Active Pharmaceutical Ingredients (api) Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Active Pharmaceutical Ingredients (API) Market is Segmented by Business Mode (Captive API and Merchant API), Synthesis Type (Synthetic and Biotech), Type of Drug (Generic and Branded), Application (Cardiology, Pulmonology, Oncology, Ophthalmology, Neurology, Orthopedic, and Other Applications), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The Report Also Covers the Estimated Market Sizes and Trends for 17 Different Countries Across Major Regions, Globally. The Report Offers the Value (in USD) for the Above Segments.

Active Pharmaceutical Ingredients (api) Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Active Pharmaceutical Ingredients (API) Market Size

Active Pharmaceutical Ingredients (API) Market Summary
Study Period 2021 - 2030
Market Size (2025) USD 232.13 Billion
Market Size (2030) USD 328.94 Billion
CAGR (2025 - 2030) 7.22 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration High

Major Players

Active Pharmaceutical Ingredients (API) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Active Pharmaceutical Ingredients (API) Market Analysis

The Active Pharmaceutical Ingredients Market size is estimated at USD 232.13 billion in 2025, and is expected to reach USD 328.94 billion by 2030, at a CAGR of 7.22% during the forecast period (2025-2030).

Factors such as the increasing prevalence of infectious, genetic, cardiovascular, and other chronic disorders, the increasing adoption of biologics and biosimilars, rising prevalence of cancer, and growing sophistication in oncology drug research are expected to boost the Active Pharmaceutical Ingredients market trends and growth over the forecast period.

The increasing prevalence and burden of chronic diseases, infectious diseases, and genetic disorders worldwide are driving the demand for effective and safe drugs, which in turn increases the demand for the API industry across the globe. For instance, according to the 2022 statistics published by the International Diabetes Federation (IDF), diabetic cases are projected to reach 643 million and 784 million by 2030 and 2045, respectively. Additionally, in December 2023, the Australian Bureau of Statistics reported that around 1.3 million people in Australia had diabetes in 2022, which accounted for 5.3% of the population. Therefore, high blood sugar caused by diabetes can damage the nerves that control the heart and blood vessels, leading to a variety of cardiovascular diseases like coronary artery disease and stroke, which can narrow the arteries and necessitate the administration of drugs, propelling the growth of the API market.

Additionally, the increasing development and clinical trials of biosimilar and biologic drugs for new therapeutic classes urge companies to adopt strategic initiatives for manufacturing and developing APIs, which is expected to contribute to Active Pharmaceutical Ingredients market growth. For instance, in September 2022, CuraTeQ Biologics, a wholly owned subsidiary of Aurobindo Pharma, invested approximately INR 300 (USD 3.82) crore in the capacity expansion of biologics manufacturing facilities. In addition, the company received approval to enter Active Pharmaceutical Ingredient (API) contract manufacturing operations for biologicals. Similarly, in September 2022, Novartis invested USD 300 million to increase its production and development capabilities for biological drugs. Such investments in improving biologic manufacturing and rising biologic approvals are anticipated to increase its adoption, which in turn is expected to increase the demand for APIs, boosting the API manufacturing market globally.

Therefore, owing to the high burden of diabetes among the population and growing company activities to increase the development of biologics and biosimilar drugs, the studied market is expected to grow over the forecast period. However, the drug price control policies across various countries, high competition among Active Pharmaceutical Ingredient manufacturers, and stringent regulation are expected to impede the growth of the API industry over the forecast period.

Active Pharmaceutical Ingredients (API) Industry Overview

The Active Pharmaceutical Ingredients (API) market is fragmented in nature due to the presence of various companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international Active Pharmaceutical Ingredient companies as well as local companies that hold market shares and are well-known, including Pfizer Inc., BASF SE, Viatris Inc., Merck KGaA, and Teva Pharmaceutical Industries Ltd., among others.

Active Pharmaceutical Ingredients (API) Market Leaders

  1. Teva Pharmaceutical Industries Ltd

  2. Pfizer Inc.

  3. Merck KGaA

  4. BASF SE

  5. Viatris, Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Active Pharmaceutical Ingredients (API) Market Concentration
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Active Pharmaceutical Ingredients (API) Market News

  • April 2023: Aurobindo Pharma approved the transfer of two API units (Unit V and XVII) to its wholly-owned subsidiary Apitoria Pharma Private Limited.
  • January 2023: Novartis sold its active pharmaceutical ingredient (API) manufacturing facility in Ringaskiddy, Ireland, to Sterling Pharma Solutions. Under the terms of the agreement, Novartis continues to manufacture several APIs for cardiovascular, immunology, and oncology medicines at Ringaskiddy.

