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Market Overview

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The pharmaceutical spray drying market has generated a revenue of USD 1,848 million in the current year and is projected to reach USD 2,778 million in the coming years, with a compound annual growth rate (CAGR) of 7.13% during the forecast period.

The initial phase of the pandemic significantly affected the growth of the pharmaceutical spray drying market due to a decline in manufacturing processes and restricted demand and supply of drugs. Several countries reported a shortage of active pharmaceutical ingredients caused by the COVID-19 pandemic. The Pharmaceutical Export Promotion Council (PHARMEXCIL) stated that the pandemic led to an increase in medicine prices in 2021, particularly for drugs used in the treatment of diseases such as HIV, cancer, epilepsy, and malaria. For example, the cost of Penicillin APIs increased from USD 6.16 per unit in January 2020 to USD 8.69 per unit in October 2020, hindering market entry for pharmaceutical companies and significantly impacting market growth. Thus, the market initially experienced a negative impact. However, as shortages were addressed and pharmaceutical spray drying was increasingly used for COVID-19 drugs, drug application, and vaccines, the market began to recover and witnessed substantial growth during the later phase of the pandemic, which is expected to continue during the forecast period.

The major factors driving market growth include the increasing prevalence of chronic diseases, technological advancements improving product stability, and higher research and development spending. Pharmaceutical companies are investing more in research and development and adopting various business strategies and advanced technologies. The advantages offered by spray drying methods, such as quick-drying, adaptability, compatibility with heat-sensitive materials, and ease of maintaining product quality, are driving their adoption in the pharmaceutical industry and boosting market growth. According to data published by the Congressional Budget Office, pharmaceutical industries globally spent nearly USD 200 billion on research and development in 2021 compared to USD 83.0 million in 2019. Additionally, in November 2021, Micro-Sphere invested over EUR 3.5 million to expand its spray drying and containment capabilities, which included installing a PSD2 spray dryer to meet the rising demand for poorly soluble drugs. Such investments increase the company’s ability to install spray drying equipment and meet the demand for effective drugs.

Furthermore, the increasing prevalence of chronic diseases is also contributing to market growth. For instance, data from the International Diabetes Federation shows that around 537.0 million adults were living with diabetes in 2021, and this number is expected to reach approximately 643.0 million by 2030. Additionally, more than 1.2 million adolescents and children are living with type 1 diabetes. The Global Cancer Observatory (GLOBOCAN) reported that there were 19.3 million new cases of cancer worldwide in 2020, with projections indicating a further increase to 30.2 million new cases by 2040. Pharmaceutical companies often prefer spray drying techniques to produce quality drugs, and the rising number of chronic diseases is expected to drive the demand for such techniques. Thus, the high prevalence of chronic diseases is likely to have a positive impact on market growth during the forecast period.

However, the market growth may be hindered by the high cost associated with spray drying and the requirement for experienced operators.

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Market Segmentation

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The market is segmented based on various factors, including application and region.

Segmentation by Application
Excipient Production
Encapsulation
Enhancing Bioavailability
Others

Segmentation by Region
North America – United States, Canada, and Mexico
Europe – United Kingdom, Germany, France, Italy, Spain, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, Australia, and Rest of Asia-Pacific
Latin America – Brazil, Argentina, and Rest of Latin America
Middle East and Africa – South Africa, GCC, and Rest of Middle East and Africa

In 2022, the enhancing bioavailability segment dominated the studied market with a value of USD 644 million. It is projected to grow at a compound annual growth rate (CAGR) of 6.49% during the forecast period. Pharmaceutical excipients, which are substances added to drug delivery systems apart from the active pharmaceutical ingredient (API), play a crucial role in ensuring safe and effective drug delivery. The spray-drying method is commonly used to manufacture dry particles, where excipients are dissolved in solvents and then sprayed through a nozzle using high-pressure air. The resulting droplets are rapidly dried, and the particles are collected. The size of the particles depends on the concentration of excipients in the solution and the airflow pressure.

