Small Molecule API Market Size | Share and Trends 2024 to 2034

Small Molecule API Market Size and Companies

The global small molecule API market size is estimated at USD 194.96 billion in 2024 and is expected to reach around USD 331.56 billion by 2034 with an increasing CAGR of 5.45% from 2024 to 2034.

Key Takeaways

• North America contributed 33% of the total revenue share in 2023.
• By therapeutic area, the oncology segment accounted for 27% of market share in 2023.
• By type, the synthetic API has contributed the highest market share of around 80% in 2023.

U.S. Small Molecule API Market Size and Growth 2024 To 2034

The U.S. small molecule API market size was valued at USD 42.69 billion in 2023 and is expected to reach USD 78.34 billion by 2032, growing at a CAGR of 5.67% from 2024 to 2034.

On the basis of geographical sector in small molecule API, North America with largest market revenue share in small molecule API with enhance developments in medical sector with the leading region having numerous developments in pharmaceutical sector with increased research and development for innovation of the new drug with improved results and quick recovery drives the market of small molecule API. Increased production and manufacturing and new drug developments helps to boost the market to grow with increased market share. Asia Pacific region also in process contributing to enhance the market of small molecule with increased results expands the market growth.

Market Overview

Small molecule API is basically is the organic compound with low molecular weight of the molecule which is the active pharmaceutical ingredient with increased benefits from the small molecule API in pharmaceutical ingredient. A small molecule API compound which is in the active form in biological system with increased disorders, diagnosis of the diseases, prevention with increased medication developments with the small molecule API compound with increased efficacy of the compound for treating the disorders with increased development for innovating new drug developments with improved benefits utilizing small molecule. Numerous drugs utilized for treatment are small molecule. Small molecule API with increased research for new drugs with increased functions for the particular disorder along with the excipients drive the market to grow.

Impact of Covid-19 on the small molecule API market the market was equally affected by the negative and positive affect on the market growth. Due to wide spread of virus across various regions and imposed rules and regulations from the government such as lock down and maintaining social distance among the people to avoid the spread of virus from people to people. Increasing research and development for developing the vaccination on Covid-19 and eradicate the disease utilizing the small molecule API numerous experiments are carried out with increase in research and increased efficiency with integration of small molecule with excipients and formation of the medication in suitable dosage form with the right amount of the small molecule API integrated in to the pharmaceutical dosage form and enhance effects of the small molecule API.

Small Molecule API Market Growth Factors

Small molecule API with increasing developments with innovative technologies developed with increased number of procedures for drug developments. Small molecule API that is active pharmaceutical ingredient with low molecular weight increasing manufacturing of the generic drugs with numerous small molecule API in the market. Furthermore, with increased number of products with the integration of small molecule and other excipients involved in the medicament with rising benefits such as efficiency of the active pharmaceutical ingredients drives the market of small molecule to a larger extent.

Increasing number of chronic diseases such as oncology, diabetes, cardiovascular diseases, respiratory diseases, neurology disorders, orthoarthritis and many more with rising number of disorder among the people with increasing population and many more disorders with increasing number of treatments based on the small molecule API with increased efficiency of the molecule and developed infrastructures in health care sectors boost the small molecule API market to grow with rising market demand for the new innovations in medications with faster recovery propels the market of small molecule API to a larger extend. Increased research and developments for developing vaccine for treating the Covid-19 and constant research for developing new drug developments with small molecule API which the major drug for treating the disorder with increased demands from the medical sector and increased number of patients with chronic disorder expands the market growth of small molecule API market to drive high.

Rising government interest for adopting and for increasing the developments in the small molecule API with increased manufacturing and developing the new drug with increased results and cost efficiency with increased fundings from the governments expands the market to grow. The key market players involved in introducing with improved research and investments in small molecule API with enhance efficiency and good results explores the small molecule API market and propels to grow the market with increased revenue share.

Market Scope

Market Dynamics

Key Market Drivers

Increasing number of chronic disorders

• Small molecule active pharmaceutical ingredient with the major role player in the disorder with increasing number of diseases among the people with increasing number of populations with enhance demands for the new research and development with improved manufacturing of the drug developments with improves diagnosis, prevention, curing and mitigation of the disorder with increased number of drugs which are cost effective majorly in oncological treatments with developing generic drugs.
• Driving the market of small molecule with increasing disorder such as cardiovascular, oncology, respiratory, orthopedics, opthalmology, immunology, neurology, nephrology, CNS and many more with increased research and developments with the small molecule and increasing drug developments enhance the market to grow.

Increased awareness and consciousness in various regions

• Small molecule API with increased innovations and new drug developments in particular disorder with increased efficiency of the drugs and awareness regarding the development of the small molecule with improved consciousness in various regions about the availability of the treatments which are cost effective which is the major factor that propels the market of small molecule API. Increased demand from the pharmaceutical industry for the new entity of the drugs and expansion of the process.

Key Market Challenges 

• Increased number of market players - Enhance number of key market players developing the entity of small molecule API which can challenge the market of small molecule API market to grow with decreased demand for the particular API of particular name. Which may lead to financial problems with increasing investment affects the profit market and may affect the market growth with decreased growth rate of small molecule API market.
• Increased rules and regulations in small molecule - Imposing strict rules and regulation regarding the small molecule API regarding utilization in the pharmaceutical industry. Utilization of small molecule API in drug development with increased process. Utilization of small molecule API in limited quantity accordingly in the development of the dosage form larger amount of integration of small molecule API may affect the market growth with increased adverse reactions.