Active Pharmaceutical Ingredients (API) Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increasing Prevalence of Infectious, Genetic, Cardiovascular, and Other Chronic Disorders
    • 4.2.2 Increasing Adoption of Biologicals and Biosimilars
    • 4.2.3 Rising Prevalence of Cancer and Increasing Sophistication in Oncology Drug Research
  • 4.3 Market Restraints
    • 4.3.1 Drug Price Control Policies across Various Countries
    • 4.3.2 High Competition between API Manufacturers
    • 4.3.3 Stringent Regulations
  • 4.4 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.4.1 Threat of New Entrants
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Bargaining Power of Suppliers
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size by Value - USD)

  • 5.1 By Business Mode
    • 5.1.1 Captive API
    • 5.1.2 Merchant API
  • 5.2 By Synthesis Type
    • 5.2.1 Synthetic
    • 5.2.2 Biotech
  • 5.3 By Type of Drug
    • 5.3.1 Generic
    • 5.3.2 Branded
  • 5.4 By Application
    • 5.4.1 Cardiology
    • 5.4.2 Pulmonology
    • 5.4.3 Oncology
    • 5.4.4 Ophthalmology
    • 5.4.5 Neurology
    • 5.4.6 Orthopedic
    • 5.4.7 Other Applications
  • 5.5 Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 Europe
    • 5.5.2.1 Germany
    • 5.5.2.2 United Kingdom
    • 5.5.2.3 France
    • 5.5.2.4 Italy
    • 5.5.2.5 Spain
    • 5.5.2.6 Rest of Europe
    • 5.5.3 Asia-Pacific
    • 5.5.3.1 China
    • 5.5.3.2 Japan
    • 5.5.3.3 India
    • 5.5.3.4 Australia
    • 5.5.3.5 South Korea
    • 5.5.3.6 Rest of Asia-Pacific
    • 5.5.4 Middle East and Africa
    • 5.5.4.1 GCC
    • 5.5.4.2 South Africa
    • 5.5.4.3 Rest of Middle East and Africa
    • 5.5.5 South America
    • 5.5.5.1 Brazil
    • 5.5.5.2 Argentina
    • 5.5.5.3 Rest of South America

6. COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 Aurobindo Pharma
    • 6.1.2 Teva Pharmaceutical Industries Ltd
    • 6.1.3 Pfizer Inc.
    • 6.1.4 Novartis AG
    • 6.1.5 BASF SE
    • 6.1.6 Merck KGaA
    • 6.1.7 Dr. Reddy's Laboratories Ltd
    • 6.1.8 Lupin Ltd
    • 6.1.9 Viatris Inc.
    • 6.1.10 Sun Pharmaceutical Industries Ltd
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape Covers- Business Overview, Financials, Products and Strategies and Recent Developments
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Active Pharmaceutical Ingredients (API) Industry Segmentation

As per the scope of the report, an active pharmaceutical ingredient (API) is a part of any drug that produces its effects. Some drugs, such as combination therapies, have multiple active ingredients to treat different symptoms or act in different ways.

The active pharmaceutical ingredients (API) market is segmented by business mode into captive API and merchant API, by synthesis type, the market is bifurcated into synthetic and biotech, based on the type of drug the market is segregatted into generic and branded, based on the application the market is classified into cardiology, pulmonology, oncology, ophthalmology, neurology, orthopedic, and other applications, and by geography the market is divided inot North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (in USD) for the above segments.

By Business Mode Captive API
Merchant API
By Synthesis Type Synthetic
Biotech
By Type of Drug Generic
Branded
By Application Cardiology
Pulmonology
Oncology
Ophthalmology
Neurology
Orthopedic
Other Applications
Geography North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa GCC
South Africa
Rest of Middle East and Africa
South America Brazil
Argentina
Rest of South America
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Active Pharmaceutical Ingredients (API) Market Research FAQs

How big is the Active Pharmaceutical Ingredients Market?

The Active Pharmaceutical Ingredients Market size is expected to reach USD 232.13 billion in 2025 and grow at a CAGR of 7.22% to reach USD 328.94 billion by 2030.

What is the current Active Pharmaceutical Ingredients Market size?

In 2025, the Active Pharmaceutical Ingredients Market size is expected to reach USD 232.13 billion.

Who are the key players in Active Pharmaceutical Ingredients Market?

Teva Pharmaceutical Industries Ltd, Pfizer Inc., Merck KGaA, BASF SE and Viatris, Inc. are the major companies operating in the Active Pharmaceutical Ingredients Market.

Which is the fastest growing region in Active Pharmaceutical Ingredients Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Active Pharmaceutical Ingredients Market?

In 2025, the North America accounts for the largest market share in Active Pharmaceutical Ingredients Market.

What years does this Active Pharmaceutical Ingredients Market cover, and what was the market size in 2024?

In 2024, the Active Pharmaceutical Ingredients Market size was estimated at USD 215.37 billion. The report covers the Active Pharmaceutical Ingredients Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Active Pharmaceutical Ingredients Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Active Pharmaceutical Ingredients (API) Industry Report

The Global Active Pharmaceutical Ingredients (API) Market is segmented by business mode, synthesis type, type of drug, and application across various regions globally. The market data indicates significant growth in the industry, driven by key market trends and market value. The market size is estimated in various regions, including North America, Europe, Asia-Pacific, Middle East and Africa, and South America.

The industry analysis highlights the importance of synthetic and biotech APIs, with a focus on both generic and branded drugs. Market segmentation covers applications in cardiology, pulmonology, oncology, ophthalmology, neurology, orthopedic, and other applications. The market forecast predicts continued expansion, supported by market leaders and a favorable market outlook.

Industry reports and industry research provide in-depth insights into market growth and market predictions. The industry trends suggest a robust market overview with a positive growth rate. The market review emphasizes the role of innovative active pharmaceutical ingredients and generic innovative active pharmaceutical ingredients.

Industry statistics and industry size underscore the importance of understanding market dynamics. The report example and report pdf offer comprehensive details, while research companies contribute valuable industry information. The market's industry outlook remains optimistic, driven by strong industry sales and market growth.