- The global Indian Active Pharmaceutical Ingredients (API) market is estimated to be valued at US$19,993.2 million in 2021 and is expected to exhibit a CAGR of 8.3% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Indian API market has been experiencing significant growth in recent years. This growth can be attributed to several factors such as the increasing demand for generic drugs, advancements in manufacturing technologies, a favorable regulatory environment, and low production costs. Moreover, the COVID-19 pandemic has further boosted the market due to the surge in demand for API-based drugs and vaccines. However, the market also faces challenges such as stringent regulatory standards and increasing competition from other emerging markets.
Market Key Trends:
One of the key trends observed in the Indian API market is the growing focus on research and development (R&D). Companies are investing heavily in R&D activities to develop innovative and cost-effective API manufacturing processes. For instance, Teva Pharmaceutical Industries Ltd., a leading player in the market, invests a significant portion of its revenue in R&D to develop new drug formulations and technologies.
Segment Analysis:
The Indian API market is segmented based on the type of API. Among these segments, generic APIs dominate the market. Generic APIs are widely used due to their cost-effectiveness and comparable quality to branded APIs. Aurobindo Pharma Limited is one of the key players in this segment, offering a wide range of generic APIs. Another segment that holds a significant share in the market is specialty APIs. These APIs are highly complex and require specialized manufacturing capabilities. Dr. Reddy’s Laboratories is a prominent player in this segment, known for its expertise in developing and manufacturing specialty APIs.
Key Takeaways:
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The global Indian API market is expected to witness high growth, exhibiting a CAGR of 8.3% over the forecast period. The increasing demand for generic drugs, advancements in manufacturing technologies, and low production costs are the key drivers for this growth. Additionally, the Indian API market is expected to benefit from the surge in demand for API-based drugs and vaccines due to the COVID-19 pandemic.
In terms of regional analysis, India is the fastest-growing and dominating region in the global API market. The country has a strong presence of leading pharmaceutical companies with advanced manufacturing capabilities. Additionally, India offers a favorable regulatory environment and a skilled workforce, making it an attractive destination for API manufacturing.
Key players operating in the global India Active Pharmaceutical Ingredients Market include Teva Pharmaceutical Industries Ltd., Salora, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divi’s Laboratories Ltd., Aarti Drugs Ltd., Hikal Ltd., Neuland Labs, Century Pharmaceuticals Ltd., Proventus Life Sciences Pvt Ltd, Chiral Drugs Pvt Ltd, USV Private Limited, and ASolution Pharmaceuticals Pvt. Ltd. These companies are focusing on R&D activities to develop innovative APIs and strengthen their market position.
In conclusion, the Indian API market is witnessing steady growth and offers promising opportunities for both domestic and international players. The market’s growth can be attributed to factors such as the increasing demand for generic drugs, advancements in manufacturing technologies, and low production costs. However, companies need to overcome challenges such as stringent regulatory standards and increasing competition to capitalize on the market’s potential. With the right strategies and investments in R&D, players can establish a strong foothold in the Indian API market and contribute to the growth of the global pharmaceutical industry.
