Pharmaceutical Market Size is projected to reach US$ 2.84 billion by 2031 at 7.1% CAGR - The Insight Partners

The report provides a detailed analysis by Molecule Type (Small Molecule, Biological & Biosimilar Products), Indication, Product (Branded, Generic), Type (Prescription, OTC), Distribution Channel (Hospital, Retail, Online Pharmacies), and Geography. Growth is driven by chronic disease prevalence, R&D innovation, and digital health trends, while challenges include regulatory hurdles and high development costs.

/EIN News/ -- US & Canada, April 24, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the pharmaceutical market is observing significant growth owing to the increasing disease burden worldwide and surging demand for innovative treatments.

The report runs an in-depth analysis of market trends, key players, and future opportunities. The pharmaceutical market report focuses on different products that are expected to contribute to market growth in the coming years.

To explore the valuable insights in the Pharmaceutical Market report, you can easily download a sample PDF of the report - https://www.theinsightpartners.com/sample/TIPRE00029839/

Overview of Report Findings

      1.   Market Growth: The pharmaceutical market is expected to reach US$ 2.84 billion by 2031 from US$ 1.75 billion in 2024; it is anticipated to register a CAGR of 7.1% from 2025 to 2031. The scope of this market entails the research, development, production, and sales of drugs and medications that are prescribed for the treatment, prevention, and diagnosis of various medical conditions. The market is expected to experience significant growth owing to the burgeoning global disease burden and increasing demand for innovative treatments. Additionally, surging innovation, increasing integration of AI and growth in digital health technologies is expected to create ample opportunities. 

      2.   Rising Global Disease Burden and Increasing Demand for Innovative Treatments: There is a vast pool of patients suffering from chronic and severe health conditions across the world. Subsequently, the pharmaceutical industry records 6% growth year-on-year. The global burden of diseases such as obesity, diabetes, Alzheimer’s, and cancer continues to grow at an alarming rate, creating the demand for medical advancements. According to the International Diabetes Federation, approximately 589 million adults are living with diabetes globally, and the number is expected to reach 853 million by the end of 2045. Additionally, as per the World Obesity Federation, more than 1 billion people in the world were living with obesity in 2024. In response to the rising burden of disease, pharmaceutical and biopharmaceutical companies are heavily investing in research and development activities to create innovative and effective treatment options for large patient populations. The Italian pharmaceutical industry received ~US$ 1.88 billion in R&D investments during 2024, which signifies ~35% increase, outpacing the European average of nearly 20%. Additionally, US$ 776.42 million is invested annually in clinical trials by pharma companies in Italy alone, and the amount is even higher with medical device companies, i.e., US$ 1.10 billion. The increasing availability of funds can be further ascribed to the increasing role of public–private partnerships (PPPs); for example, collaborations between the National Institutes of Health, the US FDA, 10 pharmaceutical companies, and 5 nonprofit organizations to accelerate the development of gene therapy to cater to the needs of 30 million Americans suffering from various rare diseases.

      3.   Growth through Innovation, AI, and Expansion: The pharmaceutical industry is experiencing rapid growth owing to the increasing manufacturing facilities worldwide, technological advancements, and expanding healthcare needs. India is one of the key players in terms of production, and its vaccine manufacturing capacity accounts for 60% of its total pharmaceutical manufacturing capacity, meeting up to 70% of the WHO’s vaccine demand. Thus, robust manufacturing and export capabilities, and international collaborations establish India as one of the major contributors to the global health security.

