Market Size of Global Specialty Pharmaceuticals Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
CAGR | 35.40 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Specialty Pharmaceuticals Market Analysis
The specialty pharmaceuticals market is expected to grow at a significant CAGR of 35.4% during the study period (2022-2027).
The emergence of the COVID-19 pandemic harmed the world economy and the healthcare system. According to the article "CVS is Adapting its Strategy for Specialty Pharmacy for COVID-19. Here's How," published in May 2020, CVS pharmacy has used a secure messaging tool, which allows pharmacists to text members directly to discuss their medications. Therefore, such changes in the strategy of market players have minimized the impact of COVID-19 on the supply of specialized drugs. However, the production of these drugs was hampered due to the temporary lockdown in the manufacturing plants, shortage of skilled labor, and increasing cases of COVID-19 inside the manufacturing plants, which has led to outages, thus, impacting the market. Hence, the above factors indicate that COVID-19 significantly impacted the studied market.
The factors propelling the studied market growth are the increasing prevalence of chronic and rare diseases and growing research and development activities. New drug launches, approvals, and strategic initiatives by key market players are expected to contribute to significant market growth.
According to the American Cancer Society, Cancer Facts & Figures 2022, substantial progress has been made against cancer in recent decades. over 1.9 million new cancer cases are expected to be diagnosed in the United States in 2022
According to the October 2020 report published by Global Blood Therapeutics, Sickle Cell Disease is one of Europe's most common rare diseases. It is the most common genetic disease in France and the United Kingdom (UK), and its prevalence is growing in many other European countries. SCD primarily affects socioeconomically vulnerable populations. According to the European Medicines Agency (EMA) report 2020, approximately 1 in 10,000 people in the EU/ European Economic Area had SCD. This equates to approximately 52,000 people. Similarly, Orphanet (the European information resource for rare diseases) 2020 estimates the prevalence of SCD in Europe to be 10 per 100,000 people in 2020. Thus, the increasing number of the patient pool for the diseases drives the market's growth.
Additionally, research and development studies for proving the efficacies of specialty drugs in treating cancer and other diseases will drive the studied market growth. For instance, according to the study "Recent Breast Cancer Treatment Advancements and the Support of Specialty Pharmacies," published in October 2021, specialty pharmacies can help reduce barriers to care for breast cancer patients by providing prompt therapy authorization, reducing out-of-pocket costs, and providing access to specialty medication.
Moreover, the launch of new specialty pharmacies will also drive market growth. For instance, in March 2022, Boston Children's Hospital partnered with Shields Health Solutions to launch Boston Children's Pharmacy, a specialty pharmacy to help young patients and families get better access to specialized pharmacy services, including help with prior authorizations and specialized medications. Such a launch of pharmacies will make specialized pharmaceuticals more accessible to the people in the country, thereby contributing to the market's growth.
Therefore, owing to the factors mentioned above, the studied market is expected to grow significantly during the study period. However, the high costs of specialty medications are expected to hinder the market growth during the study period.
Specialty Pharmaceuticals Industry Segmentation
As per the scope of the report, specialty pharmaceuticals are branded injectable, infusions, or oral medication with high cost, high complexity, and high touch, with limited or exclusive availability and distribution, and are used to treat chronic or rare diseases. The Specialty Pharmaceuticals Market is Segmented by Therapeutic Area (Oncology, Inflammatory Conditions, Multiple Sclerosis, Infectious Diseases, and Others (Women's Health, Growth Hormone, and Respiratory)) by Route of Administration (Oral, Parenteral, and Transdermal), By Distribution Channel (Hospitals, Retail Pharmacies, and Specialty Pharmacies) and by Geography (North America, Europe, Asia Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 countries across major global regions. The report offers the value (USD million) for the above segments.
By Therapeutic Area | |
Oncology | |
Inflammatory Conditions | |
Multiple Sclerosis | |
Infectious Diseases | |
Others (Women's Health and Respiratory) |
By Route of Administration | |
Oral | |
Parenteral | |
Transdermal |
By Distribution Channel | |
Hospitals | |
Retail Pharmacies | |
Specialty Pharmacies |
Geography | ||||||||
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Global Specialty Pharmaceuticals Market Size Summary
The specialty pharmaceuticals market is poised for substantial growth, driven by the increasing prevalence of chronic and rare diseases, alongside robust research and development activities. The market has shown resilience despite challenges posed by the COVID-19 pandemic, which temporarily disrupted production due to lockdowns and labor shortages. However, strategic adaptations by key players, such as CVS Pharmacy's use of secure messaging tools, helped mitigate these impacts. The market's expansion is further supported by new drug launches, approvals, and strategic initiatives, which are crucial in addressing the rising demand for specialized medications. The growing patient pool for conditions like cancer and sickle cell disease, particularly in regions like North America, underscores the market's potential. The introduction of specialty pharmacies, such as Boston Children's Pharmacy, enhances accessibility to these medications, contributing to market growth.
In North America, the specialty pharmaceuticals market is expected to experience significant growth, driven by the high prevalence of diseases such as cancer and sickle cell disease. The United States, in particular, is anticipated to hold a substantial market share due to its large patient population and ongoing strategic initiatives by key market players. Investments in innovation and the expansion of product offerings are further propelling market growth. The competitive landscape is characterized by strategic mergers, acquisitions, and partnerships among major players like Teva Pharmaceuticals, AbbVie, and Amgen. These activities, along with regulatory approvals and the launch of new therapies, are expected to drive the market forward, making it a lucrative segment within the broader pharmaceutical industry.
Global Specialty Pharmaceuticals 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 Burden of Chronic and Rare Diseases
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1.2.2 Growing Research and Development Activities
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1.3 Market Restraints
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1.3.1 High Cost of Drugs
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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 Million)
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2.1 By Therapeutic Area
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2.1.1 Oncology
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2.1.2 Inflammatory Conditions
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2.1.3 Multiple Sclerosis
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2.1.4 Infectious Diseases
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2.1.5 Others (Women's Health and Respiratory)
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2.2 By Route of Administration
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2.2.1 Oral
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2.2.2 Parenteral
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2.2.3 Transdermal
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2.3 By Distribution Channel
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2.3.1 Hospitals
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2.3.2 Retail Pharmacies
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2.3.3 Specialty Pharmacies
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 United Kingdom
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2.4.2.3 France
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2.4.2.4 Italy
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2.4.2.5 Spain
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2.4.2.6 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 China
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2.4.3.2 Japan
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2.4.3.3 India
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2.4.3.4 Australia
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2.4.3.5 South Korea
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2.4.3.6 Rest of Asia-Pacific
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2.4.4 Middle-East and Africa
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2.4.4.1 GCC
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2.4.4.2 South Africa
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2.4.4.3 Rest of Middle-East and Africa
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2.4.5 South America
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2.4.5.1 Brazil
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2.4.5.2 Argentina
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2.4.5.3 Rest of South America
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Global Specialty Pharmaceuticals Market Size FAQs
What is the current Global Specialty Pharmaceuticals Market size?
The Global Specialty Pharmaceuticals Market is projected to register a CAGR of 35.40% during the forecast period (2024-2029)
Who are the key players in Global Specialty Pharmaceuticals Market?
Teva Pharmaceutical Industries Ltd., AbbVie, Inc., Amgen Inc., Johnson and Johnson and Bristol-Myers Squibb Company are the major companies operating in the Global Specialty Pharmaceuticals Market.