Published on: July 30, 2024
APIs are the key components responsible for the therapeutic effects of medications, and their demand is driven by the rising prevalence of chronic diseases and the development of biopharmaceuticals. They are therefore essential to drug development and healthcare innovation.
The active pharmaceutical ingredients (API) market size is estimated to grow at a CAGR of 6.73% between 2023 and 2028. For emerging biopharmaceutical and virtual pharmaceutical companies, a vast majority of the API and intermediate manufacturing is done by outsourcing providers. Active pharmaceutical ingredient manufacturers are known to obtain a cost advantage through economies of scale and the availability of low-cost labour and land. The growing need for pharmaceutical companies to focus on their core competencies is expected to contribute to the growth of the market during the forecast period.
Trends in the API market include the development of mRNA-based therapies, dynamic pricing policies, and the rise of contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs). Additionally, there's a growing focus on specialty chemicals firms and the production of highly potent APIs (HPAPIs).
Key drivers for the API market include the increasing prevalence of chronic diseases such as cardiovascular diseases, and diabetes. Biopharmaceuticals and the demand for innovative treatments further fuel market growth. Additionally, outsourcing to CMOs and CDMOs for cost-effective manufacturing drives market expansion.
Challenges facing the API market include manufacturing costs, regulatory compliance, and drug price control policies. Additionally, the HPAPI segment presents challenges due to its complex manufacturing processes and safety concerns.
Asia is expected to contribute 52% to the growth of the global market by 2028. Technavio’s analysts have elaborately explained the regional trends and drivers that will shape the market during the forecast period. Asia accounted for the largest share of the market in 2022. Indian companies have become very proficient at the manufacturing of pharmaceutical products in compliance with the good manufacturing practice (GMP) standards, meeting the regulatory needs of US- and Europe-based generic drug companies and commercializing their bulk products at a large scale.
Technavio's active pharmaceutical ingredients industry reports monitor the leading players in the global market along with their current and forecasted market share. Our analysis covers regional and global companies. Some of the top companies covered in our active pharmaceutical ingredients market reports include:
In order to provide you with a comprehensive view of the active pharmaceutical ingredients industry, our experts analyze the market from many different perspectives. Our reports help identify opportunities, risks, key competitors, and more, helping you make timely, informed decisions to optimize your position in the market.
Technavio reports insights include:
Develop a deeper understanding of the active pharmaceutical ingredients market with Technavio’s comprehensive market research reports. We provide the latest information on key industry dynamics, including global and regional market forecasts, internal and external pressure points, the vendor landscape, and more.
Our in-depth knowledge of the active pharmaceutical ingredients market is built on decades of experience and a global network of industry experts. We know the importance of having a strong foundation on which to base important decisions, and with over 500 analysts located around the world, we deliver actionable insights for every segment of the market.
Technavio’s market research reports provide an analysis of current trends and how they are affecting the market. We also identify market drivers and challenges to help you discover opportunities and avoid pitfalls.
Every Technavio report includes detailed segmentation insights, breaking down the market in terms of product type, geography, sales channels, and more. And if you’re looking for something a little more specific, our Custom Research Solutions can tailor any report to meet your unique needs.
We provide detailed profiles on the biggest competitors in the market, including data such as business divisions, product offerings, and news. Our reports also include an overview of the competitive landscape as a whole, including the risks and opportunities that it presents.
LinkedIn
Facebook 
Twitter
Email
Reddit
Tumblr
Quora
Pinterest
WhatsApp