Market Size of Dementia Drugs Industry
Study Period | 2021 - 2029 |
Market Size (2024) | USD 16.44 Billion |
Market Size (2029) | USD 22.21 Billion |
CAGR (2024 - 2029) | 6.20 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Europe |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Dementia Drugs Market Analysis
The Dementia Drugs Market size is estimated at USD 16.44 billion in 2024, and is expected to reach USD 22.21 billion by 2029, growing at a CAGR of 6.20% during the forecast period (2024-2029).
The outbreak of the COVID-19 pandemic had a considerable impact on the dementia drugs market. Certain countries saw significant disruptions in the delivery of pharmacological therapy to dementia patients. According to a study published in Alzheimer's and Dementia in October 2021, 68.6% of monthly sales volume increased compared to the prior year. In March 2020, the month the lockdown began, countries increased consumption volume by 82.3% in 34 European and North American countries. Sales climbed during the pre-pandemic period, with the most obvious spike occurring in March. During the pandemic, use was lower in April and May but increased in June. Hence, COVID-19 significantly impacted the market's growth. However, since the restrictions were lifted, the industry has been recovering well. Over the last two years, the market recovery has been led by the high prevalence of dementia and new product launches.
The factors propelling the market growth are the increasing prevalence of target diseases, the introduction of new and innovative technologies and drugs, and increased government funding and awareness programs for dementia. According to the World Health Organization, in September 2022, around 55 million individuals worldwide had dementia, with more than 60% residing in low- and middle-income counties. As the proportion of the population over the age of 65 years rises in practically every country, this figure is predicted to climb to 78 million in 2030 and 139 million in 2050. Thus, the growing prevalence of dementia worldwide is expected to boost the market's growth.
Increased government funding and awareness programs are the major factors driving the market's growth. For instance, as per a February 2022 update, a new initiative by McGill University's Dementia Education Program was among the 15 projects that would receive funding from the Public Health Agency of Canada to raise awareness of dementia and promote dementia-inclusive communities. Additionally, in October 2021, the Government of Kerala, India, launched the Dementia-Friendly District program, "Udbodh." This program was undertaken in cooperation with the NeuroScience department at Cochin University of Science and Technology, the Ernakulam district administration, and the Kochi Municipal Corporation. Moreover, in January 2021, LSP, the leading European life sciences investor, launched the LSP Dementia Fund, a fund dedicated to combating neurodegenerative diseases. Such initiatives will boost the awareness of dementia and, ultimately, drugs and treatments, thereby contributing to market growth.
Additionally, in August 2021, the National Institutes of Health (NIH) awarded USD 1.9 million in funding to Tabula Rasa HealthCare Inc. and Hesperos Inc. to investigate drug-induced dementia and develop new models that will drive Alzheimer's research. Such support from public organizations also contributes to the market's growth.
Thus, the market is expected to project growth over the forecast period. However, the high failure rates of drugs at the approval stages are expected to impede market growth over the forecast period.
Dementia Drugs Industry Segmentation
Dementia is the loss of cognitive functioning, thinking, remembering, reasoning, and behavioral abilities to such an extent that it interferes with a person's daily life and activities. These functions include memory, language skills, visual perception, problem-solving, self-management, and the ability to focus and pay attention. Alzheimer's is the most common cause of dementia.
The Dementia Drugs Market is Segmented by Indications (Lewy Body Dementia, Parkinson's Disease Dementia, Alzheimer's Disease, Vascular Dementia, and Other Indications), Drug Class (MAO Inhibitors, Glutamate Inhibitors, and Cholinesterase Inhibitors), and Geography (North America (United States, Canada, and Mexico), Europe (Germany, United Kingdom, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and Rest of Asia-Pacific), Middle East and Africa (GCC, South Africa, and Rest of Middle East and Africa), and South America Brazil, Argentina, and Rest of South America)). The report offers value (in USD million) for the above segments.
By Indications | |
Lewy Body Dementia | |
Parkinson's Disease Dementia | |
Alzheimer's Disease | |
Vascular Dementia | |
Other Indications |
By Drug Class | |
MAO Inhibitors | |
Glutamate Inhibitors | |
Cholinesterase Inhibitors |
By Geography | ||||||||
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Dementia Drugs Market Size Summary
The dementia drugs market is poised for significant growth over the forecast period, driven by the increasing prevalence of dementia globally and the introduction of innovative therapies. The market has shown resilience in the aftermath of the COVID-19 pandemic, which initially disrupted pharmacological therapies but later saw a surge in demand as restrictions were lifted. The rising number of individuals diagnosed with dementia, particularly in low- and middle-income countries, is a key factor propelling market expansion. Government initiatives and funding, such as those from the Public Health Agency of Canada and the Government of Kerala, India, are enhancing awareness and promoting dementia-inclusive communities, further supporting market growth. Additionally, strategic developments and collaborations among key players, including those in the European region, are contributing to the advancement of dementia drugs.
The market landscape is moderately competitive, with both local and global players actively engaging in research and development to create effective treatments. The Alzheimer's disease segment is expected to dominate the market share due to the high burden of the disease and ongoing drug development efforts. Regulatory approvals, such as those by the United States Food and Drug Administration, have facilitated the introduction of new therapies, bolstering market demand. Despite challenges like high drug failure rates at approval stages, the market is anticipated to grow, supported by strategic alliances, government initiatives, and increased awareness programs. Key players, including Apotex Inc., AstraZeneca, and Pfizer Inc., are investing in new product development and strategic partnerships to enhance their market position, ensuring continued growth in the dementia drugs market.
Dementia Drugs Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Prevalence of Target Diseases
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1.2.2 Introduction of New and Innovative Technologies and Drugs
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1.2.3 Increased Government Funding and Awareness Programs
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1.3 Market Restraints
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1.3.1 High Failure Rates of Drugs at Approval Stages
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size By Value in USD Million)
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2.1 By Indications
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2.1.1 Lewy Body Dementia
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2.1.2 Parkinson's Disease Dementia
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2.1.3 Alzheimer's Disease
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2.1.4 Vascular Dementia
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2.1.5 Other Indications
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2.2 By Drug Class
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2.2.1 MAO Inhibitors
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2.2.2 Glutamate Inhibitors
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2.2.3 Cholinesterase Inhibitors
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2.3 By Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 South Korea
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2.3.3.6 Rest of Asia-Pacific
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2.3.4 Middle East and Africa
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2.3.4.1 GCC
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2.3.4.2 South Africa
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2.3.4.3 Rest of Middle East and Africa
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2.3.5 South America
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2.3.5.1 Brazil
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2.3.5.2 Argentina
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2.3.5.3 Rest of South America
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Dementia Drugs Market Size FAQs
How big is the Dementia Drugs Market?
The Dementia Drugs Market size is expected to reach USD 16.44 billion in 2024 and grow at a CAGR of 6.20% to reach USD 22.21 billion by 2029.
What is the current Dementia Drugs Market size?
In 2024, the Dementia Drugs Market size is expected to reach USD 16.44 billion.