The global cell & gene therapy manufacturing services market has witnessed robust growth over the past few years, driven by rapid advancements in regenerative medicine, the increasing prevalence of chronic and genetic disorders, and growing investments in the biotechnology sector. According to industry estimates, the market size was valued at USD 5.1 billion in 2022 and is projected to reach USD 11.5 billion by 2027, growing at a CAGR of 17.5% during the forecast period.
This growth trajectory reflects an expanding ecosystem of biopharmaceutical companies, contract development and manufacturing organizations (CDMOs), and academic research institutions working collaboratively to bring life-saving cell and gene therapies to market. The research underpinning this market analysis includes a comprehensive review of emerging trends, detailed pricing assessments, patent landscapes, insights from industry conferences, and the evolving purchasing dynamics among key stakeholders.
Market Dynamics
Rising Private and Public Investments Fueling Market Expansion
One of the major driving forces behind the cell & gene therapy manufacturing services market is the surge in both private and public investments aimed at advancing cell and gene therapy research and commercialization. Over the last decade, there has been a notable increase in venture capital funding and equity investments within the life sciences sector.
Specifically, investments in cell and gene therapy companies skyrocketed from USD 362 million in 2020 to nearly USD 68 billion in 2021, indicating an exceptional surge in confidence in this transformative medical field. Such large-scale funding has encouraged companies to outsource their manufacturing operations to specialized CDMOs, which offer the expertise, infrastructure, and regulatory compliance needed to support advanced therapy production.
This growing demand for outsourcing has significantly boosted the market, enabling faster clinical translation and scaling of therapies targeting cancers, genetic disorders, and rare diseases.
High Operational Costs Pose a Challenge
Despite the immense growth potential, the cell & gene therapy manufacturing services market faces significant challenges related to high production costs. The complexity of these therapies—both in terms of cell processing and treatment logistics—results in high operational expenses.
The manufacturing process for cell therapies is resource-intensive, requiring stringent quality control, specialized facilities, and skilled personnel. It is estimated that manufacturing costs for cell therapy treatments exceed USD 100,000 per patient, while gene therapy production costs can range between USD 500,000 and USD 1 million, excluding research and development expenses.
These high costs can limit the affordability and accessibility of such therapies, posing a challenge for both manufacturers and healthcare providers. As a result, there is growing emphasis on innovation in bioprocessing technologies and automation to reduce cost of goods (COGs) and improve scalability.
Expansion of Manufacturing Capacities by CDMOs
The increasing demand for advanced therapies has prompted CDMOs to expand their cell and gene therapy manufacturing capacities globally. These organizations play a vital role in supporting biotechnology and pharmaceutical companies by offering end-to-end solutions — from process development and analytical testing to commercial-scale manufacturing.
In recent years, large CDMOs have made strategic investments and acquisitions to enhance their capabilities. This includes establishing new production sites, upgrading GMP-certified facilities, and implementing automated manufacturing technologies to meet the rising global demand.
As the application of cell and gene therapies broadens beyond rare diseases to more common conditions, scalability and efficiency have become top priorities. The expansion of manufacturing capacities not only enables faster production but also opens new opportunities for collaboration between biotech innovators and service providers.
Segment Insights
Cell Therapy Segment Dominates the Market
Based on type, the cell therapy segment held the largest share of the cell & gene therapy manufacturing services market in 2021. The dominance of this segment is attributed to the wide range of therapeutic applications of cell therapies in the treatment of cancer, autoimmune disorders, infectious diseases, and regenerative conditions.
The growth of this segment is also supported by strong funding for cell-based research, as well as an increase in strategic partnerships, mergers, and acquisitions among leading biopharmaceutical companies aiming to strengthen their manufacturing capabilities. Moreover, advancements in stem cell biology and improvements in production platforms have further accelerated the commercial potential of cell therapies worldwide.
Regional Analysis
North America Leads the Global Market
Geographically, North America accounted for the largest share of the global cell & gene therapy manufacturing services market in 2021, followed by Europe and the Asia Pacific. The strong market presence in North America is driven by factors such as the high prevalence of cancer, growing R&D activities in regenerative medicine, and the presence of leading biotechnology firms and CDMOs.
The United States, in particular, remains a major hub for advanced therapy development, supported by a favorable regulatory framework, increased government funding, and an expanding network of clinical trials. Europe, on the other hand, continues to make strides in establishing specialized manufacturing hubs in the UK, Germany, and Switzerland. Meanwhile, the Asia Pacific region is emerging as a fast-growing market due to lower production costs, rising investments in biotechnology, and government initiatives promoting life sciences innovation.
Competitive Landscape
The cell & gene therapy manufacturing services market is characterized by strong competition among key global players striving to enhance production capacity and technological innovation. Leading companies in this market include:
- Lonza (Switzerland)
- Catalent (US)
- Thermo Fisher Scientific (US)
- Charles River Laboratories (US)
- WuXi AppTec (China)
- Merck KGaA (Germany)
- Takara Bio Inc. (Japan)
- Nikon Corporation (Japan)
- FUJIFILM Holdings Corporation (Japan)
- Oxford Biomedica plc (UK)
- Cell and Gene Therapy Catapult (UK)
These companies are actively expanding their cell and gene therapy manufacturing networks, investing in automation technologies, and forming strategic alliances with biotech innovators to meet growing industry demands.
Conclusion
The cell & gene therapy manufacturing services market is poised for substantial growth as the global demand for advanced, personalized, and regenerative treatments continues to rise. While challenges such as high operational costs and scalability remain, technological innovations and strategic collaborations among CDMOs, pharmaceutical firms, and research institutions are reshaping the landscape of biomanufacturing.
With increasing investments, supportive regulatory frameworks, and expanding production capacities, the market is expected to play a pivotal role in accelerating the commercialization of next-generation therapies — ultimately transforming patient care and redefining the future of medicine.