Contract manufacturing is the process where manufacturer engages into an agreement with the companies for component or product manufacturing. Active pharmaceutical ingredient (API) contract manufacturing refers to the development of pharmaceutical drugs through contract manufacturing by outsourcing to other companies. The market for API contract manufacturing is expected to witness increased demand in coming years owing to the availability of skilled labor at economic cost, suitable government policies, and tax advantages.
The objective of this study is to outline the market trends and market revenue forecasts for the global API contract manufacturing market for the future years. The report emphasizes on outlining and describing the major factors influencing the growth of global API contract manufacturing market. It provides an analysis of market size, different geographic regions, market segments, market share, key players, and premium industry trends. The report identifies the major market events including product launches, mergers & acquisitions, technological developments, and advanced business strategies chosen by key market players. Along with strategically analyzing key micro markets, the report also concentrates on various drivers, opportunities, restraints, and challenges present in the API contract manufacturing market. The market research report encompasses the API contract manufacturing market by its major segments, which include segmentation by type, synthesis, therapeutic area, drug type, and major geographic regions.
On the basis of geography, North America is the market leader in API contract manufacturing market. The U.S. contributes around one-fifth of the world’s market share. Some of the factors driving the growth of API contract manufacturing market include enhanced technical innovations leading to proliferation in novel APIs production, high demand for novel bio-generic drugs and limited production cost of APIs. The Asia-Pacific market is evolving and is ranked among the most attractive API contract manufacturing markets. Owing to the high costs of APIs production in Western Countries, India and China have become most preferred regions for outsourcing of contract manufacturing. These countries are ranked among the most stable democracies and are gifted with advanced technologies. Also, it has become an experienced market region for outsourcing API contract manufacturing as large number of international companies are outsourcing API manufacturing to this region. Also, this region possesses a large technical manpower and is further developing owing to technological developments, which will further boost the market growth.
As per BoehringerIngelheim GmbH, nations such as India and China, which currently supply over half of APIs utilized in the U.S., will command more than 80% share in the upcoming years. Some of the leading players in global API contract manufacturing market include Ranbaxy Laboratories Ltd., AstraZeneca Plc, Teva Pharmaceuticals Industries Ltd, Merck & Co., Inc., Dr. Reddy's Laboratories Ltd, BoehringerIngelhein GmbH, Novartis AG, Sun Pharmaceutical Industries Ltd., Piramal Pharma Solutions, Sandoz-Lek-Biochemie, GlaxoSmithKline Pharmaceuticals Ltd. and others.
The presence of low cost labor in emerging countries, easy availability of resources, and access to the advanced technologies are the major factors driving the API contract manufacturing market. Factors providing remarkable growth opportunities for the API contract manufacturing market in the future include rising need to concentrate on the core activities and to accelerate the drug development processes. Apart from that, a substantial reduction in time-to-market process will provide major growth opportunities in the market.