Active Pharmaceutical Ingredient (API) Market

Active Pharmaceutical Ingredient (API) Market

Growth Factors of Active Pharmaceutical Ingredient (API) Market

The active pharmaceutical ingredient [API] market size was valued at USD 196.99 billion in 2023, and the market is now projected to grow from USD 209.80 billion in 2024 to USD 359.12 billion by 2032, exhibiting a CAGR of 6.9% during the forecast period of 2024-2032.

The active pharmaceutical ingredient market had observed an adverse impact of COVID pandemic due to the end of a number of workshops. The scarcity of raw materials had also directed to the termination of factories in China. Also, the decline in demand for pharmaceuticals for certain optional procedures have also led to deterioration in the progression of the market.

The burden of chronic diseases worldwide is growing quickly due to the upsurge in elderly population, rising implementation of inactive lifestyle, coupled with urbanization. This is creating an ever increasing demand for therapeutic drugs in the active pharmaceutical ingredient market. The change in the difficulty of prolonged diseases and upsurge in frequency of new cases of these diseases, has led to the surge in demand for inventive drugs comprising biological drugs. Moreover, rising prominence on research and development activities by many pharmaceutical firms for the introduction of advanced drugs in the market is likely to motivate the active pharmaceutical ingredients [API] market growth during the prediction period.

As the pharmaceutical industry is observing progress every day, numerous countries have executed rigid governing guidelines for the making of pharmaceutical ingredients. These rules have been imposed upon the companies to control their manufacturing quality, thus augmenting the probable clinical efficiency of the final product. This is further improved by the growing overhead costs of in-house API manufacturing, which has directed the pharmaceutical companies to decrease their emphasis on internal manufacturing.

Comprehensive Analysis of Active Pharmaceutical Ingredient (API) Market

The market can be segmented in various ways, depending on the focus of analysis such as by type, by synthetic. Based on type, the market is segmented into generic API and branded API. In terms of type of synthesis, the market is segmented into synthetic and biological.

North America region is dominating the active pharmaceutical ingredient [API] market share due to rising prevalence of prolonged diseases and growing government initiatives for the growth of innovative drugs. Along with it, the prompt implementation of biological drugs among patients for the cure of several prolonged disorders is motivating the demand for the biological API segment.

The key players are enthusiastically contributing in planned events that are targeted at maintaining durable market position and growing market share by merger, partnerships and others. These players include Teva Pharmaceutical Industries Ltd, (Petah Tikva, Israel), AbbVie Inc. (North Chicago, U.S.), Abbott (Abbott Park, U.S.), Aurobindo Pharma (Hyderabad, India), Cipla Inc. (Mumbai, India), Dr. Reddy’s Laboratories Ltd (Hyderabad, India), Sun Pharmaceutical Industries Ltd (Mumbai, India), Amgen Inc. (Thousand Oaks, U.S.), Biocon (Bengaluru, India), Mylan N.V. (Canonsburg, U.S.), Boehringer Ingelheim International GmbH (Ingelheim am Rhein, Germany) these market players spending harshly on research and development in order to rise with more innovative technology so that they can maintain and progress their existing market.

In October 2023, Lonza announced the launch of a new filling line for commercial supply of antibody-drug conjugates for its customers.

Segmentation Table

ATTRIBUTE DETAILS

Study Period 2019-2032

Base Year 2023

Estimated Year 2024

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 6.9% from 2024 to 2032

Unit Value (USD billion)

Segmentation

By Type

- Generic API

- Branded API

By Synthesis

- Biological API

- Synthetic API

By Geography

- North America (By Type, By Synthesis, and By Country)

• U.S.
• Canada

- Europe (By Type, By Synthesis, and By Country/Sub-Region)

• U.K.
• Germany
• France
• Italy
• Spain
• Scandinavia
• Rest of Europe

- Asia Pacific (By Type, By Synthesis, and By Country/Sub-Region)

• Japan
• China
• India
• Australia
• Southeast Asia
• Rest of Asia Pacific

- Rest of World (By Type, and By Synthesis)


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