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Active Pharmaceutical Ingredients (API) - A Global Market Overview
Market Report I 2024-09-26 I 359 Pages I Industry Experts
Active Pharmaceutical Ingredients (API) Market Trends and Outlook
An Active Pharmaceutical Ingredient (API) is the essential component in a drug that delivers therapeutic effects. APIs are crucial for the efficacy of medications used to diagnose, treat, or prevent diseases. They can be sourced from natural origins or synthesized chemically and must adhere to strict purity and quality standards. APIs are utilized across diverse medical fields, including cardiology, oncology, neurology, orthopedics, endocrinology, pulmonology, and others. The production of APIs involves complex processes, from initial research and development to large-scale manufacturing and quality control. APIs can be combined with other ingredients to create medications that target multiple symptoms or conditions.
The global Active Pharmaceutical Ingredients (API) market is estimated at US$240.8 billion in 2024 and is expected to record a CAGR of 6.2% during the 2024-2030 analysis period and stand at a projected US$345.5 billion by 2030.
The Active Pharmaceutical Ingredient (API) market is primarily driven by the rising incidence of chronic diseases such as diabetes, cardiovascular disorders, and cancer. With the aging global population and increasing health issues related to lifestyle, there is a greater demand for effective medications, making APIs essential in drug development. The growing availability of healthcare and increased awareness in developing countries further boost the demand for affordable treatment options like biologics and biosimilars. Additionally, advancements in medical technology and significant funding in research and development (R&D) from both government and private entities are driving market expansion. The rise of personalized medicine is also contributing to growth, as customized treatments require specific APIs. Furthermore, the expansion of healthcare infrastructure and strategic industry partnerships are expected to significantly advance the API market.
Active Pharmaceutical Ingredients (API) Regional Market Analysis
North America leads the API market with an estimated share of 36.7% in 2024, due to its robust healthcare infrastructure, research capabilities, and high demand for advanced pharmaceuticals. Despite challenges such as rising operational costs and FDA fees, the region remains dominant. Meanwhile, Asia-Pacific is the fastest-growing region, with a CAGR of 7.8% during the analysis period 2024-2030. This growth is driven by China's API production and India's expanding pharmaceutical industry, supported by lower production costs, significant investments, and favorable regulatory policies.
Active Pharmaceutical Ingredients (API) Market Analysis by Type
Branded APIs led the market in 2024, holding a significant share of 68.7% due to patent protections, substantial R&D investments, and high demand for advanced treatments. Despite challenges like patent expirations and industry consolidation, branded APIs dominate through ongoing innovation. Conversely, the generic APIs segment is expected to register the fastest CAGR of 7.7% during the analysis period 2024-2030, driven by patent expirations, cost-effectiveness, and rising demand for affordable treatments supported by government initiatives and advancements in manufacturing technology.
Active Pharmaceutical Ingredients (API) Market Analysis by Synthesis
In 2024, synthetic APIs dominate the market with a share of 72% due to high demand for generic drugs and low production costs, which help Contract Development and Manufacturing Organizations (CDMOs) by reducing manufacturing expenses. Meanwhile, the biotech APIs segment is projected to record the fastest CAGR of 7% during the forecast period 2024-2030, driven by increased investment in biopharmaceuticals and innovations in treatments, particularly for cancer. Although synthetic APIs lead due to easier synthesis and raw material availability, biotech APIs are gaining ground due to their higher revenue potential and rising FDA approvals for biologics.
Active Pharmaceutical Ingredients (API) Market Analysis by Manufacturer Type
Captive API manufacturers lead the market with an estimated share of 61.4% in 2024 due to easier access to raw materials and significant investments in advanced production facilities. This segment benefits from reduced contamination risks and lower costs, supported by innovations like protein synthesis and AI. Conversely, the merchant API segment is anticipated to record the fastest CAGR of 6.9% during the forecast period as companies increasingly outsource production to cut costs and avoid infrastructure investments. Post-pandemic, firms are expanding capacities to enhance their market positions.
Active Pharmaceutical Ingredients (API) Market Analysis by Molecule
Small Molecule APIs dominate the market in 2024, holding a share of 65.7%, driven by factors such as patent expirations and high FDA approvals due to their easy absorption and widespread use. On the other hand, the Large Molecule APIs segment is projected to register the fastest CAGR of 6.7% during the analysis period from 2024 to 2030, fueled by advances in biotechnology and increasing demand for biologics and personalized therapies.
Active Pharmaceutical Ingredients (API) Market Analysis by Application
Based on application, the market is segmented into cardiology, oncology, neurology, orthopedics, endocrinology, pulmonology, and others. The cardiology application leads the API market with a share of 23.7% in 2024, driven by the high prevalence of cardiovascular diseases that necessitate extensive use of related medications. Cardiovascular disorders, a major cause of global mortality, significantly contribute to this segment's dominant revenue share. Conversely, the oncology segment is expected to grow at the fastest CAGR of 7.8% during the forecast period 2024-2030, fueled by the rising prevalence of cancer and advancements in cancer research. Investments and collaborations in drug development, especially for chemotherapy and targeted therapies, are accelerating this growth, positioning oncology to expand rapidly and outpace other therapeutic areas.
