Pharmaceutical Drugs Market Opportunities and Strategies to 2033

This report describes and explains the pharmaceutical drugs market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global pharmaceutical drugs market reached a value of nearly $1.6 trillion in 2023, having grown at a compound annual growth rate (CAGR) of 6.83% since 2018. The market is expected to grow from $1.6 trillion in 2023 to $2.2 trillion in 2028 at a rate of 6.72%. The market is then expected to grow at a CAGR of 6.49% from 2028 and reach $3.1 trillion in 2033.

Growth in the historic period resulted from the high healthcare awareness, increase in pharmaceutical research and development (R&D) expenditure, strong economic growth in emerging markets, increasing government support and increased number of approvals for hematology/oncology (cancer) drugs. Factors that negatively affected growth in the historic period include regulatory challenges and long timelines for vaccine manufacturing.

Going forward, the growing prevalence of chronic diseases, increase in healthcare access, increasing aging populations, rise in healthcare expenditure and rising awareness on immunization and vaccination benefits will drive the market. Factors that could hinder the growth of the pharmaceutical drugs market in the future include reductions in free trade, high cost of APIs and drug development with threat of failure and rising popularity of alternative therapies and natural remedies.

The pharmaceutical drugs market is segmented by type into cardiovascular drugs, dermatology drugs, gastrointestinal drugs, genito-urinary drugs, hematology drugs, anti-infective drugs, metabolic disorder drugs, musculoskeletal disorder drugs, central nervous system drugs, oncology drugs, ophthalmology drugs, respiratory disease drugs, vaccine and therapeutic nutrients and minerals. The oncology drugs market was the largest segment of the pharmaceutical drugs market segmented by type, accounting for 15.92% or $257.6 billion of the total in 2023. Going forward, the vaccine segment is expected to be the fastest growing segment in the pharmaceutical drugs market segmented by type, at a CAGR of 11.02% during 2023-2028.

The cardiovascular drugs market is segmented by type into anti-hypertensive drugs, hypolipidemics, anti-thrombotic, angina pectoris, congestive heart failure and other cardiovascular drugs. The other cardiovascular drugs market was the largest segment of the cardiovascular drugs market segmented by type, accounting for 31.01% or $46.05 billion of the total in 2023. Going forward, the hypolipidemics segment is expected to be the fastest growing segment in the cardiovascular drugs market segmented by type, at a CAGR of 4.06% during 2023-2028.

The dermatology drugs market is segmented by type into acne drugs, dermatitis drugs, psoriasis drugs and other drugs for dermatology diseases. The psoriasis drugs market was the largest segment of the dermatology drugs market segmented by type, accounting for 39.82% or $23.62 billion of the total in 2023. Going forward, the psoriasis drugs segment is expected to be the fastest growing segment in the dermatology drugs market segmented by type, at a CAGR of 10.41% during 2023-2028.

The gastrointestinal drugs market is segmented by type into antacids, antiulcerants, antiemetics and antinauseants and antidiarrheals. The antiulcerants market was the largest segment of the gastrointestinal drugs market segmented by type, accounting for 72.45% or $53.93 billion of the total in 2023. Going forward, the antiemetics and antinauseants segment is expected to be the fastest growing segment in the gastrointestinal drugs market segmented by type, at a CAGR of 4.01% during 2023-2028.

The genito-urinary drugs market is segmented by type into hormonal contraceptives, drugs for benign prostatic hypertrophy, drugs for infertility, drugs for erectile dysfunction, drugs for urinary incontinence and overactive bladder, drugs for infections and others, drugs for hormonal replacement therapy and diuretics. The hormonal contraceptives market was the largest segment of the genito-urinary drugs market segmented by type, accounting for 32.48% or $13.72 billion of the total in 2023. Going forward, the drugs for benign prostatic hypertrophy segment is expected to be the fastest growing segment in the genito-urinary drugs market segmented by type, at a CAGR of 6.03% during 2023-2028.

