How big is the CMO market | Growth Analysis 2031

Q: What is the current size of the CMO market?

The CMO market was valued at USD 142.6 billion in 2024 and is projected to reach USD 230.1 billion by 2031.

Q: What is the growth rate of the CMO market?

The CMO market is expected to grow at a CAGR of 7.1% during the forecast period of 2025 to 2031.

Q: Which applications contribute the most in the CMO market?

Active pharmaceutical ingredients (APIs), finished dosage formulations, biologics manufacturing, and clinical trial material production.

Q: What is driving demand in the CMO market?

Outsourcing by pharma firms, rising drug complexity, regulatory compliance needs, and cost reduction strategies.

Q: What challenges does the CMO market face?

Capacity constraints, regulatory scrutiny, quality control issues, and supply chain disruptions.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA5363

Publication Date: Jul 2025

How big is the CMO Market?

According to 6Wresearch internal database and industry insights, the CMO (Contract Manufacturing Organization) market was valued at approximately USD 142.6 billion in 2024 and is projected to reach USD 230.1 billion by 2031, growing at a CAGR of 7.1%.

This growth is fueled by rising pharmaceutical outsourcing, increasing drug development complexity, and cost-efficiency benefits offered by CMOs.

Key Growth Drivers of the CMO Market

Growing need for cost-effective drug development and manufacturing
Expansion of the global biologics and biosimilars pipeline
Rising demand for specialty and generic drugs
Pharmaceutical companies focusing on core R&D by outsourcing production
Increasing demand for regulatory-compliant manufacturing facilities

CMO Market Trends

The CMO market is witnessing accelerated adoption of advanced technologies in biologics and biosimilar manufacturing. There’s a noticeable shift toward flexible production systems and modular cleanroom designs to cater to varied client requirements. Small and mid-sized pharma companies are increasingly relying on CMOs for rapid drug development and scalability. Additionally, the rise in orphan drug development and personalized medicine is encouraging CMOs to diversify their service portfolios. North America leads in demand, but Asia-Pacific is gaining traction as a preferred outsourcing destination due to favorable pricing, skilled workforce, and expanding infrastructure.

Emerging Developments in the CMO Market

CMOs are investing in continuous manufacturing technologies and highly automated process to enhance yield and shorten turnaround time. There is greater growth in the direction of high-potency drug manufacturing and controlled substance capabilities. The combination of digital twin technology and AI-based process observation is introduced towards operating exceptional. The current strategic relationship between pharma companies and CMOs is increasing capacity sharing and shortening time-to-market of new medical treatments.