The global active pharmaceutical ingredient (API) market is estimated to garner robust revenue by the end of 2031 by growing at a CAGR of ~7% over the forecast period, i.e., 2022 – 2031. Further, the market generated substantial revenue in the year 2021. The growth of the market can primarily be attributed to the higher prevalence of chronic diseases across the globe. The prevalence of chronic diseases is so high that nearly 40 million people lose their lives annually, out of which, about 15 million of them are classified as premature.
Active pharmaceutical ingredients, also known as bulk drugs, are utilized by doctors and consumers to acquire the intended result. global active pharmaceutical ingredient (API) market trends such as rising demand for personalized medicine and outbreak of COVID-19 are estimated to fuel the growth of the market over the forecast period. As of August 2022, around 6000 million cases of COVID-19 were noticed across the globe, meanwhile, 60 million people died due to COVID-19 in a similar duration. Hence all these factors are anticipated to influence the growth of the market positively over the forecast period.
Escalating Geriatric Population- Data provided by the World Bank showed that there were 747,238,580 people aged 65 and above in 2021. People of elderly age are more likely to get sick or acquire chronic diseases since the body becomes weak with the passing of time. Geriatrics are more dependent on medicines than adults. Hence, this factor is projected to hike the growth of the market over the forecast period.
Spiking Cases of Medication Errors- U.S. FDA stated in 2019, that it receives over 100,000 reports of medication errors annually. Additionally, over 6 million patients in the USA get affected by some sort of medication error every year.
Higher Utilization of APIs to Treat Diabetes- A report published by the International Diabetes Federation (IDF) estimated the number of people living with diabetes to reach 643 million by 2030.
Spiking Prevalence of Cardiovascular Diseases- Cardiovascular diseases are very prevalent worldwide, for instance, approximately 18 million people die annually due to some sort of cardiovascular disease.
Increasing Healthcare Expenditure Per Capita 32- The global healthcare expenditure is projected to rise Y-O-Y reaching about 1100 U.S. dollars per capita in 2019.
The global active pharmaceutical ingredient (API) market is segmented and analyzed for demand and supply by application into cardiology, oncology, pulmonology, neurology, ophthalmology, and others. Amongst these segments, cardiology is anticipated to obtain the largest market share during the forecast period. The growth of the segment is ascribed to the higher prevalence of heart diseases. For instance, approximately 600,000 people die due to heart diseases per year solely in the USA.
According to the statistics by the World Health Organization, the global per capita healthcare expenditure amounted to USD 1,064.741 in the year 2017. The worldwide healthcare expenditure per person grew from USD 864.313 in 2008 to USD 1,110.841 in 2018, where the U.S. is the top country that amounted to healthcare expenditure of USD 10, 623.85 per capita in 2018. As of 2018, the domestic general government healthcare spending in the U.S. was USD 5355.79, which grew from USD 3515.82 in 2008. These are some of the factors responsible for market growth over the past few years. Moreover, as per the projections by the Centers for Medicare & Medicaid Services (CMS), the estimated average annual percent change related to National Health Expenditures (NHE) in the U.S. was 5.2% in 2020 as compared to 2019 (4.5%). Furthermore, the National Health Expenditures are projected to reach USD 6,192.5 Billion in 2028, where the per capita expenditure is estimated to touch USD 17,611 in the same year. These are notable indicators that are anticipated to create lucrative business opportunities in upcoming years.
Regionally, the global active pharmaceutical ingredient (API) market is studied into five major regions including North America, Europe, Asia Pacific, Latin America, and Middle East & Africa region. Amongst these markets, the market in the North America region is projected to hold the largest market share by the end of 2031. The growth of the market in the region can be accounted to the higher prevalence of cardiovascular diseases. Data provided by the Centers for Disease Control and Prevention it was stated that every 34 seconds, 1 person dies due to cardiovascular diseases in the USA while in 2020, 697,000 lost their lives due to a similar reason. Furthermore, recent policies of the USA government and rising healthcare infrastructure in the region are also anticipated to propel the growth of the market over the forecast period.
The global active pharmaceutical ingredient (API) market is further classified on the basis of region as follows:
Our in-depth analysis of the global active pharmaceutical ingredient (API) market includes the following segments:
By API Type
By Synthesis Type
FREQUENTLY ASKED QUESTIONS
the higher prevalence of chronic diseases across the globe and spiking cases of medication errors are estimated to majorly boost the market growth.
The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2022 – 2031.
Higher price associated with the manufacturing process and possibilities of side effects is estimated to challenge the market growth.
The market in North America is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
The major players in the market are Pfizer Inc., Abbott Laboratories, AbbVie Inc., Mylan N.V., GSK plc, Eli Lilli and Company, Sun Pharmaceutical Industries Ltd., Novartis AG, and Merck & Co. Inc.
The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
The market is segmented by API type, synthesis type, application, by region.
The cardiology segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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