Active Pharmaceutical Ingredients Market, 52% of Growth to Originate from Asia, Technavio

NEW YORK, May 22, 2024 /PRNewswire/ -- The global active pharmaceutical ingredients market size is estimated to grow by USD 86.47 billion from 2024 to 2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.73% during the forecast period.

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Region Outlook

1. Asia
2. North America
3. Europe
4. Rest of World

1. Asia - Asia is set to contribute significantly to the global market growth, with a projected share of 52% during the forecast period. In 2022, Asia held the largest market share, driven by the proficiency of Indian companies in pharmaceutical manufacturing and compliance with GMP standards.

Companies like Lupin Ltd. and Sun Pharmaceutical Industries Ltd. are key players in the US generic drug market. The presence of major companies such as Cipla, Aurobindo Pharma Ltd., and Dr Reddy's Laboratories Ltd., along with government support for API production, will drive the active pharmaceutical ingredients market in the region.

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Segmentation Overview

1. Manufacturing Type
• 1.1 Captive APIs
• 1.2 Contract APIs
2. Type 
• 2.1 Innovative APIs
• 2.2 Generic APIs
3. Geography 
• 3.1 Asia
• 3.2 North America
• 3.3 Europe
• 3.4 Rest of World (ROW)

1.1 Fastest growing segment:

In 2018, the captive APIs segment was valued at USD 95.44 billion, leading the market. Healthcare regulatory authorities focus on quality control for APIs and their production facilities, pushing manufacturers to rely more on in-house capabilities to produce high-quality APIs. Following the ICH guidelines and US regulations is crucial to avoid batch recalls and financial losses. Companies like Pfizer, Novartis, Sanofi, and GlaxoSmithKline are investing in their own API production facilities. This trend is expected to boost the growth of the captive APIs segment and expand the market in the coming years.

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Research Analysis

The Active Pharmaceutical Ingredients (API) market encompasses the production and supply of essential components used in formulating medications for various chronic disorders, including Schizophphrenia, infectious diseases, genetic disorders, cardiovascular diseases, and chronic disorders. APIs play a crucial role in the development of biologics, biosimilars, oncology drugs, and diabetes treatments, such as Acetaminophen and Artemisinin.

The market for APIs is driven by research and investment in the pharmaceutical sector, with a focus on counterfeit drug prevention and ensuring the quality of excipients used in formulation. The production of APIs for chronic diseases, such as cancer and diabetes, and for treating infectious diseases and genetic disorders, is a significant area of growth in the pharmaceutical industry. The market for APIs is diverse, with applications in the production of both small molecule drugs and complex biologics.

Market Overview

The Active Pharmaceutical Ingredients (API) market refers to the global business sector involved in producing and supplying essential components used in the manufacture of various medicines. These substances, when combined with other ingredients, result in finished pharmaceutical products. The market for APIs is vast and diverse, encompassing a wide range of therapeutic areas such as cardiovascular diseases, neurology, oncology, and others.

The demand for APIs is driven by the increasing global population, rising healthcare expenditures, and the continuous development of new drugs. The market is also influenced by factors such as regulatory requirements, technological advancements, and supply chain dynamics. The API industry is a critical component of the pharmaceutical value chain, ensuring the availability of high-quality ingredients for the production of life-saving medicines.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation
 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
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Website: www.technavio.com/

SOURCE Technavio