India API Market Size was valued at USD 13.2 Billion in 2022. The API market industry is projected to grow from USD 14.32 Billion in 2023 to USD 27.506 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.50% during the forecast period (2024 - 2032). The rising cases of chronic diseases, together with the growing importance of generics, are two market drivers driving the growth of the India API industry.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The elderly population is more susceptible to chronic illnesses, including arthritis, neurological and cardiovascular conditions, and so on, because of their compromised immune systems, which is driving the market CAGR. Expanding markets are anticipated as aging affects multiple cellular processes and increases the risk of neurodegeneration. About 18,896 individuals had a Parkinson's disease screening in May of 2021. Approximately 42.3% of every 100,000 individuals had the illness. The prevalence was 308.9 per 100,000 adults over 60, according to the same source, which suggests that the frequency of the condition is rising. It follows that a greater need for different treatment drugs and therapies will likely arise due to the high incidence of Parkinson's disease among the elderly. Due to this, API demand is anticipated to rise faster than market expansion.
The increasing prevalence of chronic illnesses is expected to increase the demand for pharmaceutical treatments, which will fuel the market's growth for active pharmaceutical ingredients over the projected period. For instance, according to 2022 statistics released by IDF, over 74 million individuals in India had diabetes in 2021; by 2030, this figure is expected to rise to 92.9 million. Furthermore, a few of the strategic initiatives being implemented to maintain market stability include partnerships, acquisitions, geographical expansions, and the introduction of new pharmaceuticals and biological products. Additionally, advancements in medical technology, a rise in the quantity of public and private organizations' awareness-raising initiatives, and a rise in government funding are the elements that will propel the market for active pharmaceutical ingredients (APIs). The market for API will grow as a result of changes in lifestyle, increased levels of disposable money, and an increase in the frequency of seizures. Thus, driving the API market revenue.
The India API market segmentation, based on business mode, includes Captive API and Merchant API. The captive API segment dominated the market mostly. The availability of raw resources and the significant investments made by major participants in the industry to construct advanced manufacturing facilities are projected to drive its growth over the coming years. Additionally, it appears that important stakeholders prioritize internal manufacturing over outsourcing in light of recent events and actions.
The India API market segmentation, based on Synthesis Type, includes Synthetic and Biotech. The synthetic category generated the most income. This market is expanding since it is simple to create synthetic chemicals. Pharmaceutical businesses might find a cost-effective solution in synthetic APIs when it comes to generating pharmaceuticals in large numbers. For this reason, they are in great demand in the pharmaceutical industry. The growing demand for these components is expected to fuel the growth of the API market.
Figure 1: India API Market, by Synthesis Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India API market segmentation, based on Drug Type, includes Generic and Branded. The branded category generated the most income. Many firms are motivated to introduce novel pharmaceuticals onto the market as a result of significant R&D initiatives that concentrate on the creation of numerous creative and cost-effective goods. The manufacturing of branded API is expected to accelerate due in large part to the growing therapeutic application of innovative generation ingredients, which includes peptides and high potency chemicals.
The India API market segmentation, based on application, includes Cardiology, Oncology, Pulmonology, Neurology, Orthopedic, Ophthalmology, and Other Applications. The oncology category generated the most income. The growing number of cancer cases, more knowledge of diseases and treatments related to the early-onset cancer epidemic, and a rise in product launches are the factors driving the growth of the market. In 2020, 1,324,413 new cases of cancer were reported in India (678,383 females and 646,030 males), according to the GLOBOCAN 2020 factsheet. Therefore, the demand for developing effective medications is increased by the anticipated rise in the number of cancer patients. It is, therefore, expected that this will increase API demand and spur market expansion.
