According to insights, the market for contract development and manufacturing organizations (CDMOs) specializing in small molecule innovation is estimated to reach a value of $48.09 billion in 2023 and $89.43 billion in 2033. The sales in this market are predicted to experience a compound annual growth rate (CAGR) of 6.4 percent throughout the forecast period.
The market is influenced by various factors. Firstly, there is a rising demand for small-molecule drugs, leading to increased costs in research and development (R&D) and a need for specialized knowledge in drug development and manufacturing. Moreover, the outsourcing trend in the pharmaceutical industry, where companies seek expertise and cost reduction, is also driving the market forward.
Insights suggest that participants in the market must remain aware of new technologies and regulatory requirements in order to stay competitive. The growing demand for small molecule drugs can be attributed to their easy manufacturability and lower cost compared to biologics. Advances in synthetic biologic and biocatalysis techniques are enabling efficient and sustainable production of small molecules, driving the demand for CDMO services.
From 2023 to 2033, the biotech sector is expected to grow at an annual rate of 4.8 percent, driven by the fast-paced advancements in research and technology in the biopharmaceutical industry. This progress is opening up doors for innovative small-molecule drugs. Automation, AI, and machine learning are actively contributing to the optimization of small molecules.
The market has both small and major players, with a trend of larger companies acquiring smaller ones to enhance their capabilities. The expansion of the small molecule innovator CDMO market is influenced by the growing prevalence of age-related diseases. Increased funding for small molecule oncology therapies is also driving the market growth. Key participants include Catalent, Lonza, Thermo Fisher Scientific, and Patheon.