Pharmaceutical Contract Manufacturing and Research Services Market Related Reports and Market Intelligence

Revenue, 2025

USD 281.68 Billion

Forecast, 2035

USD 551.01 Billion

CAGR, 2026-2035

6.94%

Report Coverage

Global

Pharmaceutical Contract Manufacturing and Research Services Market Trends for 2026

The global pharmaceutical contract manufacturing and research services market size was estimated at USD 281.68 billion in 2025 and is predicted to increase from USD 301.23 billion in 2026 to approximately USD 551.01 billion by 2035, expanding at a CAGR of 6.94% from 2026 to 2035.

The growing advancement in drug discovery and development is increasing the use of pharmaceutical contract manufacturing and research services, where the increasing advanced therapies, AI integration, clinical trials, and new platform launches are also promoting the market growth.

Key Takeaways

• The pharmaceutical contract manufacturing and research services market will likely exceed USD 301.23 billion by 2026.
• Valuation is projected to hit USD 551.01 billion by 2035.
• Estimated to grow at a CAGR of 6.94% starting from 2026 to 2035.
• Asia Pacific dominated the global pharmaceutical contract manufacturing and research services market in 2025.
• North America is expected to be the fastest-growing region between 2026 and 2035.
• By service type, the manufacturing segment held the largest revenue share of the market in 2025.
• By service type, the research segment is expected to witness the fastest growth during the forecast period.
• By end-user, the big pharma segment dominated the market in 2025.
• By end-user, the contract research organizations segment is expected to be the fastest growing during the forecast period.

What are the Pharmaceutical Contract Manufacturing and Research Services?

The pharmaceutical contract manufacturing and research services market is driven by a growing shift towards end-to-end strategic collaboration, patent expiration, and increasing biologics. The pharmaceutical contract manufacturing and research services refer to the services provided to the pharmaceutical companies by specialized third-party companies. They offer a wide range of services supporting drug research, development, and manufacturing to the pharmaceutical companies.

Why is the Impact of AI increasing in the Market?

The impact of AI on the pharmaceutical contract manufacturing and research services market is increasing as it helps in accelerating drug discovery and development, promoting the development of optimized products. It also analyses large datasets, provides insights, and reduces the chances of product failure. Its automated data processing and enhanced quality control detect defects in the systems and promote the development of consistent quality products.

What are the Trends & Future Outlook of the Market?

Flourishing Complex Treatment Options

The growing chronic disease burden globally is increasing the demand for cell & gene therapies, biologics, and biosimilars, which is increasing their development and innovations, driving the demand for pharmaceutical contract manufacturing and research services.

Expanding Outsourcing Trends

The growth in the R&D activities and production rates is increasing the outsourcing trends, leading to new collaborations for pharmaceutical contract manufacturing and research services, in order to focus on new drug candidates and reduce the cost associated with their development.

Blooming Technologies

To boost efficiency and applications with end-to-end solutions and continuous manufacturing, new CRO-CDMO hybrid models are being launched along with the integration of automation and new digital tools.

Executive Summary Table

Segmental Insights

By Service Insights

Which Service Type Segment Held the Dominating Share of the Market in 2025?

The manufacturing segment held the dominating share of the pharmaceutical contract manufacturing and research services market in 2025, due to continuous commercial-scale production. The growth in the demand for sophisticated equipment, GMP compliance, and expensive facilities increased the use of pharmaceutical contract manufacturing and research services. Advancements in biologics also increased their demand.

Research

The research segment is expected to show the highest growth during the upcoming years, due to growing drug discovery and development. Similarly, increasing innovations of gene therapies and biosimilars are also increasing the demand and use of pharmaceutical contract manufacturing and research services. The growing demand for specialized expertise and increasing outsourcing trends are also driving their acceptance rates.

By End-User Insights

What Made Big Pharma the Dominant Segment in the Market in 2025?

The big pharma segment contributed the biggest revenue share of the pharmaceutical contract manufacturing and research services market in 2025, due to growth in the R&D activities and clinical pipeline. This increased the use of pharmaceutical contract manufacturing and research services for specialized expertise and regulatory compliance. Moreover, growth in the drug production rates also increased the collaborations to leverage these services.

Contract Research Organizations

The contract research organizations segment is expected to witness rapid growth during the predicted time, due to growing outsourcing trends. The increasing advancements in the discovery and development of new molecules are also increasing the demand for pharmaceutical contract manufacturing and research services, where their affordability, regulatory expertise, and advanced technologies are also increasing their use.

Regional Insights

Why are Expanding Industries Propelling Asia Pacific?

Asia Pacific dominated the pharmaceutical contract manufacturing and research services market in 2025, due to the rapid expansion of pharmaceutical and biotechnology companies, which is increasing the development of new products, encouraging the use of pharmaceutical contract manufacturing and research services. Growing outsourcing trends, disease burden, and government support are also enhancing the market growth.

India Market Trends

The growth in the CRO and CDMO ecosystem in India is increasing their collaboration to accelerate the development of various drug products. The growth in the generic product development and increasing skilled personnel are also increasing the use of pharmaceutical contract manufacturing and research services, where their affordability and quality controls are also promoting the acceptance rates.

Do R&D Investments Drive North America?

North America is estimated to be the fastest-growing region in the pharmaceutical contract manufacturing and research services market during 2026-2035, due to growth in the R&D investments, which increased the R&D activities, driving the demand for pharmaceutical contract manufacturing and research services. The presence of well-developed pharmaceutical industries and startups also increased their use due to growing drug development advancements and clinical trials, which contributed to the market growth.

