U.S. CMO/CDMO market seen reaching $149.4B by 2032

By AI, Created 10:29 AM UTC, May 20, 2026, /AGP/ – Persistence Market Research says the U.S. contract manufacturing and development market will grow from $83.1 billion in 2025 to $149.4 billion by 2032, driven by outsourcing, oncology demand and advanced therapies. The report points to rising investment, consolidation and specialized capacity as biopharma companies lean harder on outside manufacturing partners.

Why it matters: - The U.S. CMO/CDMO market is becoming a bigger piece of the pharmaceutical supply chain as drugmakers outsource more manufacturing and development work. - The shift matters most for biopharma firms trying to cut capital spending, move faster into clinics and commercialize advanced therapies. - Oncology, cell therapy, gene therapy, viral vectors and mRNA are all increasing demand for specialized manufacturing capacity.

What happened: - Persistence Market Research projected the U.S. CMO/CDMO market at US$83.1 billion in 2025. - The market is expected to reach US$149.4 billion by 2032. - The forecast implies an 8.7% compound annual growth rate from 2025 to 2032. - The report was released April 29, 2026. - The report covers outsourced services across API manufacturing, formulation development, packaging and labeling. - Download Your Free Sample & Explore Key Insights

The details: - API manufacturing remains the leading service type in the U.S. market. - Sustained demand for small-molecule APIs and long-term supply contracts with U.S.-based pharmaceutical companies support that lead. - Oncology is the dominant therapeutic area. - Targeted biologics, cell-based therapies and a growing clinical pipeline are driving oncology demand. - Emerging biopharma companies, especially small and mid-sized firms, are creating more opportunities for CDMOs. - U.S. biopharma companies use CDMOs to avoid upfront investment in GMP-compliant facilities. - Outsourcing also reduces idle-capacity risk. - CDMO partnerships can improve cost efficiency and speed commercialization. - Mid-sized biotech firms increasingly rely on external manufacturers to manage production capacity and limit cash burn. - Advanced therapy modalities are adding demand for specialized bioprocessing facilities and expertise. - Piramal Pharma Solutions invested US$90 million in 2025 to expand sterile injectables and antibody-drug conjugate capabilities at its Lexington and Riverview sites. - The U.S. has more than 5,000 pharmaceutical and biotech companies. - Emerging biopharma firms often lack end-to-end discovery and bioprocessing infrastructure. - Increasing clinical trial pipelines and compressed timelines are boosting demand for outsourced process development, analytics, cell therapy scale-up, regulatory compliance and quality assurance. - The report lists drug discovery and development, API manufacturing, finished dosage formulation development, and packaging/distribution as service segments. - It lists preclinical, clinical and commercial scale operations. - It also segments the market by small-sized, mid-sized and large-sized organizations. - Therapeutic-area segments include infectious diseases, oncology, CNS, cardiovascular, respiratory and others.

Between the lines: - The forecast reflects a market moving from basic outsourcing toward more integrated, high-complexity manufacturing relationships. - Capacity expansion through M&A and facility upgrades is becoming a central competitive strategy. - Novo Holdings’ 2024 acquisition of Catalent and ESTEVE CDMO’s 2025 acquisition of Regis Technologies show consolidation across the sector. - The shift toward end-to-end one-stop-shop models can reduce technology transfers and simplify regulatory filings. - Some U.S. CDMOs are also adding clinical research functions to speed IND timelines and coordinate batch release work. - The market is also facing higher operating costs, staffing shortages and supply chain pressure. - Input inflation, cold-chain logistics costs and raw material shortages are increasing expenses. - Building and validating new GMP suites remains costly and time-intensive. - CDMOs must balance new capacity investments with margin pressure. - Leading players are competing on regulatory track records, ATMP expertise, ADC capability and viral vector production. - Thermo Fisher Scientific, AGC Biologics, Catalent, Lonza, Piramal Pharma and Recipharm AB are among the companies active in the market. - Recent investments include Enzene Biosciences’ US$50 million plant in New Jersey, Lonza’s US$1.2 billion acquisition of Genentech’s Vacaville site and Fujifilm’s US$1.2 billion investment in North Carolina.

What’s next: - The market is likely to keep expanding as more biopharma companies outsource complex development and manufacturing work. - CDMOs with specialized advanced-therapy capacity and broader service offerings appear best positioned to win future contracts. - Further consolidation and facility investment are likely as large providers try to close technology gaps and scale capacity. - Get Custom Insights Designed for Your Business

The bottom line: - U.S. drug manufacturing outsourcing is shifting from a cost-saving option to a strategic necessity for advanced therapies and faster commercialization.