Rising incidence of chronic diseases and large number of drugs in pipeline are expected to drive the global active pharmaceutical ingredients (API) market. The Global Active Pharmaceutical Ingredients (API) Market was valued at USD 189.0 Bn in 2020 and is expected to reach USD 290.5 Bn by 2027, growing at a CAGR of 6.4% during the forecast period.
Increasing demand for complex APIs for novel drugs also targets the market during the forecast year. Moreover, increasing incidence of chronic diseases and due to the rising prevalence of cancer, several manufacturers are focusing on high potent API’s which is the major driving factor for the active pharmaceutical ingredient (API) market. For instance, according to National Cancer Registry Program, the incidence of cancer in the Indian population includes about 6.7 lacs in males and 7.1 lacs in females for the year 2020.
Moreover, the incidences of chronic diseases increasing due to the rising number of the old-age population and to treat chronic diseases the demand for APIs rises which is the boosting factor for the growth of the active pharmaceutical ingredients (APIs) market during the forecast period. For instance, according to the UN, the population aged 65 and above is anticipated to rise from 0.9 billion in 2017 to 2.1 billion by 2050.
High manufacturing cost is one of the major challenges faced by the key players of the active pharmaceutical ingredients (API) market. Manufacturers may invest a huge amount to avail advancement in technologies and manufacturing facilities. Moreover, the costs of obtaining regulatory approvals are relatively higher for firms with small volumes and the chemical synthesis of APIs also requires expensive and uncommon building blocks and raw materials, which further adds to API manufacturing costs.
The rising incidence of various diseases, an increasing number of off-patent biologics, positive outcomes from ongoing clinical trials of biosimilars are the major growth of the biosimilar market and in return affecting the growth of the active pharmaceutical ingredients (API) market too. Patents expiration and other intellectual property rights for originator biologics over the next decade are expected to come up with good opportunities for biosimilars to enter the active pharmaceutical ingredients (API) market during the forecast year.
However, the side effects and high cost associated with the manufacturing of APIs are the major restraining factor for the growth of the active pharmaceutical ingredients (API) market. Further, strict laws and regulations by the government for the approval of APIs are the hampering factors for the growth of the active pharmaceutical ingredients (API) market. Penetration of counterfeit drugs and unfavorable drug price control policies across various countries might hinder the growth of the active pharmaceutical ingredients (API) market.
By Region
In terms of geography, in 2020, the North American region accounted for the major share of the global active pharmaceutical ingredients (API) market followed by Europe. This is owing due to the increased government focus on generic drugs to prevent the growing incidence of preventable chronic diseases. Moreover, technological advancement in the manufacturing of APIs is another factor supporting the North America market. However, Asia Pacific witness the highest growth over the forecast period due to the availability of affordable labor for setting up the API’s manufacturing plant in developing countries like India and China.
The Global Active Pharmaceutical Ingredients (API) Market Segmentation:
Global Active Pharmaceutical Ingredients (API) Market, by Type Outlook (Revenue, USD Billion, 2021-2027)
Global Active Pharmaceutical Ingredients (API) Market, by Synthesis Type Outlook (Revenue, USD Billion, 2021-2027)
Global Active Pharmaceutical Ingredients (API) Market, by Therapeutic Applications Outlook (Revenue, USD Billion, 2021-2027)
Key Findings:
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Company Profiles and Competitive Intelligence
The key players operating in the active pharmaceutical ingredients (API) market are:
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