The global active pharmaceutical ingredient CDMO market size was valued at USD 164.5 billion in 2030 and is projected to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2030. Increasing pharmaceutical R&D investments, patent expirations, and a rise in demand for generic drugs and biologic innovations propelling outsourcing are the factors driving the market.
The growth of small molecules, rising active pharmaceutical ingredient (API) complexity and the need to reduce costs are factors contributing to the rapid expansion of outsourcing services in the pharmaceutical sector. Only a few companies have achieved global reach and scale in the contract development and manufacturing organization (CDMO) sector, which is still fragmented. Besides, many companies are providing one-stop-shop solutions as an integrated source of APIs and formulations.
As the healthcare industry is undergoing a process of dynamic change, factors such as rapid technological advancements (e.g., automation & AI), the need for CROs/CMOs/CDMOs, and rising investments in research are influencing the healthcare market. The outsourcing of activities is benefitting many pharmaceutical companies in improving their operational efficiencies, expanding their geographical presence, decreasing resource costs, gaining therapeutic expertise, and enhancing on-demand services.
The COVID-19 pandemic placed unprecedented expectations on API makers, as evidenced by the substantial increase in demand for medications required to manage critically ill patients on mechanical ventilation. As a result, the sudden need to rapidly increase production has emphasized the need for adaptability for API CDMOs in maintaining drug supply, with some companies proving to be better prepared to withstand the pressures of quick scale-up than others. Growing demand for new therapies worldwide and an increase in the conduction of clinical research in the post-pandemic period are expected to support the market in the coming years.
The traditional active pharmaceutical ingredient segment dominated the market and accounted for the largest revenue share of 39.8% in 2022, due to the high adoption of traditional API in majority of pharmaceuticals
The innovative drugs segment held 73.7% of the revenue share in 2022. This is largely attributed to increasing FDA approvals for new molecular entities, and the increased focus on R&D by innovator API companies
The oncology segment led the market with the highest revenue share of 35.5% in 2022. This is due to the increasing demand for highly potent APIs for cancer therapy
The biotech segment is expected to grow at the fastest rate of 7.0% over the forecast period, owing to the high adoption of biopharmaceuticals in the treatment of chronic and infectious diseases
The clinical workflow segment is anticipated to witness the fastest CAGR of 7.3% over the forecast period. An increase in the number of clinical research studies supporting the demand for APIs is one of the key factors driving segment growth
In Asia Pacific, the market is expected to register the fastest CAGR of 9.1% over the forecast period. Due to the extreme growth in the number of pharmaceutical companies and contract manufacturing organizations in developing countries such as India and China, the region is likely to overtake Europe and North America in the near future
Grand View Research has segmented the global Active Pharmaceutical Ingredient CDMO market report on the basis of product, synthesis, drug, application, workflow, and region:
API CDMO Product Outlook (Revenue, USD Million, 2018 - 2030)
Traditional Active Pharmaceutical Ingredient (Traditional API)
Highly Potent Active Pharmaceutical Ingredient (HP-API)
Antibody Drug Conjugate (ADC)
Others
API CDMO Synthesis Outlook (Revenue, USD Million, 2018 - 2030)
Synthetic
Biotech
API CDMO Drug Outlook (Revenue, USD Million, 2018 - 2030)
Innovative
Generics
API CDMO Workflow Outlook (Revenue, USD Million, 2018 - 2030)
Clinical
Commercial
API CDMO Application Outlook (Revenue, USD Million, 2018 - 2030)
Oncology
Hormonal
Glaucoma
Cardiovascular disease
Diabetes
Others