Ottawa, June 20, 2024 (GLOBE NEWSWIRE) -- The global active pharmaceutical ingredients (APIs) market size is predicted to increase from USD 193.12 billion in 2023 to approximately USD 344.91 billion by 2032, according to a study published by Towards Healthcare a sister firm of Precedence Statistics.
Download the sample version of the Active Pharmaceutical Ingredients (APIs) Market report structure and future overview in detail @ Get Sample Report Here
Key takeaways
- North America has held the largest share in 2023.
- Asia Pacific region is poised for rapid growth in 2023.
- By type of synthesis, the synthetic segments exhibited the largest market share of around 55.84% in 2022.
- By application, the oncology segment is projected to be the fastest growing segment with around 7.62% CAGR from 2023-2032.
Active Pharmaceutical Ingredients (APIs) Market at a Glance
Active pharmaceutical ingredients are the essential components in medications that make them work. They are the chemicals responsible for the therapeutic effects of drugs. In simple terms, APIs are the active substances in medicines that treat diseases and improve health for example, if you have a headache antique pain reliever the API in that pain reliever is what helps to alleviate your headache. APIs are carefully chosen and formulated to ensure they are safe and effective for treating various medical conditions.
The active pharmaceutical ingredients (APIs) market is like the heart of the medicine world. Make medicines work are made and sold. Think of it as the place where all the important chemicals that help treat illnesses are produced. These chemicals are then used by pharmaceutical companies to make different types of medicines, from where painkillers to antibiotics. So, in short, active pharmaceutical ingredients (APIs) market is where the magic happens to create medicines that keep us healthy
You can place an order or ask any questions, please feel free to contact us at sales@towardshealthcare.com
Active Pharmaceutical Ingredients (APIs) Market Trends
The active pharmaceutical ingredients (APIs) market is a critical segment of the pharmaceutical industry, providing the essential components that give medications their therapeutic effects. The market is experiencing significant growth due to several key factors. One of the major drivers is the increasing global geriatric population. Which is leading to a higher prevalence of chronic diseases such as cardiovascular and neurological disorders. This demographic shift is creating a greater demand for medications, which is boosting the active pharmaceutical ingredients (APIs) market.
Infectious diseases and hospital-acquired infections are also contributing to the rising need for APIs. As the incident if these health issues grow, so does the requirement for effective pharmaceutical treatments. Also, lifestyle related conditions, such as obesity and cardiovascular diseases, are becoming more common. Factors like unhealthy diets, lack of exercise, and increased smoking rates are exacerbating these health problems, further driving the demand for APIs.
Another significant trend in the active pharmaceutical ingredients (APIs) market is the shift towards outsourcing production. Pharmaceutical companies are increasingly finding it more cost effective to outsource API manufacturing rather than producing it in – house. This strategy allows companies to focus on their core competencies while ensuring a steady supply of high-quality APIs. The Covid- 19 pandemic highlighted the risks of relying on a single supplier, promoting companies to diversify their sourcing strategies to mitigate risks and ensure continuous supply.
Customize Active Pharmaceutical Ingredients (APIs) Market report study as per your requirement and needs @ Get Customized Report Here
Expansion of Biologics and Biosimilar Industry
Biologics are complex drugs made from living organisms such as cells and tissues, and they are becoming more powerful for treating various medical conditions. These advanced medications can be used to treat diseases like cancer, autoimmune disorders and other chronic illnesses. Biosimilars are another important part of this trend. They are more affordable versions of biologics and offer similar therapeutic benefits. As the cost of healthcare continues to rise, many health care providers and patients are turning to biosimilar as a cost-effective alternative. This shift is creating a larger market for APIs specially designed for biosimilars. For example, the biosimilar versions of popular biologics like Humira (used for rheumatoid arthritis) and Herceptin (used for breast cancer) have seen increased demand, leading to a higher need for specialized APIs.
- Police approval of several biosimilars in United States and Europe. In 2023 the FDA approved a new biosimilar for treatment of cancer which is expected to provide a more affordable option for patients while maintaining the same efficiency as the original biologic drug. This approval not only helps patients access essential medications but also stimulates the active pharmaceutical ingredients (APIs) market as manufacturers ramp up production to meet the new demand.
