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Active Pharmaceutical Ingredients (API) Market Analysis

The Active Pharmaceutical Ingredients Market size is estimated at USD 216.5 billion in 2024, and is expected to reach USD 306.90 billion by 2029, growing at a CAGR of 7.22% during the forecast period (2024-2029).

Factors such as the increasing prevalence of infectious, genetic, cardiovascular, and other chronic disorders, increasing adoption of biologics and biosimilars, rising prevalence of cancer, and growing sophistication in oncology drug research are expected to boost the Active Pharmaceutical Ingredients Market growth over the forecast period.

The increasing prevalence and burden of chronic diseases, infectious diseases, and genetic disorders worldwide are driving the demand for effective and safe drugs, which in turn increases the demand for Active Pharmaceutical Ingredients (API) Industry across the globe. For instance, according to the 2022 statistics published by the International Diabetes Federation (IDF), diabetic cases are projected to reach 643 million and 784 million by 2030 and 2045, respectively. Additionally, in December 2023, the Australian Bureau of Statistics reported that around 1.3 million people in Australia had diabetes in 2022, which accounted for 5.3% of the population. Therefore, high blood sugar caused by diabetes can damage the nerves that control the heart and blood vessels, leading to a variety of cardiovascular diseases like coronary artery disease and stroke, which can narrow the arteries and necessitate the administration of drugs, propelling the growth of the API market.

Additionally, the increasing development and clinical trials of biosimilar and biologic drugs for new therapeutic classes urge companies to adopt strategic initiatives for manufacturing and developing APIs, which is expected to contribute to Active Pharmaceutical Ingredients Market growth. For instance, in September 2022, CuraTeQ Biologics, a wholly owned subsidiary of Aurobindo Pharma, invested approximately INR 300 (USD 3.82) crore in the capacity expansion of biologics manufacturing facilities. In addition, the company received approval to enter contract manufacturing operations for biologicals. Similarly, in September 2022, Novartis invested USD 300 million to increase its production and development capabilities for biological drugs. Such investments in improving biologic manufacturing and rising biologic approvals are anticipated to increase its adoption, which in turn is expected to increase the demand for APIs for developing drugs globally.

Therefore, owing to the high burden of diabetes among the population and growing company activities to increase the development of biologics and biosimilar drugs, the studied market is expected to grow over the forecast period. However, the drug price control policies across various countries, high competition between active pharmaceutical ingredients manufacturers, and stringent regulation are expected to impede the growth of the Active Pharmaceutical Ingredients Market over the forecast period.

Active Pharmaceutical Ingredients (API) Industry Segmentation

As per the scope of the report, an active pharmaceutical ingredient (API) is a part of any drug that produces its effects. Some drugs, such as combination therapies, have multiple active ingredients to treat different symptoms or act in different ways.

The active pharmaceutical ingredients (API) market is segmented by business mode into captive API and merchant API, by synthesis type, the market is bifurcated into synthetic and biotech, based on the type of drug the market is segregatted into generic and branded, based on the application the market is classified into cardiology, pulmonology, oncology, ophthalmology, neurology, orthopedic, and other applications, and by geography the market is divided inot North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (in USD) for the above segments.