The global API Market was valued at USD 185.00 billion in 2020, growing at a CAGR of 7.64% during the forecast period (2021 to 2026), it is expected to reach USD 286.79 billion by 2026. The API market is anticipated to grow owing to the factors such as the rising prevalence of various diseases, growing geriatric population, increasing focus on drug development, and rising popularity of biologic drugs among others.
Some of the key pharma companies operating in the API Market include Divi’s Laboratories Limited, GlaxoSmithKline plc, Albemarle Corporation, Orion Corporation, Aurobindo Pharma, Teva Pharmaceutical Industries Ltd, Pfizer Inc, Novartis AG, BASF SE, Boehringer Ingelheim GmbH, Viatris, Sun Pharmaceutical Industries Ltd, Merck KGaA, AbbVie Inc., Bristol Myers-Squibb Company, Cipla Inc, Fidia Farmaceutici s.p.a., AstraZeneca, Dr. Reddy’s Laboratories Ltd, Lupin Ltd, and others.
DelveInsight’s “Active Pharmaceutical Ingredient (API) Market” research report provides the current and forecasted API Market trends for the next five years, upcoming innovations in the segment, and individual market shares, challenges, drivers & barriers, and key competitors in the market.
Active Pharmaceutical Ingredient Overview
API refers to an active ingredient that is contained in the medication. API is the part of any drug that produces the intended effects. Some drugs, such as combination therapies, have multiple active ingredients to treat different symptoms or act in different ways. High potency active pharmaceutical ingredients (HPAPIs) are growing rapidly as compared to other segments of the healthcare industry and the major ratio of new drugs under development contains high-potency active pharmaceutical ingredients. The rapid growth is due to the advances in clinical pharmacology and oncology research. The high potency active pharmaceutical ingredients market is divided into two segments which include Synthetic High potency active pharmaceutical ingredients (SHPAPIs) and Biotech High potency active pharmaceutical ingredients (BHPAPI).
DelveInsight’s Active Pharmaceutical Ingredient Market Research Report provides detailed insights into the market by product type (innovative and generic), manufacturer type (captive and merchant), synthesis type (synthetic and biotech), application (oncology, cardiology, pulmonology, neurology, orthopedic, ophthalmology, and others), by geography.
As per DelveInsight, in the synthesis type segment of the active pharmaceutical ingredients market, the biotech category is expected to report faster growth in terms of CAGR by 2026. The major factor driving the biotech API market is the rising prevalence of genetic disorders wherein biological drugs have proven to be beneficial compared to conventional chemical drugs.
Active Pharmaceutical Ingredient Market Analysis
The Active Pharmaceutical Ingredient Industry is expected to grow in the coming years due to the rising prevalence of diseases and the growing demand for drugs.
Diabetes and hypertension are two of the most common indications for which synthetic drugs are prescribed. According to the International Diabetes Federation, in 2021, nearly 537 million adults in the age group of 20-79 years were living with diabetes. Additionally, as per the World Health Organization (2021), raised cholesterol is estimated to cause 2.6 million fatalities. Cholesterol is considered to be a key cause of disease burden in both the developed and developing world and it is a prominent risk factor for ischemic heart disease and stroke. Synthetically synthesized pharmaceutical drugs are prescribed as a popular pharmaceutical treatment for the above-mentioned indications. Therefore, the rising prevalence of various diseases encompassing diseases of various etiologies is expected to drive the demand for pharmaceutical drugs for disease management which in turn are anticipated to contribute to the demand for APIs and the market growth.
The growing focus on drug development is another key factor for the growth of the APIs market. Due to the rising prevalence of the disease and the growing demand for the therapies, there has been a heightened focus of the pharma companies towards the development of research and development of newer therapeutics. This has resulted in the launch of new products such as drugs and biological products. Moreover, the high number of acquisitions, collaborations, and regional expansions are some of the strategic initiatives ensured by the manufacturers involved in drug manufacturing that helped boost the global API Market.
However, as per DelveInsight, the stringent regulatory guidelines for manufacturing and high investment costs may hinder API Market Growth in the upcoming years.
Interested to know more about the ongoing developments in the Global Active Pharmaceutical Ingredient Market? Visit to get an in-depth insight, at Active Pharmaceutical Ingredient Types, and Emerging Products
API Market Assessment
As per DelveInsight, the Asia-Pacific (APAC) region to register the fastest growth in revenue generation in the global API market. The major attributing to the heightened growth are the high presence of the patient pool, growing interest in the APAC region as a manufacturing hub, and the rising population of the elderly, among other factors.
The Asia-Pacific has emerged as an attractive alternative for companies due to various favorable factors such as lower costs of production, the availability of labor, favorable policies by the government, and its status as an established manufacturing base. Governments in the APAC region are also actively working towards providing opportunities to attract manufacturers by offering land, tax benefits, and other incentives. Additionally, Governments have signed several free trade agreements (FTA) and partnerships thereby enabling manufacturers to consider these countries as viable hubs for export.
Pharma companies are investing to establish manufacturing operations across various sectors in APAC countries such as Thailand, Vietnam, and India. Currently, the greatest concentrations of API manufacturers are located in India and China. Companies are outsourcing API manufacturing to APAC countries as it benefits them by eliminating the need to invest in highly expensive equipment and infrastructure.
Apart from favorable policies by the government, the rising patient population encompassing the end-users of these formulations and increasing focus on healthcare are expected to contribute to the regional growth of the API market in the APAC region in the coming years.
Interested in knowing how the Global API Market will be growing by 2026? Click to get a snapshot of API Market Trends and Developments.
Active Pharmaceutical Ingredient Market – Recent Breakthroughs & key Innovations
Over the years, the API Market has evolved immensely due to the active participation of the global pharma companies and the technological advancements in the segment.
