Active Pharmaceutical Ingredients Market Analysis Report By Type Of Synthesis, By Type Of Manufacturer, By Type, By Application, By Region And Segment Forecasts From 2021 To 2028

Report ID: MN17612961  |  Published: April 2021  |  No of Pages: 191
Format: Electronic (PDF)  |  Industry: Pharmaceuticals


In connection with the report published, the global active pharmaceutical ingredients market was prized by USD 187.76 billion in 2020. It is estimated to witness a 6.6% CAGR from 2021 to 2028.


The development can be credited to the progressions in the manufacturing of active pharmaceutical ingredients (API) plus the increasing occurrences of chronic sicknesses, for example, cancer and cardiovascular illness. Encouraging policies, adopted by the government for the manufacturing of active pharmaceutical ingredients, together with the transformations in geopolitical conditions, are the factors, increasing the enlargement of the active pharmaceutical ingredients market.


The active pharmaceutical ingredients are, as well utilized in the role of Antibody Drug Conjugates (ADCs). Antibody Drug Conjugates are vital and effective cure modalities, utilized in grouping with biologically effective medicines and monoclonal antibodies for cancer. Active pharmaceutical ingredients efficiently mark cancer cells, even as creating the smallest amount of contact of the medicines with to the healthy tissues. Therefore, the progress of cancer-specific active pharmaceutical ingredients is estimated to increase the expansion of the market.

Effect of Covid-19

As a result of the substantial lockdown in China, scarcity of active pharmaceutical ingredients is experienced globally, by the pharmaceutical manufacturing companies. The deficit in the supply has generated a shortage of many medicines all over the world.

Application Insight

The cardiovascular diseases section held a 21.3% revenue share, in 2020. This is credited to the rising global occurrences of the targeted illness. A variety of associations like the Stroke Association, the World Heart Federation, and the World Stroke Organization, are functioning in the direction of increasing wakefulness regarding cardiovascular ailment. Greater occurrences and rising alertness regarding cardiovascular diseases are expected to force the subdivision, during the period of the forecast. As a result, inspiring demand for the active pharmaceutical ingredient for cardiology medicines.

Oncology is estimated to be the speedily developing application section, by means of 8.9% CAGR above the forecast period. The rising frequency of cancer and altering standards of living are the factors, inspiring the active pharmaceutical ingredients (API) market.

The growing occurrences of additional sicknesses such as macular degeneration and diabetic retinopathy are, furthermore pushing the demand for extremely efficient as well as price-effective medicines. This is estimated to increase the demand for, together active pharmaceutical ingredients and generic medications.

Type Insight

In 2020, the section of innovative active pharmaceutical ingredients retained the leading share, it was 65.03%. This enlargement is accredited to rising R&D projects for the development of new medicines along with positive policies by the government. On account of wide-ranging research in this subject, a lot of inventive products are, at the moment in the development stage, and are likely to be instigated during the forecast period. Fresh contestants, in this section, are anticipated to impel the progress of the active pharmaceutical ingredients market.

The patent ending of branded molecules is an important reason, which can be credited to the productive development of generic active pharmaceutical ingredient medicines. The generic medicine market is expected to show a lofty speed of enlargement, in the nations, similar to India and Brazil, due to excessive unmet medical requirements and approval of OTC medicines.

Type of Manufacturer Insight

Due to the trouble-free availability of the raw materials and broad investment by the leading companies, to upgrade the high-end amenities for the manufacturing, the section of captive active pharmaceutical ingredients is expected to rise by a considerable speed, during the approaching years. It was accounted for the 59.87% revenue share, in 2020. In addition, the latest developments and proposals by the crucial companies indicate that they are extremely focused on internal manufacturing, more than outsourcing.

Top biopharmaceutical companies are accountable for sizeable enlargement, in the outsourcing section. Besides, the lesser costs of manufacturing in the nations like China and India create them a well-liked option for the companies, searching for the outsourcing of their active pharmaceutical ingredient manufacturing. Outsourcing of the production, to the emergent nations, is a lucrative measure that permits these companies to increase their profit margins, as a result, speeding up the progress of the segment.

Type of Synthesis Insight

In 2020, the synthetic active pharmaceutical ingredient sector held the major revenue share, it was 72.89%. This is credited to the availability of the raw materials in greater quantity and easier procedures for the mixture of these molecules. As well, several synthetic molecules are estimated to expire their patented period, during the near future. This is expected to increase the development of the section.