The hematology drugs market is segmented by type into blood products and anemia and other blood disorder drugs. The blood products market was the largest segment of the hematology drugs market segmented by type, accounting for 71.38% or $27.06 billion of the total in 2023. Going forward, the blood products segment is expected to be the fastest growing segment in the hematology drugs market segmented by type, at a CAGR of 9.00% during 2023-2028.

The anti-infective drugs market is segmented by type into antibiotics, antivirals, antifungals and others (anthelminthic, antiprotozoal). The antivirals market was the largest segment of the anti-infective drugs market segmented by type, accounting for 41.70% or $97.07 billion of the total in 2023. Going forward, the antifungals segment is expected to be the fastest growing segment in the anti-infective drugs market segmented by type, at a CAGR of 9.56% during 2023-2028.

The metabolic disorders drugs market is segmented by type into anti-diabetic drugs, anti-thyroid drugs, anti-obesity and others. The anti-diabetic drugs market was the largest segment of the metabolic disorders drugs market segmented by type, accounting for 84.78% or $82.06 billion of the total in 2023. Going forward, the anti-obesity segment is expected to be the fastest growing segment in the metabolic disorders drugs market segmented by type, at a CAGR of 10.66% during 2023-2028.

The musculoskeletal disorders market is segmented by type into drugs for rheumatoid arthritis, muscle relaxants and other musculoskeletal disorders drugs. The drugs for rheumatoid arthritis market was the largest segment of the musculoskeletal disorders market segmented by type, accounting for 53.59% or $55.13 billion of the total in 2023. Going forward, the muscle relaxants segment is expected to be the fastest growing segment in the musculoskeletal disorders market segmented by type, at a CAGR of 4.75% during 2023-2028.

The central nervous system drugs market is segmented by type into analgesics, anti-Parkinson drugs, anesthetics, anti-epileptics, alzheimer and other CNS drugs. The analgesics market was the largest segment of the central nervous system drugs market segmented by type, accounting for 60.43% or $104.91 billion of the total in 2023. Going forward, the anti-Parkinson drugs segment is expected to be the fastest growing segment in the central nervous system drugs market segmented by type, at a CAGR of 6.29% during 2023-2028.

The oncology drugs market is segmented by type into drugs for lung cancer, pancreatic cancer, breast cancer, prostate cancer, ovarian cancer, colorectal cancer, gastric cancer, kidney cancer, brain tumor, thyroid cancer, skin cancer, bladder cancer, cervical cancer, blood cancer and others. The blood cancer drugs market was the largest segment of the oncology drugs market segmented by type, accounting for 26.49% or $68.23 billion of the total in 2023. Going forward, the ovarian cancer drugs segment is expected to be the fastest growing segment in the oncology drugs market segmented by type, at a CAGR of 14.92% during 2023-2028.

The ophthalmology drugs market is segmented by type into antiglaucoma drugs, dry eye medication and other ophthalmology drugs. The other ophthalmology drugs market was the largest segment of the ophthalmology drugs market segmented by type, accounting for 58.48% or $34.68 billion of the total in 2023. Going forward, the dry eye medication segment is expected to be the fastest growing segment in the ophthalmology drugs market segmented by type, at a CAGR of 11.79% during 2023-2028.

The respiratory diseases drugs market is segmented by type into anti-asthmatics and COPD drugs and cough and cold preparations. The cough and cold preparations market was the largest segment of the respiratory diseases drugs market segmented by type, accounting for 51.52% or $79.5 billion of the total in 2023. Going forward, the anti-asthmatics and COPD drugs segment is expected to be the fastest growing segment in the respiratory diseases drugs market segmented by type, at a CAGR of 6.26% during 2023-2028.

The vaccine market is segmented by type into therapeutic vaccines and preventive vaccines. The preventive vaccines market was the largest segment of the vaccine market segmented by type, accounting for 61.12% or $68.27 billion of the total in 2023. Going forward, the therapeutic vaccines segment is expected to be the fastest growing segment in the vaccine market segmented by type, at a CAGR of 12.40% during 2023-2028.

The therapeutic nutrients and minerals market is segmented by type into electrolytes and minerals and vitamins. The vitamins market was the largest segment of the therapeutic nutrients and minerals market segmented by type, accounting for 62.12% or $41.68 billion of the total in 2023. Going forward, the vitamins segment is expected to be the fastest growing segment in the therapeutic nutrients and minerals market segmented by type, at a CAGR of 9.05% during 2023-2028.

The pharmaceutical drugs market is segmented by distribution channel into hospital pharmacies, retail pharmacies/ drug stores and other distribution channels. The retail pharmacies/ drug stores market was the largest segment of the pharmaceutical drugs market segmented by distribution channel, accounting for 55.79% or $902.91 billion of the total in 2023. Going forward, the other distribution channels segment is expected to be the fastest growing segment in the pharmaceutical drugs market segmented by distribution channel, at a CAGR of 11.05% during 2023-2028.

The pharmaceutical drugs market is segmented by drug classification into branded drugs and generic drugs. The generic drugs market was the largest segment of the pharmaceutical drugs market segmented by drug classification, accounting for 89.65% or $1.45 trillion of the total in 2023. Going forward, the generic drugs segment is expected to be the fastest growing segment in the pharmaceutical drugs market segmented by drug classification, at a CAGR of 7.06% during 2023-2028.

The pharmaceutical drugs market is segmented by route of administration into oral, parenteral and other route of administration. The oral market was the largest segment of the pharmaceutical drugs market segmented by route of administration, accounting for 67.73% or $1.09 trillion of the total in 2023. Going forward, the parenteral segment is expected to be the fastest growing segment in the pharmaceutical drugs market segmented by route of administration, at a CAGR of 6.95% during 2023-2028.

The pharmaceutical drugs market is segmented by mode of purchase into over-the-counter (OTC) drugs and prescription-based drugs. The prescription-based drugs market was the largest segment of the pharmaceutical drugs market segmented by mode of purchase, accounting for 62.96% or $1.01 trillion of the total in 2023. Going forward, the over-the-counter (OTC) drugs segment is expected to be the fastest growing segment in the pharmaceutical drugs market segmented by mode of purchase, at a CAGR of 8.28% during 2023-2028.

North America was the largest region in the pharmaceutical drugs market, accounting for 48.29% or $781.59 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the pharmaceutical drugs market will be Africa and South America, where growth will be at CAGRs of 11.22% and 11.16% respectively. These will be followed by the Middle East and Asia-Pacific, where the markets are expected to grow at CAGRs of 9.75% and 8.38% respectively.

The global pharmaceutical drugs market is concentrated, with large players operating in the market. The top ten competitors in the market made up to 30.31% of the total market in 2023. Pfizer Inc. was the largest competitor with a 3.53% share of the market, followed by Johnson & Johnson with 3.38%, AbbVie Inc. with 3.36%, Merck & Co., Inc with 3.31%, F. Hoffmann-La Roche AG with 3.25%, AstraZeneca Plc. with 2.83%, Novartis AG with 2.81%, Bristol-Myers Squibb Company with 2.78%, Sanofi S.A with 2.55% and GSK plc. with 2.51%.The top opportunities in the pharmaceutical drugs market segmented by type will arise in the oncology drugs segment, which will gain $132.95 billion of global annual sales by 2028.

