Antipsychotic Drugs Market Report 2025

This Antipsychotic Drugs market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The antipsychotic drugs market size has grown rapidly in recent years. It will grow from $19.5 billion in 2024 to $21.45 billion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to the rising prevalence of mental health disorders, development of second-generation antipsychotics, growing geriatric population, improvements in healthcare infrastructure, and high investment in research and development.

The antipsychotic drugs market size is expected to see strong growth in the next few years. It will grow to $31.04 billion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to the increasing incidence of schizophrenia and bipolar disorder, supportive government policies and funding, rising demand for personalized medicine, focus on reducing side effects, and growing mental health advocacy and support groups. Major trends in the forecast period include integration of digital health tools for monitoring, development of novel mechanisms of action, increasing focus on combination therapies, adoption of pharmacogenomics for tailored treatments, emphasis on patient-centric drug development.

The rising prevalence of mental disorders is anticipated to drive the growth of the antipsychotic drug market in the coming years. Mental disorders, also referred to as mental illnesses, affect an individual’s thinking, behavior, mood, and overall mental health. Various factors such as stress, societal pressures, genetic predispositions, biochemical imbalances, neurodevelopmental issues, and physical health conditions can contribute to mental health problems. Antipsychotic drugs help manage these disorders by modifying the activity of neurotransmitters, mainly dopamine and serotonin, to alleviate psychotic symptoms, stabilize mood, and enhance cognitive and emotional functioning. For example, in November 2023, a survey by the Substance Abuse and Mental Health Services Administration (SAMHSA), a U.S.-based public health agency, revealed that about 6% of adults aged 18 and older, or 15.4 million people, reported experiencing serious mental illness (SMI). Additionally, in September 2024, the Australian Institute of Health and Welfare, an Australian government agency, projected that the number of people living with dementia in Australia will more than double, from approximately 411,100 in 2023 to 849,300 by 2058. This increase is expected to impact around 315,500 men and 533,800 women. As such, the growing incidence of mental disorders is fueling the expansion of the antipsychotic drug market.

Leading companies in the antipsychotic drug market are developing advanced medical products, such as subcutaneous atypical antipsychotic injections, to improve patient compliance and efficacy compared to traditional oral medications. These injections are administered under the skin and help in maintaining stable medication levels and better symptom control. For example, in April 2023, Teva Pharmaceutical Industries Ltd., an Israel-based pharmaceutical company, and MedinCell SA, a French manufacturer of biological products, introduced UZEDY, an FDA-approved extended-release injectable formulation of risperidone. This long-acting subcutaneous injection offers flexible dosing intervals of one or two months and employs MedinCell's proprietary SteadyTeq technology for consistent medication release, reaching therapeutic levels within 6-24 hours of administration. Clinical trials showed that UZEDY reduced the risk of schizophrenia relapse by up to 80% compared to a placebo, addressing adherence issues commonly associated with oral antipsychotics.

In March 2024, Bristol-Myers Squibb, a US-based pharmaceutical firm, acquired Karuna Therapeutics Inc. for $14 billion. This acquisition aims to significantly enhance Bristol-Myers Squibb’s neuroscience portfolio by integrating Karuna’s innovative antipsychotic treatment, KarXT. The deal also provides access to Karuna’s early-stage and preclinical pipeline, potentially contributing to Bristol-Myers Squibb’s long-term growth and diversification in neuroscience. Karuna Therapeutics Inc. is a US-based clinical-stage biopharmaceutical company focused on developing treatments for psychiatric and neurological conditions.

Major companies operating in the antipsychotic drugs market are Pfizer Inc., Johnson & Johnson Services Inc., Merck And Co. Inc., AbbVie Inc., Bristol-Myers Squibb Company, AstraZeneca PLC, GlaxoSmithKline PLC, Takeda Pharmaceutical Company Limited, Eli Lilly And Company, Teva Pharmaceutical Industries Ltd., Sun Pharmaceutical Industries Ltd., Otsuka Pharmaceutical Co. Ltd., Aurobindo Pharma Ltd., Cipla Ltd., H. Lundbeck A/S, Dr. Reddy’s Laboratories Ltd., Intas Pharmaceuticals Ltd., Apotex Inc., Lupin Limited, Glenmark Pharmaceuticals Ltd., Torrent Pharmaceuticals Ltd., Alkermes plc.

North America was the largest region in the antipsychotic drugs market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the antipsychotic drugs market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the antipsychotic drugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Antipsychotic drugs are medications primarily used to manage and treat symptoms of psychosis, including delusions, hallucinations, paranoia, and disordered thinking. Psychosis is often linked with psychiatric conditions such as schizophrenia, bipolar disorder, and severe depression. These medications are also known as neuroleptics or major tranquilizers.

Antipsychotic drugs are classified into first-generation, second-generation, and third-generation categories. First-generation drugs, the earliest developed, primarily work by blocking dopamine receptors in the brain, which helps alleviate hallucinations and delusions. They are prescribed for various conditions, including schizophrenia, bipolar disorder, unipolar depression, and dementia. These drugs are available through multiple distribution channels, such as hospital pharmacies, drug stores, and online pharmacies.

The antipsychotic drugs market research report is one of a series of new reports that provides antipsychotic drugs market statistics, including the antipsychotic drugs industry global market size, regional shares, competitors with the antipsychotic drugs market share, detailed antipsychotic drugs market segments, market trends, and opportunities, and any further data you may need to thrive in the antipsychotic drugs industry. These antipsychotic drugs market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The antipsychotic drugs market consists of sales of long-acting injectables, depot injections, and atypical antipsychotics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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