The rising frequency of infectious, genetic, cardiovascular, and other chronic conditions, the growing elderly population, the growing acceptance of biologics and biosimilars, and the country's increased manufacture of generic pharmaceuticals are all driving market expansion. In terms of volume, India's pharmaceutical sector is the world's third-largest. India maintains around 250 facilities that have been approved by the USFDA and UKMHRA, and it supplies generic drugs to millions of people around the world at low prices. Moreover, the increased prevalence of infectious, genetic, and other chronic diseases like cancer, diabetes, and neurological disorders is the primary driver of market expansion. For instance, according to IDF's 2022 statistics, over 74 million individuals in India had diabetes in 2021, with the figure expected to rise to 92.9 million by 2030. As a result of the country's high diabetic population, the company is focusing on producing innovative and safe drugs that require a large amount of API, which is driving market growth.
API Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the API market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, API industry must offer cost-effective items.
Major players in the API market are attempting to increase market demand by investing in research and development operations, including Aurobindo Pharma, Boehringer Ingelheim GmbH, Novartis AG, Lupin Ltd, BASF SE, Viatris Inc., Sanofi Inc., GlaxoSmithKline PLC, Pfizer Inc., Dr. Reddy's Laboratories Ltd, and Sun Pharmaceutical Industries Ltd.
Key Companies in the API market include
Boehringer Ingelheim GmbH
Novartis AG
Lupin Ltd
BASF SE
Sanofi Inc.
GlaxoSmithKline PLC
Pfizer Inc.
Dr. Reddy's Laboratories Ltd
Sun Pharmaceutical Industries Ltd.
API Industry Developments
July 2022:Piramal Pharma Limited's Pharma Solutions division, a leading Contract Development and Manufacturing Organization (CDMO), has established a new active pharmaceutical ingredient (API) plant at its Aurora, Ontario, location.
March 2022:India began local manufacturing of 35 active pharmaceutical components, for which the country was 90% reliant on imports from China under the production-linked incentives (PLI) system.
October 2020:PAG, a large Asia-focused private equity firm, and its partners CX Partners and Samara Capital have agreed to acquire a controlling stake in Anjan Drug Pvt. Ltd., a Chennai-based manufacturer of active pharmaceutical ingredients (API).
Captive API
Merchant API
Synthetic
Biotech
Generic
Branded
Cardiology
Oncology
Pulmonology
Neurology
Orthopedic
Ophthalmology
Other Applications
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 13.2 Billion |
| Market Size 2023 | USD 14.32 Billion |
| Market Size 2032 | USD 27.506 Billion |
| Compound Annual Growth Rate (CAGR) | 8.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Business Mode, Synthesis Type, Drug Type, and Region |
| Countries Covered | India |
| Key Companies Profiled | Aurobindo Pharma, Boehringer Ingelheim GmbH, Novartis AG, Lupin Ltd, BASF SE, Viatris Inc., Sanofi Inc., GlaxoSmithKline PLC, Pfizer Inc., Dr. Reddy's Laboratories Ltd, and Sun Pharmaceutical Industries Ltd. |
| Key Market Opportunities | Growing Generic Drug Research and Development Activities |
| Key Market Dynamics | Rising Uptake of Biosimilars and Biologicals Rising Rates of Genetic, Infectious, Cardiovascular, and Other Chronic Conditions |
Frequently Asked Questions (FAQ) :
The India API market size was valued at USD 14.32 Billion in 2023.
The market is projected to grow at a CAGR of 8.50% during the forecast period, 2024-2032.
The key players in the market are Aurobindo Pharma, Boehringer Ingelheim GmbH, Novartis AG, Lupin Ltd, BASF SE, Viatris Inc., Sanofi Inc., GlaxoSmithKline PLC, Pfizer Inc., Dr. Reddy's Laboratories Ltd, and Sun Pharmaceutical Industries Ltd.
The captive API category dominated the market in 2023.
The oncology category had the largest share in the market.
Assistant Manager He holds an experience of about 7+ years in market research and business consulting, working under the spectrum of life sciences and healthcare domains. rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. his expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. in addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives
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