Soaring Demand Set to Propel Small Molecule CMO/CDMO Market to $72.9 Billion by 2029

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What Is the Expected CAGR for the Small Molecule CMO/CDMO Market Through 2025?
In recent times, the market size for small molecule CMO/CDMO has seen substantial growth. The market is projected to expand from a worth of $50.58 billion in 2024 to an estimated $54.42 billion in 2025, maintaining a compound annual growth rate (CAGR) of 7.6%. The historical growth trend has been influenced by factors such as supportive government policies, cost-efficient solutions, increasing complexities in drug development processes, reshaping of the industry, and a concentration on primary competencies.

What's the Projected Size of the Global Small Molecule CMO/CDMO Market by 2029?
The market size of small molecule CMO/CDMO is anticipated to experience significant growth in the upcoming years, projected to reach a value of $72.9 billion in 2029 with a compound annual growth rate (CAGR) of 7.6%. This growth during the projected period could be attributed to factors such as increase in drug pipelines, the globalization of pharmaceutical procedures, demand for flexible manufacturing, expertise in regulatory compliance, and convergence of biopharmaceuticals. Key trending practices expected during this period consist of sustainable and green manufacturing, heightened collaboration and partnerships, niche therapies and personalised medicine, rise of virtual and virtual-to-reality companies, incorporation of digital technologies, and rapid response manufacturing.

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Top Growth Drivers in the Small Molecule CMO/CDMO Industry: What's Accelerating the Market?
The growth of the small-molecule CMO/CDMO market is set to be fueled by the increasing demand for pharmaceuticals. Encompassing the invention, production, and propagation of drugs by both public and private entities, the pharmaceutical industry heavily utilizes small-molecule CMO/CDMO services. These services allow the outsourcing of several functions such as production, packaging, and development of small-molecule medications, thereby reducing the overall cost, saving time, and enhancing efficiency for pharmaceutical companies. For example, data from the Government of Canada in August 2024 reveals that domestic exports in the pharmaceutical sector stood at 9.59 billion USD (12.79 billion CAD) in 2022, marking an increase from 10.71 billion CAD in the previous year. Similarly, imports escalated, totaling 30.21 billion CAD in contrast to 26.63 billion CAD in 2021. Consequently, the escalating demand for pharmaceuticals is significantly contributing to the expansion of the small-molecule CMO/CDMO market.

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What Are the Key Trends Driving Small Molecule CMO/CDMO Market Growth?
Leading organizations in the small-molecule CMO/CDMO market are zeroing in on modern technologies, like the advanced small-molecule platform in Shanghai, to enhance their CDMO offerings. This cutting-edge small-molecule platform stands at the pinnacle of technological breakthroughs for the development and manufacturing of small-molecule drugs, and to generate safer, superior, and more efficiently manufactured medicinal drugs. For example, a pharmaceutical organization from China, Porton Pharma Solutions Ltd., in June 2023, rolled out an advanced small-molecule platform based in Shanghai, thereby amplifying their CDMO services. This state-of-the-art small-molecule platform signifies a comprehensive strategy, blending the latest technologies and methods to progress the entire lifecycle of small molecule drugs, and an all-inclusive solutions platform. This includes a one-stop-shop approach, a platform that offers full-circle solutions, adaptability and accessibility, alongside a digital transformation.

What Are the Main Segments in the Small Molecule CMO/CDMO Market?
The small molecule cmo/cdmo market covered in this report is segmented -

1) By Product: Small Molecule Drug Product, Small Molecule API
2) By Stage Type: Clinical, Commercial, Preclinical
3) By Therapeutic Area: Oncology, Neurology, Infectious Disease, Cardiovascular Disease, Respiratory Disorders, Metabolic Disorders, Other Therapeutics
4) By Application: Cardiovascular, Oncology, Diabetes, Immunological Disorders

Subsegments:
1) By Small Molecule Drug Product: Solid Dosage Forms (Tablets, Capsules), Liquid Dosage Forms (Injectables, Solutions), Topical Dosage Forms
2) By Small Molecule API (Active Pharmaceutical Ingredient): Generic APIs, Branded APIs, Custom Synthesis APIs

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Which Top Companies are Driving Growth in the Small Molecule CMO/CDMO Market?
Major companies operating in the small molecule CMO/CDMO market report are Patheon NV (Thermo Fisher Scientific), GlaxoSmithKline, Johnson Matthey PLC, Lonza Group Ltd., WuXi AppTec, Catalent Inc., Aurobindo Pharma, Fareva, Aesica Pharmaceuticals Limited, Siegfried holdings AG, Recipharm AB, Jubilant Life Sciences Limited, Almac Group, Piramal Pharma Solutions, Oxford Chemicals Inc., Syngene International Limited, Novasep, Pfizer CentreOne, GVK Biosciences, ChemPartner, Avid Bioservices Inc., Dishman Carbogen Amcis Ltd., ProChem Inc., Metrics Contract Services

Which Regions Will Dominate the Small Molecule CMO/CDMO Market Through 2029?
North America was the largest region in the small molecule CMO/CDMO market in 2024. The regions covered in the small molecule CMO/CDMO market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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