Global Report of Active pharmaceutical ingredient (API) market Size, Dynamics, Regional Share, Trends, Competitor Analysis 2013-2016 and Forecast 2017-2024

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Global Report of Active pharmaceutical ingredient (API) market Size, Dynamics, Regional Share, Trends, Competitor Analysis 2013-2016 and Forecast 2017-2024


The rising growth of Active pharmaceutical ingredient (API) market

Active pharmaceutical ingredient (API) is a part of the drug that produces a pharmacological effect. API’s provide health benefits and play a vital role in prevention, treatment and diagnosis of a disease. APIs can be synthesized by a chemical, biotechnological or various other processes. APIs are used for making the wide range of drugs that are used in the treatment of chronic diseases such as cancer, metabolic disorders, CVS disorders, and neurological disorders, and others.


Active pharmaceutical ingredient (API) market is compelled by various factors such as increased incidence of chronic diseases, and gateway for healthcare systems in underdeveloped countries, increased the consumption of drugs, etc. are expected to fuel the growth of API market. Moreover, a surge in healthcare spending, development of healthcare infrastructure across the globe enables the growth of APIs market. However, unfriendly drug pricing policies in some countries and strict regulatory requirements are hampering the API market.


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The API market has been categorized on the basis of-

1.      Type of synthesis

·         Biotechnological

·         Synthetic

·         Semi-Synthetic

2.     Application area

·         Cardiovascular system

·         Oncology

·         CNS & Neurological system

·         Orthopedic

·         Endocrinology

·         Pulmonology

·         Gastrointestinal system

·         Nephrology system

·         Ophthalmology

·         Others


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And lastly on the basis of geographical regions, the global API market is segmented into five major regions- North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America holds major share due to a rising demand for the API in drug formulations. While Asia-Pacific is expected to grow owing to many manufacturers and favorable government policies. Also, Europe API market is expected to grow at a significant rate owing to manufacturers prioritizing high-quality standards, advanced manufacturing installations, and high purity of intermediates.


Some of the important players in API market are Pfizer, Inc. (U.S.), Sanofi (France), Lonza Group (Switzerland), Boehringer Ingelheim (Germany), Novartis AG (Switzerland), GlaxoSmithKline plc (U.K.), Bristol-Myers Squibb (U.S.), Zhejiang Hisun Pharmaceutical Co., Ltd. (China), Aenova Group GmbH (Germany), Catalent, Inc. (U.S.), Teva Pharmaceutical Industries Ltd., (Israel) Aurobindo Pharma Limited (India), Eli Lilly and Company (U.S.), AbbVie Inc. (U.S.).,  and Merck & Co., Inc. (U.S.) to name a few. In 2017, Bristol-Myers Squibb Company signed a definitive purchase agreement to divest its small-molecule active pharmaceutical ingredient (API) production facility in Ireland, to South Korean firm SK BIOTEK CO. LTD.


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Market players are banking on mergers and acquisitions to expand their manufacturing capabilities, geographical expansions and to increase the market share. In 2015, Sun Pharmaceuticals acquired GlaxoSmithKline’s (GSK’s) opiates business in Australia, to strengthen its active pharmaceutical ingredients (API) and analgesic drug segments. While in 2014, Hospira acquired API manufacturing facility and an associated R&D facility from Orchid Chemicals & Pharmaceuticals, an Indian Pharmaceuticals company. This acquisition enables Hospira to vertically integrate into the beta-lactam antibiotic APIs. Thus, these demands for APIs across the globe will increase the market share.


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