Global Active Pharmaceutical Ingredient (API) Market By Business Mode (Captive API and Merchant API), By Synthesis Type (Synthetic and Biotech), By Type of Drug (Generic and Branded), By Application (Cardiology, Pulmonology, Oncology, Ophthalmology, Neurology, Orthopedic and Other Applications), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa) – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data and Forecasts 2022 – 2030

Global Active Pharmaceutical Ingredient (API) Market Overview

The active pharmaceutical ingredient (API) is the component of a medicine that causes it to work. Combination therapies, for example, have various active substances that cure distinct symptoms or work in different ways. During both the R&D and commercial production phases, they are made employing highly technical industrial procedures. The expanding drug research and development activities for drug manufacturing, the increasing importance of generics, and the increasing consumption of biopharmaceuticals are the primary drivers driving the growth of the active pharmaceutical ingredients market. However, the market's expansion is likely to be hampered by unfavorable drug price control regimes in several countries and high manufacturing costs. 

The rising frequency of chronic diseases is predicted to boost medicine demand, which will drive the active pharmaceutical ingredients market forward in the near future. Furthermore, new medication and biological product launches, acquisitions, collaborations, and regional expansions are some of the companies' strategic attempts to maintain market stability. Medications such as anti-infective, diabetic, cardiovascular, analgesics, and pain management drugs have long dominated the active pharmaceutical ingredients (API) industry. However, according to R&D trends, the demand for complex APIs employed in innovative formulations aimed at specific therapeutic areas is increasing. Drug price control measures in various countries, severe competition among current companies, and tight regulatory policies are among the primary factors constraining market expansion. 
 

Market Size

According to Business Intelligence Insights "Global Active Pharmaceutical Ingredient (API) Market is expected to grow from USD 175.2 billion in 2021 to USD 305.6 billion by 2030, at a CAGR of 7.20% during the forecast period 2022-2030
 

Covid -19 Impact Analysis

COVID-10 has had a negative influence on this market due to the shutdown of a number of manufacturers in important Chinese countries as a result of the epidemic. Furthermore, China's manufacturers have been forced to close due to a lack of raw materials. In addition, the drop in demand for pharmaceuticals for certain elective treatments has slowed the market's growth in 2020. These variables, when combined, had a detrimental impact on the market. Furthermore, due to supply chain disruptions induced by manufacturing closures, the COVID-19 pandemic has resulted in a decrease in API product sales around the world. Sales of active medicinal ingredients have also grown more slowly for market participants. Strong demand for life-saving treatments like respiratory pharmaceuticals, combined with the reopening of API plants around the world, is expected to boost sales to pre-pandemic levels.

Market Dynamics

•    Drivers
o    Chronic diseases are becoming more common. Advancements in API production technology
o    Market hampered by a lack of skilled workforce 

•    Restraints
o    Price Changes in Emerging Markets Will Limit Market Growth

Segmentation Insights

Branded category dominated the market with more than 60% of the market share

The market is divided into generic API and branded API categories. The active pharmaceutical ingredients market was dominated by branded APIs. Various firms are being pushed to launch unique pharmaceuticals in the market as a result of significant R&D initiatives focusing on the creation of various cost effective and innovative products. The expansion of therapeutic applications for novel generation of ingredients, such as high potency compounds and peptides, is expected to have a significant impact on the manufacture of branded API. Another important force expected to boost demand for branded APIs over the forecast period is the increasing rise of biotech and pharmaceutical companies around the world.

Cloud-based category dominated the market with more than 55% of the market share

The market is divided into two types of synthesis: synthetic and biological. The synthetic API segment dominates the market due to the low cost of chemically synthesized components and the comparatively low cost of the raw materials needed to manufacture synthetic ingredients. Easier techniques for developing these compounds are also driving this segment's expansion. Because of the increased demand for biopharmaceuticals and the growing number of biologics developments to address the significant unmet medical requirements for various illnesses conditions, the biological segment is expected to rise at a faster rate. Furthermore, the biological API industry is likely to be a lucrative one, attracting significant pharmaceutical and biopharmaceutical companies.
 

By Business Mode
•    Captive API
•    Merchant API

By Synthesis Type
•    Synthetic
•    Biotech

By Type of Drug
•    Generic
•    Branded

By Application
•    Cardiology
•    Pulmonology
•    Oncology
•    Ophthalmology
•    Neurology
•    Orthopaedic
•    Other Applications 

By Region
•    North America
o    U.S.
o    Canada
•    Europe 
o    Germany
o    U.K.
o    France
o    Italy
o    Spain
o    Rest of Europe
•    Asia Pacific 
o    China
o    India
o    Japan
o    Rest of Asia Pacific
•    Latin America 
o    Brazil
o    Mexico
o    Rest of Latin America
•    Middle East and Africa 
o    UAE
o    South Africa
o    Rest of Middle East and Africa (MEA)

Key Players

List of Key Players in the Global Active Pharmaceutical Ingredient (API) Market:

•    Aurobindo Pharma
•    Teva Pharmaceutical Industries Ltd
•    Pfizer Inc.
•    Novartis AG
•    BASF SE
•    Boehringer Ingelheim GmbH
•    Dr. Reddy’s Laboratories Ltd
•    Lupin Ltd
•    Mylan NV
•    Sun Pharmaceutical Industries Ltd

Regional Insights

North America dominated the market with more than 35% of the market share

North America now dominates the active pharmaceutical ingredients industry and is anticipated to remain so for a few more years. Due to increased disease incidences and an aging population, this area is likely to enhance its market share in the future. In the North American region, the United States controls the majority of the market. The US government's recent political and trade policies, which include raising import tariffs and levies, are likely to drive up operational costs and put upward pricing pressure on manufacturers. To secure the availability of high-quality products to the US market, the FDA has increased the application fees for new medicine approvals and increased the number of periodic inspections done on various off-shore contract manufacturing facilities.

Table

Report Attributes	Details
Market Size Value in 2021	USD 175.2 billion
Market Size Value in 2027	USD 305.6 billion
Growth Rate	+7.20%
Base Year	2021
Forecast Period	2021-2030
Historical Data	2018-2020
Countries Covered	North America: U.S and Canada Europe: Germany, France, Italy, U.K, Spain, Russia, Rest of Europe APAC: China, Japan, South Korea, India, Australia, South East Asia, Rest of Asia Pacific Latin America: Brazil, Mexico Middle East And Africa: Saudi Arab, South Africa, UAE
Segments Covered	By Business Mode, By Synthesis Type, By Type of Drug, By Application, By Region
Competitive landscape	Leading companies, Competitive strategies and Consumer engagement scope
Customization is available	If our report does not contain the information you require, you can contact our experts to have segments created for you. Please contact us at sales@businessintelligence-insights.com if you have any questions

 

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