Reports
Reports
Sale
The North America active pharmaceutical ingredients market was valued at USD 68.3 billion in 2023, driven by the growing demand for pharmaceuticals and the rising advancements in API manufacturing processes in the region. The market is expected to grow at a CAGR of 3.60% during the forecast period of 2024-2032, with the values likely to reach USD 93.9 billion by 2032.
Active pharmaceutical ingredient (API) is defined as the biologically active constituent of a drug product that delivers the desired therapeutic effect. APIs can be produced synthetically through chemical processes or can be biologically derived via biotechnological methods. In North America, the rising burden of chronic diseases, the increasing advancements in API production, and the growth of the generic drug sector are significantly contributing to the expansion of the global active pharmaceutical ingredients (API) market. The outsourcing of API production is a major market trend that helps pharmaceutical companies reduce manufacturing costs and focus more on their core competencies. Additionally, factors such as the rise in strategic partnerships among pharma companies, increasing investment in research and development, and the presence of a positive regulatory environment are shaping the market landscape in North America.
Substantial Investment in API Production to Meet Rising Market Demand
In May 2024, pharmaceutical giant Eli Lilly and Company announced a USD 5.3 billion investment in its manufacturing site in Lebanon (Indiana, United States) to boost the production capacity of active pharmaceutical ingredients (APIs). The investment was intended particularly for its type 2 diabetes and obesity drugs, namely, Mounjaro® (tirzepatide) injection and Zepbound® (tirzepatide) injection. This major investment is reported as the largest manufacturing investment in the company’s history and the biggest synthetic medicine API manufacturing investment in the United States' history. Such significant financial commitments by the key market players to expand the API manufacturing capacity and capabilities are anticipated to propel the market growth in the forecast period.
The market is witnessing several trends and developments to improve the current scenario in North America. Some of the notable trends are as follows:
Increase in Generic Drug Production
The market is impacted by the rising patent expiration of branded drugs which has led to a surge in generic drug production. This increase in generic drug manufacturing impacts the demand for generic active pharmaceutical ingredients, thereby boosting market growth.
Advancements in API Manufacturing
One of the major market trends is the rising technological advancements in API manufacturing. The adoption of continuous manufacturing processes has resulted in improved efficiency and a reduction in API production costs. Moreover, innovations such as automation, digitalization, and advanced analytics, are enhancing API production processes and quality control, which is likely to augment North America active pharmaceutical ingredients market demand.
Shift Towards Contract Development and Manufacturing Organizations (CDMOs)
The market is influenced by the growing outsourcing trends, with many pharmaceutical companies increasingly seeking contract development and manufacturing organizations' services for API production. This is leading to the capacity expansion of CDMOs, which is projected to elevate the market value in the coming years.
Rising Healthcare Expenditure
The market is benefitting from the rising government spending on healthcare and pharmaceuticals which drives growth and innovation in the market. Additionally, the pharmaceutical and API manufacturing sectors are increasingly attracting fundings from private investors, which is projected to support market expansion.
Market Breakup by Drug Type
Market Breakup by Type of Manufacturer
Market Breakup by Type of Synthesis
Market Breakup by Application
Market Breakup by Country
Market Segmentation Based on Type of Synthesis is Anticipated to Witness Substantial Growth
Based on the type of synthesis, the market is segmented into synthetic active pharmaceutical ingredients and biotech active pharmaceutical ingredients. Synthetic APIs are chemically synthesized through various chemical processes whereas biotech APIs are derived from biological sources through certain biotechnological processes. The synthetic APIs segment covers a major market share owing to its cost-effectiveness compared to biotech APIs as well as high scalability which allows their mass production. The rising advancements in chemical synthesis technologies and their widespread use in various therapeutic areas also aid in the segment's growth.
Based on the region, the United States covers the largest share of the active pharmaceutical ingredient market in North America. The market share can be attributed to its advanced pharmaceutical sector and a supportive regulatory framework. The presence of leading biotech companies and research institutions involved in the development of new therapies in the region further bolsters the market demand for high-quality APIs.
