Global Pharmaceutical Contract Manufacturing Market to Surpass the USD 360 Billion Mark by 2032 | DelveInsight

The pharmaceutical contract manufacturing market is experiencing strong growth, primarily driven by the rising prevalence of chronic and infectious diseases. The increasing demand for biologics and biopharmaceuticals is further propelling this expansion. Moreover, pharmaceutical and biotech companies are significantly bolstering their R&D pipelines, particularly in areas such as biologics, biosimilars, and advanced modalities, including gene and cell therapies. 

LAS VEGAS, Aug. 28, 2025 /PRNewswire/ -- DelveInsight's Pharmaceutical Contract Manufacturing Market Insights report provides the current and forecast market analysis, individual leading pharmaceutical contract manufacturing companies' market shares, challenges, pharmaceutical contract manufacturing market drivers, barriers, trends, and key market pharmaceutical contract manufacturing companies in the market.

Key Takeaways from the Pharmaceutical Contract Manufacturing Market Report

• The global pharmaceutical contract manufacturing market size is projected to increase from USD 188 billion in 2024 to USD 362 billion by 2032, reflecting strong and sustained growth.
• The global pharmaceutical contract manufacturing market is expected to grow at a CAGR of ~7% during the forecast period from 2025 to 2032.
• The leading companies working in the pharmaceutical contract manufacturing market include Lonza, Pfizer Inc., Catalent, Inc., Boehringer Ingelheim International GmbH, Samsung Biologics, WuXi AppTec, Thermo Fisher Scientific Inc., Baxter, Recipharm AB, Merck KGaA, CordenPharma, Siegfried Holding AG, Aenova Group, Almac Group, Alcami Corporation, FUJIFILM Holdings Corporation, Novartis AG, Avery Dennison Corporation, Danaher Corporation, Syntegon Technology GmbH, and others.
• Among all the regions, North America is anticipated to register the fastest growth in the pharmaceutical contract manufacturing market during the forecasted period. 
• In the drug type segment of the pharmaceutical contract manufacturing market, the biologics category accounted for the largest market share in 2024.

To read more about the latest highlights related to the pharmaceutical contract manufacturing market, get a snapshot of the key highlights entailed in the Global Pharmaceutical Contract Manufacturing Market Report

Key Factors Contributing to the Rise in Growth of the Pharmaceutical Contract Manufacturing Market

Rising Demand for Cost-Efficient Drug Production

Pharmaceutical companies are increasingly outsourcing production to contract manufacturers to reduce capital expenditure, operational costs, and the financial risks associated with maintaining large-scale manufacturing facilities. Contract manufacturing allows companies to focus on core competencies such as R&D and marketing while leveraging the cost efficiencies offered by specialized manufacturers.

Increasing Complexity of Drug Formulations

The development of complex biologics, personalized medicines, and advanced formulations requires specialized manufacturing expertise and state-of-the-art equipment. Many pharmaceutical companies lack in-house capabilities for such sophisticated production, leading them to rely on contract manufacturers with the necessary technical knowledge and regulatory compliance infrastructure.

Growing Generic Drug Market

The demand for generic drugs continues to rise globally, driven by the expiration of blockbuster drug patents and the need for affordable medicines. Contract manufacturers play a key role in scaling up production for generics quickly and cost-effectively, accelerating market access and enabling companies to respond to competitive pricing pressures.

Regulatory Compliance and Quality Standards

Adhering to stringent regulations from agencies such as the FDA, EMA, and WHO is a significant challenge for pharmaceutical companies. Contract manufacturing organizations (CMOs) invest heavily in compliance and quality systems, making them attractive partners for companies seeking reliable production while mitigating regulatory risks.

Technological Advancements

The integration of advanced technologies, including continuous manufacturing, automation, and process analytical technology (PAT), has enhanced production efficiency and scalability in contract manufacturing. Pharmaceutical companies benefit from these innovations without significant investment, driving the adoption of outsourcing strategies.

