Biopharmaceutical CMO & CRO Market Size, Share, Growth Analysis, By Source (Mammalian, Non-mammalian), By Service Type (Contract Manufacturing, Contract Research), By Product, By Region - Industry Forecast 2025-2032

Global Biopharmaceutical CMO & CRO Market size was valued at USD 32.4 billion in 2023 and is poised to grow from USD 34.31 billion in 2024 to USD 54.28 billion by 2032, growing at a CAGR of 5.9% during the forecast period (2025-2032).

The biopharmaceutical sector has seen rapid growth, now comprising over 20% of the global pharmaceutical market, largely driven by increasing consumer demand for therapeutic solutions. This expansion has been significantly influenced by the COVID-19 pandemic and rising investments aimed at enhancing productivity and efficiency within the industry. As biopharma companies focus on outsourcing resource-intensive processes, the reliance on Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs) has surged, creating a lucrative demand for their services. Recent collaborations, such as the Australian government's investment with Sandoz in antibiotic manufacturing, further highlight the sector's commitment to innovative, integrated solutions. Mergers and acquisitions within this space enable CMOs to deliver comprehensive bioprocessing services, making them essential partners for expedited product development and market entry.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Biopharmaceutical CMO & CRO market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Biopharmaceutical CMO & CRO Market Segmental Analysis

Global Biopharmaceutical CMO and CRO Market is segmented by Source, Service Type, Product and region. Based on Source, the market is segmented into Mammalian and Non-mammalian. Based on Service Type, the market is segmented into Contract Manufacturing and Contract Research. Based on Product, the market is segmented into Biologics and Biosimilars. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Biopharmaceutical CMO & CRO Market

The global biopharmaceutical CMO and CRO market is poised for rapid growth due to the integration of innovative bioprocessing technologies and the adoption of single-use systems. Recently, the industry has experienced numerous consolidations aimed at enhancing competitiveness and operational efficiency. As new therapies and bioprocessing methods emerge, contract bioproducers face increasing pressure to adapt to shifting market demands. This has led to the development of alternative business models that cater to diverse stakeholder needs. Furthermore, the implementation of single-use technologies within manufacturing facilities is expected to significantly enhance production capabilities, thus creating new growth opportunities within the market throughout the forecast period.

Restraints in the Global Biopharmaceutical CMO & CRO Market

The Global Biopharmaceutical CMO and CRO market is currently facing significant restraints that hinder its growth, primarily due to high initial investments and limited outsourcing opportunities. Unlike the pharmaceutical CMO sector, which enjoys profit margins between 5% and 10%, the biopharmaceutical CMO market boasts margins exceeding 30%. However, the hefty investments required for advanced manufacturing facilities and cutting-edge equipment needed to accelerate biomanufacturing processes are impeding progress. Additionally, the reluctance of established biopharmaceutical companies to outsource further restricts market expansion. Complications arising from the regulatory environment and intricate contract negotiations, particularly concerning intellectual property rights, warranties, and confidentiality, exacerbate these challenges.

Market Trends of the Global Biopharmaceutical CMO & CRO Market

The Global Biopharmaceutical CMO & CRO market is witnessing a significant trend towards new product development, driven by increasing biopharmaceutical innovation and rising demand for specialized therapeutic solutions. As biopharma companies focus on accelerating drug discovery and reducing time-to-market, CMOs and CROs are enhancing their capabilities in advanced analytics, biologics production, and regulatory expertise. This trend is further fueled by collaborative partnerships and investments in technology, enabling companies to bring cutting-edge therapies, including personalized medicine and biologics, to fruition. Overall, the emphasis on new product development is expected to positively impact growth and competitiveness within the biopharmaceutical sector.