The global active pharmaceutical ingredients market size is expected to reach USD 216 billion by 2019 and is predicted to register a CAGR of 6.3% from 2019 to 2025.
MARKET DRIVERS:
The global active pharmaceutical ingredients market is majorly driven by factors such as increasing chronic diseases, the growing importance of generics, and an increase in uptake of biopharmaceuticals. In the last few decades, there is an increase in incidences of chronic diseases like coronary artery disease, diabetes, chronic obstructive pulmonary disease (COPD), arthritis, hepatitis, cancer, and asthma in the significant region over the globe, which is estimated to drive demand for the global API market. For Instance, as per a survey conducted by the International Diabetes Federation, nearly 3 million people have cancer. The rise in the geriatric population over the globe, changes in lifestyle, and diet changes due to rapid urbanization are some of the significant factors contributing to the growth of the market.
Favorable government policies with many preparations for drug activities and a hike in the prices are significant positive signs for the global API market growth. Companies cannot prepare a generic drug unless the patent of the drug expires. Besides, the emerging biosimilar market, the growing reach of HPAPI solutions, emerging markets, and emerging technologies have opened up a range of opportunities for the global active pharmaceutical ingredients market growth.
MARKET RESTRAINTS:
Factors such as strict regulatory requirements and unfavorable drug price control policies in several countries can slow down the growth of the global active pharmaceutical ingredients market. Additionally, the major restraint in the global active pharmaceutical ingredients market is the high costs of manufacturing APIs. However, to improve manufacturing facilities, increased investments are needed for key players to ensure compliance with standards like CGMP. Renovation of product facilities, inculcating familiarity with the requirement of qualification processes. In addition to that, there is a high expenditure to obtain regulatory approvals from authorities. Even chemical synthesis of APIs also requires high expenses, and uncommon building blocks and raw materials add to manufacturing costs.
MARKET CHALLENGES:
Factors such as lessening or shortening the developing time, cost of the development to be reduced, improving the process design and without compromising the gain or profits, a meeting of the standard quality are the challenges on the other side. The global active pharmaceutical ingredients market is marked by violent criminal competition, and it is challenging.
MARKET OPPORTUNITIES:
The global active pharmaceutical ingredients market is providing opportunities for the emerging biosimilars market. Due to the rise in various diseases' incidences, the increment of numerous off-patent biologic demand for biosimilars in different therapeutic applications. It is a significant factor in driving the market growth of the biosimilars market. Over the next decade, expecting that expiration of patents and other intellectual property rights for biologics originators are growing, many opportunities for biosimilars help enter the API market.
Impact of COVID-19 on the global API market:
After the WHO's declaration, a mixture of pharmaceutical and biopharmaceutical companies is established, and a few start-ups stepped forward to treat target diseases. In a few weeks, scientists found a list of molecules targeting COVID-19. Growth in funds and development of research of products are driving the market growth. However, the active pharmaceutical ingredients market is affected by COVID-19 in many ways, especially economically. COVID-19 impacted the active pharmaceutical ingredients market in financial gain. Moreover, the supply chain of manufactured products is affected by the COVID-19 pandemic and expected that the active pharmaceutical ingredients market would regain the loss that occurred by the pandemic. The active pharmaceutical ingredients market should be on track in the upcoming years.
REPORT COVERAGE:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2019 to 2025 |
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Base Year |
2019 |
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Forecast Period |
2020 to 2025 |
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Segments Covered |
By Type of Manufacturing Process, Type of Synthesis, API Formulation, Application, Molecules and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
This research report on the global active pharmaceutical ingredients market has been segmented and sub-segmented based on the type of manufacturing process, type of synthesis, API formulation, application, molecules, and region.
API Market - By Type of Manufacturing Process:
Based on the manufacturing process, the captive manufacturer's segment is estimated to account for the largest share in 2019. The large share of this segment can be attributed to companies' growing preference to maintain in-house manufacturing of innovative APIs for their economic benefits. Intensive capitalization of key players, easy availability of raw materials to develop high-end manufacturing facilities further supports the segment's growth.
API Market - By Type of Synthesis:
On the type of synthesis, the synthetic segment is expected to be the largest in 2019. The emergence of new molecules in the market, the increasing number of approvals for new products, and technological advances in the synthesis method are the main contributors to the Segment growth. However, the biotechnology API segment is expected to grow at the highest CAGR during the forecast period.
API Market - By API Formulation:
Based on API formulation, the innovative API segment is expected to account for the majority in 2019. The large share of this segment can be attributed to the increasing number of FDA approvals for new molecular entities, higher price commanded by innovative APIs as compared to their generic equivalents, and growing focus of innovator APIs companies on R&D for the development of novel, innovative API products to cater to the unmet medical needs of the Global active pharmaceutical ingredients market.
API Market - By Application:
API Market - By Molecule:
API Market - By Region:
Regionally, the North American region dominates the global API market by owning advantageous factors like advanced technology and high development of the economy. Moreover, the increase in the prevalence of cancer diseases and other diseases related to lifestyle to encourage R& D activities are propelling the market's demand.
The Asia-Pacific is expected to register a high growth rate compared to other regions during the forecast period in the global active pharmaceutical ingredients market. Factors such as increasing healthcare expenditures, growing aging population that create a vast patient pool, and rising economies in this region. Additionally, key players' initiatives in setting API manufacturing plants in developing countries like India and China and laborers' availability contribute to growth in the Asia-Pacific region.
China is considered to be the leader in API manufacturing in the APAC region. There are many domestic companies involved in the manufacturing and supplying of API all over the world. Not just in the Asia-Pacific region, China exports a significant share of its domestically produced API worldwide.
KEY MARKET PLAYERS:
List of key market participants leading the global active pharmaceutical ingredients market profiled in this report are Sanofi, Bayer AG, Pfizer Inc., F. Hoffmann-La Roche AG, Abbott Laboratories, Merck & Co., Inc., Boehringer Ingelheim GmbH, GlaxoSmithKline Plc (GSK), Novartis AG, Eli Lilly and Company and Teva Pharmaceutical Industries Ltd.
MAJOR HAPPENINGS IN THIS MARKET IN THE RECENT PAST:
