Active Pharmaceutical Ingredients Market Analysis by Demand, Trends & Key Players 2030

Active Pharmaceutical Ingredients Industry Overview

The global active pharmaceutical ingredients market size is expected to reach USD 353.0 billion by 2030, expanding at a compound annual growth rate (CAGR) of 6.0% during the forecast period, according to a new report by Grand View Research, Inc. The market is driven by the growth of the biopharmaceutical sector, advancements in active pharmaceutical Ingredients (API) manufacturing, and an increase in the geriatric population.

U.S. active pharmaceutical ingredients market size, by type of synthesis, 2020 - 2030 (USD billion)

Active Pharmaceutical Ingredients Market Segmentation

Grand View Research has segmented the global active pharmaceutical Ingredients market based on the type of synthesis, type of manufacturer, type, application, and region:

Based on the Type of Synthesis Insights, the market is segmented into Biotech and Synthetic.

  • The synthetic API segment accounted for the largest revenue share of 72.6% in 2021. This is attributed to the higher availability of raw materials and easier protocols for the synthesis of these molecules. Many synthetic molecules are also expected to go off-patent in the coming years, which is anticipated to boost growth.
  • The biotech segment is expected to expand at the fastest CAGR of 7.2% during the forecast period. This segment is driven by factors such as increasing demand for biopharmaceuticals and the higher efficiency of these molecules. Furthermore, the growth of the biotech segment can be attributed to high investments in the biotechnology and biopharmaceutical

Based on the Type of Manufacturer Insights, the market is segmented into Captive APIs, and Merchant APIs.

  • The captive API segment accounted for the largest revenue share of 59.3% in 2021. It is anticipated to grow at a significant rate in the upcoming years owing to the easy availability of raw materials and extensive investments by major players to develop high-end manufacturing facilities.

Based on the Type Insights, the market is segmented into Generic APIs and Innovative APIs.

  • Innovative APIs held the largest share of 66.3% in 2021. This growth is attributed to increasing R&D initiatives for novel drug development and favorable government regulations. As a result of extensive research in this field, several innovative products are now in development and are expected to launch in the forecast period. New entrants in this segment are expected to drive market growth. A rise in demand for targeted therapies with high potency API compounds, such as HPAPI, is anticipated to increase the demand for personalized medicines. For instance, Antibody Drug Conjugates (ADCs) leverage the specificity of antibodies for cancer cells. These cells use linker technology to attach themselves to the antibody.
  • The patent expiry of branded molecules is a key factor that can be attributed to the lucrative growth of generic API drugs. The generic drug market is anticipated to exhibit a high growth rate in countries such as Brazil and India, owing to high unmet clinical needs and acceptance of OTC drugs.

Based on the Application Insights, the market is segmented into Cardiovascular Diseases, Oncology, CNS and Neurology, Orthopedic, Endocrinology, Pulmonology, Gastroenterology, Nephrology, Ophthalmology, Others.

  • The cardiovascular diseases segment accounted for the largest revenue share of 19.5% in 2021. This is attributed to the increasing prevalence of target diseases worldwide. Various organizations such as the World Heart Federation, the World Stroke Organization, and the Stroke Association are working toward increasing awareness about cardiovascular diseases.
  • Oncology is expected to be the fastest-growing application segment with a CAGR of 8.4% during the forecast period. Factors such as changing lifestyles and the growing prevalence of cancer are driving the market. The increasing adoption of a sedentary lifestyle is driving the prevalence of various metabolic disorders. Hormonal imbalance is a growing concern in most countries.
  • Other diseases such as diabetic retinopathy and macular degeneration are also growing in prevalence, impelling the demand for highly efficient and cost-effective medications. Diabetic retinopathy is expected to impact over 190 million people by 2030. This is expected to boost demand for both generic medications and APIs.

Active Pharmaceutical Ingredients Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Key Companies Profile & Market Share Insights

The market for active pharmaceutical ingredients operates with high complexity. A blockbuster drug patent expiration, increasing outsourcing activities due to high manufacturing costs, and stringent regulations on the production of APIs are expected to maintain the competitive rivalry at a high level during the forecast period.

Some prominent players in the global active pharmaceutical ingredients market include

  • Merck & Co., Inc.
  • AbbVie, Inc.
  • Bristol-Myers Squibb Company
  • Boehringer Ingelheim International GmbH
  • Cipla, Inc.
  • Teva Pharmaceutical Industries Ltd.
  • Albemarle Corporation
  • Viatris Inc.
  • Aurobindo Pharma
  • Sun Pharmaceutical Industries Ltd.
  • Reddy’s Laboratories Ltd.

Order a free sample PDF of the Active Pharmaceutical Ingredients Market Intelligence Study, published by Grand View Research.

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