Number of pages: 100 | Report Format: PDF | Published date: 01 April, 2020
Historical Years – 2018 & 2019 | Base Year – 2020 | Forecasted Years – 2021-2031
The global active pharmaceutical ingredient (API) market was pegged at US$ 186 billion in 2020 and is expected to witness a CAGR of 6% during the forecast period.
Market Fundamentals
An active pharmaceutical ingredient is defined in ICH Q7 as any substance or mixture of substances intended to be used in the manufacture of a drug product and that, when used in the production of a drug, becomes an active ingredient in the drug product. Such substances are intended to furnish pharmacological activity or other direct effects in the diagnosis, cure, mitigation, treatment or prevention of disease or to affect the structure and function of the body.
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Market Dynamics
The global active pharmaceutical ingredient (API) market is mainly driven by the rising incidence of acute & chronic diseases, the outbreak of new disease cases, increasing launch of generics medicines & biosimilars, and growing R&D activities. Rising investments & collaborations to boost the production of active pharmaceutical ingredient (API) is also likely to play a pivotal role in driving the market globally. However, high capital investment & production costs and stringent regulations for the safety & handling of APIs are likely to restrain the market growth to a certain extent.
Market Ecosystem
The global active pharmaceutical ingredient (API) market has been analyzed from four perspectives: Type, Type of Manufacturer, Application, and Region.
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Active Pharmaceutical Ingredient (API) Market by Type
The active pharmaceutical ingredient (API) market has been segmented into generic and branded based on type. The branded segment dominated the market with the largest share owing to growing funding for novel drug development and rising FDA approvals for new molecular entities. A robust pipeline of products is expected to drive its demand in the coming years.
Active Pharmaceutical Ingredient (API) Market by Type of Manufacturer
Based on the type of manufacturer, the active pharmaceutical ingredient (API) market has been segmented into merchant (contract) manufacturers and captive (in-house) manufacturers. The merchant (contract) manufacturers are expected to be the fastest-growing segment during the forecast period owing to the high cost of in-house manufacturing and the growing trend towards outsourcing by multinational pharmaceutical companies.
Active Pharmaceutical Ingredient (API) Market by Application
Based on application, the active pharmaceutical ingredient (API) market has been segmented into cardiovascular disease, infectious diseases, oncology, neurological diseases, diabetes, respiratory diseases, and others (pain management, orthopedics, urinary tract disorders, ophthalmology, gastroenterology, etc.). The oncology segment is expected to be the fastest-growing application segment during the forecast period. The growth of the segment can be attributed to the rising prevalence of different types of cancers globally, increasing demand for effective cancer treatment, and a large number of ongoing clinical trials for cancer treatment.
Active Pharmaceutical Ingredient (API) Market by Region
Based on region, the global active pharmaceutical ingredient (API) market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). North America dominated the active pharmaceutical ingredient (API) market with the largest share, followed by the Asia Pacific. The large share of North America in the global market can largely be attributed to the growing prevalence of acute & chronic diseases, rising government initiatives for the production of generic drugs, high number of ongoing R&D activities, and the presence of prominent pharmaceutical & biotechnology companies in the region.
Competitive Landscape
Some of the prominent players operating in the active pharmaceutical ingredient (API) market includes:-
Strategic Developments
|
Report Attribute |
Details |
|
Market size value in 2020 |
US$ 186 billion |
|
Revenue forecast in 2031 |
US$ 353.08 billion |
|
Growth Rate |
CAGR of 6% from 2021 to 2031 |
|
Base year for estimation |
2020 |
|
Forecast period |
2021-2031 |
|
Segments covered |
Type, Type Of Manufacturer, Application |
|
Regional scope |
North America, Europe, Asia Pacific, and the Rest of the World (ROW) |
The global active pharmaceutical ingredient (API) Market is expected to clock US$ 186 billion in 2020.
The global active pharmaceutical ingredient (API) market is mainly driven by the rising incidence of acute & chronic diseases, the outbreak of new disease cases, increasing launch of generics medicines & biosimilars, and growing R&D activities.
Sun Pharmaceutical Industries Ltd, Merck KGaA, GlaxoSmithKline plc, Cipla Inc, Pfizer Inc, Sanofi SAIS, Lilly, Bristol-Myers Squibb Company, Boehringer Ingelheim International GmbH, Teva Pharmaceutical Industries Ltd
The growth rate of active pharmaceutical ingredient (API) market is CAGR of 6% between 2021-2031
North America dominated the active pharmaceutical ingredient (API) market with the largest share, followed by the Asia Pacific.
The active pharmaceutical ingredient (API) market is projected to reach US$ 353.08 billion by 2031
*Insights on financial performance is subject to availability of information in public domain
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