June 18, 2024

The Global Antipsychotic Drugs Market driven by Increasing Prevalence of Mental Illness

The antipsychotic drugs market plays a crucial role in helping address the unmet medical needs of patients suffering from various psychiatric disorders like schizophrenia, bipolar disorder and psychosis. Antipsychotic medications work by altering the balance of certain chemicals in the brain, known as neurotransmitters, and are used to treat symptoms such as hallucinations, delusions or disorganized thoughts and behaviors. Rising prevalence of mental health conditions globally has significantly raised the demand for antipsychotics as pharmacological interventions continue to remain standard of care.

The global Antipsychotic Drugs Market is estimated to be valued at US$ 18.6 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the antipsychotic drugs market is the growing adoption of second-generation or atypical antipsychotics that are more effective than their first-generation predecessors in managing the symptoms of mental illnesses with fewer side effects. Drugs like Latuda, Rexulti, Vraylar and others have demonstrated superiority over standard dopamine receptor antagonist neuroleptics in terms of safety, tolerability and efficacy. These newer medications have enhanced the quality of care for schizophrenia patients, thereby expanding market opportunities. Moreover, robust pipeline of novel antipsychotic compounds in late-stage clinical trials that target unmet medical needs promises to further increase treatment choice availability and drive the market growth in the coming years.

Porter’s Analysis
Threat of new entrants: New entrants may face significant regulatory barriers and high capital investment costs to enter this market. The pharmaceutical industry experiences strict regulations and lengthy approval processes for new drugs.
Bargaining power of buyers: Individual consumers have little bargaining power as they lack the negotiating power and information to get lower prices. However, groups of buyers like hospitals and private healthcare organizations negotiate prices collectively.
Bargaining power of suppliers: Major pharmaceutical companies have significant bargaining power as suppliers given their extensive patent portfolios and expertise in developing new drugs. Buyers rely heavily on these suppliers for patented drugs.
Threat of new substitutes: Alternative drug classes or treatment methods may emerge as substitutes over time. However, developing new substitute drugs generally requires huge investments and completing long trials to prove safety and efficacy.
Competitive rivalry: The market is highly competitive with leading players aggressively marketing new drugs. Companies compete based on product differentiation, patents and expertise in specific drug classes.

Key Takeaways
The global antipsychotic drugs market is expected to witness high growth over the forecast period of 2023-2030. The global Antipsychotic Drugs Market is estimated to be valued at US$ 18.6 billion in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030.

Regional analysis: North America dominates the market currently owing to high healthcare spending and technological advancements. However, Asia Pacific is expected to grow at the fastest pace due to rising awareness, growing geriatric population and increasing healthcare investments in countries like China and India.

Key players: Key players operating in the antipsychotic drugs market are Johnson & Johnson, Pfizer, Eli Lilly, Bristol-Myers Squibb, AstraZeneca and GlaxoSmithKline. Johnson & Johnson leads the market with its popular brand Risperdal. Eli Lilly’sZyprexa brand is also a top-selling atypical antipsychotic globally.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it