Healthcare Contract Development and Manufacturing Organization Market Size | Share and Trends 2025 to 2034

Healthcare Contract Development and Manufacturing Organization Market Size and Forecast 2025 to 2034

The global healthcare contract development and manufacturing organization market size was estimated at USD 247.22 billion in 2024 and is predicted to increase from USD 268.23 billion in 2025 to approximately USD 558.95 billion by 2034, expanding at a CAGR of 8.50% from 2025 to 2034.

Healthcare Contract Development and Manufacturing Organization Market Key Takeaways

• North America led the global market with the highest market share of 42% in 2024.
• Asia Pacific region is estimated to expand the fastest CAGR between 2025 and 2034.
• By Services, the contract manufacturing segment held the largest market share in 2024.

U.S. Healthcare Contract Development and Manufacturing Organization Market Size and Growth 2025 to 2034

The U.S. healthcare contract development and manufacturing organization market size was estimated at USD 72.97 billion in 2024 and is predicted to be worth around USD 168.17 billion by 2034, at a CAGR of 8.70% from 2025 to 2034.

North America region accounted revenue share of 42% in 2024. The North America region’s demand for healthcare contract development and manufacturing was boosted by the growth of the pharmaceutical industry. As a result, in terms of contract development and manufacturing of medical devices, North America’s market is predicted to increase rapidly.

U.S. Healthcare Contract Development and Manufacturing Organization Market Trends:
U.S. is a major contributor to the market in North America. The growing demand for biologics, rising investments in R&D activities, increased collaborations and M&A activities among pharmaceutical companies, government support, booming generic drug market and rising incidences of chronic diseases are driving the market growth. Adoption of advanced technologies such as AI-powered analytics, single-use bioreactors and continuous manufacturing by CDMOs are enhancing production capacity, quality control and regulatory compliance.  

• For instance, in October 2024, NorthStar Medical Radioisotopes, LLC, inaugurated its state-of-the-art Radiopharmaceutical Contract Development & Manufacturing (CDMO) Facility in Wisconsin which will provide development services and dose manufacturing capacity for key medical radioisotopes, including Ac-225, Lu-177, Cu-64, Cu-67, and In-111 among others. 

Asia Pacific region is expected to develop at the fastest rate of 10% during the forecast period. The major changes to the European Union regulatory framework are anticipated, potentially affecting market access and entrance. Due to the Europe region’s severe regulatory laws, the market for healthcare contract development and manufacturing organization is likely to flourish.

Asia Pacific Healthcare Contract Development and Manufacturing Organization Market Trends:

Asia Pacific is anticipated to witness lucrative growth in the market over the forecast period. The market growth is driven by factors such as robust regulatory frameworks fostering innovation, need for compliance with quality standards to accelerate market reach, increased emphasis on development of complex drugs and medical devices, growing demand for biosimilars and availability of cost-effective skilled workforce.

Furthermore, government initiatives attracting foreign investments, rising trend of outsourcing drug development and manufacturing activities, and surging demand for pharmaceutical [products with increasing healthcare expenditure are fuelling the market expansion. 

Healthcare Contract Development and Manufacturing Organization Market Growth Factors

A contract development and manufacturing organization is a corporation or organization that provides classified services to other organizations on a contract basis, ranging from medication discovery to drug manufacture for a variety of therapeutic uses. These contract development and manufacturing organizations primarily function as an end user for small businesses that lack manufacturing capacity in the development of novel medications.

The healthcare contract development and manufacturing organizations are pharmaceutical industry institutions that provide a wide range of services on a contract basis, from medication development to drug manufacturing. This contract allows the bulk of pharmaceutical companies to outsource those aspects of their operations that can support scalability or allow the big company to focus on drug discovery and marketing instead. The formulation development, pre-formulation, clinical trials, formal stability, stability studies, registration, and commercial production batches are all services that pre-formulation provide. The goal of service providers is to focus on a single technology or dosage form while simultaneously ensuring end to end consistency and efficiency for all of their outsourcing customers.

The healthcare contract development and manufacturing organization market will be driven by the increased demand for specialist medical gadgets. A primary driver for the healthcare storage contract manufacturing industry in the growing population of older individuals and their inactive lifestyle. As a result, these variables will greatly boost the healthcare contract development and manufacturing organization market growth during the forecast period.

The disruption in the supply chain is one of the primary restraints in the healthcare contract development and manufacturing organization market. In addition, challenges with connectivity and standardization will slow industry expansion in the near future. Furthermore, the purchase of small businesses via contract with healthcare manufacturers will limit the component outsourcing.

