10 November 2025
The pharmaceutical CDMO market is closely linked with the growing use of top pharmaceutical machinery and advanced manufacturing systems. As drug production becomes more complex, many companies now rely on CDMOs to provide the technology, equipment, and expertise needed to develop and produce medicines.
This growth is becoming more visible across major regions and sectors of the pharmaceutical industry The global expansion is supported by several important factors:
The global CDMO market is entering a new phase of growth with many fresh opportunities across drug research, production, and technology. As new medicines become more complex, CDMOs are developing new ideas to fulfill the needs of pharmaceutical and biotech companies.
There is a rising demand for biologics, vaccines, and cell and gene therapies. Since these are difficult to make, pharmaceutical companies are turning to CDMOs that offer the right tools and facilities for large-scale and safe production.
Countries in the Asia-Pacific, especially India and China, are becoming major hubs for CDMO services. Lower costs, better infrastructure, skilled labor, supportive policies, and strong research networks are attracting many global partnerships.
CDMOs are using new technologies such as automation, artificial intelligence, and digital tracking systems. These tools help improve quality, reduce waste, speed up production, maintain consistency, and lower overall costs.
There is growing interest in producing high-potency APIs and sterile injectables used in cancer and chronic disease treatments. CDMOs that invest in these specialized areas are likely to see major business growth in the coming years.
The CDMO market is split into two main service groups: Contract Manufacturing Organizations (CMO) and Contract Research Organizations (CRO). The CMO side covers actual production work, while CROs focus on research and trial services. This clear division helps clients pick partners based on whether they need making and packaging or research and testing.
By Service Type: CMO
The Contract Manufacturing Organization (CMO) segment leads the global market because it provides important production services like the Active Pharmaceutical Ingredient (API) manufacturing, finished product manufacturing, and packaging.
Among these, API manufacturing remains the largest part, as it involves making the main chemical ingredients used in medicines. Many companies prefer to outsource API production to CDMOs because it saves costs and ensures better quality through advanced technology.
Finished product manufacturing, including solid dosage forms, injectables, and others, also plays a major role due to the rising demand for ready-to-market drugs.
By Research Type: CRO
The Contract Research Organization (CRO) segment focuses on the early stages of drug development, which include preclinical studies, clinical trials, and laboratory services. This area is growing fast because many pharmaceutical and biotechnology firms now outsource clinical research to reduce costs and speed up drug approval.
CROs assist in testing new medicines across different phases, from Phase 1 clinical trials to Phase 4 long-term studies. With more global demand for new and safe drugs, the CRO segment is expected to see strong growth in the coming years.
Regions with strong pharmaceutical industries and modern facilities are leading the CDMO growth. North America and Europe remain the biggest markets, while Asia-Pacific is rising quickly due to low costs and rapid innovation.
North America
North America is the largest CDMO market, valued at over USD 92 billion in 2024. The The United States leads because many pharmaceutical firms rely on CDMOs for faster and safer drug production.
The region’s strong regulations and focus on innovation, shown by the 37 new drugs approved by the FDA in 2022, keep it ahead. Canada also supports this growth through funding such as its USD 59 million Critical Drug Initiative, which promotes local research and production.
Europe
Europe holds the second-largest market share, with major contributions from Germany, the UK, and France. Germany leads in clinical trials, accounting for 24% of global trials.
The UK supports CDMO growth through grants like Lonza’s USD 38.6 million funding for biopharmaceutical manufacturing. The region benefits from strong government incentives and active research collaboration.
Asia-Pacific
Asia-Pacific is the fastest-growing CDMO region, led by India, China, and Japan. India offers low-cost, high-quality manufacturing and has the most FDA-approved plants outside the U.S. China and Japan are expanding their CDMO facilities, like WuXi STA’s new peptide plants and AGC Inc.’s biopharma upgrades, to meet the growing demand for advanced drug production.
The global CDMO market is shaped by several major companies that provide research, development, and large-scale drug manufacturing services. These key players drive innovation and use advanced technologies to meet the huge demand for complex medicines.
Some of the leading names in the CDMO market include:
Lonza and Thermo Fisher Scientific are popular for their large-scale production facilities, while WuXi AppTec and Samsung Biologics lead in biologics and vaccine manufacturing. Companies like AGC Inc. are changing the future of drug production through advanced technologies.
AGC operates across Japan, the U.S., and Europe, using both single-use bags (SUB) and stainless-steel bioreactors to offer flexible production for small and large-scale projects.
The pharmaceutical CDMO market is facing several challenges that can affect efficiency and profitability. One major issue is pharmaceutical stability and storage services, as maintaining the quality of sensitive drugs during production and transport requires strict temperature and humidity control.
Any failure in this process can lead to product loss and safety risks. Another challenge is regulatory complexity, since different countries have varying safety and quality standards, making global operations difficult. High production costs linked with advanced technology and specialized staff also put pressure on small and mid-sized CDMOs.
10 November 2025
10 November 2025
10 November 2025
10 November 2025