The Global Active Pharmaceutical Ingredients Market Size is valued at 195.31 billion in 2022 and is predicted to reach 347.22 billion by the year 2031 at a 6.7% CAGR during the forecast period for 2023-2031.
Improvements in the production of active pharmaceutical ingredients (APIs) and the rise in chronic diseases, such as cancer and cardiovascular conditions, are responsible for the growth. In addition to altering geopolitical conditions, supportive government regulations for API production are accelerating market expansion.
Due to COVID-19's supply chain disruption, the API market is witnessing significant changes. Due to geopolitical circumstances and the desire to lessen reliance on China for API products, nations like India are favored over China for exporting API. The governments of numerous countries have also developed policies and provided incentives to encourage the production of API.
The global APIs market benefited from the COVID-19 pandemic. The pharmaceutical sector was key in treating COVID-19 symptoms such as high fever, cough, and cold. The active pharmaceutical components market expanded during the pandemic due to the pharma sector's increased prominence. After the COVID-19 outbreak was classified as a pandemic by the World Health Organization, a wide range of renowned pharmaceutical and biopharmaceutical businesses and fresh startups rushed up to develop treatments for the virus.
Recent Developments:
- In December 2021, The Chasse-sur-Rhône, France, location of Novasep, a provider of services and technologies for the life sciences industry, invested about EUR 6 million to upgrade its capabilities with regard to the newer generation APIs in fields like oncology, the central nervous system (CNS), and infectious diseases.
Competitive Landscape:
Some of the Active Pharmaceutical Ingredients market players are:
- AbbVie, Inc.
- Albemarle Corporation
- AstraZeneca (U.K.)
- Aurobindo Pharma
- Boehringer Ingelheim International GmbH
- Bristol-Myers Squibb Company
- Cadila Pharmaceuticals (India)
- Cipla, Inc.
- Dr. Reddy’s Laboratories Ltd
- Eli Lilly and Company (US)
- F. Hoffmann-La Roche Ltd. (Switzerland)
- GlaxoSmithKline plc (UK)
- H. Lundbeck A/S (Denmark)
- Jazz Pharmaceuticals, Inc. (U.K.)
- Merck & Co., Inc.
- Mylan
- Novartis
- Pfizer
- Sanofi (France)
- Sumitomo Dainippon Pharma Co., Ltd. (Japan)
- Sun Pharmaceutical Industries Ltd.
- Sunovion Pharmaceuticals Inc. (U.S.)
- Takeda Pharmaceutical Company Limited (Japan)
- Teva Pharmaceutical Industries Ltd.
- Viatris Inc.
Market Segmentation:
The Active Pharmaceutical Ingredients market is segmented on the type of synthesis, type of manufacturer, type, Application, and type of drug. Based on the type of synthesis, the market is segmented as biotech (By Type (Generic APIs, Innovative APIs), By Product (Monoclonal Antibodies, Hormones, Cytokines, Recombinant Proteins, Therapeutic Enzymes, Vaccines, Blood Factors)) and synthetic (By Type ((Generic APIs, Innovative APIs)). By type of manufacturer, the market is segmented into captive APIs and Merchant APIs (By Type (Generic APIs, Innovative APIs), (By Type of Synthesis (Biotech, Synthetic)). By type, the market is segmented as Generic APIs and Innovative APIs. By drug type, the market is divided into prescription and OTC. By Application, the market is divided into Cardiovascular Diseases, Oncology, CNS & Neurology, Orthopedics, Endocrinology, Pulmonology, Gastroenterology, Nephrology, Ophthalmology, and Others.
Based On the Type Of Manufacturer, The Captive APIs Segment Is Accounted As A Significant Contributor To The Active Pharmaceutical Ingredients Market
Due to the simple accessibility of raw materials and significant investments made by key players to establish high-end manufacturing facilities, it is predicted to grow at a significant rate in the following years. Further evidence that important firms are more focused on internal production than outsourcing comes from recent developments and initiatives. For instance, Novartis revealed in November 2019 that it had acquired CellforCure, a CDMO with offices in France, in order to produce molecules internally that had previously been contracted to CellforCure. It is projected that these actions done by important players will boost the segment growth.
The Innovative APIs Segment Witnessed Growth At A Rapid Rate
Inventive APIs controlled the majority. Increased R&D initiatives for the creation of innovative drugs and helpful government laws are credited with this expansion. Numerous innovative items are currently being developed as a consequence of intensive research in this area and are anticipated to be on sale throughout the projected period. It is anticipated that new players in this sector will fuel market expansion.
The North American, Active Pharmaceutical Ingredients Market, Holds A Significant Regional Revenue Share
North America now dominates the market for active pharmaceutical components, which is anticipated to last a few more years. Due to rising disease rates and an ageing population, this area is anticipated to see a gain in market share in the future. The country had to import many APIs from other countries because of the country's severe COVID-19 outbreak, and domestic producers also had to ramp up production to meet the demand.
The majority of its API needs are satisfied by imports from Asian markets. According to US trade statistics, China and India account for roughly 75–80% of all APIs imported into the US since they have well-established production bases and a significant labour force that caters to the pharmaceutical industry. Recent political and trade initiatives of the US government to raise import levies and taxes are anticipated to increase operational expenses and put more pressure on manufacturers' pricing. In order to guarantee the supply of high-quality goods to the US market, the FDA has also raised the application costs for brand-new medicine approvals and increased the frequency of periodic inspections carried out at various offshore contract manufacturing facilities.
Active Pharmaceutical Ingredients Market Report Scope:
|
Report Attribute |
Specifications |
|
Market size value in 2022 |
USD 195.31 Bn |
|
Revenue forecast in 2031 |
USD 347.22 Bn |
|
Growth rate CAGR |
CAGR of 6.7 % from 2023 to 2031 |
|
Quantitative units |
Representation of revenue in US$ Billion, and CAGR from 2023 to 2031 |
|
Historic Year |
2019 to 2022 |
|
Forecast Year |
2023-2031 |
|
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
|
Segments covered |
Type Of Synthesis, Type Of Manufacturer, Type, Application, And Type Of Drug |
|
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
|
Competitive Landscape |
Merck & Co., Inc.; AbbVie, Inc.; Bristol-Myers Squibb Company; Boehringer Ingelheim International GmbH; Teva Pharmaceutical Industries Ltd.; Cipla, Inc.; Albemarle Corporation; Viatris Inc.; Aurobindo Pharma; Sun Pharmaceutical Industries Ltd.; Dr. Reddy’s Laboratories Ltd. |
|
Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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