CHICAGO, May 17, 2024 /PRNewswire/ -- Active Pharmaceutical Ingredient Market in terms of revenue was estimated to be worth $163.5 billion in 2024 and is poised to reach $238.3 billion by 2029, growing at a CAGR of 7.8% from 2024 to 2029 according to a new report by MarketsandMarkets.
The growth of this market is driven by increasing demand for active pharmaceutical ingredients in research and development of novel therapeutics, collaborations between academic institutions, research organizations, and industry players to develop innovative APIs. Additionally, continuous advancements in API manufacturing technologies, and automation have led to improved precision, efficiency of API.
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Active Pharmaceutical Ingredient Market Scope:
Report Coverage | Details |
Market Revenue in 2024 | $163.5 billion |
Estimated Value by 2029 | $238.3 billion |
Growth Rate | Poised to grow at a CAGR of 7.8% |
Market Size Available for | 2022-2029 |
Forecast Period | 2024-2029 |
Forecast Units | Value (USD Billion) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | Type, Synthesis, Type of Drug, Potency, Therapeutic Applications, and End User |
Geographies Covered | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
Report Highlights | Updated financial information / product portfolio of players |
Key Market Opportunities | Increased use of highly potent active pharmaceutical ingredients |
Key Market Drivers | Production capacity expansion in pharmaceutical and biopharmaceutical companies |
The traditional API segment accounted for the largest share, by potency in the active pharmaceutical ingredients market in 2023.
By product, the active pharmaceutical ingredients market is segmented into traditional API and highly potent API. Traditional APIs include low-potency, medium-potency, and potent APIs. Low-potency APIs form category I of the SafeBridge classification system. In 2023, the traditional APIs segment accounted for the largest share of the active pharmaceutical ingredients market. This can be attributed to increasing application across a range of therapeutic areas, the growing uptake of these APIs in biopharmaceuticals, and advancements in manufacturing processes that are driving segment growth.
The synthetic APIs segment accounted for the largest share of the synthesis segment in the active pharmaceutical ingredients market in 2023.
Based on synthesis, the global active pharmaceutical ingredients market has been segmented into synthetic APIs and innovative APIs. The synthetic APIs segment held the largest market share in 2023. The large share of this segment can be attributed to the growing number of regulatory approvals for new drugs and technological advancements in synthesis methods. Synthetic APIs offer certain advantages over large molecules. They can be engineered to deliver a strong therapeutic effect in small doses, often below 10 mg up to microgram levels. The requirement for smaller amounts of APIs, coupled with advancements in chemical manufacturing technologies, makes them low-cost, high-efficacy products as compared to large-molecule therapeutics. Moreover, the analytical techniques used for developing small molecules are highly refined, thus ensuring high quality, efficacy, and reproducibility.
The North American region catered to the largest share of the active pharmaceutical ingredients market in 2023.
The North America market has experienced significant growth in recent years, showing an expansion growth, due to presence of the large pharmaceutical & biopharmaceutical industry in the region, the increase in R&D expenditure, strict country regulations, and the presence of majority of key players of active pharmaceutical ingredients products in the US and Canada. Additionally, growth of the North American active pharmaceutical ingredients market is driven by significant factors such as a multitude of ongoing cancer research and clinical trials, the expansion of the biosimilars and generics sector, and the increasing adoption of outsourcing preclinical, clinical, and manufacturing services by pharmaceutical and biopharmaceutical companies.
