The global Active Pharmaceutical Ingredients market size is expected to be worth around US$ 312.60 billion by 2030, according to a new report by Vision Research Reports.
The global Active Pharmaceutical Ingredients market size was valued at US$ 187.76 billion in 2020 and is anticipated to grow at a CAGR of 6.10% during forecast period 2021 to 2030.
The market is driven by the growth of the biopharmaceutical sector, advancements in active pharmaceutical ingredient (API) manufacturing, and an increase in the geriatric population.
The growth of the captive API segment is propelled by companies investing in solving challenges and developing new chemical ways for the production of APIs in house. This aids in reducing costs and the risk of contamination. Artificial intelligence and protein synthesis are expected to facilitate faster development with greater control over the process.
The rising prevalence of chronic and lifestyle-based conditions, such as cardiovascular diseases, is accelerating the demand for API. For instance, as per U.S. Pharmacist in 2020, 47% of adults have at least one risk factor that supports cardiovascular disease development. Cardiovascular diseases are one of the global, critical public health burdens driving extensive R&D for APIs in the field.
The generic API segment is gaining share in the market owing to its cost effectiveness, which helps in catering to the needs of the rising number of patients in developing regions with a low-income population. According to the Association for Accessible Medicines (AAM), in 2017, there was a considerable rise in manufacturing units in Asia, Australia, and EU5. There has also been an increase in the market share of generic drugs.
The captive API segment accounted for the largest revenue share of 59.87% in 2020. It is anticipated to grow at a significant rate in the upcoming years owing to the easy availability of raw materials and extensive investments by major players to develop high-end manufacturing facilities.
Furthermore, recent developments and initiatives by key players suggest that they are highly focused on in-house manufacturing over outsourcing. For instance, in November 2019, Novartis announced the acquisition of CellforCure—a France-based CDMO—for producing molecules in-house, which was earlier contracted to CellforCure. These initiatives undertaken by key players are anticipated to boost segment growth.
Major companies are looking to leverage their production capabilities in Asian countries in an attempt to provide APIs to other drugmakers. For instance, in November 2017, Eisai Pharmaceuticals invested over USD 9.32 million to install manufacturing equipment for API production in India. The company is expected to offer its services to other drug manufacturers by 2020.
Top biopharmaceutical players are responsible for substantial growth in the outsourcing segment. Furthermore, the lower cost of manufacturing in countries, such as India and China, makes them a popular choice for players looking to outsource their API production. Outsourcing of manufacturing to developing countries is a cost-effective measure that allows these companies to gain higher profits, thus accelerating segment growth.
Innovative APIs held the largest share of 65.03% in 2020. This growth is attributed to increasing R&D initiatives for novel drug development and favorable government regulations. Owing to extensive research in this field, many innovative products are now in pipeline and are expected to be launched over the forecast period. New entrants in this segment are expected to drive the market.
A rise in demand for targeted therapies with high potency API compounds, such as HPAPI, is anticipated to further create significant demand for personalized medicines. For instance, ADCs leverage the specificity of antibodies for cancer cells. These cells use linker technology to attach themselves to the antibody. These advanced features of ADCs are anticipated to drive the market, with most pharmaceutical companies pursuing such development programs.
Patent expiry of branded molecules is a key factor that can be attributed to the lucrative growth of generic API drugs. The generic drug market is anticipated to exhibit a high growth rate in countries, such as Brazil and India, owing to high unmet clinical needs and acceptance of OTC drugs.
The cardiovascular diseases segment accounted for the largest revenue share of 21.3% in 2020. This is attributed to the increasing prevalence of target diseases worldwide. Various organizations such as the World Heart Federation, the World Stroke Organization, and the Stroke Association are working toward increasing awareness about cardiovascular diseases. Government initiatives such as the National Cholesterol Education Program are aimed at improving awareness related to lipid and cholesterol-related diseases. High prevalence and increasing awareness about cardiovascular diseases are anticipated to drive the segment over the forecast period, thus driving demand for APIs for cardiology drugs.
Oncology is expected to be the fastest-growing application segment with a CAGR of 8.9% over the forecast period. Factors such as changing lifestyles and the growing prevalence of cancer are driving the market.