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Regional Pharmaceutical Contract Manufacturing Market Insights

North America is projected to account for the largest share of the pharmaceutical contract manufacturing market, driven by several key factors. The region's dominance is attributed mainly to the growing population suffering from chronic and infectious diseases, as well as the increasing emphasis on drug discovery and development. The rising demand for biologics and biopharmaceuticals, along with a surge in R&D spending, is significantly contributing to market expansion.

Additionally, the market is being propelled by heightened research investments from major pharmaceutical companies within the region. The United States, in particular, leads globally in clinical research, representing 29% of all clinical trials worldwide, with 159,403 trials listed as of 2025 (ClinicalTrials.gov). The surge in clinical trials is fueling the need for pharmaceutical contract manufacturing services, including API production, PK/PD studies, dosage development, and immunogenicity testing, which are essential for establishing drug safety and efficacy.

In response, leading industry players are broadening their service portfolios. For instance, in August 2024, SGS introduced new specialized pharmaceutical contract manufacturing services in North America. These offerings cover every phase of drug development—from early discovery to Phase I–III trials—and include method transfer, development and validation, PK/PD bioanalysis, ELISA, multiplex assays, immunogenicity evaluations, and other key bioassays.

Collectively, these factors are cementing North America's position as a dominant market for pharmaceutical contract manufacturing, fueled by robust healthcare demand, significant R&D activity, and the growing need for advanced and effective therapies across the region.

To know more about why North America is leading the market growth in the pharmaceutical contract manufacturing market, get a snapshot of the Pharmaceutical Contract Manufacturing Market Outlook 

Recent Developmental Activities in the Pharmaceutical Contract Manufacturing Market

• In October 2024, Samsung Biologics, a leading global contract development and manufacturing organization (CDMO), announced its largest-ever contract manufacturing deal with a major Asia-based pharmaceutical company. The production for this significant partnership will be carried out at Samsung Biologics' state-of-the-art biomanufacturing facility in Songdo, South Korea.
• In September 2024, Samsung Biologics launched its innovative biologics development platforms S-AfuCHO™ and S-OptiCharge™. S-AfuCHO™ is an innovative cell line platform designed to produce fucosylated antibodies, which demonstrate enhanced antibody-dependent cellular cytotoxicity (ADCC) activity, leading to increased therapeutic efficacy. In parallel, S-OptiCharge™ serves as an upstream process platform capable of modulating a molecule's charge variant distribution.

Pharmaceutical Contract Manufacturing Overview

Pharmaceutical contract manufacturing refers to the outsourcing of drug manufacturing processes to a third-party company, commonly called a contract manufacturing organization (CMO). These organizations produce drugs in various dosage forms on behalf of pharmaceutical companies, which may lack manufacturing facilities or choose to outsource for strategic reasons.

Outsourcing to CMOs offers several advantages, including cost savings, increased operational efficiency, and access to specialized technologies and regulatory expertise. Pharmaceutical companies benefit from the flexibility to scale production up or down without heavy capital investment, allowing them to focus more on research, drug development, and commercialization. This model also supports faster time-to-market, especially important in today's competitive and innovation-driven pharmaceutical landscape.

Pharmaceutical Contract Manufacturing Market Assessment

• Pharmaceutical Contract Manufacturing Market Segmentation
• Pharmaceutical Contract Manufacturing Market Segmentation By Drug Type: Small Molecule and Biologics
• Pharmaceutical Contract Manufacturing Market Segmentation By Service Type: API Synthesis & Production Services, Formulation Development and Manufacturing Services, Fill and Finish Manufacturing, and Others
• Pharmaceutical Contract Manufacturing Market Segmentation By Formulation: Solid Dosage Forms, Semi-solid Dosage Forms, and Liquid Dosage Forms
• Pharmaceutical Contract Manufacturing Market Segmentation By Phase: Preclinical, Clinical, and Commercial
• Pharmaceutical Contract Manufacturing Market Segmentation By End-Users: Biopharmaceutical and Pharmaceutical Companies, Biotechnology Companies, and Others
• Pharmaceutical Contract Manufacturing Market Segmentation By Geography: North America, Europe, Asia-Pacific, and Rest of World
• Porter's Five Forces Analysis, Product Profiles, Case Studies, KOL's Views, Analyst's View

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Table of Contents 

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SOURCE DelveInsight Business Research, LLP