Pharmaceutical Contract Manufacturing and Research Services Market Size & Share, By Service (Manufacturing, Research); End user - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers:

• Increasing investments in diverse drug modalities and advanced technologies: The pharmaceutical industry is keen on investing in new modalities to strengthen its presence in drug development and manufacturing. Heterobifunctional protein degraders, oligomers, peptides, and polymers are some complex synthetic modalities that are now routinely used as new drug candidates. Furthermore, traditional small molecules are gaining high demand in drug development. These shifts in the complexity and type of chemical matter used in pharma have implored the industry players to seek investments in CDMOs and facilitate the development of novel investigational drugs.
  
  CordenPharma in July 2024 made a record investment of approximately USD 1.0 billion for developing its peptide production platform in the U.S. and Europe to cater to surging GLP-1 peptides demand and facilitating long-term U.S.-based manufacturing contracts totaling over USD 3.3 billion, with other potential upsides. The Peptide Platform willntegrate small to large-scale services from injectable and oral peptide APIs to drug products. In July 2024, Samsung Biologics announced a new manufacturing accord of USD 1.05 billion from an undisclosed U.S. drugmaker and the deal accounts for over 39% of Samsung Biologics' total sales haul of USD 2.7 billion. Meanwhile, Samsung Biologics in June this year, retooled its Baxter Healthcare deal and Baxter will now fund USD 223.0 million to Samsung Biologics for pharmaceutical contract manufacturing services.  
  
  Since such pipeline expansions are majorly driven by large-cap players with smaller in-house capabilities, CDMOs have amped up their investment capabilities to strengthen their innovation and commercial capacity. As funding inflow to fruition, contract manufacturers are ready for new projects to ensure developers have access to capacity. Collaborative partnerships between CDMOs and innovators, where both parties share the risk associated with commercializing new technologies are likely to facilitate success. In July 2020, Sparta Systems partnered with Quartic.ai to launch TrackWise and TrackWise Digital to ensure supply chain continuity of drug and medical device manufacturing. 
• Patent expiration of various drugs: The patent expiration of many pharmaceuticals drives growth in the pharmaceutical contract manufacturing and research services market. Although patent expiration has resulted in significant income and volume losses for the branded pharmaceutical industry, it also allows for the entry of many new, lower-cost generic alternatives into the markets. Generic firms outsourcing their production to contract manufacturing and research services is a positive sign for the market's growth over the forecast period.
  
  For instance, a collaboration with Moderna, Inc. was announced in June 2020 by Catalent Inc., a prominent supplier of cutting-edge delivery technologies, development, and manufacturing solutions for pharmaceuticals, biologics, cell and gene therapies, and consumer health products. The development of a large-scale, commercial fill-finish manufacturing method for Moderna's COVID-19 vaccine candidate, which is based on mRNA, is the aim of this partnership.
• Commercial success of biologicals for clinical applications: The emergence of biological medications has helped to alleviate concerns regarding the usage of traditional synthetic drugs. These synthetic medications are made from synthetic compounds that are not naturally found in the human body, resulting in negative side effects. As a result, biopharmaceutical companies are using a biological approach to generate biologics that target more than 100 ailments. These biopharmaceuticals include monoclonal antibodies, vaccinations, as well as gene and cell therapies.
• SMEs' budgetary restrictions: The financial limitations that small and developing firms in the pharmaceutical sector confront represent one of the major market possibilities in the field of global pharmaceutical contract manufacturing research. Financial constraints frequently impede the ability of small and developing pharmaceutical enterprises to invest in costly production equipment and capabilities. These businesses don't have to make large upfront investments to meet their needs, thanks to contract manufacturing services.
  
  Small and startup pharmaceutical businesses can obtain specialized manufacturing facilities, cutting-edge machinery, and skilled workers through contract manufacturing without having to invest a significant amount of capital. These businesses can concentrate their limited financial resources on other vital areas like marketing, regulatory compliance, and research and development by contracting out their production needs to manufacturers.

Challenges

• Restricted contracting chosen by large pharmaceutical firms: The biggest obstacle to the market progress is the existence of large pharmaceutical companies that possess the ability to manufacture drugs internally. These businesses create their candidate medications, conduct in-house research, and carry out clinical trials. Several businesses, including Novartis, have declared plans to increase their internal manufacturing capacity and stop depending on outside services to fulfill the demand for pharmaceuticals around the world. This is mainly to keep their product development process entirely under control and to keep it secret.
• Strict government regulatory frameworks: The pharmaceutical contract manufacturing and research services market's growth is hampered by stringent government regulatory frameworks and their limits and ongoing improvement in the strict laws enforced by governments in emerging countries. Furthermore, because gene and cell therapies are highly individualized, they can address unmet medical needs in the treatment of a wide range of diseases or disorders. Due of their high therapeutic potential, many pharmaceutical companies and investors have invested much in the development and commercialization of these drugs.