Technological Advancements to Promote the Market’s Growth
The Pharmaceutical industry is constantly evolving, thanks to continuous research and development. New drugs with improved efficacy word regularly, and this ongoing innovation is essential for addressing unmet medical needs and improving patient outcomes. Each new drug typically requires the development of novel active pharmaceutical ingredients, which keeps the API market dynamic and fosters future growth. For example, recent big breakthroughs in cancer treatment such as targeted therapies and immunotherapies have led to the development of specialized API's tailored to this innovative drug. API drives investment in R&D, ensuring a steady pipeline of advanced pharmaceutical products.
Complicated Manufacturing Processes to Hamper the Industry’s Growth
Reducing active pharmaceutical ingredients is often a complex and challenging task due to intricate molecular structures involved. Many APIs require multi step synthesis processes, where each step must be meticulously optimized and validated. This complexity makes the manufacturing process time consuming and increases the likelihood of errors. For example, producing an API for new cancer drug might involve several stages of chemical reactions, purification, and quality control checks. Each states stage requires precise conditions and highly skilled personnel to ensure the final product meets strict regularity standards. Any deviation or error in one step can lead to significant delays or the need to restart the process, adding to the time and cost of production.
Synthetic APIs, to Hold the Largest Market Share
By segment, synthetic APIs segment dominated and emerged as the frontrunner in the active pharmaceutical ingredients (API) market, capturing a substantial revenue share of more than 50 % in 2023. This segment's dominance is attributed to several key factors driving its growth and significance in the pharmaceutical landscape.
One of the primary drivers bolstering the synthetic APIs segment is the soaring demand for generic drugs. These synthetic APIs play a pivotal role in the formulation of generic medications, contributing significantly to the revenue streams of companies engaged in synthetic and chemical API manufacturing. The widespread use of generic drugs across various therapeutic areas underscores the importance of synthetic APIs in meeting global healthcare needs.
Recent Breakthroughs in the Active Pharmaceutical Ingredients (APIs) Market:
- In January 2024, Dr. Reddy's Laboratories, an Indian pharmaceutical company, announced plans to invest Rs 700 crore into expanding its capacity for biosimilars and APIs.
- In September 2022, CuraTeQ Biologics, a subsidiary of Aurobindo Pharma, invested approximately USD 3.82 million) to expand their biologics manufacturing facilities and enter contract manufacturing for biological APIs.
- In October 2023, Eli Lilly and Company, a pharmaceutical giant, signed a contract with CordenPharma, a Swiss contract manufacturer, to produce tirzepatide, the API for their diabetes medication Mounjaro.
- In March 2022, India started local manufacturing of 35 essential APIs, for which the country was previously heavily reliant on imports (primarily from China) This initiative falls under the Production-Linked Incentive scheme that incentivizes domestic production of critical goods.
- In August 2023, EUROAPI announced its deal to acquire BianoGMP to enhance its CDMO expertise in oligonucleotide manufacturing, which is a high-growth industry.
- In July 2023, Teva Pharmaceutical Industries Ltd. designed a new strategy for development with potential sale of its API unit on the table. The API manufacturing facility is worth USD 2 billion.
North America to Sustain as a Leader in APIs Market
North America is characterized by its established pharmaceutical industry and substantial investment in research and development (R&D). These factors are significant drivers of market growth. The region benefits from the presence of numerous key pharmaceutical companies and advanced manufacturing facilities. However, North America also faces challenges such as stringent regulatory requirements and high production costs. Despite these hurdles, the region continues to be a major player in the global API market, driven by ongoing innovation and a strong focus on developing new treatments for various diseases.
Similar to North America, Europe boasts a well-developed pharmaceutical sector and a strong emphasis on innovation. The region's market growth is supported by extensive R&D activities and a robust infrastructure for drug development.
The Asia Pacific Region is Poised for Rapid Growth
The Asia Pacific region is poised for rapid growth in the API market. This surge is driven by several factors, including an increasing number of regulatory approvals for new drugs and the expiration of patents for major medications, which creates a demand for generic APIs. Additionally, the growing adoption of biologics for managing various diseases is fueling this expansion. A notable trend in the region is the rising tendency among pharmaceutical companies to outsource API production to Asia Pacific countries, where manufacturing costs are lower and production capacities are high.
