Global Pharmaceuticals Market Report and Forecast 2024-2032

Global Pharmaceuticals Market Size

The global pharmaceuticals market was valued at USD 1467.14 billion in 2023 driven by strategic merger and acquisition activities and rising investment in infrastructure expansion across the globe. The market is projected to grow at a CAGR of 6.20% between 2024 and 2032, reaching a value of around USD 2466.16 billion by 2032.

Global Pharmaceuticals Market Outlook

• The rising burden of chronic diseases and the growing geriatric population are directly impacting the market value.

• Growing demand for biologic therapies and increased strategic mergers and acquisitions in the pharmaceutical sector are major market trends.

• Supportive government initiatives and increasing investment in healthcare infrastructure are some of the factors bolstering the market expansion in the Asia Pacific region.

Global Pharmaceuticals Market Overview

Ongoing innovations in product development, growth of the geriatric population fuelling the demand for more effective pharma solutions, and rising demand for personalized medicines are some of the prominent market drivers. The demand for personalized medicine solutions is growing due to the surge in demand for targeted treatment and therapies.

Market players are establishing collaborations for the expansion of their pharmaceutical capabilities. Novartis Pharma AG announced in May 2024 that it is actively strengthening its radiopharmaceutical capabilities and has extended its partnership with Peptidream Inc. in an agreement valued at a staggering USD 2.71 billion.

Moreover, some pharma providers are expected to establish a prominent position in the pharmaceuticals market due to the breakthroughs in their research. For instance, Amgen announced that in May 2024 it has obtained FDA approval for its promising lung cancer drug, Imdelltra, which signifies a major milestone in its oncology product portfolio.

Other factors influencing the market dynamics include increased government initiatives and supportive healthcare policies that are encouraging the growth of the pharmaceutical sector. Moreover, the growing demand for cost-effective generic drugs and significant investment in research and development by pharmaceutical companies are major market trends shaping the market landscape.

Global Pharmaceuticals Market Growth Drivers

Growth in Mergers and Acquisition Activities to Affect the Market Landscape Significantly

In March 2024, Bristol Myers Squibb announced that it completed the acquisition of clinical-stage biopharmaceutical company Karuna Therapeutics, with the aim to strengthen its neuroscience portfolio in a deal worth USD 14 billion. Under this acquisition, Bristol Myers Squibb gained access to the antipsychotic KarXT drug indicated for schizophrenia and other neurological conditions, and Karuna's early-stage and pre-clinical pipeline. Such strategic acquisition and market consolidation activities are anticipated to be a significant market driver in the forecast period, fostering diversification of product portfolios and bolstering the long-term growth of the pharmaceutical sector.

Expansion in Manufacturing Capabilities to Meet Rising Pharmaceuticals Market Demand

In March 2024, it was reported that Swiss multinational manufacturing company Lonza signed an agreement for acquisition of the Genentech manufacturing facility in Vacaville (United States) from pharmaceutical giant F. Hoffmann-La Roche AG in a deal estimated to be USD 1.2 billion. This acquisition aims to amplify Lonza's biologics manufacturing capacity for mammalian therapeutics along with extending the presence of its facility network in the United States. Further, the CDMO intends to invest around CHF 500 million to upgrade the capabilities of the site in order to accommodate the manufacturing needs of mammalian biologics therapies. Such strategic investments in infrastructure expansion by the leading market players are projected to fuel the market growth.

Global Pharmaceuticals Market Trends

The market is witnessing several trends and developments to improve the current global scenario. Some of the notable trends are as follows:

Global Pharmaceuticals Market Segmentation

Market Breakup by Molecule Type

• Biologics and Biosimilars (Large Molecules) 
  • Monoclonal Antibodies
  • Vaccines
  • Cell and Gene Therapy
  • Others

• Conventional Drugs (Small Molecules)

Market Breakup by Product

• Branded

• Generic

Market Breakup by Availability

• OTC

• Prescription

Market Breakup by Therapeutic Area

• Cardiovascular

• Oncology

• Diabetes

• Infectious diseases

• Neurological

• Respiratory

• Immunological

• Genetic and Rare Genetic Diseases

• Others

Market Breakup by Route of Administration

• Oral

• Topical

• Parenteral

• Inhalations

• Others

Market Breakup by Formulation

• Tablets

• Capsules

• Injectable

• Sprays

• Suspensions

• Powders

• Others

Market Breakup by Age Group

• Children

• Adults

• Geriatric

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Global Pharmaceuticals Market Share

Branded and Generic Pharmaceuticals Poised to Lead the Market Share

Based on the product, the market is segmented into branded and generic pharmaceuticals. The branded pharmaceuticals segment dominates a significant portion of the market share and generates considerable revenue. The segment's growth is ensured by the protection offered by patents for a certain period as well as continuous innovation in drug development. On the other hand, generics are gaining a growing market share in terms of prescription volume, particularly in regions focusing on reducing healthcare costs.

