Specialty Pharmaceuticals Market Size (2024 - 2029)

Specialty Pharmaceuticals Market Analysis

The Specialty Pharmaceuticals Market size is estimated at USD 11.74 billion in 2024, and is expected to reach USD 55.61 billion by 2029, growing at a CAGR of 36.5% during the forecast period (2024-2029).

The market studied is experiencing significant growth driven by several key factors. The increasing prevalence of chronic and rare diseases, coupled with robust research and development activities, are creating a strong demand for new treatments. This demand is further amplified by the launch of new drugs, regulatory approvals, and strategic initiatives undertaken by major market players.

The growing burden of chronic diseases is expected to increase the utilization of specialty pharmaceuticals, thereby boosting the growth of the market over the forecast period. For instance, according to the American Cancer Society, an estimated 2.0 million new cancer cases will be diagnosed in 2024, among which prostate cancer is estimated to be 288,300, followed by 238.340 cases of lung cancer and 300,590 cases of female breast cancer.

Furthermore, as per Canadian government statistics released in May 2022, approximately 233,900 Canadians were diagnosed with cancer in 2022, with prostate cancer projected to continue as the most prevalent type of cancer. Similarly, the growing burden of chronic and rare diseases is anticipated to drive market growth in the coming years. This is underscored by statistics from the Genetic and Rare Diseases (GARD) Information Centre, which revealed that in May 2022, 1 in 10 Americans (approximately 30 million people) lived with a rare disease, with an estimated 7,000 different rare diseases identified.

Further, growing research and development activities by pharmaceutical firms are expected to boost the market over the forecast period. For instance, in March 2023, Eisai Co. Ltd and Biogen Inc. revealed that the FDA had accepted Eisai's supplemental Biologics Licence Application (sBLA) for LEQEMBI (lecanemab-irmb) 100 mg/mL injection for intravenous use, paving the way for LEQEMBI's accelerated approval to be converted to a traditional approval. Similarly, in March 2022, Mankind Pharma Ltd announced an investment in Actimed Therapeutics Ltd, a UK-based clinical-stage specialty pharmaceutical company. Actimed is dedicated to developing innovative treatments for cancer cachexia, a critical unmet need in cancer care, as well as other muscle-wasting disorders.

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 their families get better access to specialized pharmacy services, including help with prior authorizations and specialized medication. Such launches of pharmacies will make specialized pharmaceuticals more accessible to people in the country, thereby contributing to the overall market's growth.

Therefore, owing to the abovementioned factors, the market studied is expected to grow significantly during the forecast period. However, the high costs of specialty medications are expected to hinder market growth during the forecast period.

Specialty Pharmaceuticals Industry Segmentation

As per the scope of the report, specialty pharmaceuticals are branded injectables, infusions, or oral medications with high cost and high complexity, with limited or exclusive availability and distribution, that are used to treat chronic or rare diseases.

The specialty pharmaceuticals market is segmented by therapeutic area, route of administration, distribution channel, and geography. By therapeutic area, the market is segmented into oncology, inflammatory conditions, multiple sclerosis, infectious diseases, and other therapeutic areas. By route of administration, the market is segmented into oral, parenteral, and transdermal. By distribution channel, the market is segmented into hospitals, retail pharmacies, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major global regions. The report offers the value (USD) for the above segments.