Active Pharmaceutical Ingredients Industry Overview
The global active pharmaceutical ingredients market size was valued at USD 187.76 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2021 to 2028.
The growth can be attributed to the advancements in active pharmaceutical ingredient (API) manufacturing and the rising prevalence of chronic diseases, such as cardiovascular diseases and cancer. Favorable government policies for API production, along with changes in geopolitical situations, are boosting the market growth. The API market is undergoing immense changes due to supply chain disruption by COVID-19. Countries such as India are being preferred over China for the export of API owing to geopolitical situations and the demand to reduce dependence on China for API products. Furthermore, governments of many countries have formulated plans and granted incentives to promote the production of API.
Gather more insights about the market drivers, restrains and growth of the Global Active Pharmaceutical Ingredients Market
The global geriatric population is rising. According to the UN, in 2017, the population aged 65 and above is anticipated to increase from 962 million in 2017 to 2.1 billion by 2050. Aging weakens the immune system and increases a patient’s susceptibility to acquiring infectious diseases. Moreover, impairment in body functions enhances the chances of getting other diseases, such as CVD and diabetes.
The requirement of high capital for the production of APIs is because the process needs extremely systematic protocols, which results in the outsourcing of various APIs. In addition, pharmaceutical companies benefit from API production outsourcing as it eradicates the need for expensive manufacturing unit installation and labor force. Thus, the need for cost savings boosts outsourcing. Strategic outsourcing by companies allows them to focus on core competencies, which results in increased productivity.
In addition, APIs are used as Antibody Drug Conjugates (ADCs). ADCs are important and effective treatment modalities used in combination with biologically active drugs and monoclonal antibodies for cancer. APIs effectively target cancer cells, while causing minimum exposure of drugs to healthy tissues. Thus, the development of cancer-specific APIs is expected to boost the API market growth.
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Geriatric Medicine Market - The global geriatric medicine market was valued at nearly USD 540 billion in 2015. One of the key factors attributing to its rapid growth includes rapidly increasing geriatric population base. According to the estimates published by the United Nations in 2012, the global geriatric population was estimated to be nearly 809.4 million, and is anticipated to reach nearly 1.13 billion by 2022 and exceed a value of over 2 billion by 2050.
High Potency Active Pharmaceutical Ingredients Market - The global high potency active pharmaceutical ingredients market size was valued at USD 20.39 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.4% from 2021 to 2028. The increasing prevalence of cancer, the growing applications of high potency active pharmaceutical ingredients (HPAPIs), and the growth of targeted therapies are anticipated to accelerate the market growth in the forecast period.
Active Pharmaceutical Ingredients Market Segmentation
Grand View Research has segmented the global active pharmaceutical ingredients market report on the basis of the type of synthesis, type of manufacturer, type, application, and region:
Active Pharmaceutical Ingredients Type of Synthesis Outlook (Revenue, USD Billion, 2017 - 2028)
Biotech
Monoclonal Antibodies
Recombinant Proteins
Vaccines
Synthetic
Active Pharmaceutical Ingredients Type of Manufacturer Outlook (Revenue, USD Billion, 2017 - 2028)
Captive APIs
Merchant APIs
Active Pharmaceutical Ingredients Type Outlook (Revenue, USD Billion, 2017 - 2028)
Generic APIs
Innovative APIs
Active Pharmaceutical Ingredients Application Outlook (Revenue, USD Billion, 2017 - 2028)
Cardiovascular Diseases
Oncology
CNS and Neurology
Orthopedic
Endocrinology
Pulmonology
Gastroenterology
Nephrology
Ophthalmology
Others
Active Pharmaceutical Ingredients Regional Outlook (Revenue, USD Billion, 2017 - 2028)
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Market Share Insights
November 2019: Bio-Techne announced an investment of over USD 40 million to upgrade its protein manufacturing facility and meet cell therapy demands.
August 2019: S. FDA issued 75 warning letters to API production facilities, out of which, half were for Indian and Chinese firms.
Key Companies profiled:
Some prominent players in the global active pharmaceutical ingredients market include:
Merck & Co., Inc.
AbbVie, Inc.
Bristol-Myers Squibb Company
Boehringer Ingelheim International GmbH
Cipla, Inc.
Teva Pharmaceutical Industries Ltd.
Albemarle Corporation
Viatris Inc.
Aurobindo Pharma
Sun Pharmaceutical Industries Ltd.
Reddy’s Laboratories Ltd.
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