The market is driven by the advantages of excipients and increasing research in this field. Excipients are essential for drug formulation, accounting for a significant portion of the drug product. The use of novel excipients can optimize drug performance and presentation, leading to transformative medicines. Pharmaceutical companies are investing heavily in the production of excipients, contributing to the growth of the spray drying segment. Additionally, research efforts, such as the FDA’s pilot program to review novel excipients, are expected to further drive the segment’s growth.

North America is poised to have a substantial market share due to factors such as the presence of major pharmaceutical players, high demand for pharmaceutical products, technological advancements, and significant research and development expenditure. Expansion initiatives and strategic business approaches by companies in the region are expected to boost market growth. For example, Eurofins expanded its spray dry development and production services in North America to cater to the growing demand for solubility enhancement. The increasing burden of chronic diseases and investments in research and development activities also contribute to the market’s growth in the United States.

Germany, known for its advanced infrastructure and numerous pharmaceutical companies, is expected to experience healthy growth in the pharmaceutical spray drying market. Increasing investments in pharmaceutical production facilities and the rising burden of chronic diseases drive this growth. The United Kingdom is also expected to see growth in the market due to factors such as the burden of chronic diseases, increased pharmaceutical research and development spending, and new investments in drug manufacturing.

In China, the pharmaceutical spray drying market is projected to grow due to the growing burden of chronic diseases, increased research and development spending by companies, adoption of advanced technologies, and the advantages offered by spray drying methods. These methods, known for their quick-drying capabilities, adaptability, compatibility with heat-sensitive materials, and ease of maintaining product quality, are increasingly utilized in the pharmaceutical industry.

In Japan, the market is expected to grow as a result of the increasing burden of chronic diseases and disorders, rising demand for pharmaceutical products, and companies’ focus on developing treatments. India’s market is also expected to expand due to the growing burden of chronic diseases, increased focus on drug development, rising pharmaceutical research and development spending, and government initiatives to promote manufacturing and product launches.

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Competitive Landscape

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The pharmaceutical spray drying market is characterized by fragmentation, with several players holding significant positions in the market. Key players dominating the market include Hovione, GEA Group Aktiengesellschaft, Shandong Tianli Drying Equipment Corporation Ltd, European SprayDry Technologies, and SPX Flow, among others.

Key companies profiled in this report include GEA Group Aktiengesellschaft, SPX Flow, Hovione, Shandong Tianli Drying Equipment Corporation Ltd., Buchi Labortecknik AG, European SprayDry Technologies, Labplant UK, New AVM Systech Pvt. Ltd., Advanced Drying Systems, Lemar Drying Engineering.

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Recent Industry Developments

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In September 2022, GEA successfully developed an advanced air heating system for spray dryers that significantly reduces a plant’s reliance on fossil fuels and effectively minimizes its carbon footprint by more than 50%.

In February 2022, Hovione forged a strategic partnership with Zerion Pharma to facilitate the commercialization of Dispersome, Zerion’s proprietary solubility enhancement technology platform. This innovative Dispersome technology leverages a novel approach to enhance drug solubility by utilizing natural protein-based excipients for formulating active pharmaceutical ingredients into amorphous solid dispersions (ASDs) through the process of spray drying.

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Key Questions Answered

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What is the duration of the study for the Pharmaceutical Spray Drying Market?
The Pharmaceutical Spray Drying Market was studied from 2018 to 2028.

What is the growth rate of the Pharmaceutical Spray Drying Market?
The Pharmaceutical Spray Drying Market is projected to grow at a compound annual growth rate (CAGR) of 7.13% over the next five years.

Which region exhibits the highest growth rate in the Pharmaceutical Spray Drying Market?
Asia-Pacific is expected to experience the highest CAGR from 2018 to 2028 in the Pharmaceutical Spray Drying Market.

Which region holds the largest share in the Pharmaceutical Spray Drying Market?
As of 2022, North America holds the highest share in the Pharmaceutical Spray Drying Market.

Who are the major players in the Pharmaceutical Spray Drying Market?
The key players operating in the Pharmaceutical Spray Drying Market include GEA Group Aktiengesellschaft, SPX Flow, Hovione, Shandong Tianli Drying Equipment Corporation Ltd, and Buchi Labortechnik AG.