The global chiral chemicals market size was USD 39.79 billion in 2015 and is likely to witness considerable growth on account of increasing government focus towards pharmaceutical manufacturing and increasing investment by the manufacturers in emerging economies. In addition, rising trend of contract manufacturing in the pharmaceutical industry is likely to have a positive impact on the demand over the forecast period.
The product is being increasingly used for application in pharmaceutical, agrochemicals, and fine chemicals. Numerous companies along with associations have been trying to develop the technology for increasing the yield of chiral chemicals. KYROBIO is one such initiative taken by the European Commission Framework 7 in order to develop biocatalysts for the industrial synthesis of chiral chemicals.
BASF SE, Dow Chemical Company, Rhodia Inc., Perkin Elmer and Codexis Inc. are some of the key manufacturers of the product. These companies are involved in the production of numerous pharmaceutical intermediates. The market players have been emphasizing on the development of application specific products in order to increase the efficacy of the product. The introduction of microreactors has led to improvement in manufacturing efficiency, thereby allowing local manufacturers to enter the market.
U.S. chiral chemicals market revenue, by application, 2013 - 2024 (USD Million)
Pharmaceuticals dominated the global chiral chemicals demand accounting for a share of 72.5% in 2015. The demand for enantiomerically pure products in pharmaceutical formulations is anticipated to drive the demand for chiral chemicals in pharmaceuticals application segment. Technological advancement and extensive R & D by market players are expected to propel the demand in North America & Europe over the forecast period.
Agrochemicals are anticipated to witness a significant growth of over 14% from 2016 to 2024 on account of increasing demand for eco-friendly pesticides for crops. Herbicides, pesticides, plant growth regulators, fungicides, and pheromones are some of the key agrochemicals manufactured using chiral chemicals. Rising population coupled with a high focus towards increasing the crop yield is likely to augment the demand for the product in agriculture chemicals application over the forecast period.
Traditional separation methods accounted for 47.6% share in 2015 and are anticipated to remain the largest technology segment over the next eight years. The traditional separation methods majorly comprise of methods such as manual separation of isomers and resolution of racemates after conversion into diastereomers. Chromatographic methods, such as gas chromatography (GC), high-pressure liquid chromatography (HPLC), and thin-layer chromatography (TLC) are also being increasingly used for the separation of enantiomers on account of high knowledge base about the technology.
The asymmetric preparation method is expected to witness a rapid growth of over 14% from 2016 to 2024 on account of increasing preference in pharmaceutical applications which require synthesis of enantiomers and diastereomers with different biological activity. Asymmetric catalysis method is the largest as well as fastest growing technology for asymmetric preparation on account of the cost effectiveness of the process and high yield.
North America accounted for the largest share of the global market on account of technological advancement, the presence of a large number of market players, and increasing focus of pharmaceutical manufacturers towards Mexico. In addition, rising demand for naturally derived fragrances in the region is anticipated to fuel growth over the next eight years.
Asia Pacific is likely to witness the fastest growth of over 18% from 2016 to 2024 on account of increasing foreign investment in China & India. Low labor & manufacturing cost is likely to attract pharmaceutical manufacturers in these countries, thereby increasing the demand for chiral chemicals over the coming years. In addition, increasing research activities on the development of new drugs for the treatment of rare diseases is expected to propel market growth.
Key companies include BASF SE, Johnson Matthey PLC, Solvias AG, Strem Chemicals, Bayer AG, Codexis Inc, Chiral Technologies, Rhodia, W. R. Grace & Co., PerkinElmer Inc., Dow Chemical Company, and Chiracon GmbH. The key strategies being adopted by the market players include partnerships and agreements in order to increase their reach in the global market. In February 2016, Strem Chemicals Inc. entered into a partnership with Chiral Technologies, Inc. in order to distribute Daicel’s chiral reagents in the U.S. and Europe market. This helped the company to increase its product offerings, thereby meeting the rising demand. Similarly, In July 2016, Chiral Technologies signed an exclusive distribution agreement with Scanco International S.A.in order to increase its reach in Central & South America.
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