Key Market Opportunities

• Enhance the production of the small-scale industries - Increasing number of research and developments with innovative technologies developed with small molecule API and enhance utilization in pharmaceutical industries with new drug developments in particular disorder in the generic form with reduced cost is major factor which increases the opportunity for driving the market growth. Enhance number of technologies developed with advancements in pharmaceutical sectors with increased manufacturing and production in small scale industries propels the market of small molecule API with increasing demands from the customers.
• Increased government initiative - Enhance government interest for integration of new drug developments with improved efficiency of the drug using the small molecule API which contributes for developing the regions with increased economy in small molecule API which helps to boost the market of small molecule API. Increased government fundings for new developments with small molecule API and increased manufacturing and production with continuous research and development and expansion of the small molecule API market.
• The key market players - Introduction of new technologies in drug development utilizing small molecule API with increased research and developments from the key market players and increasing investments. The key market players are major role players in the small molecule API which fulfils the demands as per the requirements from the customer and increased the market revenue share of small molecule API.

Type Insights

On the basis of type, the segment of small molecule API largest market share with increased growth rate in synthetic type of drugs manufactured and produced in pharmaceutical industries with increased demands from the market for generic drugs which are cost effective increased affordability.

Small molecule API is utilized as the processor which is used a raw material for drug development process and enhancing the market growth of small molecule API with improved innovations in new drug development with improved effectivity reduced adverse reactions with increasing number of market players with increasing investment in new developments boost the segment of small molecule API type to growth the market share during the forecast period.

Manufacturer Insights

On the basis of manufacturer, the segment of small molecule API, In-house segment with largest market share with increased value of the small molecule API market with enhance manufacturing and development of the new drug itself dependant on the raw materials and improved development of the products utilizing the small molecule API. Outsourcing also in process with increased small molecule entities with increased efficiency of the drug with improved manufacturing facilities and enhance production in small scale companies with larger requirements helps to drive the market of small molecule API market.

Therapeutic sector Insights

On the basis of therapeutic sector in small molecule API cardiovascular disorder with increasing number of patients with increasing cardiovascular diseases in day-to-day life with changing lifestyle with diet intake, daily exercise required to control the disorder, increasing stress among the people which led to various disorders and may affect the health of the people. Advanced developed technologies in cardiovascular diseases with increased number of medications for the fast recovery of the patients with instant relief which boost the market of small molecule API to larger extend with increasing requirements from the medical experts with advance technologies. Oncology is also increasing the market revenue share with number of chemotherapies developed with low cost and increased number of cancer patients with increased demands from the market for new developments and technologies and enhance research in small molecule API which expands the market to a greater height.

Application Insights

On the basis of application in small molecule API, Hospitals with increased demands for the new developments in medication with increased research in small molecule API with increased efficiency of the drug, enhance prevention and mitigation of the drug and curing the disorder with quick relief. Increasing number of chronic disorders in various regions with increasing population and changing modern lifestyle which led to affect the health of the individuals with increasing disorders. Advanced developed technologies with increased adoption of the new technologies for curing the disorder. Increasing research and development small molecule API with enhance effect of the drug on the disorder with reduced pain and enhance cost effectivity drives the market of small molecule API.

Small Molecule API Market Companies

• BASF SE
• Gilead Sciences, Inc.
• Johnson Matthey
• Teva Pharmaceutical Industries Ltd.
• Sun Pharmaceutical Industries Ltd.
• Siegfried Holding AG
• Pfizer
• Novartis AG
• Merck KGaA
• Lonza
• GSk plc
• Dr. Reddy's Laboratories Ltd.
• Cambrex Corporation, Allergan
• Albemarle Corporation
• Hoffmann-La Roche Ltd.
• AstraZeneca
• Albany Molecular Research Inc.
• Sanofi S.A
• Baxter International Inc.
• Celgene Corporation
• Boehringer Ingelheim International GmbH

Recent Developments

• In the year 2021 March, Gefaoixant development which molecule is administered orally for refractory type of cough for adult’s new drug development approved by the U.S. Food and Drug Administration.
• In the year 2022 March, Introdution of manufacturing unit in Japan to fulfill the requirements with the small molecule API from the Sumitomo Chemical Co., Ltd
• In the year 2020 January, Sandozis company introducing the generic drug developments in the market and medicines which are off- patent and increased acquisition drives the market of small molecule API.

Segments Covered in the Report

By Type

• Synthetic
• Biological

By Manufacturer

• In-house
• Outsourced

By Application

• Clinical
• Commercial

By Therapeutic Sector

• Cardiovascular 
• Oncology
• CNS and Neurology
• Pulmonology
• Endocrinology
• Gastroentrology
• Nephrology
• Orthopedic 
• Gynecological 
• Opthalmic 
• Dermatology
• Urology
• Immunology
• Respiratory disorders
• Cosmetic and plastic 
• General surgery
• Others

By Application

• Hospitals
• Ambulatory Surgical Center
• Health clinics
• Others

By Geography

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