PHARMACEUTICAL MANUFACTURING MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECAST (2025 - 2030)

Global Pharmaceutical Manufacturing Market Trends and Insights

Rising R&D Investments by Big Pharma

Large pharmaceutical companies are channeling unprecedented funds into research, development, and manufacturing upgrades, with global drug spending projected to reach USD 1.9 trillion by 2032. Biologics alone are set to surpass USD 600 billion in annual revenue, prompting firms to align R&D and manufacturing budgets so that facility design directly supports clinical pipelines.^{[1]Pfizer CentreOne Team, “Biologics Market Outlook 2032,” Pfizer CentreOne, pfizercentreone.com} Capital allocations of USD 50 billion or more from Novartis and Roche illustrate how integrated R&D-manufacturing strategies can accelerate radioligand and biologics programs, while AI-enabled process optimization has already boosted throughput by 20% in pilot plants.

Acceleration of Continuous Manufacturing

Continuous-processing adoption cuts facility footprints by 70% and operating costs by up to 50%, providing an immediate economic rationale for transition from batch production. The FDA’s implementation of ICH Q13 gives companies a clear regulatory pathway, leading to faster review times for continuous-manufactured drugs and vaccines.^{[2]TechTarget Research, “Continuous Manufacturing Cost Reduction,” TechTarget, techtarget.com} Approved products from Pfizer and Eli Lilly validate commercial viability, while emerging platforms now cover nanomaterials and lipid-nanoparticle mRNA products.^{[3]AAPS Researchers, “mRNA Continuous Manufacturing Advances,” AAPS Open, aapsopen.springeropen.com}

Integration of AI, IoT, and Automation across Legacy Facilities

Predictive maintenance, digital twins, and automated visual-inspection systems are mitigating downtime and cutting batch-failure rates. Samsung Biologics reports lower variability after deploying computational-fluid-dynamics models to fine-tune bioreactor performance. Despite demonstrable productivity gains of 150-200%, 66% of executives remain dissatisfied with AI integration progress because capital outlays and workforce skill gaps slow rollouts.

Biosimilar Surge Following Major Patent Expirations

Patent cliff dynamics are creating unprecedented market opportunities, at risk from 190 drug patent expirations by 2030, including 69 blockbuster medications. Key patent expirations in 2025 include Johnson & Johnson's Stelara, Regeneron's Eylea, and Novartis's Entresto, creating immediate biosimilar manufacturing opportunities. Manufacturing implications include quality-by-design approaches for biosimilar development, with regulatory acceptance requiring demonstrated similarity to innovator drugs through comprehensive analytical characterization. 

Global Drug Pricing Pressures and Cost-Containment Policies

The U.S. Inflation Reduction Act authorizes Medicare negotiations, accelerating a shift toward lower launch prices and higher rebate exposure. On 1 January 2024, regulators recorded 453 brand-price hikes offset by 30 decreases, signaling intense scrutiny that compresses manufacturer margins. European proposals such as the Critical Medicines Act add parallel pressure by incentivizing local production while capping reimbursement, compelling firms to pursue aggressive automation to defend profitability.

Supply-Chain Disruptions for Critical Inputs

Geopolitical tensions and raw-material bottlenecks continue to delay active-pharmaceutical-ingredient (API) deliveries, elevating safety-stock needs and increasing working-capital requirements. Manufacturers respond by dual-sourcing and reshoring essential intermediates, yet transportation bottlenecks and energy-price volatility still threaten schedules, especially for temperature-sensitive biologics morganlewis.com. Continuous-processing lines offer some resilience but require specialized equipment that is itself vulnerable to supply shortages.

Segment Analysis

By Molecule Type: Biologics Drive Future Growth

Small-molecule drugs controlled 61.27% of pharmaceutical manufacturing market share in 2024, supported by extensive global infrastructure and proven regulatory pathways. Biologics and biosimilars, although smaller in absolute terms, are expected to grow at a 10.34% CAGR, benefiting from patent expirations and rising demand for targeted therapies. 

Manufacturing complexity drives capacity differentiation: single-use bioreactors and closed-loop analytics dominate biologics plants, while small molecules increasingly shift to fully-continuous tabletop lines. AI-driven control strategies are a unifying theme, enabling both molecule classes to stabilize yields and reduce batch-failure risk across the pharmaceutical manufacturing market.

Note: Segment shares of all individual segments available upon report purchase

By Manufacturing Mode: CDMO Outsourcing Accelerates

In-house sites held 59.39% share in 2024, sustained by legacy capabilities and intellectual-property considerations. Yet CDMOs, growing at 10.84% CAGR, have become central for cell-and-gene therapy, mRNA platforms, and high-potency APIs. As biosimilars and advanced modalities multiply, sponsors are outsourcing analytical development, fill-finish, and packaging to partners that can flex capacity quickly.

Hybrid approaches combine core in-house lines for flagship assets with outsourced manufacturing for variable-demand products, allowing companies to limit fixed-cost exposure. This strategy positions the pharmaceutical manufacturing market for balanced growth while enabling CDMOs to innovate in modular plant design and digital integration.

By Formulation: Injectable Demand Surges

Tablets led with 33.62% share in 2024, reflecting patient preference for oral dosage forms. Injectables, however, are advancing at 11.13% CAGR, propelled by biologic formulations that require parenteral delivery and by device innovations that improve self-administration. Continuous tableting has reached commercialization, while sterile-fill facilities adopt isolators and robotics to cut contamination risk.

Manufacturers invest in high-speed pre-filled-syringe lines and auto-injector assembly cells, as demonstrated by Novo Nordisk’s USD 4.1 billion fill-finish expansion aimed at alleviating global shortages. Patient-centric packaging and cold-chain logistics remain critical differentiators in the pharmaceutical manufacturing market.

Note: Segment shares of all individual segments available upon report purchase

By Manufacturing Technology: Continuous Processing Gains Momentum

Batch processing still accounted for 74.63% of output in 2024, but continuous lines are growing at 12.25% CAGR, offering 24/7 operation and real-time release testing. Regulatory support such as the FDA’s Emerging Technology Program accelerates adoption, while digital twins fine-tune throughput and yield. The pharmaceutical manufacturing market tied to continuous platforms is projected to rise sharply as companies retrofit existing suites rather than build entirely new greenfield plants.

Single-use assemblies and modular skids further reduce changeover time, enabling multiproduct lines that serve orphan drugs and personalized therapies. Early adopters report 40% lower conversion costs, validating the business case for wider rollout.

By Application: Oncology Leads Growth

Oncology held 27.84% share of the pharmaceutical manufacturing market size in 2024, matching its position as the fastest-growing segment at 13.84% CAGR. CAR-T, radioligand, and antibody-drug-conjugate pipelines fuel capacity expansions in containment suites and aseptic processing. Sanofi’s EUR 300 (USD 351.4) million commitment to radioligand development exemplifies capital intensity.

Manufacturing requirements include highly specialized isolators, cryogenic logistics, and on-site quality labs to verify complex potency assays. Therapeutic areas such as diabetes and cardiovascular remain large but slower-growing, keeping multipurpose plants relevant across the pharmaceutical manufacturing market.

Note: Segment shares of all individual segments available upon report purchase

By Prescription Type: OTC Growth Accelerates

Prescription therapeutics dominated with 83.71% share in 2024, underpinned by stringent clinical and regulatory oversight. OTC medicines, growing at 11.87% CAGR, capitalize on consumer self-care and regulatory switches that move mature brands behind the counter. High-volume lines and blister packaging innovations bolster efficiency, whereas prescription products must comply with serialization mandates and stricter handling protocols.

Manufacturers are streamlining supply chains by co-locating OTC and prescription production in shared facilities equipped to meet divergent labelling, quality, and audit requirements, ensuring flexibility throughout the pharmaceutical manufacturing market.

Geography Analysis

North America retained 37.64% market share in 2024, anchored by more than USD 200 billion in announced capacity expansions from Roche, Eli Lilly, and Johnson & Johnson, each committing USD 50 billion-plus to U.S. projects. Executive Order 14293 streamlines domestic approvals, while continuous-processing pilots showcase innovation leadership. Canada and Mexico complement the regional network through pathway harmonization and cost-competitive API sites. 

Europe maintains a strong position through established clusters in Germany, France, Italy, Spain, and the United Kingdom. The proposed Critical Medicines Act aims to improve supply security and sustainability standards, driving investments in green chemistry and circular-manufacturing pilots. EMA guidance on continuous and modular plants helps align national authorities and accelerates market entry for advanced therapies across the continent. 

Asia-Pacific is the fastest-growing region at 12.55% CAGR to 2030, led by India’s expanding CRDMO ecosystem and China’s mRNA and monoclonal antibody capacity additions. Japan, South Korea, and Australia supply high-purity biologics, while Singapore and Vietnam attract fill-finish projects that benefit from skilled labor pools and pro-investment policies. Regulatory convergence initiatives and government subsidies for automation position the pharmaceutical manufacturing market for sustained regional momentum.