Canada also contributes significantly to the North America active pharmaceutical ingredients market growth. With the pharmaceutical infrastructure witnessing continuous expansion in the region, the demand for APIs is expected to surge in the coming years. Additionally, increased focus on domestic production of APIs is likely to influence market dynamics in the Canadian market.
The key features of the market report comprise the patent analysis, funding and investment analysis, and strategic initiatives by the leading key players. The major companies in the market are as follows:
AbbVie Inc.
Headquartered in North Chicago (Illinois), AbbVie Inc. is a global biopharmaceutical company that is known for its significant investment in R&D to enhance its active pharmaceutical ingredient offerings in the fields of oncology, immunology, and virology, among others.
Bristol-Myers Squibb Company
Leading biopharmaceutical company Bristol-Myers Squibb leverages its advanced research facilities to develop high-quality active pharmaceutical ingredients (APIs) and is recognized for its pipeline of drugs in oncology, cardiovascular diseases, and immunology.
Merck & Co., Inc.
New Jersey-based Merck & Co., Inc. is a multinational pharmaceutical company that offers small molecule API process development and manufacturing services. It provides APIs across various therapeutic areas including vaccines and infectious diseases.
Eli Lilly and Company
American pharmaceutical firm Eli Lilly and Company has a robust presence in the market and is actively engaged in efforts to enhance its API development and production capabilities. The company has made substantial investments in synthetic medicine active pharmaceutical ingredient (API) manufacturing to boost its production capacity.
Other key players in the market include Sandoz, Biospectra, Sun Pharmaceuticals Ltd., Mylan, Dr. Reddy’s Laboratories, and Aurobindo Pharma.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2017-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
Breakup by Drug Type |
|
Breakup by Type of Manufacturer |
|
Breakup by Type of Synthesis |
|
Breakup by Application |
|
Breakup by Region |
|
Market Dynamics |
|
Supplier Landscape |
|
Companies Covered |
|
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.