However, because corporations are lining up for acquisitions and mergers, this approach will assist to down production costs. Additionally, the increased utilization of multi-product facilities, as well as many technological innovations and developments, will create new growth prospects for the healthcare contract development and manufacturing organization market during the forecast period.

The surge in desire to outsource various operations that are time demanding by the pharmaceutical companies is expected to boost the growth of the healthcare contract development and manufacturing organization market. The pharmaceutical industry’s rise will aid the healthcare contract development and manufacturing organization market’s expansion in the upcoming years. The increased support of contract development and manufacturing organizations in lowering the capital and operational expenses will assist the market in achieving maximum income in the near future.

The healthcare contract development and manufacturing organization market will be driven in the next years by a boom in regulatory affairs, which are positive, and quality assurance services. Furthermore, increasing shipping costs and the danger of violation of intellectual property rights could stifle the healthcare contract development and manufacturing organization market expansion throughout the projection period.

A company and a manufacturer sign a contract for contract manufacturing. For a specific period of time, the manufacturer provides the company with various components. The pharmaceutical and medical device components, as well as other services for drug manufacturing, are provided by contract manufacturers in the healthcare industry. The healthcare contract development and manufacturing organization market is being driven forward by the expiration of medical device patents and increased rivalry among large businesses. In addition, the healthcare contract development and manufacturing organization market is being boosted by the increased desire for convenient devices.

The major market players in the healthcare contract development and manufacturing organization market also offer customized services to fulfill the specific needs of medical device inventors and designers. Furthermore, the North America will continue to dominate the healthcare contract development and manufacturing organization market in the coming years. In addition, emerging countries in the Asia-Pacific region are thriving in the healthcare contract development and manufacturing organization market.

Market Scope

Services Insights

In 2024, contract manufacturing dominated the market for healthcare contract development and manufacturing organization, accounting for the majority of revenue 74% in 2023. This is mostly wing to the pharmaceutical and medical device industries’ strong penetration of contract manufacturing.

On the other hand, the contract development is expected to grow at fastest rate during the forecast period. The contract development has various advantages over in-house drug development, including access to industry specialists, shorter time to market, lower costs, and a greater concentration on core skills.

Healthcare Contract Development and Manufacturing Organization Market Companies

• Flex
• Covance Inc.
• Lonza Group Ltd.
• Thermo Fisher Scientific Inc.
• Jabil
• Catalent Inc.
• Sanmina Corporation
• IQVIA Holdings Inc.
• Siegfried Holding AG
• Recipharm AB

Recent Developments

• In March 2025, HAS Healthcare Advanced Synthesis SA, a globally leading developer and producer of active pharmaceutical ingredients (APIs), anticancer compounds and high-potency active pharmaceutical ingredients (HPAPIs) announced the planned acquisition of a globally known manufacturer of chemical and biological APIs, Cerbios-Pharma SA. The partnership aims at creating a leading international group in the CDMO sector which is backed by 65 Equity Partners.
• In January 2025, Akums Drugs & Pharmaceuticals Ltd., India’s leading Contract Development and Manufacturing Organization (CDMO), launched its new cutting-edge sterile manufacturing facility, committed to manufacture lyophilized products.
• In September 2024, CELLTRION, Inc., a biopharmaceutical company, declared the full-scale launch of its Contract Development and Manufacturing Organization (CDMO) at the “Morgan Stanley Global Healthcare Conference” held in New York. 

The introduction of new products for outsourcing various processes in the pharmaceutical industry, as well as the expansion of key market competitors, are expected to drive the healthcare contract development and manufacturing organization market growth in the near future. The healthcare contract development and manufacturing organization market is expected to develop significantly in the forecast period due to the increase in acquisitions and definitive agreements made by the leading market leaders.  

Segments Covered in the Report

By Services

• Contract Manufacturing
  • Preclinical
  • Bioanalysis and DMPK studies
  • Toxicology Testing
  • Other Preclinical Services
  • Clinical
  • Phase I
  • Phase II
  • Phase III
  • Phase IV
  • Laboratory Services
  • Bioanalytical Services
  • Analytical Services
  • Cell Line development
  • Process Development
    • Microbial
    • Mammalian
    • Others
    • MABs
    • Recombinant proteins
    • Others
  • Upstream
  • Downstream
  • Others
• Small Molecule
• Large Molecule
• Contract Development
  • MABs
  • Recombinant proteins
  • Others
  • Solid Dose Formulation
  • Liquid Dose Formulation
  • Injectable Dose Formulation
  • Class I
  • Class II
  • Class III
• Small Molecule
• Large Molecule
• High Potency API
• Finished Dose Formulations
• Medical Devices

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa