Healthcare Medical Devices Biotechnology

Active Pharmaceutical Ingredients Market is Expected to Reach USD 323.29 Billion by 2031

May 2024

Healthcare Medical Devices Biotechnology

As per the report published by Kings Research, the global Active Pharmaceutical Ingredients Market was valued at USD 215.67 billion in 2023 and is projected to reach USD 323.29 billion by 2031, growing at a CAGR of 5.38% from 2024 to 2031.

The active pharmaceutical ingredients (API) market is a sector within the pharmaceutical industry that focuses on the production and distribution of essential components responsible for the therapeutic effects of drugs. APIs play a crucial role in the healthcare industry since they serve as the fundamental components in the formulation of medicines. In addition to their diversity, APIs involve both branded and generic types, thus catering to a wide range of therapeutic areas, including cardiovascular, oncology, anti-infectives, among others. The expansion of the market is driven by several factors such as the rising prevalence of chronic diseases, an aging global population, and increasing demand for generic drugs. Additionally, technological advancements in drug manufacturing and a growing focus on bioequivalent products are contributing to this robust market expansion.

Key Insights

  • Based on type, the branded API segment accounted for the largest market share of 67.13% in 2023
  • Based on synthesis, the biotech segment is estimated to register a CAGR of 6.14% between 2024 and 2031
  • Based on type of drug, the prescription segment garnered the highest revenue of USD 166.60 billion in 2023
  • On the basis of region, Europe registered  a significant valuation of USD 54.75 billion in 2023

Biocon Acquires US-Based Pharmaceutical Company Eywa Pharma Inc.’s Oral Solid Dose Facility

September 2023: Biocon Limited, a global biopharmaceutical entity, announced the acquisition of Eywa Pharma Inc.'s oral solid dosage facility in Cranbury, New Jersey, USA by its subsidiary, Biocon Generics Inc. The transaction, valued at US $7.7 million, includes the facility's existing workforce joining Biocon Generics Inc. This strategic acquisition offers the potential to expand production capacity to up to 2 billion tablets/capsules annually, marking a significant expansion for Biocon in the global pharmaceutical manufacturing landscape.

Increasing Demand for Cost-Effective Generic Medicines in the Developing Regions to Present Lucrative Growth Opportunity

The increased demand for generic drugs in the global markets presents a promising opportunity for market expansion. The expiration of numerous patents creates market opportunities for generics that require APIs. This shift is prominent in developing companies seeking cost-effective healthcare solutions. Companies capable of maintaining quality standards while producing high-quality, cost-effective APIs poised to gain a competitive edge in this dynamic industry landscape. The market is likely to witness prominent growth in the forecast years, mainly propelled by increased investments in production capabilities and other technologies aimed at enhancing API yield, purity, and scalability.

Development of Biologic APIs to Impact the Growth of the Biopharmaceutical Sector

The biopharmaceutical sector offers significant opportunities for biologic APIs, which play a pivotal role in the treatment of various diseases, including cancers and autoimmune disorders. The production of biologic APIs requires dedicated production facilities and expertise in biotechnology, thus presenting a lucrative opportunity for companies capable of navigating its complexities. As the demand for biologics rises in the medical sector for new therapeutic interventions, companies equipped with capabilities in advanced bioprocessing technologies are well-positioned to capture significant market share.

Asia-Pacific to Display the Fastest-Growth, Exhibiting the Highest CAGR of 8.32% Between 2024 and 2031

Based on region, the global zero emission trucks market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is projected to be the fastest-growing region in the active pharmaceutical ingredients market over the projection period. This notable growth is mainly driven by factors such as cost-efficient production, surging healthcare demand, supportive government policies, technological innovations, and the expansion of local pharmaceutical firms. These factors make Asia Pacific a preferred location for API manufacturing, meeting both domestic and international drug demands. This growth is further fueled by the region's substantial aging population, and increasing healthcare investments, thereby positioning Asia Pacific as a leading region in the global active pharmaceutical ingredients industry.

Companies Focus on Development of Novel API’s While Outsourcing Generics Production to Expand Their Market Presence

The global active pharmaceutical ingredients market reveals a fragmented landscape featuring prominent companies including Pfizer Inc., Novartis International AG, Bristol-Myers Squibb, BASF SE, Boehringer Ingelheim GmbH, ELI Lilly and Company, Merck & Co., Inc., Abbvie Inc., Sanofi Inc., GlaxoSmithKline PLC, and others. Companies employ various strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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