The pharmaceutical spray drying market generated a revenue of USD 1,847.84 million in the current years and is expected to generate a revenue of USD 2,777.92 million in the upcoming years. The market is anticipated to register a CAGR of 7.13% over the forecast period.
The initial phase of the pandemic has had a substantial impact on the growth of the pharmaceutical spray drying market owing to the significant decline in manufacturing processes and restricted demand and supply of drugs. The government of several countries has reported that active pharmaceutical ingredients are in short supply because of the COVID-19 pandemic. Likewise, according to the Pharmaceutical Export Promotion Council (PHARMEXCIL), in 2021, the COVID-19 pandemic resulted in a massive spike in medicine prices due to increased demand for drugs to treat a variety of diseases, including HIV, cancer, epilepsy, and malaria. For instance, the cost of Penicillin APIs increased to USD 8.69 per unit in October 2020, up from USD 6.16 per unit in January 2020, preventing pharmaceutical players from entering the market and significantly impacting the growth of the market. Thus, initially, the market witnessed an adverse impact. However, the recovery from shortage and increasing use of pharmaceutical spray drying for COVID-19 drugs, drug application, and vaccines have positively impacted the market and thus, the market witnessed considerable growth during the later phase of the pandemic and is expected to continue the upward trend over the forecast period.
The increasing prevalence of chronic diseases, technological advancements and improvements in the stability of products, and increasing research and development spending are the major factors propelling market growth. With the increasing pharmaceutical spending on research and development, adoption of various business strategies, and advanced technology, and the advantages offered by the spray drying methods, such as quick-drying, adaptability, compatibility with heat-sensitive materials, and ease of product quality maintenance, spray drying methods are being increasingly adopted in the pharmaceutical industry, boosting market growth over the forecast period. According to the data published by the Congressional Budget Office, in 2021, it has been observed that pharmaceutical industries have spent nearly USD 200 billion on research and development globally compared to USD 83.0 million in 2019. Additionally, in November 2021, Micro-Sphere invested more than EUR 3.5 million in expanding its spray drying and containment capabilities to install a PSD2 spray dryer to meet the increasing demand for poorly soluble drugs. The equipment expands the company’s spray-drying capabilities in both clinical and commercial manufacturing. Thus, the increasing investment in research and development by the companies further increases the capabilities of the company to install spray drying equipment and associated area for meeting the demand for effective drugs for treatment.
In addition, increasing cases of chronic diseases are also propelling market growth. For instance, according to the data published by the International Diabetes Federation in 2021, around 537.0 million adults are living with diabetes and by 2030 around 643.0 million people are expected to live with diabetes. It also reported that 3 out of 4 adults live with diabetes and around 1 out of 2 adults (240.0 million) are living with undiagnosed diabetes. Similarly, according to the report published by the International Diabetes Federation in 2021, more than 1.2 million adolescents and children are living with type 1 diabetes. Furthermore, according to the Global Cancer Observatory (GLOBOCAN) Statistics 2020, there were 19.3 million new cases of cancer all over the world accounting for both sexes in 2020 and the same source reported that the incidence of cancer is growing at a rapid pace in the world and estimated that the number of new cases of cancer in both sexes will reach to 30.2 million by 2040. Pharmaceutical spray drying is a technique preferred by most pharmaceutical companies to produce quality drugs. Increasing cases of chronic diseases are anticipated to boost the demand for quality drug development for treatment which in turn may boost the demand for spray-drying techniques. Thus, the high prevalence of chronic diseases is expected to positively impact the market growth over the forecast period.
However, the high cost associated with spray drying and the requirement of experienced operators is likely to hinder the market growth over the forecast period.
Pharmaceutical Spray Drying Market Trends
Excipient Production Segment is Expected to Witness Considerable Growth Over the Forecast Period
Pharmaceutical excipients are substances other than the active pharmaceutical ingredient (API) that have been appropriately evaluated for safety and are intentionally included in a drug delivery system. Manufacturing dry particles by the spray-drying method proceeds in such a way that excipients are dissolved in aqueous or organic solvents, after which the solution thus obtained is sprayed through a narrow atomization nozzle with high pressurized air at a temperature higher than the vaporization point of the solvent. The fine droplets thus emitted are quickly dried, followed by a collection of particles generated by a cyclone mechanism. The particle size is regulated by the concentration of excipients in the solution and the pressure given to the airflow.
The advantages of excipients and increasing research work are the major drivers for the market. Excipients are essential to the formulation of drug products because they enable the effective delivery of drug substances and can account for as much as 80–90% of the drug product formulation. For branded drugs, novel excipients could be used to optimize drug product performance and presentation, and possibly develop candidates that were deemed undevelopable, leading to transformative medicines with optimized patient presentations. Hence considering the advantages of these molecules pharmaceutical companies are investing huge amounts in manufacturing these excipients therefore there is increasing use of spray drying for the exception production posting the segment growth. In addition, increasing research work is also anticipated to propel the segment growth. For instance, in September 2021, the U.S. FDA launched a new pilot program to review novel excipients for use in meeting unmet needs in formulating new drug products. Through this program, FDA intends to raise the development of excipients that may be useful in scenarios where excipient manufacturers and drug developers have cited prior difficulty in using existing excipients. Such initiatives by the government are expected to boost segment growth over the forecast period.
North America is Expected to Witness Significant Growth Over the Forecast Period
North America is anticipated to have a significant share owing to the factors such as the presence of major pharmaceutical players, high demand for pharmaceutical products, technological advancement, and high pharmaceutical research and development expenditure in the region. The increasing company focus on expansion and adopting business strategies to withhold their position in the market is likely to boost the growth of the market. For instance, in January 2022, Eurofins (Contract Development and Manufacturing Organization) announced the expansion of its existing spray dry development and production services in North America. With this expansion, Eurofins can further complement a broad range of services specializing in solubility enhancement for clinical development and small-scale commercial programs.
The increasing burden of chronic diseases and increasing investment in pharmaceutical research and development activities are some of the major driving factors that are expected to drive the United States pharmaceutical spray drying market over the forecast period. For instance, according to the 2022 report of the American Cancer Society, about 1.9 million cases of cancer were reported in the country in 2022, with breast cancer being the most prevalent form of cancer. The increasing investment by pharmaceutical companies and other stakeholders in the country for research and development activities, APIs production, and other market-related activities are expected to have a significant impact on the demand for pharmaceutical spray drying technology. For instance, as per the September 2022 press release from the White House, the Department of Health and Human Services will spend about USD 40 million to increase biomanufacturing’s contribution to the production of active pharmaceutical ingredients (APIs), antibiotics, and the crucial raw materials required to combat COVID-19 pandemics and produce necessary drugs. Therefore, owing to the high prevalence of chronic diseases and increased investments, considerable market growth is expected over the forecast period.
Pharmaceutical Spray Drying Market Competitive Analysis
The pharmaceutical spray drying market is fragmented due to the presence of various players in the market. Some of the players who are dominating the market are Hovione, GEA Group Aktiengesellschaft, Shandong Tianli Drying Equipment Corporation Ltd, European SprayDry Technologies, and SPX Flow, among others.
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