Antipsychotic Drugs Market Size to Capture USD 37.40 Billion by 2032

The antipsychotic drugs market was valued at USD 18.04 billion in 2023 and is expected to reach around USD 37.40 billion by 2032, rising at a CAGR of 7.8% from 2024 to 2032.

The antipsychotic drugs market was valued at USD 18.04 billion in 2023 and is expected to reach around USD 37.40 billion by 2032, rising at a CAGR of 7.8% from 2024 to 2032.

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Around 24 million individuals, constituting approximately 0.32% of the global population, are affected by schizophrenia. Antipsychotic drugs, also known as neuroleptics, are commonly used to alleviate symptoms associated with psychosis. These medications effectively reduce and manage symptoms such as delusions, hallucinations (including paranoia and auditory hallucinations), fear, severe agitation, nonsensical speech, confused thoughts, violent or disruptive behavior, and manic episodes. They work by blocking the action of dopamine and other neurotransmitters in the brain.

There are two generations of antipsychotic drugs currently available. While both are efficient, newer second-generation drugs offer improved benefits with fewer side effects compared to typical first-generation antipsychotics. Major conditions treated with antipsychotic drugs include schizophrenia, dementia, bipolar disorder, depression, and others. Antipsychotics are primarily used to reduce acute symptoms and prevent symptom relapses and hospitalization.

Schizophrenia is considered a major disability due to mental health issues. A clinical and research study conducted using Danish national health registries found that schizophrenia is the most burdensome mental illness at both individual and population levels, considering the length of illness and degree of disability. The study, led by John McGrath, M.D., Ph.D., the Niels Bohr Professor at the National Centre for Register-based Research at Aarhus University in Denmark, utilized data from the Danish Psychiatric Central Research Register to calculate years lived with disability (YLD) for 18 mental health and substance abuse problems.

According to McGrath and colleagues, schizophrenia was the largest cause of impairment from mental illness for both men and women, accounting for 273 years of life lost per 100,000 people. Personality disorders were the second most debilitating, followed by anxiety disorders.

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Increase in Prescriptions of Antipsychotic Drugs in Ireland

According to a research article published by MDPI in January 2024, the number of prescribed antipsychotic drugs has risen in Ireland. In 2020, Ireland’s population was 4.985 million, projected to increase to 5.033 million in 2021 and 5.15 million by 2022. From 2020 to 2022, the number of prescriptions for psycholeptics increased annually, reaching a peak of 328,572 in December 2020.

By April 2021, at least 31,340 patients in Ireland were receiving at least one antipsychotic drug through payment systems. In 2021, 30.8% of the Irish population was enrolled in the GMS plan. Antipsychotics were prescribed to at least 1.9% of the 1.54 million medical card holders. The total ingredient cost of antipsychotics under the GMS and DPS programs in 2021 exceeded USD 26.6 million.

A subsequent analysis revealed an increase in antipsychotic prescribing among dementia and care home groups, coinciding with COVID-19 lockdowns. This increase could be attributed to antipsychotic prescribing for palliative care.

Surge in Mental Health Treatment Rates Boosts Antipsychotic Drugs Market

According to the U.S. Department of Health and Human Services, there has been a significant increase in the proportion of adults receiving mental health treatment from 2019 to 2021. Among adults of all ages, the rate rose from 19.2% to 21.6%, while for those aged 18–44, it increased from 18.5% to 23.2%. This rise in mental health treatment, particularly among the younger age group, is a positive step indicating a growing focus on mental health in the United States.

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The increase can be attributed to several factors:

  1. Reduced Stigma and Increased Awareness: There is greater awareness of mental health disorders, leading to reduced stigma associated with therapy.
  2. Improved Accessibility: Expansion of insurance coverage and the prevalence of teletherapy have made it easier for people to access mental healthcare.
  3. Pandemic Impact: The pandemic has raised awareness of mental health issues, prompting more people to seek help.

In 2021, the highest rates of mental health treatment among adults aged 18-44 were observed among women (28.6%) and non-Hispanic White individuals (30.4%). This indicates a broadening acceptance and utilization of mental health services across different demographics.

The surge in mental health treatment rates has also led to an increase in the demand for antipsychotic drugs. Conditions such as schizophrenia, depression, bipolar disorders, and others are becoming more prevalent, driving the need for effective treatments. Furthermore, the emphasis on early detection and intervention in mental health disorders has led to more patients being prescribed antipsychotic drugs, further contributing to market growth.

