Active Pharmaceutical Ingredient Market Estimated To Register 6.4% CAGR By 2028

Active Pharmaceutical Ingredients (API) is commonly referred as ‘Drug substance" or ‘Bulk pharmaceutical chemical'. Active ingredient is the substance which is biologically active in pharmaceutical drug. Active Pharmaceutical Ingredients (API) of good quality are core to the manufacturing of effective and safe essential drugs. Initially only limited number of large manufacturers of finished pharmaceutical products have their own API manufacturing plants. The majority of manufacturers used to buy all APIs from the open market.

The global active pharmaceutical ingredient market is projected to value at approximately US$ 1.5 Bn in 2019, and is expected to register a CAGR of over 6.4%. The first five-year cumulative revenue (2018–2023) is projected to be over US$ 9.0 Bn, which is expected to increase considerably over the latter part of the five-year forecast period.

An increasing number of FDA approvals regarding new molecular entities, many large-scale manufacturers and providers are focusing on better API production, most of the key generic drug manufacturing firms have their captive API manufacturing facility and API Equipment are this is a trend that witnessed in the global market. Furthermore, the expiration of patents for branded highly prescribed drugs will continue to impact health care spending as many lower-cost generics are now entering to participate in the pharmaceutical market and lower down the costs.

Afterward, these patents miss coverage, there will be a necessity to produce these drugs in a low-cost manner in order to keep its price competitive. In addition, this, in turn, will generate an opportunity for various nations, that are low-cost manufacturing centers across the world.

Technological innovation and advancements in recent few years for API's manufacturing process and equipment have allowed more prompt and rapid treatment done by healthcare providers.

On the other hand, stringent regulations and rules set by several drug administrative organizations, inappropriate drugs, and cost control policies around various nations coupled with huge competition are some challenges that are expected to hinder the growth of global active pharmaceutical ingredients(API) market.

Active Pharmaceutical Ingredient Market

Global Active Pharmaceutical Ingredient Market: Market Forecast

The comprehensive research report comprises a complete forecast of the global Active Pharmaceutical Ingredient market based on factors affecting the market and their impact in the foreseeable future. According to the forecast projections, revenue from the global Active Pharmaceutical Ingredient market is expected to expand at a CAGR of 6.4% over the forecast period.

Global Active Pharmaceutical Ingredient Market: Segmental Snapshot

The global active pharmaceutical ingredient market has been segmented on the basis of manufacturing process, API type, drug type, therapeutic area, and region. The manufacturing process segment includes captive manufacturing and contract manufacturing. The API type segment includes synthetic API and biological API. The drug type segment includes prescription drugs and OTC drugs. The therapeutic area segment includes communicable diseases, oncology, ophthalmology, cardiovascular diseases, diabetes, respiratory diseases, and other. The regions covered in the analysis includes North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

By Manufacturing Process: The captive manufacturing segment accounted for highest revenue share contribution as compared to other segment. The contract manufacturing segment is expected to register a CAGR of over 6.4% between 2018 and 2028.

By API Type: The synthetic API segment accounted for highest revenue share contribution as compared to other API type segment. The biological API segment is expected to register a CAGR of over 6.8% between 2018 and 2028.

By Drug Type: The prescription drugs segment accounted for highest revenue share contribution as compared to other drug type segment, and is expected to register a CAGR of over 6.3% between 2018 and 2028.

By Therapeutic Area: The cardiovascular diseases segment accounted for highest revenue share contribution as compared to other therapeutic area segment. The oncology segment is expected to register a CAGR of over 6.9% between 2018 and 2028.

By Region: The market in Asia Pacific accounted for highest revenue share in the global Active Pharmaceutical Ingredient (API) market in 2019, and is expected to register a CAGR of over 6.6% between 2018 and 2028.

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