1 Preface
1.1 Objectives of the Study
1.2 Key Assumptions
1.3 Report Coverage – Key Segmentation and Scope
1.4 Research Methodology
2 Executive Summary
3 Active Pharmaceutical Ingredients Market Overview
3.1 Global Active Pharmaceutical Ingredients Market
3.1.1 Global Active Pharmaceutical Ingredients Market Historical Value (2017-2023)
3.1.2 Global Active Pharmaceutical Ingredients Market Forecast Value (2024-2032)
3.2 North America Active Pharmaceutical Ingredients Market
3.2.1 North America Active Pharmaceutical Ingredients Market Historical Value (2017-2023)
3.2.2 North America Active Pharmaceutical Ingredients Market Forecast Value (2024-2032)
4 Vendor Positioning Analysis
4.1 Key Vendors
4.2 Prospective Leaders
4.3 Niche Leaders
4.4 Disruptors
5 North America Active Pharmaceutical Ingredients Market Landscape*
5.1 North America Active Pharmaceutical Ingredients Market: Developers Landscape
5.1.1 Analysis by Year of Establishment
5.1.2 Analysis by Company Size
5.1.3 Analysis by Region
5.2 North America Active Pharmaceutical Ingredients Market: Product Landscape
5.2.1 Analysis by Drug Type
5.2.2 Analysis by Type of Synthesis
5.2.3 Analysis by Type of Application
6 North America Active Pharmaceutical Ingredients Market Dynamics
6.1 Market Drivers and Constraints
6.2 SWOT Analysis
6.2.1 Strengths
6.2.2 Weaknesses
6.2.3 Opportunities
6.2.4 Threats
6.3 PESTEL Analysis
6.3.1 Political
6.3.2 Economic
6.3.3 Social
6.3.4 Technological
6.3.5 Legal
6.3.6 Environment
6.4 Porter’s Five Forces Model
6.4.1 Bargaining Power of Suppliers
6.4.2 Bargaining Power of Buyers
6.4.3 Threat of New Entrants
6.4.4 Threat of Substitutes
6.4.5 Degree of Rivalry
6.5 Key Demand Indicators
6.6 Key Price Indicators
6.7 Industry Events, Initiatives, and Trends
6.8 Value Chain Analysis
7 North America Active Pharmaceutical Ingredients Market Segmentation (2017-2032)
7.1 North America Active Pharmaceutical Ingredients Market (2017-2032) by Drug Type
7.1.1 Market Overview
7.1.2 Innovative Active Pharmaceutical Ingredients (API)
7.1.3 Generic Active Pharmaceutical Ingredients (API)
7.2 North America Active Pharmaceutical Ingredients Market (2017-2032) by Type of Manufacturer
7.2.1 Market Overview
7.2.2 Captive Manufacturers
7.2.3 Merchant API Manufacturers
7.3 North America Active Pharmaceutical Ingredients Market (2017-2032) by Type of Synthesis
7.3.1 Market Overview
7.3.2 Synthetic Active Pharmaceutical Ingredients (API)
7.3.3 Biotech Active Pharmaceutical Ingredients (API)
7.4 North America Active Pharmaceutical Ingredients Market (2017-2032) by Application
7.4.1 Market Overview
7.4.2 Communicable Disease
7.4.3 CNS & Neurology
7.4.4 Oncology
7.4.5 Endocrinology
7.4.6 Gastroenterology
7.4.7 Other Therapeutic Application
7.5 North America Active Pharmaceutical Ingredients Market (2017-2032) by Country
7.5.1 Market Overview
7.5.2 United States
7.5.3 Canada
8 United States Active Pharmaceutical Ingredients Market (2017-2032)
8.1 United States Active Pharmaceutical Ingredients Market (2017-2032) by Drug Type
8.1.1 Market Overview
8.1.2 Innovative Active Pharmaceutical Ingredients (API)
8.1.3 Generic Active Pharmaceutical Ingredients (API)
8.2 United States Active Pharmaceutical Ingredients Market (2017-2032) by Type of Manufacturer
8.2.1 Market Overview
8.2.2 Captive Manufacturers
8.2.3 Merchant API Manufacturers
8.3 United States Active Pharmaceutical Ingredients Market (2017-2032) by Type of Synthesis
8.3.1 Market Overview
8.3.2 Synthetic Active Pharmaceutical Ingredients (API)
8.3.3 Biotech Active Pharmaceutical Ingredients (API)
8.4 United States Active Pharmaceutical Ingredients Market (2017-2032) by Application
8.4.1 Market Overview
8.4.2 Communicable Disease
8.4.3 CNS & Neurology
8.4.4 Oncology
8.4.5 Endocrinology
8.4.6 Gastroenterology
8.4.7 Other Therapeutic Application
9 Canada Active Pharmaceutical Ingredients Market (2017-2032)
9.1 Canada Active Pharmaceutical Ingredients Market (2017-2032) by Drug Type
9.1.1 Market Overview
9.1.2 Innovative Active Pharmaceutical Ingredients (API)
9.1.3 Generic Active Pharmaceutical Ingredients (API)
9.2 Canada Active Pharmaceutical Ingredients Market (2017-2032) by Type of Manufacturer
9.2.1 Market Overview
9.2.2 Captive Manufacturers
9.2.3 Merchant API Manufacturers
9.3 Canada Active Pharmaceutical Ingredients Market (2017-2032) by Type of Synthesis
9.3.1 Market Overview
9.3.2 Synthetic Active Pharmaceutical Ingredients (API)
9.3.3 Biotech Active Pharmaceutical Ingredients (API)
