Active Pharmaceutical Ingredients CDMO Market To Scale New Growth Heights Till 2028

Active Pharmaceutical Ingredients CDMO Industry Overview

The global active pharmaceutical ingredients CDMO market size is expected to reach USD 136.1 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.7% from 2021 to 2028. Increasing pharmaceutical R&D investment, patent expirations, and rise in demand for generic drugs and biologic innovation are the factors driving the market.

Active Pharmaceutical Ingredients CDMO Market Segmentation

Grand View Research has segmented the global active pharmaceutical ingredients CDMO market based on product, synthesis, drugs, application, workflow, and region:

Based on the Product Insights, the market is segmented into Traditional Active Pharmaceutical Ingredient, Highly Potent Active Pharmaceutical Ingredient, Antibody Drug Conjugate (ADC), Others.

• The traditional active pharmaceutical ingredient segment dominated the market and accounted for the largest revenue share of 40.5% in 2020. The highly potent APIs segment accounted for the significant largest revenue share of 29.5% in 2020. The growth is primarily driven by rising demand for targeted cancer and other treatments.
• The antibody-drug conjugate segment is anticipated to register a lucrative growth rate of 12.3% over the forecast period. The efficacy of Antibody Drug Conjugates (ADC) and checkpoint inhibitors in the fight against cancer is having a significant impact on ADC R&D. 
• The ADC biopharmaceuticals sector has experienced a significant increase in R&D into new uses of ADCs, both in terms of combination medications for cancer therapy and the application of the drug class to treat other diseases other than cancer. 

Based on the Synthesis Insights, the market is segmented into Synthetic and Biotech.

• The synthetic segment dominated the market for active pharmaceutical ingredients CDMO and accounted for the largest revenue share of 73.2% in 2020. This is due to the increased availability of raw materials and the ease with which these molecules may be synthesized. Many synthetic molecules are also expected to go off-patent in the coming years, which is anticipated to boost growth.
• The biotech segment is projected to register the fastest growth rate of 6.9% over the forecast period. Factors such as rising demand for biopharmaceuticals and higher molecular efficiency are propelling segment growth. Furthermore, large investments in the biotechnology and biopharmaceutical industries might be ascribed to the rise in the segment. Biotech active pharmaceutical ingredient covers a small portion of the active pharmaceutical ingredient market.

Based on the Drugs Insights, the market is segmented into Innovative and Generics.

• The innovative drugs segment dominated the market for active pharmaceutical ingredients CDMO and accounted for the largest revenue share of 74.6% in 2020. Increased FDA approvals for new molecular entities, the high cost of innovative active pharmaceutical ingredients relative to generic pharmaceuticals, and the increased focus on R&D are all contributing to segment growth.
• The generics drugs segment is anticipated to witness the fastest CAGR of 8.5% during the forecast period. This is largely due to patent expiration and cost-effectiveness. The generic sector is growing as a result of the growing number of patents that are scheduled to expire.

Based on the Application Insights, the market is segmented into Oncology, Hormonal, Glaucoma, Cardiovascular, Diabetes, Others.

• The oncology segment dominated the market for active pharmaceutical ingredients CDMO and accounted for the largest revenue share of 35.1% in 2020. In terms of sales, oncology is the outstanding market and accounted for one-eighth of total pharmaceutical revenue in 2017. In the following five years, it is expected to increase by double digits in terms of percentage, gaining a market share of more than a sixth of industry revenues by 2024. Cancer therapies are driving a significant share of biologics industry growth, as well as the Highly Potent API (HPAPI) sub-sector.
• The glaucoma segment accounted for the largest revenue share of 7.0% in the market for active pharmaceutical ingredients CDMO in 2020. The segment is also projected to witness the fastest CAGR of 7.0% during the forecast period. This is largely attributed due to the rising prevalence of diabetes, the growing elderly population, and the increase in healthcare spending.

Based on the Workflow Insights, the market is segmented into Clinical and Commercial.

• Based on workflow, the commercial segment led the market for active pharmaceutical ingredients CDMO and accounted for the largest revenue share of 88.0% in 2020. The growth is largely attributed to the high revenue generation from the commercial active pharmaceutical ingredient production that accounts for 63.0% of commercial CDMO revenues, which is APIs’ larger market share a portion of the drug’s cost-of-goods in comparison to the drug’s product process of production.
• The clinical segment is anticipated to witness the fastest CAGR of 7.1% in the market for active pharmaceutical ingredients CDMO during the forecast period. This is largely attributed due to a record number of molecules in the preclinical and clinical development pipelines of all sorts, as well as increased R&D spending. The late phase of clinical research has the most significant impact on the value generated by the CDMO pharmaceutical industry relationship.

Active Pharmaceutical Ingredients CDMO Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

Key market players are undertaking various strategic initiatives such as the signing of the new partnership agreement, collaborations, mergers and acquisitions, and geographic expansion, aiming to strengthen their services, and manufacturing capacities, thus providing a competitive advantage.   

Some of the prominent players operating in the global active pharmaceutical ingredients CDMO market include,

• Cambrex
• Recipharm
• Thermo Fisher Pantheon
• Corden Pharma
• Samsung Biologics
• Lonza
• Catalent
• Siegfried
• Piramal Pharma Solutions
• Boehringer Ingelheim

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