Active Pharmaceutical Ingredients (API) Market, by Type (Innovative APIs, Generic APIs); by Synthesis Type (Synthetic API, Biotech API); by Therapeutics Applications (Cardiovascular Diseases, Oncology, Respiratory Diseases, CNS & Neurology, Orthopaedic); and by Region (North America, Europe, Asia Pacific, Latin America, MEA); - Global Forecasts 2021 to 2027

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.. An Active Pharmaceutical Ingredients (API) is that part of a formulation that is intended to provide pharmacological activity such as biological activity, in the treatment or prevention of diseases or is intended to affect the function or structure of the human body.

The main driving factors for the growth of the active pharmaceutical ingredients (API) market are the increasing prevalence of chronic diseases, increasing uptake of biopharmaceutical products, and the rising importance of generic drugs. Increasing uptake of generic medicines and technological advancement in API manufacturing is considerably the boosting factors for the growth of the targeted market.

However, the rising adaption of counterfeit drugs and high drug price policies across the globe are expected to impede the growth of this market. The active pharmaceutical ingredients market was earlier dominated by cardiovascular, anti-infective, pain management, and analgesic drugs. However, the market has been witnessing an increasing demand for complex and novel formulations for the treatment of cancer, metabolic disorders, and autoimmune diseases.

The Global Active Pharmaceutical Ingredients (API) Market Segmentation:

By Type

• Innovative APIs
• Generic APIs

By Synthesis Type

• Synthetic API
• Biotech API
  • By Type
    • Monoclonal Antibodies
    • Recombinant Proteins  
  • By Expession System
    • Mammalian Expession System
    • Yeast Expession System
    • Microbial Expession System
    • Others

By Therapeutics Applications

• Cardiovascular Diseases
• Oncology
• Respiratory Diseases
• CNS & Neurology
• Orthopedic
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Based on synthesis type, the biotech API, is expected to dominate the global active pharmaceutical ingredients (API) market due to increased investment for research on API

Based on the synthesis type, the active pharmaceutical ingredients (API) market has been segmented into synthetic API and biotech API. The biotech API segment is further divided into type and expression systems. A further type is sub-divided into monoclonal antibodies and recombinant proteins. Expression system is further divided into mammalian expression systems, yeast expression systems, microbial expression systems, and others. The biotech API segment held the highest share in the base year. The high efficiency of biotech molecules, coupled with the increasing demand for biopharmaceuticals, is expected to drive the market for the biotech APIs segment. However, the synthetic APIs sub-segment is expected to grow at the highest CAGR during the forecast period.

Based on therapeutics applications, cardiovascular diseases is expected to dominate the global active pharmaceutical ingredients (API) market due to increased prevalence of cardiovascular disorders

The high prevalence of cardiovascular disorders is one of the major factors for the dominance of the cardiovascular diseases segment. According to the World Health Organization (WHO), the number is expected to reach 187 million by the year 2030. The estimated global cost of cardiovascular disease was around USD 863 Bn in 2010 and is expected to reach USD 1,044 Bn by the year 2030.

The key drugs classes for the treatment of cardiovascular diseases are blood pressure-lowering drugs and cholesterol-reducing drugs. Statins are the most important drugs that  control the cholesterol level to avoid cardiovascular diseases and block the excess cholesterol producing action in the liver that are expected to drive the growth of the cardiovascular disease segment.

However, the oncology segment is expected to grow at the highest rate during the forecast period. The International Agency for Research on Cancer estimates that the global incidence of cancer will reach 29.5 million by 2040, from 18.1 million in 2018. The increasing prevalence of cancer, coupled with the launch of new synthetic and biological drugs for the treatment of cancer, is expected to drive the oncology segment.

Geographically, North America accounted for the largest share of the global active pharmaceutical ingredients market

In the base year 2020, North America dominated the market, followed by Europe region. The major reasons behind the dominance of the North America region are the increasing prevalence of chronic diseases in the region and increased healthcare expenditure. Advanced technology in the manufacturing process of active pharmaceutical ingredients, the increasing prevalence of cancer, and the rising demand for biologics are some other factors that are expected to drive the growth of the global active pharmaceutical ingredients (API) market in North America.

However, Asia-Pacific is expected to grow at the highest CAGR during the forecast period. The majority of API manufacturers have a presence in China or India. The region has advantages such as the availability of a cheap and talented labor pool. Additionally, the increasing prevalence of chronic diseases, rising incidence of cancer, and the increasing demand for quality healthcare in this region are also expected to augment the growth of the API market in the Asia-Pacific region.

Company Profiles and Competitive Intelligence

The key players operating in the active pharmaceutical ingredients (API) market are:

• AbbVie Inc.
• AstraZeneca Plc.
• Boehringer Ingelheim
• Bristol-Myers Squibb
• Eli Lilly and Company
• GlaxoSmithKline Plc.
• Merck & Co. Inc.
• Novartis AG
• Pfizer Inc.
• Teva pharmaceuticals
• Mylan N.V
• Sun Pharmaceutical Industries Ltd.
• F. Hoffmann-La Roche Ltd.
• Sreepathi Pharmaceuticals Limited
• Cipla, Inc.
• API Pharma Tech
• BDR Pharmaceuticals Internationals Pvt. Ltd.
• Sanofi
• Shilpa Medicare Limited
• Aurobindo Pharma

The report also provides an in-depth analysis of the global API market dynamics such as drivers, restraints, opportunities, and challenges

Drivers

• Increasing prevalence chronic diseases
• Increasing uptake of biopharmaceuticals
• Technological advancements in API manufacturing
• Increasing uptake of generics

Restraints

•  Increasing Penetration of Counterfeit drugs
•  High drug price

Opportunities

•  Increasing demand from emerging countries

Challenges

•   High cost of some raw materials and chemical building blocks

COVID-19 Impact on the Global Active Pharmaceutical Ingredients (API) Market Analysis

COVID-19 has highly affected the industries in terms of growth, economy, health, and mental well-being of every individual. In this challenging situation, every industry is trying to give the best services in terms of quality and safety. The outbreak of COVID-19 has affected positively on the healthcare industry and the active pharmaceutical ingredients (API) market. This is due to increased respiratory and infectious disorders in patients. However, due to the outbreak of COVID-19, the funding for the innovation in active pharmaceutical ingredients (API)s distracted is the restraining factor for the growth of the global active pharmaceutical ingredients (API) market.

The report also provides an in-depth analysis of key trends in the global active pharmaceutical ingredients (API) market

• Increasing acceptance of the active pharmaceutical ingredients (API)s among the population
• Rising expenditure on research and development activities for improving technologies in developing countries related to active pharmaceutical ingredients (API).

The report also provides an in-depth analysis of recent news developments and investments

• In 2020, Pfizer signed an agreement with Gilead Sciences to manufacture and supply Gilead’s antiviral drug named Remdesivir for the treatment of COVID-19 for multiyear.
• In 2021, Dr. Reddy announced the launch of Reddy-Lenalidomide, a generic which is a substitute of Revlimid capsules, approved by Health Canada for the treatment of transfusion-dependent anemia.

The unique insights provided by this report also includes the following:

• In-Depth Value Chain Analysis
• Opportunity Mapping
• Sector Snapshot
• Key Players Positioning Matrix
• Regulatory Scenario
• Strategies Adopted-Benchmarking Heat Map
• Market Trends
• COVID-19 Impact Analysis
• Product Comparison
• Pre & Post COVID 19 Impact On The Global Active Pharmaceutical Ingredients (API) Market 
• Competitive Landscape

Frequently Asked Questions (FAQs)

Related Reports