Contract Manufacturing Market by Type (End-to-End Manufacturing, Individual Component Manufacturing, Labor or Service Subcontracting), Services (Custom Formulation, Manufacturing, Packaging), Verticals - Global Forecast 2024-2030
The Contract Manufacturing Market size was estimated at USD 344.92 billion in 2023 and expected to reach USD 372.31 billion in 2024, at a CAGR 8.33% to reach USD 604.11 billion by 2030.
The contract manufacturing market refers to the process where companies outsource parts of their operations, including components or entire products, to third-party manufacturers. This business model allows the hiring company to leverage the manufacturer's skills, resources, and expertise to efficiently produce goods without investing in infrastructure, machinery, or labor required for production. Growing demand for cost-effective and optimized processes in the manufacturing sector and the rising trend of outsourcing in compliance with regulatory standards are driving the market growth. Moreover, increasing contract manufacturers for electronic components in electric vehicles fuels the market development. Fluctuating raw material prices lead to unpredictability in production costs, and issues related to supply chain networks are restricting the market growth. Technological advancement in manufacturing processes and automation technologies, along with the development of sustainable and green practices in contract manufacturing, is expected to create growth opportunities in the market.
Regional Insights
The contract manufacturing market in the Americas is experiencing robust growth, driven by the strong presence of pharmaceutical, electronics, and automotive industries. The United States plays a key role in the region, benefitting from advanced manufacturing technologies and a mature market ecosystem. The demand for contract manufacturing in the pharmaceutical sector is particularly noteworthy, driven by the need for cost-efficient production and the capability to handle complex drugs. The contract manufacturing market is in a steady growth phase in South America; however, it encounters political instability and infrastructural constraints. The Asia-Pacific region is witnessing rapid global contract manufacturing growth. This region is characterized by a diverse manufacturing landscape, with countries such as China and India being the major contributors owing to their cost advantages and scalability. The electronics and automotive sectors are particularly strong in APAC, driving demand for contract manufacturing services. Moreover, the pharmaceutical industry in countries such as India showcases significant growth potential, benefiting from a skilled workforce and competitive manufacturing costs. Europe exhibits significant growth in the contract manufacturing market within the region, characterized by high demand in the pharmaceutical, automotive, and aerospace sectors. The adoption of Industry 4.0 technologies is enhancing the growth prospects of the market. The Middle East exhibits potential for growth, particularly in the pharmaceutical and electronics segments, driven by economic diversification efforts. Africa, while still developing in contract manufacturing, indicates growth prospects owing to its growing population and increasing industrialization.
Market Insights
- Market Dynamics
The market dynamics represent an ever-changing landscape of the Contract Manufacturing Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.- Market Drivers
- Growing demand for cost-effective and optimized processes in the manufacturing sector
- Rising outsourcing by pharmaceutical and medical device companies
- Market Restraints
- Lack of specified production and design standards combined with inadequate control of hiring company over production processes
- Market Opportunities
- Technological advancement in manufacturing processes and automation technologies
- Development of sustainable and green practices in contract manufacturing
- Market Challenges
- Issues related to supply chain network
- Market Segmentation Analysis
- Type: Rising popularity of end-to-end manufacturing and private label manufacturing to manage their workforce needs dynamically
- Services: Increasing focus toward contract manufacturing in research and development (R&D) for innovation and improvement in existing goods
- Verticals: Widespread adoption of contract manufacturing in the pharmaceuticals and automotive industries
- Market Disruption Analysis
- Porter’s Five Forces Analysis
- Value Chain & Critical Path Analysis
- Pricing Analysis
- Technology Analysis
- Patent Analysis
- Trade Analysis
- Regulatory Framework Analysis
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Contract Manufacturing Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Contract Manufacturing Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Recent Developments- Mavenir Partners With Contract Manufacturer Jabil to Manufacture MIMO Gear in India
Mavenir announced a strategic partnership with Jabil to domestically produce multiple input, multiple output (MIMO) gear in India. This collaboration marked a pivotal step toward bolstering India's manufacturing capabilities, aligning with the country's push for greater self-reliance in telecommunications infrastructure.
Novo Holdings to buy Contract Manufacturer Catalent for USD 16.5 Billion
Novo Holdings announced its acquisition of Catalent, a contract manufacturer in the pharmaceutical and biotech sectors, for USD 16.5 billion. This acquisition underscores the strategic importance of contract manufacturing in the evolving landscape of the pharmaceutical industry, highlighting the increasing reliance of major pharmaceutical companies on specialized manufacturing partners to streamline operations.
Grand River Aseptic Manufacturing Completes Finishing and Warehouse Center
Grand River Aseptic Manufacturing (GRAM), a provider of sterile injectable contract manufacturing services for biologics, small molecules, and vaccines, significantly enhanced its operational capacity. The organization recently concluded an ambitious expansion project, which witnessed an addition of 90,000 square feet to its pre-existing facility of 110,000 square feet, culminating in a comprehensive 200,000-square-foot complex. This expansion is meticulously designed to bolster GRAM’s inspection, packaging, testing, and warehousing capabilities.
