The global Active Pharmaceutical Ingredient (API) market size was valued at $134.2 billion in 2015, and according to Million Insights, it will increase to a value of $239.8B with CAGR of 6.0% by 2025.

Million Insights says that overall drivers of this growth include the rising prevalence of chronic diseases, rising demand of efficient and rapid acting drugs, and introduction of innovative drug production facilities. They also broke down the market into segments and further analyzed the growth potential for each. 

To classify synthesis type, the market is categorized into synthetic and biotech. In 2015, the synthetic segment held the largest share. According to Million Insights, key factors for the biotech APIs segment growth are large R&D investment for new biosimilars, increasing demand for protein-based medicines, and rising focus of key manufacturers toward biological drugs.

The type of manufacturer is categorized into outsourced or merchant or in-house or captive APIs. According to market estimates, in 2015, in-house APIs was the largest segment and outsourced APIs are anticipated to be the fastest growing market.

In 2015, the API market was dominated by the North America and is anticipated to retain its position in upcoming years due to certain government initiatives for generic drug usage, rising R&D expenditure, and technological advancements in the drug manufacturing practices.

Read Million Insights’ full 95 page report by clicking here.