The Global Drug API Market is projected to grow at a CAGR of 7.47% during the forecast period to reach US$286.817 billion by 2027, from US$173.204 billion in 2020. The component of medicine that generates the desired effects is known as the active pharmaceutical ingredient (API). Combination therapies, for example, have a number of active ingredients that treat different symptoms or function in different ways. APIs have generally been manufactured in-house by pharmaceutical businesses in their home nations. However, in recent years, many companies have chosen to outsource manufacturing to save money. This has resulted in considerable changes in how these pharmaceuticals are regulated, including the implementation of more stringent criteria and inspections. The global API market is segmented by drug synthesis type, application, and geography.
The growth of the ageing population and increasing investment in biologic drugs is expected to boost the growth of the global active pharmaceutical ingredient (API) market.
The expanding drug research and development activities for drug manufacturing, the increasing importance of generics, and the increasing consumption of biopharmaceuticals are the key factors driving the growth of the active pharmaceutical ingredients market. The rising frequency of chronic diseases is predicted to boost medicine demand, which will drive the active pharmaceutical ingredients market forward in the near future. Cardiovascular illnesses are the biggest cause of death worldwide, with an estimated 17.9 million people each year, according to the World Health Organization (WHO).
According to the Alzheimer's Association, 5.8 million people in the United States had Alzheimer's disease in 2018. This disease is the sixth leading cause of death in the United States, and it primarily affects people over the age of 65, with approximately 5.6 million patients falling into this age bracket. By the time the baby-boomer generation reaches 65 years of age, this number is expected to climb to 14 million, worsening the situation during the forecast period. By 2050, a new case of the disease is expected to occur every 33 seconds. Furthermore, new pharmaceutical and biological product launches, acquisitions, collaborations, and geographic expansions are some of the industry's strategic operations. This is likely to increase market expansion in the near future. Quartic.ai and Bright Path Labs, for example, cooperated in 2020 to develop AI-based technology for continuous manufacturing of essential APIs required for the production of critical small-molecule pharmaceuticals.
However, the market's expansion is likely to be hampered by negative medicine price control regimes in several countries, high manufacturing costs, and strict regulatory policies.
By region, North America, followed by Asia-Pacific is expected to drive the growth of the global drug market during the forecast period.
Because of increased disease rates and an ageing population, the North American region is likely to enhance its market share in the future. For instance, according to the Centers for Disease Control and Prevention, approximately 795,000 people in the United States suffer from the effects of stroke each year, with ischemic stroke accounting for 87% of instances. The United States controls the majority of the regional market. Pharmaceutical companies have raised their R&D spending in order to generate higher-quality APIs, which have a direct impact on the drug's safety and efficacy. Pfizer, for example, struck a multi-year agreement with Gilead Sciences in 2020 to manufacture and supply Gilead's antiviral drug (Remdesivir) for COVID-19 treatment. During the projected period, the market in North America is expected to grow due to an increase in the prevalence of lifestyle diseases and an increase in healthcare spending.
Due to rising healthcare expenditure and a high number of pharmaceutical businesses, Asia-Pacific is predicted to develop at the fastest rate in this market over the forecast period. For example, in December 2019, Dr. Reddy's Laboratories released Bortezomib, a traditional form of Millennium Pharmaceuticals' Velcade, for infusion in the US market. Bortezomib is a drug that is used to treat adult patients with multiple myeloma or mantle cell lymphoma who have had at least one previous treatment. The existence of economies like China and India, which the world relies on for low-cost API production, is a benefit for the region. This further boosts the growth in the API market in the Asia-Pacific.
The global API market has benefited from the COVID-19 epidemic. To treat the symptoms and many health conditions that a COVID-19 patient may have, such as high fever, cough, and cold, a variety of pharmaceuticals are used, making the pharmaceutical industry the epicentre of the pandemic. The economic and social toll of the epidemic has prompted governments to increase financing for vaccine development on a global scale. As a result, the active pharmaceutical ingredients (API) business has grown in popularity. As a result of the COVID-19 epidemic, medication companies have redirected their models to focus on a larger group of patients. The US, for example, requested that hydroxychloroquine (HCQ) be imported from India as a coronavirus treatment. During the lockdown, however, the pharmaceutical production and supply chain were both disrupted, resulting in reduced accessibility and greater costs for the resources needed for generic invention.
|Market size value in 2020||US$173.204 billion|
|Market size value in 2027||US$286.817 billion|
|Growth Rate||CAGR of 7.47% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Drug Synthesis Type, Drug Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Teva Pharmaceutical Industries Ltd, Sun Pharmaceutical Industries Ltd, Novartis AG, Pfizer Inc., Mylan NV, BASF SE, Boehringer Ingelheim GmbH, Dr. Reddy’s Laboratories Ltd, Lupin Ltd, Aurobindo Pharma|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the drug API market size by 2027?
A1. The global drug API market is projected to reach a total market size of US$286.817 billion by 2027.
Q2. What are the growth prospects for the drug API market?
A2. The drug API market is projected to grow at a CAGR of 7.47% over the forecast period.
Q3. What is the size of the global drug API market?
A3. Drug API Market was valued at US$173.204 billion in 2020.
Q4. Which region holds the largest market share in the drug API market?
A4. North America is expected to drive the growth of the global drug market due to the increased disease rates and an aging population.
Q5. What factors are anticipated to drive the drug API market growth?
A5. The growth of the aging population and increasing investment in biologic drugs is expected to boost the growth of the global drug API market.
Teva Pharmaceutical Industries Ltd
Sun Pharmaceutical Industries Ltd
Boehringer Ingelheim GmbH
Dr. Reddy’s Laboratories Ltd
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