Active Pharmaceutical Ingredient Market Size, Share & Trends Report

Active Pharmaceutical Ingredient Market Size, Share & Trends Analysis Report By Type of Synthesis (Biotech, Synthetic), By Type of Manufacturer (Captive, Merchant), By Type, By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-348-5
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2018
  • Number of Pages: 130

Report Overview

The global active pharmaceutical ingredient market size was valued at USD 170.8 billion in 2019 and is estimated to register a CAGR of 6.7% over the forecast period. Advancements in active pharmaceutical ingredient (API) manufacturing, growth of the biopharmaceutical sector, and increasing geriatric population are the key drivers of the market.

Rising prevalence of infectious diseases and hospital-acquired infections are expected to drive market growth during the forecast period. According to a 2017 NCBI article on a survey conducted in a tertiary hospital in Japan, around 339 bacteremia UTI cases were identified.

U.S. Active Pharmaceutical Ingredients market

In addition, the increasing prevalence of congenital heart disease acts as a growth driver for the overall market. Epidemiological studies have shown how lifestyle habits such as smoking and dietary irregularities-which can result in obesity-are associated with increased risk of disease. Increasing prevalence of obesity is hence estimated to drive the demand for APIs.

APIs are also used as antibody-drug conjugates (ADCs). ADCs are important and effective treatment modalities used in combination with monoclonal antibodies and biologically active drugs for cancer. APIs target cancer cells effectively, while causing minimum exposure of drugs to healthy tissues.

Patent expirations of blockbuster drugs give rise to generic versions of these molecules, wherein the manufacturers bear the cost. After a patent expires, R&D investments done by the company are no longer beneficial for the company. API production requires a huge capital amount as the process needs extremely systematic protocols. Thus, pharmaceutical companies benefit from outsourcing API production, as it eliminates the need for labor force and installing expensive manufacturing units. Strategic outsourcing allows companies to focus on their core competencies, ultimately resulting in increased productivity. These factors are also projected to drive the active pharmaceutical ingredient market growth.

Type of Synthesis Insights

On the basis of type of synthesis, the API market has been segmented into biotech and synthetic. Biotech has further been classified into recombinant proteins, vaccines, and monoclonal antibodies. The synthetic segment dominated the overall market in 2019 owing to the easy availability of raw materials and easier procedures for the synthesis of APIs.

The biotech segment is estimated to witness a lucrative CAGR of 7.7% over the forecast period. This is attributed to technological advancements in the manufacturing process and a high level of efficiency of these molecules.

Type of Manufacturer Insights

On the basis of type of manufacturer, the API market has been segmented into merchant and captive APIs. Captive API held the largest share in 2019 due to the easy availability of raw materials and intensive capitalization of major key players for the development of high-end manufacturing facilities.

Merchant API is estimated to be the fastest-growing segment over the forecast period. The segment growth is driven by factors such as high cost of in-house manufacturing of these molecules and rising demand for biopharmaceuticals.

Type Insights

On the basis of type, the market is classified into innovative and generic APIs. Innovative APIs dominated the overall market in 2019 due to the presence of favorable government regulations, established R&D facilities, and increased funding for novel drug development. Owing to extensive research in this field, several novel innovative products are in the pipeline and are expected to be launched over the next few years.

The generic APIs segment is estimated to witness lucrative growth over the forecast period. Patent expiry of branded molecules is the key factor driving the demand for generic API drugs. The generic drugs market is expected to show lucrative growth in countries such as India and Brazil owing to high acceptance levels for over the counter (OTC) drugs and presence of unmet clinical needs in these economies.

Application Insights

APIs find application in oncology, cardiology, CNS and neurology, orthopedic, pulmonology, gastroenterology, nephrology, ophthalmology, and endocrinology. Cardiology dominated the overall market in 2019 owing to the rising prevalence of target diseases globally. According to the WHO, cardiovascular diseases result in around 17.9 million deaths every year, globally, wherein 85.0% of these deaths are caused by strokes and heart attacks.

Global Active Pharmaceutical Ingredients market

Oncology is estimated to be the fastest-growing segment over the forecast period. This segment is driven by factors such as growing prevalence of cancer and increasing lifestyle-associated diseases. Several companies are focusing on extensive R&D for the development of drugs specific to novel biomarkers. There are numerous APIs in the market for cancer treatment such as Bevacizumab, Trastuzumab, and Rituximab by Roche and Imatinib by Novartis.

Regional Insights

North America dominated the market in 2019 owing to high economic development in the region coupled with technological advancements. Increasing prevalence of cancer and other lifestyle-associated diseases encourages R&D activities by key players, thereby boosting the market growth.

Asia Pacific is expected to be the fastest-growing market over the forecast period. Owing to the availability of affordable labor, major companies in the market are setting up API manufacturing plants in developing countries such as China and India.

Active Pharmaceutical Ingredients Market Share Insights

Some of the key players in the market are AbbVie Inc.; Teva Pharmaceutical Industries Ltd.; Mylan N.V.; Cipla Inc.; Boehringer Ingelheim International GmbH; Merck & Co., Inc.; Sun Pharmaceutical Industries Ltd.; Bristol-Myers Squibb Company; Albemarle Corporation; Aurobindo Pharma; and Dr. Reddy’s Laboratories Ltd. 

Launches of new drugs and biological products, acquisitions, collaborations, and regional expansion are some of the strategic initiatives undertaken by these industry players to maintain stability in the market. For instance, in June 2019, Boehringer Ingelheim partnered with Solve. Care-an Estonian blockchain healthcare firm-to create a Diabetes Care Administration Network. The digital mode is aimed at streamlining treatment strategies for patients with type 2 diabetes. The platform will enable patients to communicate with healthcare providers, understand their insurance, co-ordinate with specialists, and access accurate records.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2015 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Billion and CAGR from 2019 to 2027

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S., Canada, U.K., Germany, Spain, Italy, France, Japan, China, India, South Korea, Australia, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, UAE

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2027. For the purpose of this study, Grand View Research has segmented the global active pharmaceutical ingredient market report on the basis of type of synthesis, type of manufacturer, type, application, and region:

  • Type of Synthesis Outlook (Revenue, USD Billion, 2015 - 2027)

    • Biotech

      • Monoclonal Antibodies

      • Recombinant Proteins

      • Vaccines

    • Synthetic

  • Type of Manufacturer Outlook (Revenue, USD Billion, 2015 - 2027)

    • Captive APIs

    • Merchant APIs

  • Type Outlook (Revenue, USD Billion, 2015 - 2027)

    • Generic APIs

    • Innovative APIs

  • Application Outlook (Revenue, USD Billion, 2015 - 2027)

    • Cardiology

      • Generic

      • Innovative

    • Oncology

      • Generic

      • Innovative

    • CNS & Neurology

      • Generic

      • Innovative

    • Orthopedic

      • Generic

      • Innovative

    • Endocrinology

      • Generic

      • Innovative

    • Pulmonology

      • Generic

      • Innovative

    • Gastroenterology

      • Generic

      • Innovative

    • Nephrology

      • Generic

      • Innovative

    • Ophthalmology

      • Generic

      • Innovative

    • Others

  • Regional Outlook (Revenue, USD Billion, 2015 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • South Korea

    • Latin America

      • Mexico

      • Brazil

      • Argentina

    • MEA

      • South Africa

      • Saudi Arabia

      • UAE

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