Active Pharmaceutical Ingredient (API) Market By Type of Synthesis (Biotechnological. Synthetic, Semi-Synthetic), By Application Area (Cardiovascular system, Oncology, CNS & Neurological system, Orthopaedic, Endocrinology, Pulmonology, Gastrointestinal system, Nephrology system, Ophthalmology, Others) and Geography


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Active Pharmaceutical Ingredient (API) Market size was valued at USD 191.3 billion in 2022 and is poised to grow at a CAGR of 6.1% from 2023-29. Factors such as increased drug R&D, the rising incidence of chronic diseases, the growing importance of generics, and the rising consumption of biopharmaceuticals are all driving market expansion. Unfavorable medicine price control rules in several countries, as well as high production costs, are projected to limit the market's expansion. Government regulations that encourage API development, as well as changes in geopolitical situations, are propelling the market forward. The API market is facing significant changes as a result of COVID-19's supply chain disruption. Due to geopolitical circumstances and a desire to lessen reliance on China for API products, countries such as India are being favoured over China for API export. Active pharmaceutical ingredient (API) is a part of the drug that produces a pharmacological effect. Some drugs such as combination therapy have multiple active pharmaceutical ingredients (API) to treat different symptoms in different ways. API's provide health benefits and play a vital role in prevention, treatment and diagnosis. Active Pharmaceutical ingredients may synthesize by a chemical process, biotechnological process, and various other processes. Active pharmaceutical ingredients used for making the wide range of drugs that used to treat chronic diseases such as cancer, metabolic disorders, cardiovascular disorders, and neurological disorders, and others. Some market players manufacture their own API and others buy from other API manufacturing companies to make drug formulations. Active pharmaceutical ingredient (API) market is driven by various factors such as the increase in the incidence of chronic diseases, and penetration of healthcare systems in underdeveloped countries increased the consumption of drugs are expected to fuel the growth of API market. Furthermore, a surge in healthcare spending, development of healthcare infrastructure around the world enables boost the active pharmaceutical ingredients market growth. However, unfavourable drug pricing policies in some countries and stringent regulatory requirements are hampering the Active Pharmaceutical Ingredient (API) Market.

Active Pharmaceutical Ingredient (API) Market Key Developments:
  • In June 2017, Bristol-Myers Squibb Company signed a definitive purchase agreement to divest its small-molecule active pharmaceutical ingredient (API) production facility in Ireland, to South Korean firm SK BIOTEK CO. LTD.
  • In November 2014, US-based AbbVie has acquired a small molecule active pharmaceutical ingredient (API) manufacturing site in Tuas Biomedical Park, Singapore, to expand global operations of small molecule and biologics manufacturing.

Global Active Pharmaceutical Ingredient Api Market Summary

Study Period


Base Year




Largest Market

North America

Fastest Growing Market

Asia Pacific
Active Pharmaceutical Ingredient (API) Market Dynamics

Active Pharmaceutical Ingredient Market is witnessing robust growth rate over the forecast period. Globally API market is highly fragmented with many players. Market players are banking on mergers and acquisitions to expand their manufacturing capabilities, geographical expansions and to increase the market share. In September 2015, Sun Pharmaceuticals acquired GlaxoSmithKline?s (GSK?s) opiates business in Australia, to strengthen its active pharmaceutical ingredients (API) and analgesic drug segments. In July 2014, Hospira acquired API manufacturing facility and an associated R&D facility from Orchid Chemicals & Pharmaceuticals, an Indian pharmaceuticals company. This acquisition enables Hospira to vertically integrate into the beta-lactam antibiotic APIs. Furthermore, contract API manufacturing is growing at a significant rate owing to the low cost of manufacturing. New treatments for various diseases are expected to spur the demand for active pharmaceutical ingredients (API) across the globe.

Key Features of the Reports

  • The active pharmaceutical ingredient market report provides granular level information about the market size, regional market share, historic market (2018 to 2022) and forecast (2023 to 2029)
  • The report covers in-detail insights about the competitor’s overview, company share analysis, key market developments, and their key strategies
  • The report outlines drivers, restraints, unmet needs, and trends that are currently affecting the market
  • The report tracks recent innovations, key developments and startup’s details that are actively working in the market
  • The report provides plethora of information about market entry strategies, regulatory framework and reimbursement scenario
  • The report analyses the impact of socio-political environment through PESTLE Analysis and competition through Porter’s Five Force Analysis in addition to recent technology advancements and innovations in the market

Global Active Pharmaceutical Ingredient Api Market Segmentation

By Type Of Synthesis
  • Biotechnological
  • Synthetic
  • Semi-Synthetic
By Application Area
  • Cardiovascular system
  • Oncology
  • CNS & Neurological system
  • Orthopaedic
  • Endocrinology
  • Pulmonology
  • Gastrointestinal system
  • Nephrology system
  • Ophthalmology
  • Others
By Geography
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa (MEA)

Frequently Asked Questions

The active pharmaceutical ingredient market size was valued at USD 191.3 billion in 2022

Pfizer, Sanofi, Lonza Group, Novartis, GlaxoSmithKline, Catalent

North America is the fastest-growing region for the active pharmaceutical ingredient market

  • Pfizer, Inc. (U.S.),
  • Sanofi (France),
  • Lonza Group (Switzerland),
  • Boehringer Ingelheim (Germany),
  • Novartis AG (Switzerland),
  • GlaxoSmithKline plc (U.K.),
  • Bristol-Myers Squibb (U.S.),
  • Zhejiang Hisun Pharmaceutical Co., Ltd. (China),
  • Aenova Group GmbH (Germany),
  • Catalent, Inc. (U.S.),
  • Teva Pharmaceutical Industries Ltd., (Israel)
  • Aurobindo Pharma Limited (India),
  • Eli Lilly and Company (U.S.),
  • AbbVie Inc. (U.S.).,
  • Merck & Co., Inc. (U.S.) .