Active Pharmaceutical Ingredients Market is accounted approximate USD 180.5 billion in 2020 and it is expected to reach approximate USD 308.3 billion by 2030 with a CAGR of 5.5% during forecast period.     Active pharmaceutical ingredients are chemically and biologically active constituents of drugs which have a direct effect in the diagnosis, cure, mitigation, treatment, and prevention of diseases. In other words, API is the central ingredient of the drug that produces the intended effects. Usually, the pharmaceutical companies get the active pharmaceutical ingredients manufactured in their respective nations, but in recent years many companies have opted to shift the manufacturing of APIs overseas to reduce costs. This has resulted in important modifications in the way these drugs are regulated, with more stringent guidelines and assessments put into place. The global API market witnessed incredible growth over the last few decades because of the augmented use of drugs in the treatment of diseases. The growing adoption of quality standards in API manufacturing like Good Manufacturing Practices (GMP) and the global acceptance of International Conference on Harmonisation (ICH) guidelines have helped in improving the safety standards.

Market Segmentation:

On the basis of type, the active pharmaceutical ingredients (API) market can be bifurcated into chemical API and biological API. Based on drug type, the market can be categorised into generic API and innovative API. According to manufacturers, the API market can be classified into captive API and merchant API. By mode of synthesis, the market can be segmented into synthetic API and biotech API. Biotech APIs can be further segregated into monoclonal antibodies, hormones & growth factors, cytokines, fusion proteins, recombinant vaccines, therapeutic enzymes, and blood factors. Based on application therapy, the active pharmaceutical ingredients market is classified into cardiology, oncology, CNS & Neurology, endocrinology, pulmonology, nephrology, gastroenterology, and others. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising North America, Europe, Asia-Pacific, and RoW.

Market Dynamics and Factors:

The growing geriatric population and inactive lifestyles have attributed to various disorders such as diabetes, cardiovascular diseases, cancer, and many others. This is a major factor driving the active pharmaceutical ingredient market globally. For instance, according to the National Cancer Institute in 2016, there were approximately 15.5 million cancer survivors in the U.S and this number is going to reach 20.3 million by 2026. Technological advancements in API manufacturing and strategic outsourcing are other major factors driving the market growth. Strategic outsourcing of API production leads to elimination of labour and capital costs and allows companies to focus on their core competencies. Government initiatives towards prioritised biomedical innovation is another major reason fuelling the active pharmaceutical ingredients market growth across the globe. For instance, the U.S Food & Drug Administration (FDA) has approved 45 drugs in 2017 which are used in the treatment of various disorders like acute bacterial skin infections, type 2 diabetes, relapsed breast cancer, refractory acute lymphoblastic leukaemia, and many others. This results in enhanced productivity and in turn creates opportunities for market growth. However, certain factors like increasing penetration of counterfeit drugs; lack of skilled workforce; limited accessibility of drugs in developing nations are restraining the market growth of active pharmaceutical ingredients.

Geographic Analysis:

North America is expected to dominate the global active pharmaceutical ingredients market in terms of market share during the forecast period. Rising prevalence of chronic geriatric diseases; presence of a large pool of API manufacturers in the region and their constant R&D activities are some of the major factors attributing to the market dominance of the North American region. Europe is the second most dominating region in the global active pharmaceutical ingredients market. According to EU government agency survey, around 49 million people in the European Union are suffering from cardiovascular diseases in 2017. The Asia Pacific region is projected to be the fastest growing active pharmaceutical ingredients market during the forecast period. The presence of an enormous patient population coupled with rising incidences of chronic disorders is driving the market in the APAC region. For instance, China accounts for almost 50% of lung cancer cases in the region. Countries like India, China, and Thailand are major countries affected by breast cancer in the APAC region. Furthermore, the availability of cheap labour is encouraging several key active pharmaceutical ingredients players to outsource their manufacturing to APAC region, thus contributing towards further market growth.

Competitive Scenario:

The key players operating in the global active pharmaceutical ingredients market are –

Pfizer, Novartis AG, Sanofi, Merck and Co., Bristol-Myers Squibb Company, Sun Pharmaceuticals, Cipla Inc., Dr Reddy’s Laboratories Ltd., Aurobindo Pharma, Bayer AG, Hoffmann-La Roche Ltd., GlaxoSmithKline.

Active Pharmaceutical Ingredients Market Report Scope