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Contract Manufacturing Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Company Profiles
The report delves into recent significant developments in the Contract Manufacturing Market, highlighting leading vendors and their innovative profiles. These include AbbVie, Inc., Agilery AG, Alchemy MFG, Altek, Inc., Angiplast Pvt. Ltd., Asteelflash Group, Beacon MedTech Solutions, Catalent Inc., Celestica Inc., Coghlin Companies, Inc., Dalsin Industries, Inc., ETI Tech, Inc., Eurofins Scientific SE, Fabrinet, Flex Ltd., Fresenius Kabi Deutschland GmbH, G.E. Mathis Company, GMP Manufacturing Ltd., GPR Company Inc., Guangzhou Komaspec Mechanical and Electrical Products Manufacturing Co. Ltd., Hankscraft Inc., HANZA AB, Havells India Ltd., Henkel AG & Co.KGaA, Hindustan Foods Limited, Integer Holdings Corp., Jabil Inc., Kimball Electronics, Inc., Lallemand Inc., Lonza Group AG, Magna International Inc., Merck KGaA, MinebeaMitsumi, Inc., Mitsubishi Chemical Group Corporation, Nemco Limited, Pegatron Corporation, PEKO Precision Products, Pfizer Inc., Plexus Corp., RCO Engineering, Inc., Sanmina Corporation, Saphnix Life Sciences, Sartorious AG, Seaway Plastics Engineering, Seveco Global Limited, Siemens AG, Skinlys SAS, STERIS Corporation, Synecco Ltd, Talan Products, Inc., Thermo Fisher Scientific Inc., Torbay Pharmaceuticals Limited, Viant Medical LLC, and Wistron Corporation.
Market Segmentation & Coverage
This research report categorizes the Contract Manufacturing Market to forecast the revenues and analyze trends in each of the following sub-markets:- Type
- End-to-End Manufacturing
- Individual Component Manufacturing
- Labor or Service Subcontracting
- Private Label Manufacturing
- Services
- Custom Formulation
- Manufacturing
- Packaging
- Research & Development
- Verticals
- Aerospace & Defense
- Aircraft Component Manufacturing
- Defense Equipment & Ammunition Production
- Electronics & Avionics Systems
- Engine Manufacturing & Overhaul
- Spacecraft & Satellite Components
- Automotive
- Components & Parts Manufacturing
- Electrification & New Technologies
- Entire Vehicle Assembly
- Special Editions & Customizations
- Electronics & Consumer Goods
- Audio & Visual Equipment
- Consumer Drones
- Gaming Consoles & Accessories
- Home Appliances and Smart Home Devices
- Smartphones, Tablets, Laptops Production
- Wearable Technology Manufacturing
- Food & Beverage
- Packaging & Labeling
- Processing & Production
- Product Development & Formulation
- Medical Devices
- Assembly & Packaging
- Component Manufacturing
- Sterilization Services
- Personal Care
- Product Development & Innovation
- Scaling Production Capacities
- Pharmaceutical
- Active Pharmaceutical Ingredient Manufacturing
- Excipient Sourcing
- Fill/Finish Services
- Formulation Development
- Primary & Secondary Packaging
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
Please Note: PDF & Excel + Online Access - 1 Year
- Americas
- Aerospace & Defense
- Market Drivers
- 1. Preface
- 1.1. Objectives of the Study
- 1.2. Market Segmentation & Coverage
- 1.3. Years Considered for the Study
- 1.4. Currency & Pricing
- 1.5. Language
- 1.6. Stakeholders
- 2. Research Methodology
- 2.1. Define: Research Objective
- 2.2. Determine: Research Design
- 2.3. Prepare: Research Instrument
- 2.4. Collect: Data Source
- 2.5. Analyze: Data Interpretation
- 2.6. Formulate: Data Verification
- 2.7. Publish: Research Report
- 2.8. Repeat: Report Update
- 3. Executive Summary
- 4. Market Overview
- 5. Market Insights
- 5.1. Market Dynamics
- 5.1.1. Drivers
- 5.1.1.1. Growing demand for cost-effective and optimized processes in the manufacturing sector
- 5.1.1.2. Rising outsourcing by pharmaceutical and medical device companies
- 5.1.2. Restraints
- 5.1.2.1. Lack of specified production and design standards combined with inadequate control of hiring company over production processes
- 5.1.3. Opportunities
- 5.1.3.1. Technological advancement in manufacturing processes and automation technologies
- 5.1.3.2. Development of sustainable and green practices in contract manufacturing
- 5.1.4. Challenges
- 5.1.4.1. Issues related to supply chain network
- 5.2. Market Segmentation Analysis
- 5.2.1. Type: Rising popularity of end-to-end manufacturing and private label manufacturing to manage their workforce needs dynamically
