Antipsychotic Drugs Market size was over USD 16.5 billion in 2023 and is predicted to exceed USD 34.3 billion by the end of 2036, witnessing over 5.8% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of antipsychotic drugs is estimated at USD 17.4 billion.
The antipsychotic drugs market is witnessing growth due to the prevalence of diseases such as schizophrenia and bipolar disorder. Advancements in the field of pharmacology and discoveries of new compounds that carry less harm are increasing the dimensions of treatment. The growing awareness and destigmatization of mental health issues is also encouraging more people to seek treatment, thus fueling expansion within the market. Some of the new opportunities that the integration of antipsychotic drugs into digital health technologies, including telemedicine, is making available are a new dimension of patient management and treatment adherence.
Regulatory approvals, granting of funds, and the initiatives taken for mental health by government bodies are boosting the demand for antipsychotic drugs. Regulatory agencies such as the United States Food and Drug Administration (FDA) and European Medicines Agency (EMA) are also expediting approval pathways for new antipsychotic medications, thus allowing prompt availability of novel therapeutics. Funding from this day is essential to help meet the increased demand for mental health services and facilitate more availability of effective antipsychotic therapies.
Growth Drivers:
Challenges:
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
5.8% |
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Base Year Market Size (2023) |
USD 16.5 billion |
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Forecast Year Market Size (2036) |
USD 34.3 billion |
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Regional Scope |
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Therapeutic Class (First Generation, Second Generation, Third Generation)
Second-generation therapeutic class segment is predicted to dominate around 41% antipsychotic drugs market share by the end of 2036. These drugs are favored due to more effectiveness and lower percentage of side effects in comparison with first-generation antipsychotics. The innovation around these therapeutic classes remains continuous, as evidenced by the approval of UZEDY, a new-at-its-mechanism drug, in April 2023 by the FDA. The market's growth is, however, supplemented by the increasing use of these drugs in the treatment of an expanded range of psychiatric disorders, ensuring continued dominance in the market.
Disease (Schizophrenia, Bipolar Disorder, Unipolar Depression, Dementia, Other Diseases)
The schizophrenia segment is expected to account for a significant revenue share in the antipsychotic drugs market due to its high prevalence and the continuous development of targeted therapies. Recent innovations such as the launch of Paliperidone Extended-Release Tablets by Lupin in October 2022 have greatly enhanced treatment outcomes. The schizophrenia segment is expected to continue growing, mainly because long-acting injectables, among other innovative formulations, have been increasingly the focus of development to meet the pressing need for effective and convenient alternatives.
Drug (Risperidone, Quetiapine, Olanzapine, Aripiprazole, Others)
The aripiprazole segment in the antipsychotic drugs market is anticipated to register rapid revenue growth during the forecast period as it is well-used in the treatment of various psychiatric diseases. The main drive behind the drug's popularity is its favorable side effect profile with high efficacy in handling conditions like schizophrenia and bipolar disorder. In February 2024, Teva Pharmaceuticals completed enrollment in a Phase 3 clinical study with mdc-TJK, a long-acting injection of aripiprazole-investigational medicine.
Our in-depth analysis of the antipsychotic drugs market includes the following segments:
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By Therapeutic Class
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Disease |
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Drug |
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Distribution Channel |
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North America Market Analysis
North America is anticipated to dominate the antipsychotic drugs market with 55% of the global share during the forecast period. This is attributed mainly to the high prevalence of mental health disorders and the robust healthcare infrastructure in the region. In particular, the U.S. continues to invest significantly in mental health services while it leads the market in R&D activities. The rising government efforts in expanding the accessibility of mental health care is also primarily driving the market in this region.
The U.S. is leading the antipsychotic drugs market, primarily due to several cases of mental health disorders and huge investments in healthcare infrastructure. There has been an extensive increase in mental health awareness in the country, which has been escalating the demand for curing options. In addition, in 2023, USD 10.8 billion was disbursed via the SAMHSA to provide special mental health services using new, innovative antipsychotic drugs that will have the U.S. at the forefront of market dominance.
Canada's antipsychotic medications industry, too, is experiencing growth, supported by authorities' initiatives and an increasing concentration on mental wellness. In April 2024, the authorities in Canada dedicated substantial investments in psychological wellness companies, with their notable commitment of CAD 4.5 billion over half a decade to reinforce mental wellness and habit providers around the nation. The increase in psychological disorders, especially dementia, which is anticipated to have an impact on 1.7 million Canadians by 2050, according to the Alzheimer Society of Canada, is fueling demand for antipsychotic drugs.
Europe Market Analysis
Europe antipsychotic drugs market is anticipated to expand at a rapid pace in the forecast period, pushed by expanding recognition of psychological wellness troubles and significant governing administration investments in healthcare. The market growth is supported by the escalating prevalence of psychiatric issues and also the enlargement of healthcare companies. Germany and France are crucial marketplaces in Europe, with both nations investing heavily in psychological wellness infrastructure.
The antipsychotic drugs market in Germany is growing rapidly due to increasing awareness about mental disorders and government support. The government prefers to manage this crisis by increasing the funding for mental health facilities and research activities. Federal Ministry of Health in 2023 said that an increased earning of the sector's mental health programs would work toward added access to care and promote the creation and development of innovative treatments. The aging population with an increasing incidence of dementia and other psychiatric disorders adds to the demand for antipsychotic drugs, making Germany an extremely important market in Europe.
The government's efforts, along with a substantial focus on mental health care, have made France one of the leading markets for antipsychotic drugs in Europe. The local government has considered psychiatry and mental health a national priority, significantly increasing funding to finance care and treatments for mental illnesses beginning in 2023. Besides, the growth in the incidence of mental disorders, such as those affecting the elderly, is continuing to contribute to the increased demand for antipsychotic drugs. With a proactive approach towards mental health and a strong healthcare system, France is considered one of the major revenue generators in Europe.
The global antipsychotic drugs market is highly competitive and consists of several global and regional players. This market sees companies such as Johnson & Johnson, Otsuka Pharmaceutical Co., Ltd., Pfizer Inc., and Teva Pharmaceutical Industries Ltd. leading the way as large investments in research and development are being made by these companies to introduce new and better treatments for psychiatric disorders. Their commitment to innovation lies in various patient needs. Therefore, the market faces rapid evolution in innovations and improvement in the treatment pattern.
In this competitive environment, firms are adopting various strategies to position themselves in the antipsychotic drugs market. The very pertinent strategy is product innovation and firms are working thoroughly to enhance the existing therapies and to develop new ones. Strategic collaborations and partnerships are also popular, where companies leverage complementary strengths and resources. In addition, acquisitions are quite common in portfolio expansion and gaining access to new technologies. Such dynamic environments also provide the impetus for continuous improvement that eventually percolates down to the patient level with psychiatric conditions.
Here are some leading players in the antipsychotic drugs market:
Author Credits: Radhika Pawar
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