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Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market Insights 2025-2034: Growth Forecast and Strategic Priorities
Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market
What Is the Expected CAGR for the Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market Through 2025?
The market size of pharmaceutical contract development and manufacturing organization (CMO) has seen a significant surge in the recent past. The market is projected to expand from a value of $174.33 billion in 2024 to $186.62 billion in 2025, registering a compound annual growth rate (CAGR) of 7.1%. The preceding growth trend can be accredited to the robust economic growth in new markets, escalated healthcare expenses, a spike in expenditure on pharmaceutical research and development (R&D) and a growing inclination towards outsourcing.
What's the Projected Size of the Global Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market by 2029?
The market size for the pharmaceutical contract development and manufacturing organization (CMO) is projected to witness substantial expansion in the coming years, reaching $260.83 billion by 2029 with a compound annual growth rate (CAGR) of 8.7%. The projected surge during this period can be accounted for by factors such as enhanced government backing, improved healthcare access, rising investments, and advanced biopharmaceutical development. Key trends set to dominate this period encompass a heightened emphasis on sustainability, the integration of artificial intelligence and digitalization, innovative products emphasizing resilience, and increased investments and strategic collaborations among market players.
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Top Growth Drivers in the Pharmaceutical Contract Development And Manufacturing Organization (CMO) Industry: What's Accelerating the Market?
The expansion of the pharmaceutical contract development and manufacturing market is fueled by a rising global demand for medicines. The common occurrence of diseases and the aspiration for extended lifespans have led to an elevated need for medication, compelling pharmaceutical firms to augment the production of existing drugs and escalate their R&D investment for the creation of new drugs. This motivates pharmaceutical firms to partner with contract manufacturing organizations (CMOs) in an effort to reduce operational expenditures, thereby boosting the demand for the pharmaceutical contract development and manufacturing market. Alkermes PLC., a biopharmaceutical corporation, suggests that pharmaceutical contract manufacturing is poised to become a strategic choice for many firms, ranging from large-scale to smaller specialty pharmaceutical entities, mainly because these pharmaceutical companies are seeking ways to reduce costs.
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What Trends Will Shape the Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market Through 2029 and Beyond?
Businesses within the pharmaceutical contract development and manufacturing market are actively pursuing mergers and partnerships to expand their reach and enhance their service offerings. Companies in the industry have embraced acquisition and merger trends in efforts to boost their global presence, satisfy client demands, increase output while keeping costs low, and gain access to novel technologies. This surge in mergers and partnerships leads to the consolidation of service providers. Notably, in July 2022, U.S.-based Pharma Nobis, specializing in contract manufacturing and private label services, purchased Fagron's U.S. contract manufacturing division for an undisclosed figure. This deal will enable Pharma Nobis to provide contract manufacturing and private label services to U.S. retailers and consumer health corporations. Fagron will retain 20% ownership in the company.
What Are the Main Segments in the Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market?
The pharmaceutical contract development and manufacturing organization (CMO) market covered in this report is segmented -
1) By Type: Contract Manufacturing Services, Contract Research Services
2) By Research Phase: Preclinical, Phase I, Phase II, Phase III, Phase IV
2) By End User: Big Pharmaceutical Companies, Generic Pharmaceutical Companies, Small And Medium-Sized Pharmaceutical Companies
Subsegments:
1) By Contract Manufacturing Services: Active Pharmaceutical Ingredient (API) Manufacturing, Formulation Development, Finished Dosage Form Manufacturing, Packaging Services, Supply Chain Management
2) By Contract Research Services: Preclinical Research Services, Clinical Trial Management, Regulatory Affairs Consulting, Biostatistics And Data Management, Analytical And Testing Services
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Which Top Companies are Driving Growth in the Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market?
Major companies operating in the pharmaceutical contract development and manufacturing organization (CMO) market include Lonza Group, Catalent Inc, WuXi AppTec Inc., Pfizer Inc, Recipharm AB, Almac Group, Aenova Group, Baxter International Inc, SGS Life Science Services SA, Jubilant Pharmova Ltd, Dishman Pharmaceuticals, Kemwell Pvt. Ltd., Nipro Corp., CMIC Group, Sawai Pharmaceutical Co., Ltd, IDT Australia Limited, Aurigene Pharmaceutical Services Limited, Vetter Pharma International GMBH, Consort Medical PLC, Siegfried Holding AG, Evonik Industries, NextPharma, Royal DSM N.V, HAUPT Pharma AG, Boehringer Ingelheim International GmbH, Famar, OTC-PharmNEUCA, Farmacol, Polska Grupa Farmaceutyczna, Polpharma, TZMO, AbbVie Inc, Merck & Co Inc, Amgen Inc, Gilead Sciences Inc, Regeneron Pharmaceuticals Inc, Vertex Pharmaceuticals Inc, Johnson & Johnson, Eurofarma Laboratórios S.A., Ache Laboratórios Farmacêuticos S.A., Blanver Farmoquímica e Farmacêutica S.A., Prati-Donaduzzi, União Química Farmacêutica Nacional S.A, Laboratorios Richmond S.A.C.I.F., Bago S.A., Elea Laboratories S.A.C.I. y F., Gador S.A., LIFEPharma, Neopharm, Gulf Pharmaceutical Industries JULPHA, NewBridge Pharmaceuticals Limited, Aspen Pharmacare Holdings Limited, Adcock Ingram Holdings Limited, Pharma-Q (Pty) Ltd, Vital Health Foods, EIPICO (Egyptian International Pharmaceutical Industries Company), Pharco Pharmaceuticals
Which Regions Will Dominate the Pharmaceutical Contract Development And Manufacturing Organization (CMO) Market Through 2029?
North America was the largest region in the global pharmaceutical contract development and manufacturing market in 2024. The Middle East is expected to be the fastest-growing region in the global pharmaceutical contract development and manufacturing market during the forecast period. The regions covered in the pharmaceutical contract development and manufacturing organization (cmo) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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