Published: Oct, 2016
The competition in the global active pharmaceutical ingredient (API) market is likely to get intense with the high exit and fixed costs, states a new market research study by Transparency Market Research. In 2015, leading players, including Teva Pharmaceutical Industries Ltd., North China Pharmaceutical Group Corp., and Zhejiang Medicine Co. contributed substantially towards global revenues. Sandoz (Novartis AG), Dr. Reddy’s Laboratories Ltd., Allergan plc, Pfizer, Inc. are some of the other prominent players focusing on their research and development activities to provide result-oriented drugs. Additionally, with meaningful mergers and acquisitions, these players are projected to expand their product portfolio in the global market.
As per the research study, in 2015, the market opportunity for active pharmaceutical ingredients was worth US$134,701.7 mn and is predicted to reach a value of US$219,601.9 mn by the end of 2023. The market is projected to exhibit a 6.30% CAGR between 2015 and 2023. Geographically, North America is projected to lead the global API market and reach a value of US$69,396.6 mn by the end of 2023. The rising demand for active pharmaceutical ingredients in research and development activities and drug formulations is expected to bolster the growth of the market in North America. TMR analysts predict that the advent of biosimilars is projected to boost the consumption of APIs in this region.
Innovations in Synthesizing Techniques to Drive Synthetic Chemical Segment
The synthetic chemical active pharmaceutical ingredient segment is anticipated to lead the global market and reach a value of US$144,838.9 mn by the end of 2023. Innovations in the techniques of synthesizing chemical active pharmaceutical ingredients to enhance their potency and stability are the key factors that will propel the synthetic chemical segment in the coming years.
On the other hand, the biological active pharmaceutical ingredient segment is estimated to witness robust growth as the big players are focusing on manufacturing biologic drugs. Moreover, the cost of drug development is comparatively lower in the biological segment owing to low failure rate, which is expected to fuel the growth.
Increased Healthcare Spending to Offer Impetus to Global API Market
In recent years, healthcare spending has increased at a high rate. This is expected to act as a key driver for the global active pharmaceutical ingredient market in the next few years. “The growing geriatric population, particularly in high-demand markets within Europe and North America is estimated to offer significant impetus to the demand of pharmaceutical drugs and products, thus fuelling the growth of the global API market,” states a TMR analyst. “Moreover, the growing prevalence of infectious and chronic diseases with high consumption of drugs is driving the global market.”
Furthermore, several drug manufacturing companies in India have been taking remarkable efforts to enhance their presence in the market. The increase in abbreviated new drug application (ANDA), especially from India is projected to encourage the growth of the global market in the near future.
Stringent Regulations for Import of Active Pharmaceutical Ingredients to Hamper Market Growth
The rise in the demand for generic drugs has resulted in strict regulations for the import of active pharmaceutical ingredients. To comply with these regulations, manufacturers will be required to provide written documents for each active pharmaceutical ingredient that has been exported. This factor is projected to restrict the growth of the market in the coming years. Nevertheless, patent expiry of key biological drugs and the development of the healthcare market in Asia Pacific and Rest of the World is expected to offer lucrative opportunities in the active pharmaceutical ingredient market.
This information is based on the findings of a report published by Transparency Market Research, titled “Active Pharmaceutical Ingredient Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”
The active pharmaceutical ingredient market has been segmented as below:
- Captive Manufacturing
- Contract Manufacturing
- Synthetic Chemical API
- Biological API
- Branded Prescription Drugs
- Generic Prescription Drugs
- OTC Prescription Drugs
- Cardiovascular Disorders
- Metabolic Disorders
- Neurological Disorders
- Musculoskeletal Disorders
- Other Therapeutics Uses
- North America
- Rest of Europe
- Rest of Asia Pacific
- Rest of the World (RoW)
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