Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization Market By Manufacturing Type (Contract Manufacturing, In-house Manufacturing), By Type of Synthesis (Biotech Synthesis, Synthetic Chemical API Synthesis), By Type of Drug (Small Molecule Drugs, Large Molecule Drugs), By Therapeutic Application, By End-user, By Regional forecast to 2032

The global Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization (CDMO) market was USD 92 Billion in 2022 and is expected to register a revenue CAGR of 7% during the forecast period.

Key Pointers

• The contract manufacturing segment is expected to account for largest revenue share during the forecast period. 
• The in-house manufacturing segment is expected to register fastest revenue CAGR during the forecast period
• The synthetic chemical API synthesis segment accounted for largest revenue share in 2022 and is expected to continue its dominance during the forecast period. 
• The biotech synthesis segment is expected to register highest revenue growth rate during the forecast period.
• The market in North America is expected to account for largest revenue share during the forecast period.
• The market in Europe is expected to account for second largest revenue share during the forecast period. 
• The market in Asia Pacific is expected to register fastest revenue CAGR during the forecast period. 

Rising prevalence of chronic diseases such as cancer, cardiovascular problems, and diabetes as well as high demand for improved therapies are major factors driving market revenue growth. in addition, demand for API contract development and manufacturing services is driven by increasing emphasis on cost-effective manufacturing and the requirement for specialized knowledge in drug development.

Demand for API CDMO services is also being driven by rising trend of outsourcing drug research and manufacturing operations. The medication development process is sped up, overhead costs are decreased, and pharmaceutical companies may concentrate on their core capabilities due to outsourcing. Moreover, outsourcing gives clients access to specialist knowledge in the design and production of sophisticated pharmaceuticals, which is expected to further drive revenue growth of the market.

In addition, introduction of innovative technologies such as continuous production, Process Analytical Technology (PAT), and Artificial Intelligence (AI) is expected to hasten the creation of new drugs and lower manufacturing costs. High-potency APIs (HPAPIs) are in great demand, and their production requires specialist knowledge, which is driving revenue growth of the market.

In addition, demand for dependable and skilled CDMO partners is being driven by strict regulatory requirements for the quality and safety of pharmaceuticals as well as rising emphasis on Good Manufacturing Practices (GMP). This will drive revenue growth of the market.

In addition, the API CDMO industry has been damaged by the COVID-19 epidemic. APIs and pharmaceuticals are in short supply as a result of the pandemic's impact on the world's manufacturing and supply chains. The pandemic has, however, also resulted in higher spending on drug development and production activities, which is expected to drive revenue growth of the market.

Competitive Landscape:

The Active Pharmaceutical Ingredient (API) Contract Development and Manufacturing Organization (CDMO) market is highly competitive, with a number of large and medium-sized players accounting for a majority of market revenue. Major players are deploying various strategies, such as mergers & acquisitions, strategic agreements & contracts, and developing, testing, and introducing more effective products.

Some major companies included in the global API CDMO market report are:

• Thermo Fisher Scientific Inc.
• Lonza Group AG
• Cambrex Corporation
• Albemarle Corporation
• WuXi AppTec Inc.
• Pharmaceutical Product Development, LLC
• Siegfried Holding AG
• Boehringer Ingelheim International GmbH
• Fujifilm Holdings Corporation
• Carlyle Group

Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization Market Segmentations:

Manufacturing Type Outlook

• Contract Manufacturing
• In-house Manufacturing

Type of Synthesis Outlook

• Biotech Synthesis
• Synthetic Chemical API Synthesis

Type of Drug Outlook

• Small Molecule Drugs
• Large Molecule Drugs

Therapeutic Application Outlook

• Cardiology
• Pulmonology
• Oncology
• Neurology
• Orthopedics
• Endocrinology
• Gastroenterology
• Nephrology
• Ophthalmology
• Others

End-user Outlook

• Pharmaceutical and Biotechnology Companies
• CROs
• Others

Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa