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| Indian active pharmaceutical ingredients (API) market |
The Indian active pharmaceutical ingredients (API) market has witnessed
substantial growth over the past few years due to rapid growth in India's
pharmaceutical industry. APIs are used in various formulations to treat
diseases and help improve patient well-being. The Indian government has been
promoting the domestic production of APIs to reduce dependence on imports.
Increasing incidence of chronic diseases such as diabetes and growing
consumption of generics in developed markets are expected to drive the growth
of the Indian API market.
The India
Active Pharmaceutical Ingredients Market Size is estimated to be valued
at US$ 27014.17 Bn in 2024 and is expected to exhibit a CAGR of
21.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Indian active pharmaceutical ingredients (API)
market are AVL, Cummins, Inc, Johnson Matthey Battery Systems, L&T
Technology Services, Merlin Equipment Ltd., Navitas System, LLC, Nuvation
Engineering, The Ventec Company, Toshiba Corporation, TWS (Technology with
Spirit), Vecture Inc. These players are focusing on expanding their production
capacities and capabilities to cater to the growing demand.
The generic drugs market in developed nations provides significant
opportunities for Indian API manufacturers to increase their exports. India
accounts for about 30% of generic drugs exports globally and APIs exports are
expected to grow substantially in the coming years.
Indian players are actively looking to strengthen their global footprint
through acquisitions and partnerships. They are expanding their production
facilities in other markets such as Europe, the U.S., and parts of Asia to gain
access to key regulated markets and emerging economies.
Market Drivers
Rising incidence of chronic diseases such as cancer, cardiovascular diseases,
diabetes will drive the growth of pharmaceuticals industry thereby boosting
demand for APIs.
Growing focus on generics drugs due to their cost effectiveness compared to
branded drugs will propel API demand. India exports a large portion of its API
production to developed markets as generics account for over 80% of drugs
consumed.
Market Restrains
Lack of backward integration capabilities limits production of certain
sophisticated APIs due to reliance on imports for key starting materials.
Compliance requirements in regulated markets involving approvals and inspections
place additional costs and resource needs for Indian players to access
international markets.
Stringent environmental regulations lead to escalating compliance costs which
smaller players may find difficult to absorb.
India Active Pharmaceutical Ingredients Market Segment
Analysis
The API market for solid dosage forms segment dominates the India API market as
it accounted for over 60% share in 2021. This is because majority of drugs used
for chronic conditions like diabetes, cardiovascular diseases, central nervous
system disorders etc. come in solid oral dosage forms like tablets and
capsules. TheAPI marketfor injectable dosage forms is the fastest growing
segment and is expected to register a CAGR of over 21% during the forecast
period. Increasing prevalence of chronic diseases and cancer cases is driving
the growth of this segment.
Global Analysis
North America region accounted for the largest share of over 35% in the global
API market in 2021 owing to a well-established pharmaceutical industry in the
US and Canada. However, Asia Pacific region is expected to be the fastest
growing region during the forecast period due to factors such as rising
pharmaceutical production outsourcing to countries India and China, increasing
prevalence of chronic diseases, favourable government policies supporting the
pharmaceutical industry and reduced production costs. The active pharmaceutical
ingredients market in emerging economies like India and China is growing at an
exponential rate due to growing generics market in these regions.
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Active Pharmaceutical Ingredients Market