Active Pharmaceutical Ingredients Market boosted by pharma partnerships

The global active pharmaceutical ingredients (API) market size was estimated at USD 255.00 billion in 2024 and is projected to reach USD 359.45 billion by 2030, expanding at a CAGR of 5.8% from 2025 to 2030. Market growth is largely driven by rising global demand for pharmaceutical drugs, particularly in emerging economies, alongside the increasing burden of chronic diseases such as cancer, diabetes, and cardiovascular disorders.

Advancements in biologics, biosimilars, and innovative drug formulations are further fueling the demand for specialized APIs. Additionally, the continual shift toward generic medicines and the rapid expansion of contract manufacturing organizations (CMOs) are significantly contributing to API production and distribution efficiency.

Key Market Trends & Insights

• North America dominated the API market with a 38.04% revenue share in 2024.
• Asia Pacific is expected to register the fastest CAGR during the forecast period.
• Based on type of synthesis, the synthetic API segment accounted for 71.08% revenue share in 2024.
• Based on type, the innovative APIs segment led with 63.20% revenue share in 2024.
• Based on application, the cardiology segment held the largest share at 21.14% in 2024.

Market Size & Forecast

• 2024 Market Size: USD 255.00 Billion
• 2030 Projected Market Size: USD 359.45 Billion
• CAGR (2025–2030): 5.8%
• North America: Largest regional market
• Asia Pacific: Fastest-growing region

Order a free sample PDF of the Active Pharmaceutical Ingredients Market Intelligence Study, published by Grand View Research.

Competitive Landscape & Company Insights

The active pharmaceutical ingredients market is highly competitive, with a mix of multinational pharmaceutical giants and specialized API manufacturers. Industry players emphasize innovation, stringent quality standards, and regulatory compliance to strengthen their positioning. Strategic alliances, mergers, and acquisitions remain key approaches for expanding product portfolios and increasing market presence.

The growth of biotechnology firms is intensifying competition, especially within the biotech API segment. Regional manufacturers are also gaining traction by leveraging cost-effective production and local market expertise. Furthermore, upcoming pipeline products, patent expirations of blockbuster drugs, increased outsourcing due to high manufacturing costs, and strict regulatory frameworks are expected to maintain strong competitive rivalry throughout the forecast period.

Key Active Pharmaceutical Ingredients Companies

• Reddy’s Laboratories Ltd.
• Sun Pharmaceutical Industries Ltd.
• Teva Pharmaceutical Industries Ltd.
• Cipla Inc.
• AbbVie Inc.
• Aurobindo Pharma
• Sandoz International GmbH (Novartis AG)
• Viatris Inc.
• Fresenius Kabi AG
• STADA Arzneimittel AG

Conclusion

The global active pharmaceutical ingredients market is poised for steady growth, driven by the expanding burden of chronic diseases, increased adoption of biologics and biosimilars, and rising demand for generic drugs. The strong presence of CMOs, technological advancements, and higher regulatory compliance standards are shaping the industry's evolution. With rapid growth in Asia Pacific and ongoing innovation from major players, the API market is expected to remain dynamic and competitive in the coming years.

Explore Horizon Databook – The world’s most expansive market intelligence platform developed by Grand View Research.