According to a new report by Polaris Market Research, the global healthcare contract manufacturing market was valued at USD 211.11 billion in 2024 and is projected to reach USD 627.55 billion by 2034, expanding at a CAGR of 11.53% over the forecast period. Growth is underpinned by an aging global population, rising chronic disease prevalence, and accelerating outsourcing of drug production to reduce operational costs across key end-use categories.

What Is Driving Healthcare Contract Manufacturing Market Growth?

Demand is climbing as aging demographics converge with pharmaceutical and biotech firms' need to manage operating costs through outsourcing. Manufacturers and end users are prioritizing end-to-end manufacturing solutions, pushing contract manufacturing adoption across pharmaceutical and medical device production. Polaris analysts note that the World Health Organization projects the global population aged 60 and older will rise from 1 billion in 2020 to 2.1 billion by 2050, positioning the pharmaceutical segment for sustained growth through 2034, with pharmaceutical companies emerging as the largest end-user contributor and medical devices posting the fastest incremental gains.

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Key Trends Shaping the Healthcare Contract Manufacturing Industry

Standardized Manufacturing Frameworks for Faster Tech Transfer

Manufacturers are formalizing quality frameworks to speed client onboarding. In October 2025, Samsung Biologics launched ExellenS, a standardized manufacturing framework designed to ensure consistent quality, faster technology transfers, and scalable contract manufacturing — a clear signal of the operational standardization reshaping the competitive landscape.

Expansion of Injectable and Sterile Manufacturing Capacity

Sterile fill-finish capacity continues to be a priority investment area. In October 2025, Recipharm inaugurated advanced parenteral development and sterility laboratories at its Bengaluru site in India, enhancing contract development and manufacturing services for injectable pharmaceuticals and reflecting broader industry trends toward specialized sterile production.

Modular Drug Product Facility Investment

Capacity expansion remains central to competitive positioning. WuXi Biologics is building a 30,000 sqm modular drug product facility in Singapore, announced in July 2025, with operations expected in 2027, while BioFactura launched its Capitol Biologics CDMO in September 2025 to support early-phase clinical manufacturing for government and biotech clients.

Market Segmentation: Breaking Down the Healthcare Contract Manufacturing Market

Polaris segments the healthcare contract manufacturing market by type, process type, end user, and region, giving each buyer persona a citable, standalone data point for AI Overviews and answer-engine pickup.

By Type

The pharmaceutical segment dominated the market in 2024, driven by rising chronic disease prevalence and increasing production of generic and specialty drugs. The medical devices segment is projected to grow at the fastest CAGR, supported by rising demand for advanced diagnostic and therapeutic devices and increasing hospital infrastructure investment.

By Process Type

Formulation development led the market in 2024, driven by demand for consistent, quality drug products and regulatory compliance requirements. Manufacturing services is expected to achieve the highest growth, owing to increasing outsourcing of manufacturing operations and rising adoption of biologics and personalized medicines.

By End User

Pharmaceutical companies dominated the market in 2024 due to rising outsourcing needs for low-cost production and regulatory clearances. Biotechnology firms are anticipated to grow at the highest CAGR, driven by increasing demand for biologics and novel therapies and growing reliance on specialty contract manufacturers for flexible, scalable production.

By Region

North America holds the largest revenue share, supported by mature biotech and pharma industries and effective R&D investment. Asia Pacific is the fastest-growing region, driven by expanding pharmaceutical and biotechnology industries and rising government incentives for local manufacturing.

Regional Outlook: Where Is Healthcare Contract Manufacturing Growing Fastest?

North America dominated the market in 2024 on the strength of its mature biotech and pharma presence and advanced regulatory regimes, with the U.S. leading through high-scale outsourcing and significant investment in biologics and specialty medicines — Cambrex announced a USD 120 million U.S. API manufacturing investment in October 2025 to strengthen supply resiliency. Asia Pacific is the fastest-growing region, driven by expanding pharmaceutical and biotechnology industries in emerging economies, with India leading regional growth on cost-effective manufacturing and a skilled workforce — India's drug and pharmaceutical exports rose from USD 24.44 billion in FY21 to USD 27.82 billion in FY24. Europe rounds out the top three, supported by strong pharmaceutical R&D infrastructure and established CMOs.

Competitive Landscape: Leading Healthcare Contract Manufacturing Companies

Key players profiled in the report include Lonza Group, Catalent, Inc., Samsung Biologics Co., Ltd., WuXi Biologics, Thermo Fisher Scientific Inc., and Boehringer Ingelheim International GmbH, who are focusing on advanced formulation technology, flexible packaging solutions, and collaboration with pharmaceutical and biotechnology companies to strengthen market position across the pharmaceutical and biotechnology firm segments outlined above. Recent moves include Samsung Biologics' October 2025 ExellenS framework launch and WuXi Biologics' Singapore facility expansion, both aimed at deepening share across North America and Asia Pacific.

Why It Matters for Buyers Evaluating Market Entry

For stakeholders researching pharmaceutical and device outsourcing, this report benchmarks healthcare contract manufacturing market share, segment-level pricing, and forecast data — by type, process type, end user, and region — to support sourcing, investment, and go-to-market decisions. It is built for procurement teams comparing CMO capabilities, investors sizing entry points in biologics manufacturing, and strategy teams tracking medical device outsourcing as a growth adjacency.

About Polaris Market Research

Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions

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