Global Pharmaceuticals Market Analysis by Region

The market is segmented into several key regions covering North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America leads the market share driven by high healthcare spending, favorable regulatory environment, and significant investment in biotech and pharmaceutical research. The United States and Canada are the key players in the region impacting the market dynamics. For instance, the US government announced the proposal of USD 1.7 trillion for mandatory funding and USD 144.3 billion for discretionary funding to the Department of Health and Human Services (HHS) for the year 2024, which can boost pharmaceutical market size in the country.

The Asia Pacific market is also poised to witness exponential growth in the forecast period, owing to the rapidly growing pharmaceutical markets in countries such as India, China, and Japan. Supportive government initiatives and increasing investment in healthcare infrastructure are some of the factors bolstering the market expansion. For example, in the 2024-25 interim budget, the Indian government offered an increase of 12.5% in funding for the healthcare sector, which is expected to boost the growth of pharmaceuticals in the country.

Leading Players in the Global Pharmaceuticals Market

The key features of the market report include patent analysis, clinical trial analysis, and strategic initiatives by the leading players. The major companies in the market are as follows:

Abbott

This American multinational healthcare company develops, manufactures, and markets a broad range of pharmaceutical products and operates in several segments, including nutrition and branded generic pharmaceuticals.

LONZA

This company is considered one of the world's largest healthcare manufacturing organizations and is known for offering diversified products and services to the pharmaceutical and biotechnology markets. Lonza provides contract development and manufacturing services, from early-phase development to commercial manufacturing, and significantly contributes to the pharmaceutical market growth.

F. Hoffmann-La Roche Ltd.

Headquartered in Switzerland, F. Hoffmann-La Roche Ltd. is a prominent player in the market and specializes in the areas of oncology, infectious diseases, immunology, and neuroscience among others. The company is known for bringing highly effective drugs to the market and is considered a global leader in innovative cancer drugs.

Merck KGaA

Operating across healthcare and life sciences domains, this leading science and technology company based in Germany is one of the key players in the pharmaceuticals market. The company has a robust portfolio of well-known pharmaceutical drugs. For instance, it is the developer of the painkiller Vioxx.

Other key players in the market include Johnson & Johnson Services, Inc., Pfizer, Inc., Sanofi S.A., GSK Plc, Bristol-Myers Squibb Co., Novartis AG, AstraZeneca PLC, Eli Lilly & Co., Gilead Sciences, Inc., Amgen Inc., Novo Nordisk AS, and Bayer AG, among others.

Key Highlights of the Report

Key Questions Answered in the Global Pharmaceuticals Market Report

• What was the global pharmaceuticals market value in 2023?
• What is the global pharmaceuticals market forecast outlook for 2024-2032?
• What are the regional markets covered in the EMR report?
• What is market segmentation based on molecular type?
• What is the market breakup based on product?
• What is the market breakup on the basis of availability?
• What are the various formulations available in the pharmaceuticals market?
• What is the market segmentation based on the therapeutic area?
• What is the market segmentation based on the route of administration?
• What is the market segmentation based on age group?
• What are the major factors aiding the global pharmaceuticals market demand? 
• How has the market performed so far and how is it anticipated to perform in the coming years?
• What are the market's major drivers, opportunities, and restraints? 
• Which regional market is expected to lead the market share in the forecast period? 
• Which country is expected to witness expedited growth during the forecast period? 
• How do the prevalence and incidence of chronic diseases affect the market landscape?
• What are the major global pharmaceuticals market trends?
• How does the rise in the geriatric population impact the market size?
• Which molecular type of pharmaceuticals will dominate the market share? 
• Which product is expected to have a high market value in the coming years?
• Which availability type will experience the highest demand in the market segment?
• Which therapeutic area is projected to contribute to the highest pharmaceuticals market growth?
• Which route of administration will witness a high market value in the forecast period?
• Which formulation is poised to lead the market share?
• Which age group is anticipated to propel the market demand?
• Who are the key players involved in the pharmaceuticals market?
• What is the patent landscape of the market?
• What are the current unmet needs and challenges in the market?
• How are partnerships, collaborations, mergers and acquisitions among the key market players shaping the market dynamics?