Here are a few of the major developments in the API Market –
- In December 2021, Novasep, announced a €6 million investment in its Chasse-sur-Rhône site, France. This investment is made with the aim to increase and modernize their manufacturing capabilities to support new generation Active Pharmaceutical Ingredients (APIs), in areas such as central nervous system (CNS), oncology, and infectious diseases.
- In 2020, Quartic.ai and Bright Path Labs entered into a collaboration in 2020 to develop AI-based technology for continuous manufacturing of critical APIs that are required for producing crucial small-molecule drugs.
As per DelveInsight, the ongoing clinical and commercial developments will contribute immensely to the API Market in the coming years.
Key Players In the API Market
Globally, some of the key companies in the Active Pharmaceutical Ingredient Market include Aurobindo Pharma (NSE: AUROPHARMA), Teva Pharmaceutical Industries Ltd (TLV: TEVA), Pfizer Inc. (NYSE: PFE), Novartis AG (SWX: NOVN), BASF SE (ETR: BAS), Boehringer Ingelheim GmbH, Dr. Reddy’s Laboratories Ltd (NSE: DRREDDY), Lupin Ltd (NSE: LUPIN), Viatris (NASDAQ: VTRS), Sun Pharmaceutical Industries Ltd (NSE: SUNPHARMA), Merck KGaA (ETR: MRK), AbbVie Inc. (NYSE: ABBV), Bristol Myers-Squibb Company (NYSE: BMY), Cipla Inc. (NSE: CIPLA), Divi’s Laboratories Limited (NSE: DIVISLAB), GlaxoSmithKline (LON: GSK), Albemarle Corporation (NYSE: ALB), Orion Corporation (HEL: ORNBV), Fidia Farmaceutici s.p.a. (BIT: FDA), AstraZeneca (LON: AZN), and others. As per DelveInsight, due to the very high growth rate and positive return, several new players are expected to enter the API Market in the coming years.
Learn how new players’ entries will transform the API Market in the coming years @ Active Pharmaceutical Ingredient’s Competitive Landscape.
Covid-19 Impact on Active Pharmaceutical Ingredient (API) Market
Due to the spread of the Covid-19, the Active Pharmaceutical Ingredient (API) Market observed a temporary hindrance in growth. Several governments have imposed lockdown restrictions as necessary measures to contain the COVID-19 spread.
Despite an increase in the demand for antibiotics, antivirals, and respiratory drugs, the strict lockdown measures massively affected the supply chains and production which in turn has hampered the market growth for a short time as well as exhibited a few long-term effects. However, as the situation continues to improve with the active vaccination drive, and the rising awareness of the Covid-19, several industries including the pharmaceutical sector are expected to get on track. Alternatively, the API market is also predicted to observe growth in the coming years.
To gain a better understanding of potential new entrants in the market, competitive dynamics, and attractiveness of the API Market, connect with us to get Active Pharmaceutical Ingredient’s Five Forces Analysis
Scope of the Active Pharmaceutical Ingredient Market Report:
- Geography Covered: Global
- Study Period: 2019-2026
- API by type – Innovative and Generic
- API by manufacturer type – Captive and Merchant
- API by synthesis type – Synthetic and Biotech
- API by manufacturer type – Oncology, Cardiology, Pulmonology, Neurology, Orthopedic, Ophthalmology, and Others
- By Geography – North America, Europe, Asia-Pacific, and Rest of the World
- Porter’s Five Forces Analysis, Product Profiles, Case Studies, KOL’s Views, Analyst’s View
Table of Contents
| 1 | Report Introduction |
| 2 | Executive summary |
| 3 | Regulatory and Patent Analysis |
| 4 | Active Pharmaceutical Ingredient (API) Market Key factors analysis |
| 5 | Active Pharmaceutical Ingredient (API) Porter’s Five Forces Analysis |
| 6 | COVID-19 Impact Analysis on Active Pharmaceutical Ingredient (API) Market |
| 7 | Active Pharmaceutical Ingredient (API) Market Layout |
| 8 | Active Pharmaceutical Ingredient (API) Global Company Share Analysis – Key 3-5 Companies |
| 9 | Active Pharmaceutical Ingredient (API) Product Profiles and Key Companies |
| 10 | Project Approach |
| 11 | KOL Views |
| 12 | DelveInsight Capabilities |
| 13 | Disclaimer |
| 14 | About DelveInsight |
Reach out to us to get a more detailed overview of the Active Pharmaceutical Ingredient (API) Regulatory & Patent Analysis.
Key Takeaways From the Active Pharmaceutical Ingredient (API) Market Report Study
- In-depth analysis of the Active Pharmaceutical Ingredient (API) Market size, share, and key trends.
- Comprehensive analysis of current Active Pharmaceutical Ingredient (API) Market size (2020) and market forecast for 5 years (2022-2026)
- The effect of the COVID-19 pandemic on the Active Pharmaceutical Ingredient (API) Market is significant. To capture and analyze suitable indicators, our experts are closely watching the Active Pharmaceutical Ingredient (API) Market.
- Top key product/services/technology developments, mergers, acquisitions, partnerships, joint ventures happened over the last 3 years
- Key companies dominating the Global Active Pharmaceutical Ingredient (API) Market.
- Various opportunities are available for the other competitors in the Active Pharmaceutical Ingredient (API) Market space.
- What are the top-performing segments in 2020? How these segments will perform in 2026.
- Which are the top-performing regions and countries in the current Active Pharmaceutical Ingredient (API) Market scenario?
- Which are the regions and countries where companies should have concentrated on opportunities for Active Pharmaceutical Ingredient (API) Market growth in the coming future?
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