The global active pharmaceutical ingredient market size was US$ 179.0 billion in 2021. The global active pharmaceutical ingredient market size is forecast to reach US$ 322.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.9% during the forecast period from 2022 to 2030.

APIs (active pharmaceutical ingredients) are the components of pharmaceutical medicine that have the desired impact on the body in order to treat a condition. Chemical substances are processed to create APIs. The active ingredient of a biological medicine refers to a bulk process intermediate (BPI). APIs are of two types: synthetic and natural. It entails a sequence of processes, such as synthesis, to produce a certain chemical structural transformation from simple-looking molecules. The high temperature and pressure control procedures of the reactions utilized in the formulations of these APIs, which contain extremely flammable raw chemicals, make it a complicated and dangerous process.

Factors Influencing Market Growth

The growing research and development activities for drug manufacturing, the rising importance of generics, and the increase in uptake of biopharmaceuticals drive the global active pharmaceutical ingredients market.
Adverse drug price management policies and increased manufacturing costs in various countries may slow down the overall market growth.
Growing production of biosimilars, which are generic versions of patented drugs (and thus dont face the same severity in regulations), is forecast to offer lucrative opportunities for the global active pharmaceutical ingredients (API) market.
Impact Analysis of COVID-19

The COVID-19 pandemic had a positive impact on the global market. In order to treat the symptoms and numerous health conditions that a COVID-19 patient may have, such as high fever, cough, and cold, a variety of medications are employed, resulting in the pharmaceutical industry being the epicenter of the pandemic. As a result, the active pharmaceutical ingredients (API) market has grown during the COVID-19 pandemic.

Regional Insights

The Asia Pacific region is forecast to have lucrative growth in the market during the forecast period. As a result of the advances in active pharmaceutical ingredient (API) manufacturing, the rising biopharmaceutical sector, and the growing geriatric population. In addition, the government of India is bringing initiatives to boost biopharmaceutical products in the market, which will be advantageous for the market growth in the region. For example, the Department of Biotechnology (DBT) and Biotechnology Industry Research Assistance Council (BIRAC) brings various initiatives to encourage research and expansion activities in biotechnology-based drugs.

Leading Competitors

The leading prominent companies profiled in the global active pharmaceutical ingredient market are:

Aurobindo Pharma
Pfizer Inc.
Novartis AG
BASF SE
Boehringer Ingelheim GmbH
Dr. Reddys Laboratories Ltd
Teva Pharmaceutical Industries Ltd
Lupin Ltd.
Viatris
Sun Pharmaceutical Industries Ltd.
Other Prominent Players
Scope of the Report

The global active pharmaceutical ingredient market segmentation focuses on Business Mode, Synthesis Type, Type, Application, and Region.

Segmentation based on Business Mode

Captive API
Merchant API
Segmentation based on Synthesis Type

Synthetic
Biotech
Segmentation based on Type

Generic
Branded
Segmentation based on Application

Cardiology
Pulmonology
Oncology
Ophthalmology
Neurology
Orthopedic
Other Applications
Segmentation based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America