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API Market Size Worth $268.12 Billion By 2026 | CAGR: 6.8%: Grand View Research, Inc.
SAN FRANCISCO, April 2, 2019 /PRNewswire/ -- The global active pharmaceutical ingredient (API) market size is expected to reach at USD 268.12 billion by 2026 registering a CAGR of 6.8%, according to a new report by Grand View Research, Inc. Rising trend of outsourcing APIs and growing prevalence of various target diseases, such as cancer, Cardiovascular Disease (CVDs) are anticipated to boost the market. Huge capital is required in API production as the process needs extremely systematic protocols. Pharmaceutical companies can actually benefit from outsourcing API production, as it eliminates the need for installing expensive manufacturing units. Moreover, strategic outsourcing enables companies to focus on their core competencies, ultimately resulting in increased productivity. These factors are also estimated to drive the demand in future.
Key suggestions from the report:
- Synthetic APIs held the largest share of the API market in 2018 owing to easy availability of raw materials and easier protocols for synthesis of these molecules
- Biotech APIs are estimated to register the highest CAGR over the forecast years due to rising demand for biopharmaceuticals and higher efficiency of these molecules
- Captive manufacturers led the market owing to intensive capitalization of major key players in development of high-end manufacturing facilities
- Merchant manufacturers segment is expected to be the fastest-growing segment over the forecast period
- Generic APIs are expected to register a lucrative CAGR over the forecast period on account of factors, such as expiration of patents of branded drugs and lower cost
- Cardiology segment led the overall market in 2018. Increasing prevalence of target diseases worldwide and high demand for fast-acting drugs are some of the key factors responsible for the segment growth
- North America held the largest market share in 2018. Asia Pacific is estimated to be the fastest-growing region expanding at a CAGR of 8.2% over the estimated period
- Some of the major companies in the market are Teva Pharmaceutical Industries Ltd.; AbbVie Inc.; Boehringer Ingelheim International GmbH; Cipla Inc.; Merck & Co., Inc.; Bristol-Myers Squibb Company; Albemarle Corporation; Mylan N.V.; Aurobindo Pharma; Sun Pharmaceutical Industries Ltd.; and Dr. Reddy's Laboratories Ltd.
Read 120 page research report with TOC on "Active Pharmaceutical Ingredient (API) Market Size, Share & Trends Analysis Report By Type of Synthesis (Biotech, Synthetic), By Type of Manufacturer (Captive, Merchant), By Application, By Region, And Segment Forecasts, 2019 - 2026" at: https://www.grandviewresearch.com/industry-analysis/active-pharmaceutical-ingredients-market
Growing geriatric population across the globe is also likely to contribute to the market expansion. Estimates published by the WHO suggest that the global base of population pertaining to the age group of 65 years and above is expected to rise from 7% in 2000 to 16% in 2050. Latin America, in particular, is projected to witness fastest growth, in terms of geriatric population, followed by Asia (66%), Africa (64%), North America (41%), and Europe (23%). Patent expiration of blockbuster drugs, growing outsourcing activities due to high manufacturing costs, and stringent regulations for API production are expected to intensify the market competition. As part of strategic geographic expansion, many companies are setting up manufacturing plants in the developing regions like Asia Pacific.
Grand View Research has segmented the global Active Pharmaceutical Ingredient (API) market on the basis of type of synthesis, type of manufacturer, type, application, and region:
- API Type of Synthesis Outlook (Revenue, USD Billion, 2014 - 2026)
- Monoclonal Antibodies
- Recombinant Proteins
- API Type of Manufacturer Outlook (Revenue, USD Billion, 2014 - 2026)
- API Type Outlook (Revenue, USD Billion, 2014 - 2026)
- API Application Outlook (Revenue, USD Billion, 2014 - 2026)
- CNS & Neurology
- API Regional Outlook (Revenue, USD Billion, 2014 - 2026)
- North America
- Asia Pacific
- South Korea
- Latin America
- South Africa
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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