The global active pharmaceutical ingredient market size was estimated around USD 168.87 billion in 2019 and expected to reach over USD 285.5 billion by 2027, by growing at a compound annual growth rate (CAGR) of around 6.82% during period 2020 to 2027.
Global active pharmaceutical ingredient market is estimated to be influenced by a great number of ground-breaking drugs going off patent during coming years. There is forthcoming need for technological inventions to preserve the viability in high volume and a small value environment. In the event of outsourcing, APIs are facing rigorous guidelines and oversight from the nation they are shipped to. For instance, API manufacturing plants abroad still go over scrutiny by the U.S. Food & Drug Administration.
Rising acceptance of quality standards in API manufacturing including Good Manufacturing Practices (GMP), and the worldwide implementation of International Conference on Harmonisation (ICH) guidelines have aided recover the safety criterions. Conversely, the API industry is coming across the issues including plunging the cost of development, curbing the development time, refining the process design and addressing the quality standard deprived of compromising on the cost-effectiveness.
Type of Synthesis Insights
Global active pharmaceutical ingredient market has been classified depending on type of synthesis into synthetic and biotech. Biotech has further been categorized into vaccines, recombinant proteins, and monoclonal antibodies. In 2019, synthetic segment conquered the global API market due to the stress-freeobtainability of raw materials and easier processes for the synthesis of APIs. Growth of biotech segment is recognized due to technological innovations in the manufacturing method and a high level of competence of these molecules.
On the basis of type, the API market is categorized into generic and innovative APIs. In 2019, innovative APIs lead the global market on account of existence of promising government guidelines, recognized R&D facilities, and augmented subsidies for innovative drug development. Due to widespread research in this field, numerous novel ground breaking products are in the pipeline and are estimated to be introduced during years to come.
Type of manufacturers Insights
Among different types of manufacturers involved in the API market, Captive API occupied majority of the revenue shares because of stress-freeobtainability of raw materials and thorough capitalization of foremost key companies for the progress of high-end manufacturing facilities. Merchant API is projected to be the fastest-growing sector during years to come. The segment development is compelled by influences like high cost of in-house engineering of these molecules and increasing demand for biopharmaceuticals.
APIs find widespread application in CNS and neurology, oncology, orthopedic, cardiology, pulmonology, ophthalmology, gastroenterology, endocrinology and nephrology among others. In 2019, cardiology occupied major share of the market due to escalating commonness of target diseases internationally. As per the WHO, cardiovascular diseases may result in about 17.9 million deaths per year, worldwide, where 85.% of these deaths are instigated by heart attacks and strokes.
Geographically, North America dominated the global API market closely trailed by Europe. The foremost influences motivating the whole growth of the market in this are budding incidence of chronic diseases, cumulative government emphasis on generic drugs, intensifying demand for specialty drugs and biologics, and technological progressions in the manufacturing processes of APIs. Asia Pacific is expected to record fastest growth in the market throughout the estimate period. This growth is attributed to efforts of foremost corporations in the market for setting up API business plants in emerging nations such as India and China.
Key Companies & Market Share Insights
Pfizer is one of the foremost players in the global API marketplace. This prominent position of the corporation is majorly accredited to its comprehensive product offerings. The company has a robust brand imagethat offers it a competitive edge over other companies. To endure competitive position and reinforce its market position, the firmlargely focuses on implementing both organic and inorganic growth approaches including partnerships, agreements, collaborations, product endorsements, and acquisitions. In accordance with this, Pfizer acquired Anacor Pharmaceuticals, Inc. (US), a principal biopharmaceutical corporation developing small molecule therapeutics in June 2016.
Increasing numbers of players are subcontracting to curtail costs on employees, costly equipment, and infrastructure. However, there is sustained anxiety regarding the quality of these APIs manufactured abroad. Particularly, AstraZeneca Pharmaceuticals used to operate numerous manufacturing hubs in the U.S. Currently, only 15% of their APIs are generated in the U.S. and there are plans to end that small fraction and subcontract all manufacturing abroad.
Some of the noteworthy companies in the active pharmaceutical ingredient market include:
Segments Covered in the Report
This research report includes complete assessment of the market with the help of extensive qualitative and quantitative insights, and projections regarding the market. This report offers breakdown of market into prospective and niche sectors. Further, this research study calculates market revenue and its growth trend at global, regional, and country from 2016 to 2027. This report includes market segmentation and its revenue estimation by classifying it on the basis of Type of synthesis, type, application, type of manufacturer, and region as follows:
By Type of Manufacturer
By Type of Synthesis
By Regional Outlook
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