This combination of factors is expected to position Asia Pacific as the fastest-growing market for APIs. India is making significant strides in boosting its domestic API production. The Indian government has launched several initiatives, such as the Bulk Drug Parks and Production-Linked Incentive (PLI) schemes, aimed at encouraging local manufacturing of APIs. These efforts are expected to contribute to the overall growth of the API market in the Asia Pacific region.
Browse More Insights of Towards Healthcare:
- The global newborn screening market size is projected to expand from USD 3.23 billion in 2023 to reach USD 5.96 billion by 2032, increasing at a CAGR of 6.5% between 2024 and 2032.
- The nanomedicine market reached a value of $219.34 billion in 2023 and is expected to hit $562.93 billion by 2032, showing a CAGR of 10.1% from 2024 to 2032.
- The weight management market is to climb from USD 150.63 billion in 2023 to approximately USD 328.24 billion by 2032, with a CAGR of 8.3% from 2024 to 2032.
- The Alzheimer's therapeutics market is expected to increase from $4.82 billion in 2023 to exceed approximately $8.18 billion by 2032, showing at a CAGR of 8.7% from 2024 to 2032.
- The HIV drugs market is projected to expand from USD 33.32 billion in 2023 to exceed USD 49.68 billion by 2032, growing at a CAGR of 4.3% from 2024 to 2032.
- The non-steroidal anti-inflammatory drugs (NSAIDs) market is projected to climb from $21.01 billion in 2023 to approximately $33.55 billion by 2032, showing a CAGR of 5.0% from 2024 to 2032.
- The alopecia areata market size is to grow from USD 3.09 billion in 2023 to approximately USD 6.30 billion by 2032, increasing at a CAGR of 7.6% from 2024 to 2032.
- The cervical spondylosis diagnosis and treatment market is expected to increase from $6.21 billion in 2023 to about $11.83 billion by 2032, with a CAGR of 6.7% from 2024 to 2032.
- The tendonitis treatment market is projected to expand from USD 214.26 billion in 2023 to approximately USD 298.14 billion by 2032, demonstrating at a CAGR of 3.6% from 2024 to 2032.
- The respiratory drugs market size is forecasted to increase from USD 16.57 billion in 2023 to reach around USD 28.11 billion by 2032, growing at a CAGR of 5.8% from 2024 to 2032.
Top Companies in the Active Pharmaceutical Ingredients (APIs) Market
- Novartis AG
- Sanofi
- Pfizer Inc.
- Johnson & Johnson Private Limited
- Abbott
- Teva Pharmaceutical Industries Ltd.
- Bausch Health Companies Inc.
- UCB S.A.
- Sunovion Pharmaceuticals Inc.
- GW Pharmaceuticals plc.
- AstraZeneca
- GlaxoSmithKline plc
- H. Lundbeck A/S
- Takeda Pharmaceutical Company Limited
Segments covered in the report:
By Type of Synthesis
- Biologic
- Monoclonal Antibodies
- Recombinant Proteins
- Vaccines
- Synthetic
By Type
- Generic APIs
- Branded APIs
By Drug Type
- Prescription Drugs
- Over-the-Counter Drugs
By Application
- Cardiovascular Diseases
- Oncology
- CNS & Neurological Disorders
- Orthopedic Disorders
- Endocrinology
- Respiratory Disorders
- Gastrointestinal Disorders
- Nephrology
- Ophthalmology
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
Acquire our comprehensive analysis today @ https://www.towardshealthcare.com/price/5091
You can place an order or ask any questions, please feel free to contact us at sales@towardshealthcare.com
Gain access to the latest insights and statistics in the healthcare industry by subscribing to our Annual Membership. Stay updated on healthcare industry segmentation with detailed reports, market trends, and expert analysis tailored to your needs. Stay ahead of the curve with valuable resources and strategic recommendations. Join today to unlock a wealth of knowledge and opportunities in the dynamic world of healthcare: Get a Subscription
About Us
Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations. We are a global strategy consulting firm that assists business leaders in gaining a competitive edge and accelerating growth. We are a provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations.
Web: https://www.precedenceresearch.com
Browse our Brand-New Journals:
https://www.towardspackaging.com
https://www.towardsautomotive.com
For Latest Update Follow Us: https://www.linkedin.com/company/towards-healthcare
Get Our Freshly Printed Chronicle: https://www.healthcarewebwire.com
