Antipsychotic drugs are pharmacologic agents used to treat psychotic disorders such as schizophrenia, bipolar disorder (manic-depressive illness), and others. These drugs work to help correct imbalances in the brain's chemical messengers (neurotransmitters) called dopamine and serotonin which help control mood and perceptions. The advent of second-generation antipsychotics in the 1990s revolutionized treatment for schizophrenia and other psychotic disorders. These newer drugs cause less neurological side effects compared to older and first-generation antipsychotics.

The global antipsychotic drugs market is estimated to be valued at US$ 16.14 Bn in 2024 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 Opportunity:

Treatment of certain unmet medical needs present a major market opportunity in the antipsychotic drugs market. As many as 30% of schizophrenia patients are treatment-resistant and may fail to respond to multiple antipsychotic drugs. Novel antipsychotic drugs are being developed which offer new mechanisms of action targeting the underlying pathophysiology of schizophrenia and other psychotic disorders better than existing drugs. These new drugs aim to provide relief from symptoms for treatment-resistant patients and fulfill unmet needs. Furthermore, certain specific indications like drug-induced psychosis currently have limited treatment options. Drugs demonstrating efficacy for such niche applications can capture off-label sales by meeting these unmet needs. Fulfilling unmet needs through innovative new drugs will be a key market growth driver over the forecast period.

Porter's Analysis

Threat of new entrants: The threat of new entrants is moderate as the antipsychotic drugs market is consolidated with stringent regulations for new product approvals. However, easy availability of active pharmaceutical ingredients reduces this threat to some extent.

Bargaining power of buyers: The bargaining power of buyers is moderate as drugs offered by different companies have therapeutic equivalence. This enables buyers to negotiate on price.

Bargaining power of suppliers: Suppliers of raw materials have moderate to high bargaining power due to limited availability of resources and longer timelines for product development.

Threat of new substitutes: The threat from new substitutes is low as new drug candidates take significant time and investment for development and approvals.

Competitive rivalry: The market is dominated by a few major players leading to high competitive rivalry.

SWOT Analysis

Strength: Wide portfolio of drugs, strong distribution network and brand recognition of major players. Research collaborations allow companies to gain access to new molecules.

Weakness: Rising R&D cost and pricing pressure due to patent expiries. Generic competition erodes sales of branded drugs.

Opportunity: High prevalence of mental illnesses represents an unmet need. Emerging markets with large patient populations offer sales potential. Digital solutions can improve patient engagement and outcomes.

Threats: Stringent regulations for approval and safety warnings delay market entry. Side effects and risk of misuse associated with some drugs.

Key Takeaways

The global antipsychotic drugs market is expected to witness high growth during the forecast period. The global antipsychotic drugs market is estimated to be valued at US$ 16.14 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030.

North America currently accounts for the largest share of the global antipsychotic drugs market, driven by the presence of major players, strong reimbursement framework, and growing access to healthcare services. The U.S. represents the major market in the region. However, the Asia Pacific region is projected to witness the highest growth during the forecast period owing to the rising geriatric population, growing patient awareness, and improving healthcare infrastructure across emerging countries such as China and India. Furthermore, rising governmental spending on mental health programs will support the regional market growth.

Key players operating in the antipsychotic drugs market are Eli Lily and Company, AstraZeneca plc, GlaxoSmithKline plc, Johnson & Johnson, Otsuka Pharmaceutical Co, Ltd., Pfizer Inc., AbbVie Inc., Bristol-Myers Squibb, Teva Pharmaceuticals, and Dr. Reddy's Laboratories. Eli Lily and Company offers a wide range of drugs and is the market leader. Major companies are focusing on partnerships and investments in research to develop novel drugs for enhanced treatment and better patient outcomes.