Biologics CDMO Market Size

Biologics Contract Development & Manufacturing Organization (CDMO) Market Analysis

The Biologics CDMO Market size is estimated at USD 15.32 billion in 2024, and is expected to reach USD 27.94 billion by 2029, growing at a CAGR of 12.78% during the forecast period (2024-2029).

With an increasing number of companies within the pharmaceutical sector considering outsourcing services, the demand for services from contract manufacturing and contract development manufacturing organizations will rise.

• The pharmaceutical industry is growing exponentially, driven by global economic growth, a growing and aging population, and new product launches. Even though small molecules continue to command a prominent share of the market, large molecules, such as biologics, biosimilars, and cell and gene therapies, are expected to witness the fastest growth over the forecast period.
• Even though volumes in large molecules tend to be smaller, the segment is growing faster. Absolute growth in the large molecules market, including originator biologics, biosimilars, and cell and gene therapies, is expected to propel the market to USD 133 billion by 2023. The market size for originator biologics is expected to reach USD 371 billion by 2023, according to Results Healthcare.
• Cancer therapies are among the primary drivers for a large portion of the growth in the biologics market. Even with the faster growth forecast, small molecules outweigh biologics regarding drug approvals. For instance, the FDA's Center for Drug Evaluation and Research (CDER) approved 50 new drugs and biological products in 2021. Of the 50 approved new drugs and biological products, 33 were small molecule drugs, and 17 were monoclonal antibodies and other big molecule drugs. The number of biologic approvals has been increasing steadily over the past few years.
• Companies need to invest additional amounts in complying with regulations imposed on the manufacturers. Instead, companies are willing to spend on R&D activities, which benefit the company overall. Hence, the highly regulated manufacturing processes, with complicated technology transfer and IP security concerns, impede the anticipated growth and adoption of the market in different regions.
• The COVID-19 pandemic indicated the potential of vaccine manufacturing and outsourcing as a sustainable revenue stream for companies operating in the market studied. Following the COVID-19 vaccine, introducing boosters is expected to create a favorable landscape for growth for CDMO vendors. For instance, Catalent has worked on nearly 100 different compounds to investigate its potential to develop COVID-19 vaccines and therapies for more than 60 customers.