Japan is the third-largest pharmaceutical market in terms of value, possessing strategic opportunities due to its structured trade systems and stable regulatory environments. Technological innovation is leading to the development of personalized medicine, gene therapy, and digital health, creating opportunities for biotech firms operating in the areas of preventive care solutions and AI-driven drug discovery. AI is revolutionizing research and development work in the country; it also benefits manufacturing businesses by reducing costs, improving efficiency, and accelerating drug discovery timelines. Digital health tools such as electronic health records (EHRs) and telepharmacy, and personalized medicine, along with advancements in biopharmaceuticals are transforming cancer, genetic disease, and autoimmune disorder treatment models. This transition drives the demand for cold chain logistics, AI-based decision-support tools, and training programs for pharmacists. Telepharmacy practices are flourishing in under-developed areas with the expansion of access to care; however, pharmacovigilance and drug safety gain importance through AI monitoring systems and compliance technologies. These converging trends offer investors and innovators significant opportunities to improve global health outcomes.

      4.   Geographical Insights: In 2023, Asia Pacific led the market with a substantial revenue share, followed by North America and Europe. Asia Pacific is expected to register the highest CAGR during the forecast period.

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Market Segmentation

• Based on molecule type, the pharmaceutical market is bifurcated into small molecules, and biologics and biosimilars. The small molecules segment held a larger share of the market in 2023.
• By indication, the pharmaceutical market is segmented into metabolic diseases, respiratory disorders, rare diseases, cancer, cardiovascular disorders, immunological disorders, neurology disorders, and others. The cancer segment dominated the market in 2023.
• Based on product, the pharmaceutical market is bifurcated into branded and generic. The branded segment held a larger market share in 2023.
• Based on type, the pharmaceutical market is bifurcated into prescription and OTC drugs. The prescription segment held a larger share of the market in 2023.
• By distribution channel, the pharmaceutical market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacies segment dominated the market in 2023.
• The pharmaceutical market is segmented into five major regions: North America, Europe, APAC, the Middle East & Africa, and South & Central America.

Competitive Strategy and Development

• Key Players: Major companies operating in the pharmaceutical market include Johnson & Johnson, Pfizer Inc, Merck & Co Inc, Eli Lilly and Co, Bristol-Myers Squibb Co, ESTEVE, UCB SA, Teva Pharmaceutical Industries Ltd, Hikma Pharmaceuticals Plc, Viatris Inc, AstraZeneca Plc, Sanofi SA, GSK Plc, F. Hoffmann-La Roche Ltd, Novartis AG, and AbbVie Inc
• Trending Topics: Personalized medicine, biologics, biosimilars, immunotherapy, etc.

Headlines on Pharmaceutical

• ESTEVE announced an investment of 100 million euros in the construction of a new manufacturing unit at its industrial center in Celrà (Girona)
• Johnson & Johnson announced that the US Food and Drug Administration (FDA) granted investigational Fast Track Designation (FTD) to nipocalimab for the treatment of adult patients with moderate-to-severe Sjögren’s disease (SjD)
• Hikma Pharmaceuticals PLC announced the approval of KLOXXADO (naloxone HCl) Nasal Spray 8 mg by Health Canada
• Johnson & Johnson strengthened neuroscience leadership with the acquisition of Intra-Cellular Therapies, Inc
• AbbVie and Gubra announced a license agreement to develop an amylin analog for the treatment of obesity
  
  

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Conclusion 

The pharmaceutical market is driven by the rising burden of diseases across the world, which has created a demand for effective and innovative treatment options. Furthermore, the increasing access to medicinal products and practices in developing economies favors the market. Innovation, research and development activities, and integration of artificial intelligence, among other technological advancements, are expected to create ample opportunities in the market in the coming years. The market is currently benefitted by ongoing investments and strategic initiatives such as partnerships, collaborations, and product launches as well as the changing regulatory landscape in many countries. Further, the biopharmaceutical industry is flourishing with advancements in gene therapy, personalized medicine, and biologics, which are particularly gaining traction as effective treatment options for some of the chronic conditions. Further, digital health technologies are reshaping the global healthcare sector by increasing the accessibility and efficiency of treatment options.

The report from The Insight Partners provides several stakeholders—including pharmaceutical manufacturers and pharmaceutical distributors—with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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About Us:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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