North america leading the market for active pharmaceutical ingredients (api) contract manufacturing owing to technical enhancements
Contract manufacturing is the process in which a manufacturer works in coordination with the companies for component manufacturing. Active pharmaceutical ingredient (API) contract manufacturing is 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 attributed by the availability of skilled labor at affordable cost, favorable government policies, and tax benefits.
The calm access to resources and the advanced products is a remarkable factor driving the global API contract manufacturing market, during the future years. The presence of cheap labor across the emerging nations and the demand to accelerate the drug discovery process are also estimated to be the major factor fuelling the API contract manufacturing market. The technological advancements and the limited time-to-market process are also estimated to offer major growth opportunities to this market during the future years.
According to the report, the emerging countries such as Latin America, Asia-Pacific, and Middle East & Africa are estimated to register rapid growth during the future years. As per the report, the developed regions namely, North America and Europe are estimated tocommand the major share of the global market, during the forecast period. Factors contributing to the market leadership of North American region are high demand for novel bio-generic drugs, enhanced technical innovations leading to proliferation in the novel APIs production, and limited production cost of APIs.
The APAC region is analyzed to grow at a swift pace in the upcoming years owing to availability of skilled labor at an economic cost, tax advantages, and suitable government policies. Also, it has become an experienced market region pertaining to outsourcing API manufacture as large numbers of international companies are increasingly outsourcing API manufacturing to this region. India and China are anticipated to become the most attractiveoutsourcing markets for contract manufacturing, due the higher costs associated with APIs manufacture in Western nations.
The major factors responsible for the market growth of API contract manufacturing market includeless investment costs pertaining to the cheap labor availability in various Asian economies, new technological developments in the market, and improved utilization of resources. Also, therising focus on core activities, requirement toramp-up the drug development process and reduction in time-to-market will provide major growth opportunities in this market.
The dominant players present in the global API contract manufacturing market include Ranbaxy Laboratories Ltd., AstraZeneca, 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.