United States Biologics CDMO Market to Reach $9.08B by 2032

NEW YORK - Feb. 20, 2025 - PRLog -- The U.S. biologics contract development and manufacturing organization (CDMO) market is poised for significant growth, with projections indicating an increase from $3,810.2 million in 2024 to $9,083.4 million by 2032, reflecting a compound annual growth rate (CAGR) of 11.7% between 2025 and 2032. This expansion is driven by factors such as the rising aging population, increasing prevalence of chronic diseases, and heightened R&D expenditures by pharmaceutical and biotechnology companies.

Notably, the Population Reference Bureau reports that the U.S. population aged 65 and above is expected to reach 82 million by 2050, up from 58 million in 2022. Additionally, the Centers for Disease Control and Prevention (CDC) states that 129 million Americans currently live with at least one chronic disease, incurring over $1 trillion in annual healthcare costs.

Key Insights

Product Type Analysis

In 2024, the drug substance segment is anticipated to hold a larger market share, approximately 55%. This dominance is attributed to the increasing rate of FDA approvals for new biologic substances and their lower failure rates compared to drug products. The expiration of patents for branded biopharmaceuticals has also led to a surge in biosimilar launches, further propelling this segment.

Cell Line Insights

Mammalian cell lines are projected to dominate the market, accounting for around 55% of the revenue share. This is primarily due to their capability to produce complex biopharmaceuticals, such as bi- and tri-specific antibodies and antibody–drug conjugates. Chinese hamster ovary cells and other mammalian cell culture systems are particularly valued for their ability to produce complex proteins that closely mimic human proteins.

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Service Type Insights

The commercial services segment is expected to hold the larger revenue share, approximately 70% in 2024. This is due to the increasing approvals and launches of cell and gene therapies addressing a growing number of diseases. Major biopharmaceutical companies are increasingly outsourcing monoclonal antibody production to CDMOs, given their widespread use in biologics.

Regional Trends

The Northeast region is anticipated to maintain the largest market share, attributed to the presence of numerous pharmaceutical and biotechnology companies, as well as established healthcare infrastructure. However, the Midwest region is expected to witness the fastest growth, owing to increasing investments in biopharmaceutical manufacturing and supportive government initiatives.

Competitive Dynamics

The U.S. biologics CDMO market is characterized by a consolidated landscape, with key players investing heavily in capacity expansion and technological upgrades. For instance, Fujifilm has invested $2 billion to expand its CDMO capabilities in the U.S.