Active Pharmaceutical Ingredients (API) Market Report Scope
This global report on Active Pharmaceutical Ingredients (API) analyzes the market based on Type, synthesis, manufacturer type, molecule, and applications. In addition to providing profiles of major companies operating in this space, the latest corporate and industrial developments have been covered to offer a clear panorama of how and where the market is progressing.
Key Metrics
Historical Period: 2021-2023
Base Year: 2023
Forecast Period: 2024-2030
Units: Value market in US$
Companies Mentioned: 15+
Active Pharmaceutical Ingredients (API) Market by Geographic Region
- North America (The United States, Canada, and Mexico)
- Europe (Germany, France, United Kingdom, Italy, Spain, and Rest of Europe)
- Asia-Pacific (Japan, China, India, South Korea, and Rest of Asia-Pacific)
- South America (Brazil, Argentina, and Rest of South America)
- Rest of World
Active Pharmaceutical Ingredients (API) Market by Type
- Branded
- Generic
Active Pharmaceutical Ingredients (API) Market by Synthesis
- Synthetic
- Biotech
Active Pharmaceutical Ingredients (API) Market by Manufacturer Type
- Captive
- Merchant
Active Pharmaceutical Ingredients (API) Market by Molecule
- Small Molecule APIs
- Large Molecule APIs
Active Pharmaceutical Ingredients (API) Market by Application
- Cardiology
- Oncology
- Neurology
- Orthopedics
- Endocrinology
- Pulmonology
- Other Applications
PART A: GLOBAL MARKET PERSPECTIVE
1. INTRODUCTION
- Product Outline
- Active Pharmaceutical Ingredients (API) Defined
- Active Pharmaceutical Ingredients (API) Types
o Branded
o Generic
- Active Pharmaceutical Ingredients (API) Synthesis
o Synthetic
o Biotech
- Active Pharmaceutical Ingredients (API) Manufacturer Types
o Captive
o Merchant
- Active Pharmaceutical Ingredients (API) Molecules
o Small Molecule APIs
o Large Molecule APIs
- Active Pharmaceutical Ingredients (API) Applications
o Cardiology
o Oncology
o Neurology
o Orthopedics
o Endocrinology
o Pulmonology
o Others (Including Gastroenterology, Nephrology, Dermatology, Infectious Diseases, and Ophthalmology)
2. Key Market Trends
3. Key Global Players
- AbbVie Inc.
- Aurobindo Pharma Limited
- Boehringer Ingelheim International GmbH
- Cipla Ltd.
- Dr. Reddy's Laboratories Ltd.
- Eli Lilly and Company
- F. Hoffmann-La Roche AG
- GSK plc
- Merck & Co., Inc.
- Novartis AG
- Pfizer Inc.
- Sanofi S.A.
- Sun Pharmaceutical Industries Ltd.
- Teva Pharmaceutical Industries Ltd.
- Viatris Inc.
4. Key Business & Product Trends
5. Global Market Overview
- Global Active Pharmaceutical Ingredients (API) Market Overview by Type
o Active Pharmaceutical Ingredients (API) Type Market Overview by Global Region
- Branded
- Generic
- Global Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
o Active Pharmaceutical Ingredients (API) Synthesis Market Overview by Global Region
- Synthetic
- Biotech
- Global Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
o Active Pharmaceutical Ingredients (API) Manufacturer Type Market Overview by Global Region
- Captive
- Merchant
- Global Active Pharmaceutical Ingredients (API) Market Overview by Molecule
o Active Pharmaceutical Ingredients (API) Molecule Market Overview by Global Region
- Small Molecule APIs
- Large Molecule APIs
- Global Active Pharmaceutical Ingredients (API) Market Overview by Application
o Active Pharmaceutical Ingredients (API) Application Market Overview by Global Region
- Cardiology
- Oncology
- Neurology
- Orthopedics
- Endocrinology
- Pulmonology
- Others (Including Gastroenterology, Nephrology, Dermatology, Infectious Diseases, and Ophthalmology)
PART B: REGIONAL MARKET PERSPECTIVE
Global Active Pharmaceutical Ingredients (API) Market Overview by Geographic Region
REGIONAL MARKET OVERVIEW
6. North America
- North American Active Pharmaceutical Ingredients (API) Market Overview by Geographic Region
- North American Active Pharmaceutical Ingredients (API) Market Overview by Type
- North American Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- North American Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- North American Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- North American Active Pharmaceutical Ingredients (API) Market Overview by Application
- Country-wise Analysis of North American Active Pharmaceutical Ingredients (API) Market
o The United States
- United States Active Pharmaceutical Ingredients (API) Market Overview by Type
- United States Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- United States Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- United States Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- United States Active Pharmaceutical Ingredients (API) Market Overview by Application
o Canada
- Canadian Active Pharmaceutical Ingredients (API) Market Overview by Type
- Canadian Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Canadian Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Canadian Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Canadian Active Pharmaceutical Ingredients (API) Market Overview by Application
o Mexico
- Mexican Active Pharmaceutical Ingredients (API) Market Overview by Type
- Mexican Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Mexican Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Mexican Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Mexican Active Pharmaceutical Ingredients (API) Market Overview by Application
7. Europe
- European Active Pharmaceutical Ingredients (API) Market Overview by Geographic Region
- European Active Pharmaceutical Ingredients (API) Market Overview by Type
- European Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- European Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- European Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- European Active Pharmaceutical Ingredients (API) Market Overview by Application
- Country-wise Analysis of European Active Pharmaceutical Ingredients (API) Market
o Germany
- German Active Pharmaceutical Ingredients (API) Market Overview by Type
- German Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- German Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- German Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- German Active Pharmaceutical Ingredients (API) Market Overview by Application
