PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1643567
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1643567
The U.S. biologics contract development and manufacturing organization (CDMO) market is projected to grow from $3,810.2 million in 2024 to $9,083.4 million by 2032, at a compound annual growth rate (CAGR) of 11.7% during 2025-2032. This growth is fueled by an aging population, increasing prevalence of chronic diseases, and rising R&D expenditures by pharmaceutical and biotech companies. Biologics CDMOs play a critical role in enabling efficient drug development and manufacturing processes.
Key Insights
Drug substance development involves manufacturing active biological ingredients, while drug product services cover formulation, filling, and packaging of final biologic therapies.
Mammalian cell lines are preferred for complex protein therapeutics due to their ability to perform post-translational modifications. Microbial cell lines are suitable for simpler proteins, offering faster growth and higher yields. Viral vector and other advanced modalities are essential for gene therapies and cutting-edge biologic treatments.
Commercial services represent the largest category, focusing on large-scale manufacturing for market supply. Clinical services support drug development pipelines by producing products for clinical trial phases.
The Northeast holds the largest market share due to its concentration of biotech firms and research institutions. The Midwest is expected to experience the fastest growth, driven by increasing investments in biotech infrastructure.
An aging population and the growing prevalence of chronic conditions drive demand for biologic therapies. Pharmaceutical and biotech companies are increasing R&D expenditures to innovate and expand their biologic product portfolios.
Companies are outsourcing to CDMOs to reduce in-house development costs and accelerate time-to-market. Significant investments in capacity expansion, such as those by Fujifilm and AGC Inc., are enhancing manufacturing capabilities in the U.S.
Technological advancements are improving efficiency and scalability in biologics manufacturing, enabling companies to meet rising demand effectively.
The market is consolidated, with leading players focusing on strategic partnerships, capacity expansions, and innovation to strengthen their positions.