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In terms of therapeutic category, the active pharmaceutical ingredients market is categorized into cardiovascular diseases, biologics, oncology, anti-diabetics, infectious diseases, CNS & anesthesia, and others. The oncology segment held 27% market share in 2022 and is likely to progress at 7.5% CAGR from 2023 to 2032. The increased occurrence of cancer and advancements in medical diagnostics, therapies, and medications created with cutting-edge active pharmaceutical ingredients are fueling the use of APIs for oncology. Novel advancements in the space are as well influencing the segment trends.
With respect to synthesis, the active pharmaceutical ingredients market is divided into chemical-based API, biological API, and highly potent API (HPAPI). The HPAPI segment is poised to depict 5.5% CAGR between 2023 and 2032. The high tolerability of HPAPI make them highly preferrable for oral formulations and increasing the life expectancy of cancer patients. Some CMOs are also making continuous investments in large-scale production capacity in countries including India due to the continuing trend of highly potent APIs for drugs.
Based on contract outsourcing, the active pharmaceutical ingredients market is classified into CDMO and CMO. The CMO (contract manufacturing organization) segment is slated to garner more than USD 263.5 billion revenue by 2032. The growing involvement of international authorities in outsourcing the pharmaceutical production process is accelerating the segment growth. In October 2022, Outsourcing Facilities Association (OFA) inked a settlement agreement with U.S. FDA to accelerate the review of long-pending API contracts for outsourcing facilities for bulk production.
From drug point of view, the API market is bifurcated into prescription and OTC. The prescription segment is projected to expand at over 7% CAGR from 2023 to 2032. This is attributed to the growing demand for telehealth and E-prescription API platforms for chronic diseases such as oncology, diabetes, and cardiovascular diseases among others that require a prescription for availing the drug. Rising launch of novel platforms would support the market expansion.
In terms of application, the active pharmaceutical ingredients market is segregated into humans and veterinary. The API industry size from human segment is expected to cross USD 381 billion by 2032. The rising number of pharmaceutical R&D initiatives is primed to drive the production of APIs for humans. For instance, in October 2021, Cortex Innovation, a leading key player, unveiled its new API R&D center to improve its drug portfolio in the U.S. Moreover, the development of novel medications that address unmet medical needs is also benefitting research-based pharmaceutical and biotechnology companies.
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Europe active pharmaceutical ingredients market is foreseen to reach over USD 119.5 billion by 2032. The growing trend of new high-tech therapies, development of novel and inventive delivery systems, and the evolution of personalized medications are all contributing to the burgeoning penetration of API manufacturers in the region. For instance, in January 2021, Sanofi, an active pharmaceutical ingredients manufacturer, unveiled EuroAPI, a European standalone API company, to support the rising regional market demand.