The increasing adoption of a sedentary lifestyle is driving the prevalence of various metabolic disorders. Hormonal imbalance is a growing concern in most countries. These disorders include thyroid and sex hormone imbalance. Levothyroxine is a popular API used to treat hypothyroidism. Hormonal therapy is of various types: for postmenopausal women, for men on cancer treatment, and for children to enable proper growth. A rise in hormone-dependent aging problems is also expected to drive the market.
Other diseases such as diabetic retinopathy and macular degeneration are also growing in prevalence, impelling the demand for highly efficient and cost-effective medications. Diabetic retinopathy is expected to impact over 190 million people by 2030. This is expected to boost demand for both generic medications and APIs.
The synthetic API segment accounted for the largest revenue share of 72.89% in 2020. This is attributed to the higher availability of raw materials and easier protocols for the synthesis of these molecules. Many synthetic molecules are also expected to go off-patent in the coming years, which is anticipated to boost growth.
The biotech segment is expected to expand at the fastest CAGR of 7.8% over the forecast period. This segment is driven by factors such as increasing demand for biopharmaceuticals and higher efficiency of these molecules. Furthermore, the growth of the biotech segment can be attributed to high investments in the biotechnology and biopharmaceutical sectors. This allows the innovation of new molecules that aid in the treatment of diseases, such as cancer. The high revenue of biotech-related API makes the market highly profitable, attracting major players. For instance, Proleukin (aldesleukin) by Clinigen, Inc. is a biologic therapy for metastatic renal cell carcinoma.
Recombinant proteins are extensively used in gene sequencing, especially to create antibody probes within cells. Thus, recombinant proteins find extensive applications in targeted therapies. These proteins play a crucial role in the development of novel treatments, such as cell therapy. Players are investing in protein manufacturing plants, for instance, in November 2019, Bio-Techne announced an investment of over USD 40 million to upgrade its protein manufacturing facility and meet cell therapy demands. However, there are a limited number of players in the field, leading to insufficient supply for current and future demands.
North America accounted for the largest revenue share of 39.5% in 2020 and is expected to maintain its lead over the forecast period. This is attributed to the rising epidemiology of cancer, along with other lifestyle-induced diseases, thus encouraging the R&D activities, thereby boosting the market growth.
Asia Pacific is anticipated to exhibit the fastest CAGR of 7.8% during the forecast period. The presence of economies such as China and India that the world relies on for the production of APIs at a lower cost is an advantage for the region. Increasing healthcare expenditure in the region is anticipated to fuel the market growth.
Europe is expected to witness significant growth over the forecast period. An increase in research funding and the local presence of key market players in this region is expected to drive the market. The number of biopharmaceutical companies is growing in Europe owing to increasing investments. For instance, in 2017, USD 20 billion was raised as an investment by the biopharma industry, which increased by 28% to USD 27.5 billion in 2019. A number of key global players conduct their biopharmaceutical R&D in Europe.
Merck & Co., Inc.
Bristol-Myers Squibb Company
Boehringer Ingelheim International GmbH
Teva Pharmaceutical Industries Ltd.
Sun Pharmaceutical Industries Ltd.
Dr. Reddy’s Laboratories Ltd.
Type of Synthesis Outlook
Type of Manufacturer Outlook
CNS and Neurology
Middle East & Africa
The Active Pharmaceutical Ingredients market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Active Pharmaceutical Ingredients market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Active Pharmaceutical Ingredients market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Active Pharmaceutical Ingredients market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Active Pharmaceutical Ingredients market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Active Pharmaceutical Ingredients capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Active Pharmaceutical Ingredients by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Active Pharmaceutical Ingredients market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Active Pharmaceutical Ingredients market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Active Pharmaceutical Ingredients market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Active Pharmaceutical Ingredients industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Active Pharmaceutical Ingredients market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Active Pharmaceutical Ingredients market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Active Pharmaceutical Ingredients market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Active Pharmaceutical Ingredients market. These factors have benefited the growth of the global market for Active Pharmaceutical Ingredients. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Active Pharmaceutical Ingredients. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Active Pharmaceutical Ingredients are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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