curia (formerly AMRI)
  • AGC Biologics
  • Evonik Industries
  • AbbVie Contract Manufacturing
  • PCI Pharma Services
  • Rentschler Biopharma
  • Vetter Pharma
  • Emergent BioSolutions

What are the Latest Announcements by Industry Leaders in the CDMO services for pharma and biotech market?

  • In June 2025, after signing a contract manufacturing agreement between LOTTE BIOLOGICS and Ottimo Pharma, the CEO of LOTTE BIOLOGICS, James Park, stated that this agreement validates their competitiveness as a CDMO in the antibody therapeutics market. While the vice president of technical development & manufacturing at Ottimo Pharma, Joseph Shultz, stated that the operational readiness, IND submission, and clinical trial initiation will be supported by this collaboration with the biomanufacturing capabilities of LOTTE. (Source: Genetic Engineering and Biotechnology News)
  • In March 2025, by launching a full-service ‘hybrid’ CDMO, the managing director of Shilpa Medicare, Vishnukant C. Bhutada, stated that they want to provide several flexible pathways to the pharmaceutical and biotech customers for commercializing their products in the market. Moreover, the world-class facilities, development teams, and cutting-edge technologies in collaboration with GLP-1 and biologics services will be provided. Furthermore, it was stated that they don’t compete with their customers as they will remain a B2B-only company. (Source: PharmaBiz)

What are the Recent Developments in the CDMO Services for Pharma and Biotech Market?

  • In June 2025, the participation of CEO Amir Reichman in the BIO International Convention 2025 was announced by Scinai Immunotherapeutics Ltd., which is a biopharmaceutical company that provides biologics CDMO services by its Scinai BioServices unit. The latest strategic, financial, and operational advances of the company will be presented to the investors and partners at this event. (Source: Finance Yahoo)
  • In April 2025, the acquisition of a complete equity stake in Ajinomoto Althea, Inc., which is a US-based sterile fill-finish CDMO as well as Japan-based Ajinomoto Co., Inc. 100% subsidiary, by PCI Pharma Services, which is a leading global CDMO, was announced. This acquisition will include isolator technology for prefilled syringes and cartridges and high-potency manufacturing suitable for antibody-drug conjugates (ADCs), making it the first manufacturing location in North America for PCI. (Source: Businesswire)

Segments Covered in the Report

By Service Type

  • Drug Development Services
    • Pre-formulation & formulation development
    • Analytical testing services
    • Process development & scale-up
    • Regulatory support
  • API Manufacturing
    • Small Molecule API Manufacturing
    • Large Molecule/Biologics API Manufacturing
  • Finished Dosage Form (FDF) Manufacturing
    • Oral Solid Dosage (Tablets, Capsules)
    • Parenterals (Injectables, IVs)
    • Topicals
    • Others (Inhalation, Suppositories, etc.)
  • Fill-Finish Operations
    • Aseptic filling
    • Lyophilization services
  • Packaging & Labeling
    • Primary and secondary packaging
    • Serialization & Track & Trace
  • Clinical Supply Services
    • Clinical trial materials (CTM) management
    • Logistics & distribution

By Molecule Type

  • Small Molecules
    • Large Molecules (Biologics)
      • Monoclonal antibodies
      • Recombinant proteins
    • Advanced Therapies
      • Cell therapies
      • Gene therapies
      • RNA-based therapies
    • Vaccines

By Phase

  • Preclinical
  • Clinical
  • Phase I
  • Phase II
  • Phase III
  • Commercial

By End User

  • Pharmaceutical Companies
  • Branded
  • Generics 
  • Biotechnology Companies
  • Academic Institutes & Research Organizations
  • Virtual Biotech / Startups

By Therapeutic Area

  • Oncology
  • Infectious Diseases
  • Cardiovascular
  • Neurology
  • Immunology
  • Rare Diseases
  • Others (Diabetes, Respiratory, Gastrointestinal)

By Region 

  • North America
    • U.S.
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
  • Last Updated: 02 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Kesiya Chacko is an accomplished market research professional with over 4+ years of experience in the healthcare industry, known for delivering actionable insights and strategic analysis that empower healthcare organizations.

Learn more about Kesiya Chacko

Aditi Shivarkar, with over 14 years of experience in consumer goods, leads research at Towards Consumer Goods, ensuring precise, actionable insights on trends, consumer preferences, and sustainable packaging for businesses.

Learn more about Aditi Shivarkar

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FAQ's

The CDMO Services for Pharma and Biotech Market (2024–2034), driven by innovation in biologics, personalized medicine, and global outsourcing trends.

North America is currently leading the CDMO services for pharma and biotech market due to the presence of well-developed industries.

The CDMO services for pharma and biotech market includes six segments such as by service type, Shape, Pictureby molecule type,Shape, Picture Shape, Picture by phase, by end user, by therapeutic area, and by region.

Some key players include Lonza Group AG, Catalent Inc., Thermo Fisher Scientific (Patheon), and WuXi AppTec.

Key trends include rising accessibility and availability of Pb-212 generator platform and alpha isotopes, and innovation in biosimilars.

Oncology is the therapeutic area that dominates the market.

Increasing outsourcing is the factor that drives the market.

DCAT Value Chain Insights, Ministry of Health and Family Welfare, Government of India, National Institutes of Health, FDA, WHO, PIB, CDC.