PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1483023
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1483023
The global active pharmaceutical ingredients market is projected to reach USD 238.3 billion by 2029 from USD 163.5 billion in 2024, at a CAGR of 7.8% during the forecast period of 2024 to 2029. The growth of this market can be attributed to the increasing research and development activities for the development of novel biopharmaceuticals. Biopharmaceuticals are manufactured by using living biological systems. They have become popular as they are similar to natural biological compounds found in the human body, thus offering higher efficacy and fewer side effects. Continued research in the field of biologics has resulted in the development of novel products and advancements in existing treatment models. Currently, novel concepts such as gene therapy (offering regenerative medicine) and cell therapy (for cancer treatment) are being refined. This has made biopharmaceuticals a huge and attractive opportunity area in the active pharmaceutical ingredients market. Biopharmaceuticals are currently the fastest-growing segment of the pharmaceutical industry, expected to register a double-digit growth rate in the coming decade. Their efficacy and safety, combined with their ability to address previously untreatable conditions, allow pharmaceutical companies to command high prices for these innovative drugs. Currently, a majority of blockbuster drugs are biopharmaceuticals. According to PharmaVoice report in 2023, pharmaceutical's biggest blockbusters included Merck & Co.'s Keytruda, Pfizer and BioNTech's COVID-19 vaccine Comirnaty, and AbbVie's powerhouse Humira.
Scope of the Report | |
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Years Considered for the Study | 2022-2029 |
Base Year | 2023 |
Forecast Period | 2024-2029 |
Units Considered | Value (USD) Billion |
Segments | Type, Synthesis, Type of Drug, Potency, Therapeutic Applications, and End User |
Regions covered | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
"The pharmaceutical & biotechnology industry segment accounted for the largest share by end user during the forecast period."
In 2023, The pharmaceutical and biotechnology industry is a significant end user group of Active Pharmaceutical Ingredients (APIs) for drug development and manufacturing. Pharmaceutical companies utilize APIs as the primary component in their drug formulations. These compounds provide the therapeutic effects of the medication. They procure APIs to produce finished dosage forms, such as tablets, capsules, or injectables. Biotechnology firms focus on developing biologic drugs, which are derived from living organisms. These drugs typically involve complex molecules, proteins, or antibodies. Growing collaboration by pharmaceutical and biotechnology companies with API providers is one of the factors supporting market growth. For instance, in December 2022, Eli Lilly and Company and EVA Pharma collaborated through which Eli Lilly committed to supply its active pharmaceutical ingredient (API) for insulin at a significantly reduced price to EVA Pharma. Additionally, as the need for the development of novel treatments is growing, the pharmaceutical and biotechnology industry is focused on continuously innovating in this field. This is further expected to support market growth.
"Europe: The second largest region in the active pharmaceutical ingredients market."
Europe accounted for the second-largest market for active pharmaceutical ingredients market after North America. The European active pharmaceutical ingredients market has witnessed significant growth in recent years, driven by demographic changes, such as the growing incidence of chronic diseases. This is attributed to the rising geriatric population in the region. As per the European Commission, by 2025, more than 20% of Europeans are expected to be 65 years and above, with a rapid increase in the number of people aged 80 years and above, indicating strong demand growth for healthcare facilities and disease diagnostics services. This will drive pharmaceutical and biopharmaceutical clinical trial activity for novel drug discoveries and directly contribute to the growth of associated markets, such as active pharmaceutical ingredients.
This report provides a detailed picture of the active pharmaceutical ingredients market. It aims at estimating the size and future growth potential of the market across different segments such as the type, synthesis, type of drug, potency, therapeutic applications, end user and region. The report also includes an in-depth competitive analysis of the key market players along with their company profiles recent developments and key market strategies. Market evaluation framework, market share analysis, revenue analysis, company evaluation matrix for the top 32 companies, SME/start-up evaluation matrix, company footprint, competitive benchmarking of SMEs/start-ups, competitive scenario, and valuation & financial metrics of key vendors have been updated in the competitive landscape chapter of the report.
The report will help market leaders/new entrants by providing them with the closest approximations of the revenue numbers for the overall market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their business and make suitable go-to-market strategies. This report will enable stakeholders to understand the market's pulse and provide them with information on the key market drivers, restraints, opportunities, and challenges