Alzheimer’s Treatment Market Overview
Alzheimer’s disease is a disorder of the brain which commonly occurs among the older population. It is characterized by the gradual degeneration of the brain tissue, which eventually results in temporary or permanent loss of memory. According to the Alzheimer’s Association in 2020, an estimated 5.8 million people above the age of 65 in America are living with Alzheimer’s disease. This number is further predicted to increase to 13.8 million people above the age of 65 by 2050.
The Alzheimer’s treatment market is anticipated to grow at a CAGR of 7.44% over the forecast period, i.e., 2020-2027. The market is further projected to attain a market value of USD 2,008.17 million by the end of 2027.
Growth Highlights based on Region during 2018-2027
On the basis of region, the Alzheimer’s treatment market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The market in North America holds the major share of Alzheimer’s treatment market on account of increasing incidences of the disease. Over the past few years, North America has witnessed significant growth in the Alzheimer’s treatment market. With the presence of many key players in the region, the North America Alzheimer’s treatment market is further predicted to expand rapidly on the back of increasing technological advancements in the field. The market in Europe is estimated to hold a vast potential for the development of the Alzheimer’s treatment market primarily influenced by its increasing geriatric population, which is contributing significantly to the occurrence of the disease. Further, the market in Asia Pacific region is expected to grow steadily over the next few years, which is attributed primarily to the rising elderly population in countries including India, China, Australia, and Japan. The increasing prevalence of the disease among the elderly is the major factor that is expected to drive the growth of the market in the forthcoming years.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Drug Class
On the basis of drug class, the market for Alzheimer’s treatment is segmented into standalone drugs and combination drugs, out of which, the standalone segment is further sub-segmented into cholinesterase inhibitors and N-methyl-D-aspartate (NMDA) antagonist. The segment for standalone drugs is predicted to lead the market with highest market share, while the segment for combination drugs is anticipated to grow at the highest CAGR of 8.69% over the forecast period.
Drugs that are used in combination with other new drugs or already approved drugs are termed as combination therapy. The combination therapies are predicted to improve the condition of the patients significantly as compared to the standalone therapies. The drugs used in combination therapies are considered to have better efficacy owing to the higher potential of the drugs combined in terms of reaction. The combination therapy which is currently being used for treating Alzheimer’s disease in Memantine along with a cholinesterase inhibitor which is considered to be effective in treating moderately severe Alzheimer’s disease.
By Distribution Channel
Based on the distribution channel, the market is segmented into online and offline segment, which is further segmented into hospital pharmacy and retail pharmacy. The offline distribution channel is anticipated to hold the leading share in the market on account of larger presence of hospital and retail pharmacies in the world. On the other hand, the segment for online distribution channel is predicted to grow at the highest CAGR of 8.12% during the forecast period. Over the years, the concept of online pharmacies has increased significantly owing to the various advancements in the e-commerce industry. The preference for online pharmacies is estimated to increase among the patients on account of various factors such as ease and convenience, confidentiality, low cost, and others. Additionally, they offer easy accessibility to people with limited mobility, thus attracting a lot of consumers. Furthermore, many online pharmacies deliver their products within a very short period of time, which has encouraged a wide range of patients to opt for it, thus contributing to the market growth.
By Product
The Alzheimer’s treatment market is segmented on the basis of product into wearable and non-wearable segments. The market for wearable devices is projected to witness the highest growth rate over the forecast period. A number of technological advancements have been made in the recent years in order to develop wearable devices for patients living with Alzheimer’s disease and providing them advanced treatment at home. Additionally, the wearable devices provide the care taker information about the movement, heart rate, pattern of sleep, among others, which is further estimated to attract a significant number of patients. Non-wearable devices segment is estimated to hold the leading share in the market with a market value of USD 10.09 million by the end of 2027.
By End User
On the basis of end user, the market is segmented into hospitals, clinics, nursing homes and home care settings. The segment for hospitals is anticipated to hold the leading share in the market in the coming years as a result of rising cases of Alzheimer’s disease that require admission of patients in hospitals for better care. Moreover, the segment for clinics is predicted to grow at the highest rate with a CAGR of about 10.12% over the forecast period. The rising number of clinics that offer treatment for Alzheimer’s disease is anticipated to fuel the market growth in the coming years.
Market Drivers and Challenges
Growth Indicators
The Alzheimer’s Association states that Alzheimer’s disease is the 6th leading cause of death in the United States. Moreover, about 1 in every 3 senior citizens dies of either Alzheimer’s disease or some other dementia. Alzheimer’s disease is considered as the most common form of dementia among the elderly population. The increasing incidences of Alzheimer’s disease have created an upsurge in the demand for effective treatment for the disease. This is projected to contribute significantly to the growth of the market in the near future. In addition to this, the Alzheimer’s treatment market has witnessed a significant growth in the recent years, which is attributed to the presence of a proper healthcare infrastructure. The growing investments in the healthcare sector have raised a significant amount of funds for the ongoing research projects.
Barriers
Increasing stringent regulations and limited testing procedures are predicted to act as barriers for the market. The lack of knowledge about the mechanisms involved in the manufacture of products related to the treatment of Alzheimer’s disease limits the manufacturers from examining the benefits various new compounds. The high standards required for the approval of any drug or device for the treatment of Alzheimer’s may create obstacles for the manufacturers.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the global Alzheimer’s treatment market are NeuroEM Therapeutics, Inc., AbbVie Inc., Allergan Inc., H. Lundbeck A/S, Janssen, Eli Lilly and Company, Daiichi Sankyo Company Limited, Eisai Co., Ltd. and Neuronix.