o France
- French Active Pharmaceutical Ingredients (API) Market Overview by Type
- French Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- French Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- French Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- French Active Pharmaceutical Ingredients (API) Market Overview by Application
o The United Kingdom
- United Kingdom Active Pharmaceutical Ingredients (API) Market Overview by Type
- United Kingdom Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- United Kingdom Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- United Kingdom Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- United Kingdom Active Pharmaceutical Ingredients (API) Market Overview by Application
o Italy
- Italian Active Pharmaceutical Ingredients (API) Market Overview by Type
- Italian Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Italian Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Italian Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Italian Active Pharmaceutical Ingredients (API) Market Overview by Application
o Spain
- Spanish Active Pharmaceutical Ingredients (API) Market Overview by Type
- Spanish Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Spanish Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Spanish Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Spanish Active Pharmaceutical Ingredients (API) Market Overview by Application
o Rest of Europe
- Rest of Europe Active Pharmaceutical Ingredients (API) Market Overview by Type
- Rest of Europe Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Rest of Europe Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Rest of Europe Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Rest of Europe Active Pharmaceutical Ingredients (API) Market Overview by Application
8. Asia-Pacific
- Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Geographic Region
- Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Type
- Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Application
- Country-wise Analysis of Asia-Pacific Active Pharmaceutical Ingredients (API) Market
o Japan
- Japanese Active Pharmaceutical Ingredients (API) Market Overview by Type
- Japanese Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Japanese Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Japanese Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Japanese Active Pharmaceutical Ingredients (API) Market Overview by Application
o China
- Chinese Active Pharmaceutical Ingredients (API) Market Overview by Type
- Chinese Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Chinese Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Chinese Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Chinese Active Pharmaceutical Ingredients (API) Market Overview by Application
o India
- Indian Active Pharmaceutical Ingredients (API) Market Overview by Type
- Indian Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Indian Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Indian Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Indian Active Pharmaceutical Ingredients (API) Market Overview by Application
o South Korea
- South Korean Active Pharmaceutical Ingredients (API) Market Overview by Type
- South Korean Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- South Korean Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- South Korean Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- South Korean Active Pharmaceutical Ingredients (API) Market Overview by Application
o Rest of Asia-Pacific
- Rest of Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Type
- Rest of Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Rest of Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Rest of Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Rest of Asia-Pacific Active Pharmaceutical Ingredients (API) Market Overview by Application
9. South America
- South American Active Pharmaceutical Ingredients (API) Market Overview by Geographic Region
- South American Active Pharmaceutical Ingredients (API) Market Overview by Type
- South American Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- South American Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- South American Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- South American Active Pharmaceutical Ingredients (API) Market Overview by Application
- Country-wise Analysis of Asia-Pacific Active Pharmaceutical Ingredients (API) Market
o Brazil
- Brazilian Active Pharmaceutical Ingredients (API) Market Overview by Type
- Brazilian Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Brazilian Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Brazilian Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Brazilian Active Pharmaceutical Ingredients (API) Market Overview by Application
o Argentina
- Argentine Active Pharmaceutical Ingredients (API) Market Overview by Type
- Argentine Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Argentine Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Argentine Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Argentine Active Pharmaceutical Ingredients (API) Market Overview by Application
o Rest of South America
- Rest of South American Active Pharmaceutical Ingredients (API) Market Overview by Type
- Rest of South American Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Rest of South American Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Rest of South American Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Rest of South American Active Pharmaceutical Ingredients (API) Market Overview by Application
10. Rest of World
- Rest of World Active Pharmaceutical Ingredients (API) Market Overview by Type
- Rest of World Active Pharmaceutical Ingredients (API) Market Overview by Synthesis
- Rest of World Active Pharmaceutical Ingredients (API) Market Overview by Manufacturer Type
- Rest of World Active Pharmaceutical Ingredients (API) Market Overview by Molecule
- Rest of World Active Pharmaceutical Ingredients (API) Market Overview by Application
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