U.S. Market Trends

The U.S. consists of large pharmaceutical and biotech companies that are backed by R&D investment, which is accelerating drug discovery and development. Increasing demand for advanced therapies and personalized medication is also driving their innovations where stringent regulations are also increasing the use of pharmaceutical contract manufacturing and research services.

What Factor Boosts Europe?

Europe is expected to grow significantly in the pharmaceutical contract manufacturing and research services market during the forecast period, due to the presence of advanced pharmaceutical industries, increasing the use of pharmaceutical contract manufacturing and research services due to growing drug development and innovations. Stringent regulations, growing clinical trials, and government investments are also promoting the market growth.

UK Market Trends

The presence of robust industries and R&D infrastructure in the UK is increasing the advancements in gene therapies, personalized medicines, and biologics, driving the demand for pharmaceutical contract manufacturing and research services. Growing clinical trials and government investments are also increasing their use, leading to new collaborations.

Market Value Chain Analysis

R&D

• The R&D of the pharmaceutical contract manufacturing and research services focuses on the development of specialized drug delivery systems, scaling complex manufacturing processes, and AI-driven data analytics for clinical trial acceleration.
• Key players: Lonza Group, Thermo Fisher Scientific, WuXi AppTec.

Clinical Trials and Regulatory Approvals

• Patient safety protocol, adherence to the good clinical practices (GCP) standards, and integrity of data submitted are evaluated in the clinical trials and regulatory approvals of the pharmaceutical contract manufacturing and research services.
• Key players: Thermo Fisher Scientific, IQVIA, ICON.

Packaging and Serialization

• The packaging and serialization of the pharmaceutical contract manufacturing and research services involve the use of specialized packaging and high-tech serialization services with integration of unique 2D barcodes and track-and-trace systems.
• Key players: Thermo Fisher Scientific, Recipharm, Catalent.

Patient Support and Services

• Patient recruitment and retention programs, decentralized clinical trials platforms, and specialized “hub” services are provided in the patient support and services of the pharmaceutical contract manufacturing and research services.
• Key players: IQVIA, Parexel, ICON.

Market Top Vendors and Their Offerings

SWOT Analysis

Strengths

• The pharmaceutical contract manufacturing and research services offer affordable services, which attract the industry.
• They also provide skilled personnel and advanced technologies that support the manufacturing and research activities, driving their demand.
• The presence of regulatory expertise also supports the development of products complying with regulatory standards.
• They also offer access to the clinical trial networks and international markets supporting the manufacturing and commercialization of the products.

Weaknesses

• The dependence on the pharma clients acts as the major weakness in the pharmaceutical contract manufacturing and research services market, limiting their revenue growth.
• High regulatory compliance restricts the flexibility of these services, where their failure to comply leads to product rejection or penalties.

Opportunities

• The growing number of new drug candidates is increasing the use of pharmaceutical contract manufacturing and research services for their manufacturing and clinical trials.
• Increasing advancements in biologics and advanced therapies are also increasing the use of these services.
• Expanding mid-sized and small pharma startups are also increasing their demand due to growing outsourcing trends.
• Growing interest in personalized medicines and generic drug development is also leading to new collaborations to leverage these services.

Threats

• The competition from the in-house manufacturing and research of pharma companies reduces the use of the pharmaceutical contract manufacturing and research services.
• Moreover, concerns regarding data security also limit their use.

What are the Recent Developments in the Market?

• In February 2026, an e-marketing portal, a one-stop digital marketplace of the Bulk Drug Manufacturers Association of India (BDMAI), was launched, which will support the Indian contract research and manufacturing services (CRAM)/contract development and manufacturing organization (CDMO) services, APIs, impurities, intermediates, pellets, and intermediates in domestic and global markets.
• In January 2026, a biopharmaceutical contract manufacturing agreement was signed between Rakuten Medical, Inc. and LOTTE Biologics to support the development of Alluminox® platform-based photoimmunotherapy, an oncology therapy of Rakuten Medical, Inc., where advanced manufacturing services for monoclonal antibody intermediates and their conjugates will be provided by LOTTE Biologics.

Segments Covered in the Report

By Service

• Manufacturing
• API/Bulk Drugs
• Advanced Drug Delivery Formulations Packaging
• Packaging
• Finished Dose Formulations
• Solid Formulations
• Liquid Formulations
• Semi-solid Formulations
• Research
• Oncology
• Vaccines
• Inflammation & Immunology
• Cardiology
• Neuroscience
• Others

By End-User

• Big Pharma
• Small Pharma
• Generic Pharma
• Contract Research Organizations

By Region

• North America
  • U.S.
  • Canada 
  • Mexico 
  • Rest of North America
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Europe 
  • Western Europe 
    • Germany 
    • Italy
    • France
    • Netherlands
    • Spain
    • Portugal 
    • Belgium
    • Ireland
    • UK 
    • Iceland 
    • Switzerland
    • Poland
    • Rest of Western Europe
  • Eastern Europe 
    • Austria
    • Russia & Belarus 
    • Türkiye
    • Albania 
    • Rest of Eastern Europe 
• Asia Pacific
  • China 
  • Taiwan
  • India 
  • Japan 
  • Australia and New Zealand
  • ASEAN Countries (Singapore, Malaysia)
  • South Korea 
  • Rest of APAC 
• MEA 
  • GCC Countries
    • Saudi Arabia 
    • United Arab Emirates (UAE)
    • Qatar 
    • Kuwait 
    • Oman 
    • Bahrain 
  • South Africa
  • Egypt 
  • Rest of MEA