The biotech sector is projected to increase by 7.8% CAGR, during the period of the forecast. The reasons like a growing requirement for biopharmaceuticals and greater effectiveness of these molecules are the factors, powering this sector. Additionally, the expansion of the biotech section can be credited to greater funds in the biopharmaceutical and biotechnology divisions.

Regional Insight

Asia Pacific is expected to display the 7.8% CAGR, for the duration of the forecast. The existence of the nations like India and China, on which the world depends for the manufacture of active pharmaceutical ingredients, at a lesser price, is a benefit for the state. Rising expenses on healthcare, within the region, are expected to power the progress of the active pharmaceutical ingredients market.

In 2020, North America held the major revenue share; it was 39.5% and is estimated to retain its lead, during the period of the forecast. This is accredited to the increasing epidemiology of cancer, together with additional lifestyle stimulated sicknesses, therefore supporting the R&D actions, in this manner increasing the expansion of the market.

Europe is anticipated to observe major enlargement during the period of the forecast. An enhancement in funds for research and the local existence of major companies of the market, within this region, is estimated to impel the market.


The active pharmaceutical ingredient market functions with great complications. The termination of the patents for the best-seller medicines, growing outsourcing actions, caused by high-pitched costs of the manufacturing and strict rules on the manufacture of active pharmaceutical ingredients, are estimated to retain the spirited competition at an elevated level, for the duration of the forecast. The existence of well-known companies in this marketplace considerably reduces the openings for a fresh entrant into the market, since it is hard to go with the needs of high-pitched capital.

Some of the companies for active pharmaceutical ingredients market are:

    • Dr. Reddy’s Laboratories Ltd.
    • Aurobindo Pharma
    • Albemarle Corporation
    • Cipla, Inc.
    • Bristol-Myers Squibb Company
    • Merck & Co., Inc.
    • Sun Pharmaceutical Industries Ltd.
    • Viatris Inc.
    • Teva Pharmaceutical Industries Ltd.
    • Boehringer Ingelheim International GmbH
    • AbbVie, Inc.

Report Scope 

Report Attribute


The market size value in 2021

USD 205.60 billion

The revenue forecast in 2028

USD 312.56 billion

Growth Rate

CAGR of 6.6% from 2021 to 2028

The base year for estimation


Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type of synthesis, type of manufacturer, type, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; Russia; China; India; Japan; South Korea; Australia; Brazil; Argentina; Mexico; South Africa; UAE; Saudi Arabia

Key companies profiled

Merck & Co., Inc.; AbbVie, Inc.; Bristol-Myers Squibb Company; Boehringer Ingelheim International GmbH; Teva Pharmaceutical Industries Ltd.; Cipla, Inc.; Albemarle Corporation; Viatris Inc.; Aurobindo Pharma; Sun Pharmaceutical Industries Ltd.; Dr. Reddy’s Laboratories Ltd.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global active pharmaceutical ingredients market report on the basis of the type of synthesis, type of manufacturer, type, application, and region:

• Type of Synthesis Outlook (Revenue, USD Billion, 2017 - 2028)
    • Biotech
        • Monoclonal Antibodies
        • Recombinant Proteins
        • Vaccines
    • Synthetic

• Type of Manufacturer Outlook (Revenue, USD Billion, 2017 - 2028)
    • Captive APIs
    • Merchant APIs

• Type Outlook (Revenue, USD Billion, 2017 - 2028)
    • Generic APIs
    • Innovative APIs

• Application Outlook (Revenue, USD Billion, 2017 - 2028)
    • Cardiovascular Diseases
    • Oncology
    • CNS and Neurology
    • Orthopedic
    • Endocrinology
    • Pulmonology
    • Gastroenterology
    • Nephrology
    • Ophthalmology
    • Others

Active Pharmaceutical Ingredient Regional Outlook (Revenue, USD Billion, 2017 - 2028)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
        • Italy
        • Spain
        • Russia
    • The Asia Pacific
        • Japan
        • China
        • India
        • South Korea
        • Australia
    • Latin America
        • Brazil
        • Mexico
        • Argentina
    • Middle East & Africa
        • South Africa
        • UAE
        • Saudi Arabia

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