Technological Advancements to Drive Market Research Future (MRFR) has thoroughly studied the trends and patterns in the global small molecule API market and portends the market to expand at a CAGR of 7% over the forecast period of 2016-2027.
The growth of the global small molecule API market is stemmed from the rapid expansion of the pharmaceutical and chemical sector. Small molecule APIs continue to dominate the pharmaceutical industry. Small molecule APIs are being incorporated in almost every phase of drug development and have gained significant prominence. Small molecules have demonstrated their efficacy in the treatment of various debilitating disease conditions. They can be formulated into pills and tablets and as compared to peptides, biologics, and oligonucleotide-based medicines, they are highly preferred by patients for lower manufacturing costs and ease of transportation.
In recent years there has been an uptick in the number of FDA approvals for small molecule APIs. In fact, the number has been the highest in the last 20 years. This a significant boost to the global small molecule API market which is being further supported by the widespread prevalence of a variety of diseases.
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Innovation in the small molecule API market is at an all-time high since small molecule APIs have attained the focus of intensive R&D investment by major pharmaceutical giants. Discrete underlying technologies such as automation, process analytical technologies, and others have also played a crucial role in the advancement of pharmaceutical operations and processing. These technologies support advanced manufacturing environment which are necessary to counteract the complexities of API processing.
On the other hand, the global small molecule API market is at threat from rising production of biological drugs and increased emphasis on niche and personalized medicine.
In the light of above factors, the global small molecule API market is expected to reach USD 279.7 Bn by the end of 2027.
Segmentation
The global small molecule API market has been segmented based on type, application, and manufacturing method.
By type, the global small molecule API market has been segmented into synthetic/chemical API, and biological API. The synthetic/chemical API segment accounts for the foremost share of 81.4% share of the global market and is expected to retain its position over the forecast period.
By application, the global small molecule API market has been segmented into cardiovascular, oncology, diabetes, immunological disorders, and others. The cardiovascular segment is leading the market and is expected to showcase rapid progress over the forecast period.
By manufacturing method, the global small molecule API market has been segmented into in-house and contract.
Regional Analysis
By region, the small molecule API market has been segmented into North America, Asia Pacific (APAC), Europe, and the Middle East & Africa (MEA).
A robust healthcare sector, increasing clinical trials, and the availability of resources has positioned North America at the top of the global small molecule API market.
Europe follows North America closely and is the second largest market for small molecule API. The growth of the market can be attributed to expanding government support towards the pharmaceutical industry and high adoption rate of advanced healthcare technologies. Additionally, availability of funds is a crucial factor supporting market growth.
APAC is slated to demonstrate impressive growth over the forecast period. APAC is well suited to excel in small molecule API drug manufacturing. Relaxed regulatory norms, low labor cost, and abundance of raw materials are factors which promote the growth of the pharmaceutical industry in the region, and, in turn, boost the growth of the APAC small molecule API market. APAC is one of the significant exporters of small molecule drug which will help the market achieve the fastest CAGR over the forecast period.
The market in MEA is expected to expand steadily over the forecast period. The Middle East regions promises moderate growth however, the growth of the Africa market is likely to be limited due to lack of proper healthcare infrastructure in the region which restricts the growth of the pharmaceutical market.
Competitive Landscape
GlaxoSmithKline Plc, Lonza, Cambrex Corporation, Mylan N.V., Merck Sharp & Dohme Corp.,
Novartis AG, Siegfried AG, Sun Pharmaceutical Industries Ltd., Allergan Plc, Teva Pharmaceutical Industries Ltd, Dr. Reddy’s Laboratories Ltd., Aurobindo Pharma, Albemarle Corporation, Pfizer Inc., and others are the eminent players in the global small molecule API market.
Industry Updates
March 2019 - Cambrex Corporation, a lifesciences company and a provider of products and services for small molecule active pharmaceutical ingredients, has decided to expand the capacity of its Mirabel, Québec site in Canada to 1.2 Mn bottles. They intend to incorporate liquid packing in their production line for ethanol and isopropanol-based solutions, aqueous solutions, lotions or suspensions.
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