The top growth potential in the cardiovascular drugs market segmented by type will arise in the other cardiovascular drugs segment, which will gain $8.62 billion of global annual sales by 2028. The top growth potential in the dermatology drugs market segmented by type will arise in the psoriasis drugs segment, which will gain $15.13 billion of global annual sales by 2028. The top growth potential in the gastrointestinal drugs market segmented by type will arise in the antiulcerants segment, which will gain $7.63 billion of global annual sales by 2028. The top growth potential in the genito-urinary drugs market segmented by type will arise in the drugs for hormonal replacement therapy segment, which will gain $3.61 billion of global annual sales by 2028. The top growth potential in the hematology drugs market segmented by type will arise in the blood products segment, which will gain $14.58 billion of global annual sales by 2028. The top growth potential in the anti-infective drugs market segmented by type will arise in the antivirals segment, which will gain $45.72 billion of global annual sales by 2028. The top growth potential in the metabolic disorders drugs market segmented by type will arise in the anti-diabetics drugs segment, which will gain $43.61 billion of global annual sales by 2028. The top growth potential in the musculoskeletal disorders drugs market segmented by type will arise in the drugs for rheumatoid arthritis segment, which will gain $10.87 billion of global annual sales by 2028. The top growth potential in the central nervous system drugs market segmented by type will arise in the analgesics segment, which will gain $20.39 billion of global annual sales by 2028. The top growth potential in the oncology drugs market segmented by type will arise in the lung cancer drugs segment, which will gain $32.27 billion of global annual sales by 2028. The top growth potential in the ophthalmology drugs market segmented by type will arise in the other ophthalmological drugs (retinal disorders, anti-infectives/allergy) segment, which will gain $20.74 billion of global annual sales by 2028. The top growth potential in the respiratory diseases drugs market segmented by type will arise in the anti-asthmatics and COPD drugs segment, which will gain $26.52 billion of global annual sales by 2028. The top growth potential in the vaccine market segmented by type will arise in the preventive vaccines segment, which will gain $42.21 billion of global annual sales by 2028. The top growth potential in the therapeutic nutrients and minerals market segmented by type will arise in the vitamins segment, which will gain $22.16 billion of global annual sales by 2028.

The top opportunities in the pharmaceutical drugs market by distribution channel will arise in the retail pharmacies/ drug stores segment, which will gain $288.59 billion of global annual sales by 2028. The top opportunities in the pharmaceutical drugs market by route of administration will arise in the oral segment, which will gain $416.72 billion of global annual sales by 2028. The top opportunities in the pharmaceutical drugs market segmented by drug classification will arise in the generic drugs segment, which will gain $590.04 billion of global annual sales by 2028. The top opportunities in the pharmaceutical drugs market segmented by mode of purchase will arise in the prescription-based drugs segment, which will gain $329.59 billion of global annual sales by 2028. The pharmaceutical drugs market size will gain the most in the USA at $217.03 billion.

Market-trend-based strategies for the pharmaceutical drugs market include focus on investments in injectable and biologics manufacturing facilities to boost pharmaceutical drug production, focus on advanced technologies to accelerate drug development, development of generic cancer drugs to enable broader patient access, use of biomarkers for drug development, focus on personalized medicine to enhance treatment, investment in artificial intelligence (AI) for drugs discovery and strategic partnerships and collaborations among major players.

Player-adopted strategies in the pharmaceutical drugs market include focus on advancing innovative, patient-friendly solutions to address the growing demand for effective obesity treatments, expanding portfolio through strategic partnerships, innovative collaborations to develop advanced treatment options addressing unmet medical needs in oncology, leveraging advanced AI technologies to accelerate drug discovery and development, enhancing efficiency in addressing various diseases and expanding pharmaceutical portfolio by developing and launching innovative treatments.

To take advantage of the opportunities, the analyst recommends the pharmaceutical drugs companies to focus on injectable and biologics manufacturing, focus on advanced drug discovery technologies, focus on developing generic cancer drugs, focus on leveraging biomarkers in drug development, focus on the vaccine market segment, focus on hospital pharmacies for growth, expand in emerging markets, focus on strategic partnerships for growth, provide competitively priced offerings, provide competitively priced offerings, enhance digital marketing strategies, continue to use B2B promotions and focus on the aging population.