Additionally, there is a growing focus on research and development in the field of antipsychotic drugs. This includes efforts to develop novel formulations for managing and treating mental health disorders, which is accelerating market growth.

The increase in research and development, clinical trials, and subsequent product approvals in the field of antipsychotic drugs has played a crucial role in fostering the growth of the antipsychotic drugs market. Scientists are actively working to develop new therapeutics for various psychotic disorders such as schizophrenia, dementia, bipolar disorders, depression, and other related conditions.

Here are some recent approvals of antipsychotic drugs:

  • In January 2024, the FDA approved Pimavanserin Capsules, 34 mg (USRLD: Nuplazid Capsules) and Pimavanserin Tablets, 10 mg (USRLD: Nuplazid Tablets) for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.
  • In November 2023, the FDA accepted the new drug application for KarXT (xanomeline-trospium) from Karuna Therapeutics Inc. for the treatment of schizophrenia in adults.
  • In May 2023, Otsuka Pharmaceuticals and Lundbeck Inc. received FDA approval for their new drug Rexulti (bexiprazole) for treating schizophrenia in pediatric patients aged 13-17 years.
  • In April 2023, MedinCell and Teva Pharmaceuticals obtained FDA approval for their extended-release injectable suspension UZEDY (risperidone) for treating schizophrenia in adults.
  • In June 2021, the FDA approved LYBALVI (olanzapine and samidorphan) from Alkermes plc for the treatment of schizophrenia and bipolar disorders.
  • In December 2021, the FDA tentatively approved Capriprazine from Zydus Cadila for the treatment of schizophrenia and episodes associated with bipolar disorders.

The increasing number of product approvals significantly enhances market growth by providing advanced and more effective drugs for psychosis and related conditions.

Adverse Effects of Antipsychotic Drugs: A Barrier to Market Growth

The adverse effects associated with antipsychotic drugs, such as tardive dyskinesia, weight gain, and sleepiness, pose significant obstacles to market growth. These side effects can diminish a patient’s motivation to adhere to their prescribed medication regimen, leading to symptom recurrence and hospitalization, thereby increasing overall healthcare costs. Additionally, unwanted side effects can profoundly impact a patient’s daily life, including their ability to work, socialize, and maintain relationships, resulting in lower productivity and higher utilization of healthcare resources to manage these side effects. Moreover, managing these side effects often requires additional medications or therapies, which further adds to the overall expense of treatment. Considering these factors, the adverse effects of antipsychotic drugs represent a prominent restraining factor for market growth.

North America Leads the Antipsychotic Drugs Market

North America emerged as the dominant region in the antipsychotic drugs market in 2023, driven by factors such as the high prevalence of associated disorders, rising healthcare costs, and the presence of strong market players. Mental illnesses like schizophrenia and bipolar disorder are highly prevalent in the region. Furthermore, leading biopharmaceutical companies actively engage in the development and marketing of these medications. Additionally, healthcare spending is substantial, with considerable insurance coverage for mental health services. Government initiatives aimed at raising mental health awareness and improving access to medication play a crucial role in shaping the market. The presence of qualified mental health specialists and well-equipped healthcare facilities is vital for the efficient administration of antipsychotic medicines. Moreover, individuals and families with higher disposable incomes are better able to afford these drugs.

Antipsychotic Drugs Market Players

  • Otsuka Holdings Co., Ltd. (Otsuka Pharmaceutical Co., Ltd.)
  • Teva Pharmaceutical Industries Ltd.
  • Eli Lilly and Company
  • Dr. Reddy’s Laboratories Limited
  • AstraZeneca PLC.
  • Johnson & Johnson (Janssen Pharmaceuticals)
  • Pfizer Inc.
  • Alkermes Plc.
  • AbbVie Inc. (Allergan Inc.)
  • Bristol-Myers Squibb

Antipsychotic Drugs Market Segments

By Therapeutic Class

  • First Generation
  • Second Generation

By Application

  • Schizophrenia
  • Dementia
  • Bipolar Disorder
  • Depression
  • Other Applications

By Distribution Channel

  • Hospital Pharmacies
  • Retail Pharmacies
  • Online Pharmacies

By Geography

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • South America

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