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Active Pharmaceutical Ingredient Market Dynamics:
Drivers:
- Production capacity expansion in pharmaceutical & biopharmaceutical companies
- Growing adoption of generic drugs
- Increasing uptake of biopharmaceuticals
- Technological advancements in API manufacturing
Restraints:
- Complications during API manufacturing
- Low profit margin and high manufacturing cost
Opportunities:
- Increased use of highly potent APIs
- Potential growth opportunities in emerging economies
Challenge:
- Rising penetration of counterfeit drugs
- Stringent regulatory requirements for API manufacturing
Key Market Players of Active Pharmaceutical Ingredient Industry:
Key players in the active pharmaceutical ingredients market include Pfizer Inc. (US), Teva Pharmaceutical Industries Ltd. (Israel), GSK PLC (UK), Sanofi (France), Viatris Inc. (US), Divi's Laboratories Limited (India), Sandoz Group AG (Switzerland), Boehringer Ingelheim International GmBH (US), SK Inc. (US), Eli Lilly and Company (US), Merck KGaA (US), AbbVie Inc. (US), F. Hoffmann-La Roche Ltd. (Switzerland), AstraZeneca (UK), Dr. Reddy's Laboratories Ltd. (India), Sun Pharmaceutical Industries Ltd. (India), Cipla (India), Aurobindo Pharma (India), Evonik Industries AG (Germany), Hikma Pharmaceuticals PLC (UK), BASF SE (Germany), Alembic Pharmaceuticals Limited (India), Aburaihan Pharmaceutical Company (Iran), Curia Global, Inc. (US), Cambrex Corporation (US), API Pharma Tech (US), Sreepathi Pharmaceuticals Limited (India), Shilpa Medicare Limited (India), Nanjing Jianyou Biochemical Pharmaceutical Co., Ltd. (China), Hovione (Portugal), ChemCon GmbH (Germany), and Pharco (Egypt).
The primary interviews conducted for this report can be categorized as follows:
- By Respondent: Supply Side- 70% and Demand Side 30%
- By Designation: Managers - 45%, CXOs and Directors-level - 30%, and Executives - 25%
- By Region: North America -40%, Europe -25%, Asia-Pacific -20%, Latin America- 10%, and Middle East and Africa- 5%
Recent Developments:
- In January 2024, Dr. Reddy's plans to invest Rs 700 crore (USD 84.7 Mn) into capacity expansion of biosimilars and Active Pharmaceutical Ingredients.
- In October 2023, Eli Lilly and Company made a contract with the Swiss contract manufacturer, CordenPharma, to produce tirzepatide, the API of the company's diabetes medication, Mounjaro.
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Active Pharmaceutical Ingredient Market - Key Benefits of Buying the Report:
The report will help market leaders/new entrants by providing them with the closest approximations of the revenue numbers for the overall market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their business and make suitable go-to-market strategies. This report will enable stakeholders to understand the market's pulse and provide them with information on the key market drivers, restraints, opportunities, and challenges
The report provides insights on the following pointers:
- Analysis of key drivers (Production capacity expansion in pharmaceutical and biopharmaceutical companies, Growing adoption of generic drugs, Increasing uptake of biopharmaceuticals and Technological advancements in API manufacturing), restraints (Complications during API manufacturing, Low profit margins and high manufacturing costs), opportunities (Increased use of highly potent active pharmaceutical ingredients, and Potential growth opportunities in emerging economies), and challenges (Rising penetration of counterfeit drugs and Stringent regulatory requirements for API manufacturing).
- Product Development/Innovation: Detailed insights on newly launched product and technological assessment of the active pharmaceutical ingredients market
- Market Development: Comprehensive information about lucrative markets - the report analyses the market across varied regions.
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the active pharmaceutical ingredients market
- Competitive Assessment: In-depth assessment of market shares, technology analysis, investment and funding scenario, company footprint analysis, growth strategies and product offerings of leading players like Pfizer Inc. (US), Teva Pharmaceutical Industries Ltd. (Israel), GSK PLC (UK), Sanofi (France), Viatris Inc. (US), Divi's Laboratories Limited (India), Sandoz Group AG (Switzerland), Boehringer Ingelheim International GmBH (US), SK Inc. (US), Eli Lilly and Company (US), Merck KGaA (US), AbbVie Inc. (US), F. Hoffmann-La Roche Ltd. (Switzerland), AstraZeneca (UK), Dr. Reddy's Laboratories Ltd. (India), Sun Pharmaceutical Industries Ltd. (India), Cipla (India), Aurobindo Pharma (India), Evonik Industries AG (Germany), Hikma Pharmaceuticals PLC (UK), BASF SE (Germany), Alembic Pharmaceuticals Limited (India), Aburaihan Pharmaceutical Company (Iran), Curia Global, Inc. (US), Cambrex Corporation (US), API Pharma Tech (US), Sreepathi Pharmaceuticals Limited (India), Shilpa Medicare Limited (India), Nanjing Jianyou Biochemical Pharmaceutical Co., Ltd. (China), Hovione (Portugal), ChemCon GmbH (Germany), and Pharco (Egypt).
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