The global active pharmaceutical ingredients market was valued at $172120 million in 2018 & is estimated to generate net revenue of approximately $292598.06 million by 2027, growing at a CAGR of 6.10%. Active pharmaceutical ingredients (APIs) are chemical composites or a mixture of compounds that are used chiefly to have the desired outcome on biological systems. The following factors primarily drive the active pharmaceutical ingredients market:

• Growing geriatric population
• The growing prevalence of infectious diseases and hospital-acquired infections
• Increasing incidence of age-related diseases

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The important factors that are increasing the growth of the global active pharmaceutical ingredients market are found to be the growing geriatric population and the increasing incidence of age-related diseases. Aging is considered to be the greatest risk factor for the onset of certain diseases related to the cardiovascular and neural system, which are anticipated to drive the demand of the APIs market. The growing demand for drugs to treat the aging population will boost the market growth during the forecast period.

The applications of active pharmaceutical ingredients and APIs synthesis market are used extensively for various purposes. Active pharmaceutical ingredients market by application comprises of cardiovascular disease, oncology, CNS and neurological disorders, orthopedic disorders, endocrinology, pulmonology, gastrointestinal disorders, nephrology, ophthalmology, and other application.

The increasing prevalence of cancer across the world is the key factor attributing to the growth of this market. Hormonal imbalance is a growing concern in the majority of countries that are driving the market growth. Pulmonology refers to the branch of medical science that deals with disorders of the respiratory tract. Some of the APIs used for the treatment of gastrointestinal disorders include famotidine and others. Active pharmaceutical ingredients market by synthesis comprises of biotech and synthetic. Biotech API is mostly peptides and other forms of enzymes. Monoclonal antibodies arouse a patient’s immune system, hence are favoured as APIs in the medical products.

The high cost of investment and production cost and aggressive competition among API manufacturers are the major factors hindering the active pharmaceutical ingredients market. API manufacture requires sophisticated infrastructure, and thus it is capital intensive. API giants are employing strategies to distinguish themselves, which is further escalating the competition in the market.

The global active pharmaceutical ingredients market segments include types, manufacturers, synthesis and applications.

Types are sub-segmented into:

• Generic APIs
• Innovative APIs

Manufacturers are sub-segmented into:

• Captive APIs
• Merchant APIs

Synthesis is sub-segmented into:

• Biotech
  • Monoclonal antibodies
  • Recombinant proteins
  • Vaccines
• Synthetic

Applications are sub-segmented into:

• Cardiovascular disease
• Nephrology
• CNS and neurological disorders
• Orthopedic disorders
• Ophthalmology
• Endocrinology
• Oncology
• Pulmonology
• Gastrointestinal disorders
• Other application

This report covers the present market conditions and the growth prospects of the global active pharmaceutical ingredients market for 2019-2027 and considered the revenue generated through the sales of active pharmaceutical ingredients for types, manufacturers, synthesis and applications to calculate the market size by considering 2018 as the base year.

Geographically, the global active pharmaceutical ingredients market has been segmented on the basis of four major regions, which include:

• North America: The United States & Canada
• Asia-Pacific: China, India, Japan, Australia, South Korea & Rest of APAC
• Europe: The United Kingdom, France, Germany, Italy, Spain & Rest of Europe
• Rest of World: Latin America & Middle East, and Africa

The active pharmaceutical ingredients market in North America is expected to hold the largest share by 2027 due to possibilities of higher demand for generic drugs, especially from the US region. Patent expiries of blockbuster drugs are also expected to contribute to market growth. In addition, the increasing prevalence of cancer and other lifestyle-induced diseases is responsible for tremendous growth in R&D activities for drugs. North America active pharmaceutical ingredients market constitutes approximately 40% share.

On the other hand, the Asia-Pacific market is anticipated to the fastest-growing region for the active pharmaceutical ingredients market. The APIs market in APAC is expected to grow considerably during the forecast period. The growth can be attributed to the presence of many vendors that offer generic APIs. Furthermore, the global pharmaceutical companies are outsourcing the production of APIs to the companies in APAC owing to the lower production costs.

The active pharmaceutical ingredients market is segmented based on types which are sub-divided into generic APIs and innovative APIs and also segmented on the basis of manufacturers which is sub-divided into captive APIs and merchant APIs. Captive APIs market growth can be primarily attributed to the growing demand for APIs for manufacturing drugs that are used for treating cancer, and cardiovascular, metabolic, and neurological, disorders. Branded drugs and generic drugs have the same active ingredients. Generics are 30%-80% cheaper than branded drugs. New entrants in this innovative APIs segment are expected to fuel the growth of this market.

The major market players of the global active pharmaceutical ingredients market are:

• Teva Pharmaceutical Industries
• Cipla
• Aurobindo Pharma
• Sun Pharmaceutical Industries Limited
• Dr. Reddy’s Laboratories

The company profiles cover the analysis of important players. TEVA Pharmaceutical Industries Ltd. is headquartered in Israel and was established in 1901. The company’s business interest primarily lies in specialty medicines, OTC products, generic drugs, APIs and branded molecules.

Dr. Reddy’s Laboratories Ltd. is a pharmaceutical company headquartered in India. The important segments of the company operations include generics, specialty drugs, and APIs. The company has over 60 APIs in its portfolio.

Key Findings of the global active pharmaceutical ingredients market:

• Innovative APIs holds the largest market share in terms of active pharmaceutical ingredients type
• Merchant APIs are the fastest growing manufacturers
• Biotech is the fastest growing synthesis segment
• Oncology is the majorly used application