The demand within the global market for active pharmaceutical ingredients (APIs) has been rising on account of advancements in the pharmaceutical and healthcare industry. The presence of a large number of vendors who deal in active pharmaceutical ingredients (API) has resulted in a highly fragmented competitor landscape. However, the fragmented nature of the global active pharmaceutical ingredients market has not affected the competition dynamics of this market, and the leading vendors have entered a neck-and-neck face off with each other. It is projected that the leading market vendors would tie up with pharmaceutical companies in order to gain the advantages of collaborative functioning. The newbie vendors in the global market for active pharmaceutical ingredients have been making ardent efforts to enhance their growth prospects in the market. Some of the key strategies adopted by these inexperienced and amateur market vendors are strategic alliances, prototyping of successful business models, and partnership with larger players.
It is projected that the market vendors who fail to stay at par with the changing dynamics of the global market for active pharmaceutical ingredients would be acquired by the leading market players. The global market for active pharmaceutical ingredients would expand at a healthy CAGR of 6.40 percent over the period between 2017 and 2023. The net value of the market was USD 151,591.7 in 2017, and this figure is expected to escalate to USD 219,601.9 by 2023-end. On the basis of manufacturing process, captive manufacturing remains an attractive segment for the market. Based on geography, the demand for active pharmaceutical ingredients in North America has been on a rise over the past decade.
Focus on quality standards
The medical industry has been battling the prevalence of chronic diseases across the world, and this has put pressure on the pharmaceutical industry to produce drugs and medications of the highest quality. This factor has played a pivotal role in the growth of the global market for active pharmaceutical ingredients and has taken the market demand to skyrocketing levels. Furthermore, the adherence of the pharmaceutical industry to the best practices for manufacturing has also emerged as a key propeller of market demand in recent times. Besides this, the adoption of safety standards in the pharmaceutical industry has also paved wya for the growth of the global market for active pharmaceutical ingredients.
Off-patent drugs impact market growth
Several drugs produced by the pharmaceutical industry have run off-patent over the past few years, and this factor has negatively impacted the growth of the global market for active pharmaceutical ingredients. Furthermore, the pressure on the pharmaceutical industry to shorten the development time for drugs, bring down the cost of development, and adhere to quality standards without narrowing the profit margins has also been a roadblock for market growth. Nevertheless, the demand for geriatric drugs has continually escalated over the past decade, and this trend shall give a strong impetus to the growth of the global market for active pharmaceutical ingredients. – Transparency Market Research