The global pharmaceutical contract manufacturing and research services market was valued at USD 263.37 billion in 2024 and is projected to reach USD 395.23 billion by 2030, growing at a CAGR of 6.9% from 2025 to 2030. The market expansion is primarily driven by cost- and time-saving advantages offered through outsourcing, which allows pharmaceutical companies to focus on core research and development activities while leveraging specialized manufacturing expertise.

Market participants are investing in infrastructure, skilled personnel, and advanced technologies to capture a larger share of the outsourcing revenue. End-to-end service providers offering integrated and risk-sharing business models are expected to further drive market growth.

A major factor fueling the market is pharmaceutical companies’ focus on cost efficiency and operational optimization. By outsourcing manufacturing to CMOs (Contract Manufacturing Organizations) and CDMOs (Contract Development and Manufacturing Organizations), firms can reduce capital expenditure on facility construction, maintenance, and regulatory compliance. This enables companies to allocate resources to drug discovery, R&D, and commercialization. High-volume operations at CMOs and CDMOs also create economies of scale, reducing per-unit production costs for clients.

The growing complexity of drug development supports the demand for contract services. The rise of biologics, biosimilars, HPAPIs, and personalized medicines requires advanced manufacturing capabilities that many pharmaceutical companies do not possess in-house. CMOs and CDMOs leverage cutting-edge technologies, including continuous manufacturing, containment systems for potent compounds, and flexible production lines, often enhanced with automation and AI to improve quality, process efficiency, and regulatory compliance.

Key Market Trends & Insights

• The Asia Pacific region led the global market in 2024, accounting for a 42.0% revenue share.
• In North America, the U.S. dominated with a 95.5% revenue share in 2024.
• By service type, pharmaceutical contract manufacturing services held the largest share at 66.1% in 2024.
• Pharmaceutical contract research services are expected to grow at the fastest CAGR of 7.0% during the forecast period.

Market Size & Forecast (2024-2030)

• 2024 Market Size: USD 263.37 Billion
• 2030 Projected Market Size: USD 395.23 Billion
• CAGR (2025–2030): 6.9%
• Largest Market in 2024: Asia Pacific

Global health trends also contribute to market expansion. Rising chronic disease prevalence increases the demand for diverse pharmaceutical products, many of which are efficiently produced via contract manufacturing. Patent expirations boost demand for cost-effective generics and biosimilars, frequently outsourced for large-scale production. Additionally, evolving regulations and the need for faster time-to-market encourage pharmaceutical firms to partner with established CMOs and CDMOs. Geographic shifts, particularly the Asia-Pacific region emerging as a cost-competitive hub, and integrated CRO-CDMO models offering end-to-end solutions highlight the market’s dynamic nature.

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Key Company Insights

Leading companies in this market include Catalent, Inc (Novo Holdings A/S); PPD (Thermo Fisher Scientific Inc.); and AbbVie Inc. Organizations are leveraging strategic partnerships, mergers and acquisitions, and geographic expansion to strengthen their market positions. Investments in technology and integrated services are aimed at addressing the growing outsourcing demand, particularly for R&D, generics, and biosimilars. Notably, in December 2024, Novo Nordisk (USA) completed its USD 16.5 billion acquisition of CDMO Catalent (USA), initially announced in February 2024, to expand production capacity for diabetes and weight-loss medications.

AbbVie’s contract manufacturing division offers comprehensive pharmaceutical development and manufacturing services across small and large molecules, including biologics and potent compounds, providing global clinical and commercial supply with an emphasis on quality and supply chain security.

Lonza specializes in biologics, cell and gene therapies, and small molecule APIs, providing integrated solutions from early development to commercial production. Its expertise includes mRNA, viral vectors, and continuous manufacturing, serving a diverse global clientele in pharma and biotech.

Key Companies in the Market:

• Catalent, Inc (Novo Holdings A/S)
• PPD (Thermo Fisher Scientific Inc.)
• AbbVie Inc.
• Advent International, L.P.
• Grifol
• Dalton Pharma Services
• Boehringer Ingelheim International GmbH
• Lonza

Conclusion

The pharmaceutical contract manufacturing and research services market is experiencing robust growth, driven by operational efficiency, technological innovation, and increasing demand for complex therapeutics. Asia Pacific’s dominance, coupled with the rapid adoption of contract research services and rising outsourcing trends, underscores the sector’s critical role in supporting pharmaceutical innovation and global healthcare demands. Companies investing in integrated, scalable, and technologically advanced solutions are well-positioned to capitalize on this expanding market.

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