by The Indian Active Pharmaceutical Ingredients (APIs) market offers vital intermediates and biological drugs to treat major chronic ailments such as cardiovascular diseases, diabetes, cancer and neurological disorders. APIs are the core components of any drug formulation and account for approximately 60-80% of the total drug composition. The market leaders in India such as AVL, Cummins, Inc and Johnson Matthey Battery Systems offer green synthesis pathways and continuous manufacturing techniques to produce APIs in a sustainable manner.
Indian Active Pharmaceutical Ingredients Market Size is estimated to be valued at US$ 27014.17 Bn in 2024 and is expected to exhibit a CAGR of 21.% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Indian APIs market are AVL, Cummins, Inc, Johnson Matthey Battery Systems, L&T Technology Services, Merlin Equipment Ltd., Navitas System, LLC, Nuvation Engineering, The Ventec Company, Toshiba Corporation, TWS (Technology with Spirit), Vecture Inc. Key players are investing in research and development of continuous production techniques like continuous flow chemistry and 3D bioprinting of cell cultures to meet the growing demand for APIs in a sustainable way.
The demand for Active Pharmaceutical Ingredients in India is growing rapidly owing to increasing prevalence of chronic ailments and rising healthcare expenditure. As per estimates, chronic diseases account for 60% of total deaths in India. Growing aging population and adoption of sedentary lifestyles has been supplementing the occurrence of cardiovascular diseases, diabetes and cancer in India.
Indian companies are expanding globally to cater to the rising demand for more affordable generic drugs outside India. Major Indian pharmaceutical companies like Aurobindo Pharma, Sun Pharma and Dr. Reddy’s Labs have established manufacturing facilities in regions like North America, Europe, Russia and Africa. This is helping them reduce costs and compete more effectively in global bulk drugs markets.
Market Key Trends
One of the key trends gaining traction in the Indian APIs market is the shift towards sustainable production methods. Stringent environmental regulations regarding waste emissions and growing emphasis on reducing carbon footprint is prompting leading API manufacturers to adopt green chemistry principles. Companies are increasingly investing in continuous flow technologies for synthesizing APIs as they offer superior atom efficiency, enhanced selectivity and ability to conduct safe organic reactions. This transitions the market from traditional batch manufacturing to continuous sustainable production routes.
Porter’s Analysis
Threat of new entrants: API manufacturing requires high capital investments and establishing manufacturing facilities, regulatory approvals and certifications which create entry barriers.
Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power over API manufacturers due to their buying volumes and ability to negotiate lower prices.
Bargaining power of suppliers: API manufacturers source raw materials from global suppliers. Suppliers have some bargaining power due to niche expertise but are dependent on API companies for sales.
Threat of new substitutes: APIs have limited substitutes and manufacturing process complexities create high switching costs limiting threat of substitutes.
Competitive rivalry: India has a large number of API manufacturers. Intense competition on pricing and quality keeps rivalry high in the domestic as well as international generics market.
Geographical Regions
North America currently accounts for the largest share of the global API market driven by large pharmaceutical industry presence and rising generic drugs market in the US.
Asia Pacific region is expected to be the fastest growing market during the forecast period due to expanding pharmaceutical manufacturing capabilities in majorAsian economies like India and China which are leading API export hubs catering to global demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
