Contract Manufacturing Market to Reach USD 966.84 Billion by 2030, Driven by Growth Across Pharmaceuticals, Electronics, and Automotive Sectors

Mordor Intelligence has published a new report on the "Contract Manufacturing Market" offering a comprehensive analysis of trends, growth drivers, and future projections

Introduction

The Contract Manufacturing Market is valued at USD 724.35 billion in 2025 and is projected to grow to USD 966.84 billion by 2030, expanding at a CAGR of 5.98% during the forecast period. The industry continues to evolve as businesses across pharmaceuticals, electronics, automotive, and consumer goods increasingly rely on third-party manufacturers to streamline operations, reduce costs, and accelerate time-to-market. The rising demand for specialized expertise, flexible production capacity, and global supply chain efficiency are shaping the trajectory of this market.

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Key Trends in the Contract Manufacturing Market

Expanding Role in Pharmaceuticals and Healthcare

The pharmaceutical and healthcare industry remains one of the most significant contributors to the contract manufacturing sector. Outsourcing spans from active pharmaceutical ingredients (APIs) and finished dosage forms to biologics and nutraceuticals. Growth in biologics manufacturing, including monoclonal antibodies and cell and gene therapies, highlights the shift toward complex therapies requiring advanced production facilities. Additionally, medical device outsourcing-from diagnostic equipment to surgical tools-illustrates the expanding reliance on specialized manufacturers to meet regulatory and quality requirements.

Electronics and Semiconductor Demand

Consumer electronics, telecommunication equipment, and semiconductor assembly are increasingly dependent on contract manufacturing partners. With continuous product refresh cycles, companies need flexible production lines and global capacity to remain competitive. Outsourced semiconductor packaging and testing services (OSAT) are gaining traction as manufacturers look to streamline costs and access specialized capabilities. Furthermore, the rising adoption of industrial IoT and renewable energy technologies fuels demand for customized electronic and semiconductor solutions through external partnerships.

Automotive Industry Transformation

Automotive manufacturers are partnering with contract producers for powertrain components, EV battery packs, and embedded electronics. As the transition toward electric and hybrid vehicles accelerates, outsourcing has become essential for scaling production and addressing evolving consumer needs. From interior and exterior assemblies to advanced driver assistance systems (ADAS) and autonomous driving modules, contract manufacturers play a central role in enabling automotive companies to focus on research, design, and customer experience.

Consumer Goods and Personal Care Growth

The consumer goods sector, including home appliances, wearables, and personal care products, is increasingly engaging with contract manufacturing to maintain agility in highly competitive markets. Companies benefit from cost-effective large-scale production while ensuring high quality and regulatory compliance. In parallel, the personal care and cosmetics segment is gaining traction as brands rely on contract partners for packaging, formulation, and labeling to meet global demand for premium and customized products.

Rising Contribution of Food, Beverage, and Textiles

Contract manufacturing is expanding its role in food processing, beverage bottling, and packaging services. Partnerships allow food and beverage companies to optimize efficiency and adapt quickly to changing consumer tastes and regulatory standards. Similarly, textiles and apparel companies outsource garment production, technical textiles, and home textiles to manage costs and scale output. This trend is especially strong in regions with abundant labor and established supply chain infrastructure.

Strategic Partnerships and Short-Term Projects

While long-term partnerships dominate industries such as pharmaceuticals and electronics, project-based outsourcing is also significant. Short-term contracts are common for addressing seasonal demand, launching new product lines, or meeting one-off requirements. The coexistence of both contract types underscores the flexibility of this market, accommodating both established players and new entrants.

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Contract Manufacturing Market Segmentation

By Industry / End-Use Sector

Pharmaceuticals, Healthcare & Medical Devices

API & FDF (Small-molecule)

Biologics Manufacturing (Cell & Gene Therapy, mAbs)

Nutraceuticals / OTC Drugs

Medical Devices (diagnostics, surgical, etc.)

Others (consumables)

Electronics & Semiconductors

Consumer Electronics (smartphones, IoT devices)

Industrial & IoT Electronics

Telecommunication Equipment

Computing & Data Infrastructure

Semiconductor Assembly, Packaging & Testing (OSAT)

Others (automotive electronics, renewable & power electronics)

Automotive

Powertrain Components (ICE, Electric & Hybrid)

EV Battery Packs

Interior & Exterior Assemblies

Embedded Electronics

ADAS / Autonomous Modules

Consumer Goods

Home Appliances

Personal Care & Wearables

Others (Tools & Hardware, Toys & Recreation Equipment)

Aerospace & Defense

Industrial Machinery

Textiles & Apparel

Garment Manufacturing

Others (Technical Textile, Home Textile)

Food & Beverage

Food Processing

Beverage Bottling

Packaging & Labeling

Personal Care & Cosmetics

By Contract Type

Long-term Strategic Partnerships

Project-based / Short-term

By Geography

North America

South America

Europe

Asia-Pacific

Middle East & Africa

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Key Players in the Contract Manufacturing Market

The Contract Manufacturing Market is characterized by strong competition among established players with global operations. These companies offer scale, advanced capabilities, and diversified portfolios to serve multiple industries:

Hon Hai Precision Industry Co., Ltd. (Foxconn) - A global leader in electronics contract manufacturing, specializing in consumer electronics, computing infrastructure, and industrial IoT solutions.

Jabil Inc. - Known for its diversified capabilities across healthcare, packaging, consumer goods, and industrial sectors, offering end-to-end supply chain solutions.

Celestica Inc. - Provides electronics manufacturing services with expertise in design, engineering, and after-market support, particularly in aerospace, defense, and industrial machinery.

Flex Ltd. - A multinational player supporting industries from automotive to consumer goods, offering design, manufacturing, and supply chain management.

Wistron Corp. - Focused on information and communication technology products, including data centers, cloud computing infrastructure, and consumer electronics.

These companies continue to invest in expanding production facilities, building partnerships with global brands, and developing specialized services to enhance efficiency and maintain competitiveness.

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Conclusion

The Contract Manufacturing Market is positioned for sustained growth as industries across pharmaceuticals, electronics, automotive, and consumer goods increasingly turn to outsourcing strategies. The need for cost efficiency, access to specialized expertise, and the ability to scale production quickly are driving this reliance on contract manufacturers. With the increasing complexity of product development, regulatory requirements, and global supply chain challenges, contract manufacturing remains a cornerstone of modern industrial strategy.

As long-term partnerships deepen and short-term projects provide flexibility, the market is expected to remain a vital enabler of efficiency and innovation across multiple industries. The strong presence of leading players, combined with the rapid expansion of sectors such as healthcare, electronics, and automotive, ensures that contract manufacturing will continue to be integral to the global economy in the years ahead.

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