U.S. Active Pharmaceutical Ingredients CDMO Market To Witness Rapid Development

U.S. Active Pharmaceutical Ingredients CDMO Market Summary

The U.S. Active Pharmaceutical Ingredients CDMO Market was valued at USD 25.28 billion in 2024 and is projected to reach USD 33.86 billion by 2030, expanding at a compound annual growth rate (CAGR) of 5.1% from 2025 to 2030. This growth is largely attributed to the increasing need for advanced pharmaceutical manufacturing capabilities that support the development of new and innovative drugs and therapies. In particular, rising investments in biologics and high-potency APIs (HPAPIs) continue to play a significant role in driving market expansion. Furthermore, the escalating incidence of chronic diseases necessitates scalable and efficient API production solutions to meet rising therapeutic demands.

Key growth drivers in this market include continuous advancements in process chemistry, as well as increasing automation in pharmaceutical manufacturing. These innovations enable higher yield, reduced waste, and improved product quality. Additionally, favorable regulatory frameworks support the outsourcing of API production to specialized CDMOs, who bring deep expertise and ensure compliance with rigorous FDA and international manufacturing standards. The growing emphasis on personalized medicine and targeted therapies has created demand for small-batch, high-complexity API manufacturing—an area where CDMOs demonstrate particular strength due to their operational flexibility and technological capabilities. Moreover, rising collaborations between pharmaceutical companies and CDMOs help accelerate research timelines, enhance development pipelines, and ensure quicker commercialization of breakthrough treatments.

Key Market Trends & Insights

• In 2024, the Traditional Active Pharmaceutical Ingredients (APIs) segment led the market with a 40.0% revenue share. This dominance stems from their critical role in the production of widely used small-molecule drugs. Traditional APIs continue to support treatments for a broad range of common ailments and benefit from well-established manufacturing workflows, mature regulatory pathways, and reliable global supply chains that enhance their accessibility and cost-efficiency.
• The synthetic APIs segment also accounted for the largest revenue share in 2024. Chemically synthesized APIs offer advantages such as scalable production, cost-effectiveness, and consistent quality, all of which are critical for large-volume manufacturing. Their extensive application in both generic and branded pharmaceutical products further underscores their continued relevance and widespread demand within the U.S. market.
• In terms of product innovation, the innovative API segment held the largest market share in 2024. This leadership is a result of growing demand for proprietary drugs that treat complex conditions, including cancer, rare diseases, and autoimmune disorders. These APIs are often developed using cutting-edge technology platforms and require customized production approaches, which CDMOs are increasingly equipped to deliver.
• The clinical manufacturing segment emerged as the largest contributor to revenue in 2024, reflecting the rising reliance of pharmaceutical and biotechnology firms on CDMOs for early-phase development. During this phase, small batches of APIs must be produced under stringent quality control and regulatory compliance to support preclinical and clinical trial activities, where precision and reliability are essential.
• The oncology segment captured the largest market share in 2024 due to the increasing prevalence of cancer across the U.S. and the continuous introduction of targeted therapies. Oncology-related APIs, especially high-potency APIs (HPAPIs), often require complex synthesis procedures and highly specialized manufacturing environments to ensure safety, efficacy, and regulatory compliance—key strengths of specialized CDMOs.

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Market Size & Forecast

• 2024 Market Size: USD 25.28 billion
• 2030 Projected Market Size: USD 33.86 billion
• CAGR (2025 - 2030): 5.1%

Key Companies & Market Share Insights

Prominent companies operating in the U.S. API CDMO market include Thermo Fisher Scientific Inc., Novo Group (Catalent, Inc.), and Cambrex Corporation. These players continue to expand their service portfolios to meet the diverse needs of pharmaceutical clients across the development lifecycle.

Thermo Fisher Scientific Inc., a leader in life sciences and healthcare, plays a pivotal role in the U.S. API CDMO space by offering end-to-end services, including development, scale-up, and commercial production. With a strong domestic manufacturing footprint and FDA-compliant facilities, the company supports pharmaceutical clients with integrated supply chain and regulatory support services.

Novo Group (Catalent, Inc.) is a key U.S.-based CDMO that provides comprehensive development and manufacturing solutions to both pharmaceutical and biotechnology companies. The firm specializes in high-potency APIs (HPAPIs), controlled substances, and advanced drug delivery platforms. Its focus on innovation, regulatory compliance, and operational flexibility makes it a preferred partner for complex development programs.

Key Players

• Thermo Fisher Scientific Inc.
• Novo Group (Catalent, Inc.)
• Cambrex Corporation
• Piramal Pharma Limited
• Corden Pharma
• Siegfried Holding AG
• Seqens North America
• SK pharmteco Inc.
• Noramco.
• BSP Pharmaceuticals

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Conclusion

The U.S. active pharmaceutical ingredients CDMO market is poised for sustainable growth, driven by technological innovation, increasing biologics demand, and a rising focus on complex therapeutics. As pharmaceutical companies seek cost-efficient, compliant, and scalable API production, CDMOs offer critical advantages in expertise, infrastructure, and speed-to-market. Segments such as oncology, synthetic APIs, and clinical manufacturing are expected to remain dominant. Strategic partnerships and regulatory support further accelerate industry evolution. With major players expanding capabilities and investing in advanced technologies, the market is set to play a vital role in enabling the next generation of innovative and personalized medicines for U.S. patients.