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Surge in Pharmaceutical Demand Propels Growth Of Small-Molecule CMO/CDMO Market: Major Factor in the Transformation of the Small Molecule CMO/CDMO Market in 2025
Small Molecule CMO or CDMO Market
The small molecule CMO/CDMO market has seen strong growth in recent years. It will grow from $50.58 billion in 2024 to $54.58 billion in 2025, at a CAGR of 7.9%. The growth is due to favorable government support, cost-effective solutions, increasing complexity in drug development, industry consolidation, and a focus on core competencies.
The small molecule CMO/CDMO market is forecasted to grow strongly, reaching $73.3 billion by 2029 at a CAGR of 7.7%. This growth is due to the increase in drug pipelines, the globalization of pharmaceutical operations, the demand for flexible manufacturing, regulatory expertise, and biopharmaceutical convergence. Trends include sustainable manufacturing practices, increased collaboration, personalized medicine, virtual-to-reality companies, and digital technology integration.
What Key Elements Are Boosting Growth in the Small Molecule CMO/CDMO Market?
The rising demand for pharmaceuticals is set to drive the growth of the small-molecule CMO/CDMO market. The pharmaceutical industry involves the discovery, development, and production of drugs by both public and private entities. Small-molecule CMO/CDMO services enable pharmaceutical companies to outsource drug development, manufacturing, and packaging, reducing costs, improving efficiency, and accelerating market entry. For instance, in August 2024, the Government of Canada, a Canada-based governmental agency, reported that pharmaceutical sector exports increased to $9.59 billion USD (12.79 billion CAD) in 2022, up from 10.71 billion CAD in 2021. Imports also grew, reaching 30.21 billion CAD compared to 26.63 billion CAD in 2021. Consequently, the increasing demand for pharmaceuticals is fueling the small-molecule CMO/CDMO market.
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Who Are the Major Industry Players Fueling Small Molecule CMO/CDMO Market Expansion?
Major companies operating in the small molecule CMO/CDMO market report are Patheon NV (Thermo Fisher Scientific), GlaxoSmithKline, Johnson Matthey PLC, Lonza Group Ltd., WuXi AppTec, Catalent Inc., Aurobindo Pharma, Fareva, Aesica Pharmaceuticals Limited, Siegfried holdings AG, Recipharm AB, Jubilant Life Sciences Limited, Almac Group, Piramal Pharma Solutions, Oxford Chemicals Inc., Syngene International Limited, Novasep, Pfizer CentreOne, GVK Biosciences, ChemPartner, Avid Bioservices Inc., Dishman Carbogen Amcis Ltd., ProChem Inc., Metrics Contract Services
Which Key Developments Are Influencing the Small Molecule CMO/CDMO Market?
Companies in the small-molecule CMO/CDMO market are investing in cutting-edge technologies, such as a next-generation small-molecule platform in Shanghai, to enhance contract development and manufacturing (CDMO) services. This advanced platform integrates the latest technological innovations to improve the development and production of small-molecule pharmaceuticals, ensuring safer and more effective drug manufacturing. For instance, in June 2023, Porton Pharma Solutions Ltd., a China-based pharmaceutical company, introduced a state-of-the-art small-molecule platform in Shanghai to elevate CDMO services. This advanced platform integrates innovative methodologies, providing end-to-end solutions, greater flexibility, seamless availability, and digital transformation in small-molecule pharmaceutical development.
How Is the Segmentation of the Small Molecule CMO/CDMO Market Defined?
The small molecule CMO/CDMO market covered in this report is segmented -
1) By Product: Small Molecule Drug Product, Small Molecule API
2) By Stage Type: Clinical, Commercial, Preclinical
3) By Therapeutic Area: Oncology, Neurology, Infectious Disease, Cardiovascular Disease, Respiratory Disorders, Metabolic Disorders, Other Therapeutics
4) By Application: Cardiovascular, Oncology, Diabetes, Immunological Disorders
Subsegments:
1) By Small Molecule Drug Product: Solid Dosage Forms (Tablets, Capsules), Liquid Dosage Forms (Injectables, Solutions), Topical Dosage Forms
2) By Small Molecule API (Active Pharmaceutical Ingredient): Generic APIs, Branded APIs, Custom Synthesis APIs
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What Is the Leading Region in the Small Molecule CMO/CDMO Market?
North America was the largest region in the small molecule CMO/CDMO market in 2024. The regions covered in the small molecule CMO/CDMO market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Small Molecule CMO/CDMO Global Market Report?
- Market Size Analysis: Analyze the Small Molecule CMO/CDMO Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Small Molecule CMO/CDMO Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Small Molecule CMO/CDMO Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Small Molecule CMO/CDMO Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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