9.4 Canada Active Pharmaceutical Ingredients Market (2017-2032) by Application
9.4.1 Market Overview
9.4.2 Communicable Disease
9.4.3 CNS & Neurology
9.4.4 Oncology
9.4.5 Endocrinology
9.4.6 Gastroenterology
9.4.7 Other Therapeutic Application
10 Regulatory Framework
11 Patent Analysis
11.1 Analysis by Type of Patent
11.2 Analysis by Publication Year
11.3 Analysis by Issuing Authority
11.4 Analysis by Patent Age
11.5 Analysis by CPC Analysis
11.6 Analysis by Patent Valuation
11.7 Analysis by Key Players
12 Funding and Investment Analysis
12.1 Analysis by Funding Instances
12.2 Analysis by Type of Funding
12.3 Analysis by Funding Amount
12.4 Analysis by Leading Players
12.5 Analysis by Leading Investors
12.6 Analysis by Geography
13 Strategic Initiatives
13.1 Analysis by Partnership Instances
13.2 Analysis by Type of Partnership
13.3 Analysis by Leading Players
13.4 Analysis by Geography
14 Supplier Landscape
14.1 Market Share by Top 5 Companies
14.2 AbbVie Inc.
14.2.1 Financial Analysis
14.2.2 Product Portfolio
14.2.3 Demographic Reach and Achievements
14.2.4 Company News and Development
14.2.5 Certifications
14.3 Bristol-Myers Squibb Company
14.3.1 Financial Analysis
14.3.2 Product Portfolio
14.3.3 Demographic Reach and Achievements
14.3.4 Company News and Development
14.3.5 Certifications
14.4 Merck & Co., Inc.
14.4.1 Financial Analysis
14.4.2 Product Portfolio
14.4.3 Demographic Reach and Achievements
14.4.4 Company News and Development
14.4.5 Certifications
14.5 Eli Lilly and Company
14.5.1 Financial Analysis
14.5.2 Product Portfolio
14.5.3 Demographic Reach and Achievements
14.5.4 Company News and Development
14.5.5 Certifications
14.6 Sandoz
14.6.1 Financial Analysis
14.6.2 Product Portfolio
14.6.3 Demographic Reach and Achievements
14.6.4 Company News and Development
14.6.5 Certifications
14.7 Biospectra
14.7.1 Financial Analysis
14.7.2 Product Portfolio
14.7.3 Demographic Reach and Achievements
14.7.4 Company News and Development
14.7.5 Certifications
14.8 Sun Pharmaceuticals Industries Ltd.
14.8.1 Financial Analysis
14.8.2 Product Portfolio
14.8.3 Demographic Reach and Achievements
14.8.4 Company News and Development
14.8.5 Certifications
14.9 Mylan
14.9.1 Financial Analysis
14.9.2 Product Portfolio
14.9.3 Demographic Reach and Achievements
14.9.4 Company News and Development
14.9.5 Certifications
14.10 Dr. Reddy’s Laboratories
14.10.1 Financial Analysis
14.10.2 Product Portfolio
14.10.3 Demographic
14.10.4 Company News and Development
14.10.5 Certifications
14.11 Aurobindo Pharma
14.11.1 Financial Analysis
14.11.2 Product Portfolio
14.11.3 Demographic Reach and Achievements
14.11.4 Company News and Development
14.11.5 Certifications
15 North America Active Pharmaceutical Ingredients Market – Distribution Model (Additional Insight)
15.1 Overview
15.2 Potential Distributors
15.3 Key Parameters for Distribution Partner Assessment
16 Key Opinion Leaders (KOL) Insights (Additional Insight)
*Additional insights provided are customisable as per client requirements.
* The coverage of the Market Landscape section depends on the data availability and may cover a minimum of 80% of the total market. The EMR team strives to make this section as comprehensive as possible.
**The supplier list is not exhaustive. Moreover, we can provide analysis of companies as per custom requests.
Datasheet
Single User License
Five User License
Corporate License
Any Question? Speak With An Analyst
View A Sample
Did You Miss Anything, Ask Now
Right People
We are technically excellent, strategic, practical, experienced and efficient; our analysts are hand-picked based on having the right attributes to work successfully and execute projects based on your expectations.
Right Methodology
We leverage our cutting-edge technology, our access to trusted databases, and our knowledge of the current models used in the market to deliver you research solutions that are tailored to your needs and put you ahead of the curve.
Right Price
We deliver in-depth and superior quality research in prices that are reasonable, unmatchable, and shows our understanding of your resource structure. We, additionally, offer attractive discounts on our upcoming reports.
Right Support
Our team of expert analysts are at your beck and call to deliver you optimum results that are customised to meet your precise needs within the specified timeframe and help you form a better understanding of the industry.