Report: API market size worth $239.8B by 2025
The global active pharmaceutical ingredients (API) market is expected to reach a value of $239.8 billion by 2025, based on a new report by Grand View Research. The rising prevalence of lifestyle-induced & age-related diseases and cancer is projected to drive the market over the forecast period. Advancements in recombinant molecular technologies and high capitalization for development of novel drugs are also estimated to boost growth.
Favorable government initiatives for increasing focus toward generic drugs is a key factor for market growth. Decrease in generic drug prices, higher acceptance in low income and decrease in reimbursement for branded drugs are the recent trends in the market affirming growth of generic drugs.
Further key findings from the study suggest:
- Synthetic APIs was the largest segment by revenue share in 2015 owing to high demand.
- Biotech APIs are estimated to grow lucratively over the forecast period with high R&D initiatives being undertaken for their development
- Captive manufacturers, being the conventional option of API manufacturing, held the majority of the share.
- On the other hand, the merchant manufacturers segment is expected to be fastest-growing due to growing outsourcing activities
- Generic APIs will experience lucrative growth over the forecast period attributed to patent expirations of branded drugs
- APIs are identified to have highest application in cardiovascular therapeutics. Increasing mortality caused by heart diseases and growing demand for fast-acting drugs are the major factors contributing to dominance
- North America dominated in terms of revenue share in 2015 and Asia Pacific is expected to grow at a significant growth rate over the forecast period
- Some of the major companies in the API market are AbbVie, Boehringer Ingelheim, Cipla and Merck & Co.