- 5.2.2. Services: Increasing focus toward contract manufacturing in research and development (R&D) for innovation and improvement in existing goods
- 5.2.3. Verticals: Widespread adoption of contract manufacturing in the pharmaceuticals and automotive industries
- 5.3. Market Trend Analysis
- 5.3.1. Expanded manufacturing of medical devices and strategic collaborations between contract manufacturers and emerging technology providers
- 5.3.2. Reliance of the automotive and personal care sector on contract manufacturing services in the Asia-Pacific
- 5.3.3. Expanding adoption of contract manufacturing in the pharmaceuticals and food industries with strategic collaboration between domestic players and global pharmaceutical companies in the EMEA region
- 5.4. Cumulative Impact of High Inflation
- 5.5. Porter’s Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
- 5.6. Value Chain & Critical Path Analysis
- 5.7. Regulatory Framework Analysis
- 5.8. Client Customization
- 5.8.1. Use-Case of Contract Manufacturing in Aerospace & Defense
- 5.8.2. Use-Case of the Contract Manufacturing in Automotive
- 5.8.3. Use-Case of the Contract Manufacturing in Electronics & Consumer Goods
- 5.8.4. Use-Case of the Contract Manufacturing in Food & Beverage
- 5.8.5. Use-Case of the Contract Manufacturing in Medical Devices
- 5.8.6. Use-Case of the Contract Manufacturing in Personal Care
- 6. Contract Manufacturing Market, by Type
- 6.1. Introduction
- 6.2. End-to-End Manufacturing
- 6.3. Individual Component Manufacturing
- 6.4. Labor or Service Subcontracting
- 6.5. Private Label Manufacturing
- 7. Contract Manufacturing Market, by Services
- 7.1. Introduction
- 7.2. Custom Formulation
- 7.3. Manufacturing
- 7.4. Packaging
- 7.5. Research & Development
- 8. Contract Manufacturing Market, by Verticals
- 8.1. Introduction
- 8.2. Aerospace & Defense
- 8.3. Automotive
- 8.4. Electronics & Consumer Goods
- 8.5. Food & Beverage
- 8.6. Medical Devices
- 8.7. Personal Care
- 8.8. Pharmaceutical
- 9. Americas Contract Manufacturing Market
- 9.1. Introduction
- 9.2. Argentina
- 9.3. Brazil
- 9.4. Canada
- 9.5. Mexico
- 9.6. United States
- 10. Asia-Pacific Contract Manufacturing Market
- 10.1. Introduction
- 10.2. Australia
- 10.3. China
- 10.4. India
- 10.5. Indonesia
- 10.6. Japan
- 10.7. Malaysia
- 10.8. Philippines
- 10.9. Singapore
- 10.10. South Korea
- 10.11. Taiwan
- 10.12. Thailand
- 10.13. Vietnam
- 11. Europe, Middle East & Africa Contract Manufacturing Market
- 11.1. Introduction
- 11.2. Denmark
- 11.3. Egypt
- 11.4. Finland
- 11.5. France
- 11.6. Germany
- 11.7. Israel
- 11.8. Italy
- 11.9. Netherlands
- 11.10. Nigeria
- 11.11. Norway
- 11.12. Poland
- 11.13. Qatar
- 11.14. Russia
- 11.15. Saudi Arabia
- 11.16. South Africa
- 11.17. Spain
- 11.18. Sweden
- 11.19. Switzerland
- 11.20. Turkey
- 11.21. United Arab Emirates
- 11.22. United Kingdom
- 12. Competitive Landscape
- 12.1. Market Share Analysis, 2023
- 12.2. FPNV Positioning Matrix, 2023
- 12.3. Competitive Scenario Analysis
- 12.3.1. Mavenir Partners With Contract Manufacturer Jabil to Manufacture MIMO Gear in India
- 12.3.2. Novo Holdings to buy Contract Manufacturer Catalent for USD 16.5 Billion
- 12.3.3. Grand River Aseptic Manufacturing Completes Finishing and Warehouse Center
- 12.3.4. AbbVie Breaks Ground on USD 233 million Expansion of Singapore Manufacturing Facility
- 12.3.5. Integer Acquires Contract Manufacturer Pulse Technologies for USD 140 Million
- 12.3.6. Enzene Biosciences Launches Manufacturing Base in the U.S.
- 12.3.7. Flex to Provide Advanced Manufacturing Services for Asensus Surgical’s LUNA Robotic Surgical System
- 12.3.8. Lallemand Health Solutions Acquires Dietary Pros Inc., U.S.-Based Contract Manufacturer
- 12.3.9. Navin Fluorine International Launches New CDMO Division, Navin Molecular
- 12.3.10. Lallemand Launches Contract Manufacturing/Development Platform
- 12.3.11. Samsung Biologics Expands Strategic Manufacturing Agreement with Bristol Myers Squibb
- 12.3.12. Pfizer inks USD 183 Million Contract Manufacturing Deal With Samsung Biologics
- 12.3.13. Authentise Launches RFQ Responder to Aid Contract Manufacturers
- 13. Competitive Portfolio
- 13.1. Key Company Profiles
- 13.2. Key Product Portfolio
Research Assistance
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