US Pharmaceutical Market Review 2020-2023 and Forecast 2024-2030: A $1.28 Trillion Opportunity, Driven by the Rising Adoption of AI-based Tools for Drug Discovery
Dublin, March 27, 2024 (GLOBE NEWSWIRE) -- The "US Pharmaceutical Market Size and Forecast (2020 - 2030), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Product (Vaccines, Biologics & Biosimilars, and Small Molecules)" report has been added to * ResearchAndMarkets.com's* offering.
The US pharmaceutical market is projected to grow from US$ 846.72 billion in 2022 to US$ 1.28 trillion by 2030, representing a Compound Annual Growth Rate (CAGR) of 5.36% from 2022 to 2030. The growth of the US pharmaceutical market is driven by rising workplace-associated disorders, an increase in pharmaceutical production capacity, greater approvals of generic drugs, and escalating R&D investments. However, the high costs associated with drug development and marketing approval hinder the growth of the US pharmaceutical market.
*Increasing Adoption of AI-based Tools for Drug Discovery*
Artificial intelligence (AI) is emerging as a crucial tool in the healthcare sector, aiding in understanding the action mechanism of drugs. AI tools have demonstrated the ability to accelerate the process of discovering new candidate therapeutics, reducing what previously took years to accomplish to mere months. Beyond expediting drug discovery timelines, AI enhances research process agility, improves prediction accuracy regarding drug safety and efficacy, and boosts the speed and precision of discovery and preclinical testing, providing a competitive edge to R&D strategies.
Many pharmaceutical companies are collaborating with AI companies to harness the benefits of AI in drug discovery. For instance, in 2019, Pfizer partnered with Concreto HealthAI to advance its work in precision oncology using AI and real-world data. The company believes that AI tools hold tremendous potential in developing and utilizing drugs to enhance patient outcomes. Additionally, in 2022, Pfizer extended its partnership with CytoReason to leverage its AI technology for improving drug candidate discovery and development processes.
Similarly, in 2019, Janssen collaborated with a French startup Iktos Pharmaceuticals to develop an AI-powered drug design system. Janssen's new drug design system will enhance the process of discovering new medications by accelerating molecule identification. Additionally, in January 2020, Bayer partnered with a UK-based AI-driven drug discovery company to utilize the AI drug discovery platform to identify and optimize novel structures as potential drug candidates to treat cardiovascular and oncological diseases. Similarly, GlaxoSmithKline (GSK) collaborated with Insilico Medicine, a Baltimore-based AI-driven company, to explore Insilico's AI capabilities for streamlining the identification of novel biological targets.
Therefore, the growing adoption of AI-based tools for drug discovery is expected to propel the growth of the US pharmaceutical market during the forecast period.
*Product-based Insights*
The US pharmaceutical market, segmented by product, includes vaccines, biologicals & biosimilars, and small molecules. The small molecules segment is further divided into generic and branded. The small molecules segment held the largest market share in 2022. The biologicals & biosimilars segment is expected to register the highest CAGR during the forecast period. In the US pharmaceutical market, biosimilars treat patients with cancers, kidney diseases, diabetes, and other autoimmune diseases such as rheumatoid arthritis and Crohn's disease. Biologics are the most expensive medicines in the US pharmaceutical market, costing tens of thousands of dollars yearly per patient. Biosimilars are expected to be priced 15-30% lower than their reference products.
In 2020 alone, biosimilars saved US$ 7.9 billion, with savings expected to grow significantly in the next few years as more biosimilars enter the market. According to Cardinal Health, biosimilars are expected to reduce US drug expenditure by US$ 133 billion by 2025. The recognition of biosimilars as efficacious and safe agents by patients, specialists, primary care clinicians, and other healthcare professionals is propelling the demand for biosimilars. Additionally, biosimilars help improve the quality of life among millions of patients while saving billions of dollars for healthcare systems annually. They have emerged as potent and cost-effective options for treating many diseases, including chronic skin conditions such as psoriasis, bowel diseases such as Crohn's disease, irritable bowel syndrome, and colitis, diabetes, autoimmune disease, cancer, kidney conditions, and arthritis.
During 2017-2018, the National Health Service (NHS) saved US$ 401.10 million by switching from 10 expensive medicines to better-value and equally effective alternatives such as biologics, with even more savings expected in the future. The potential savings from using biosimilars can also be allocated to fund other new treatments. With the high prevalence of chronic diseases, the demand for biosimilars in treating life-threatening illnesses has rapidly surged over the last five years, aiding the growth of the US pharmaceutical market and expected to continue in the forecast period.
*Country Analysis*
In recent years, pharmaceutical sales revenues in the US have accounted for nearly half of the global total. Five of the top 10 pharmaceutical companies worldwide were from the US in 2021. Pfizer is one of the companies providing prescription drug revenues globally, heavily boosted by its COVID-19 vaccine Comirnaty. AbbVie is another US pharmaceutical market participant that has made a great impression worldwide, with the pharmaceutical segment generating a record US$ 55 billion in 2021, driven especially by its longstanding top-selling brand Humira. Despite the influence of several emerging countries, the US has captured a dominant share of the global pharmaceutical market. The US pharmaceutical market is home to a few major pharma companies worldwide. Most advanced US pharmaceutical market products are easily accessible to American consumers, albeit at a cost.
The US pharmaceutical market accounts for about 45% of the global pharmaceutical market and 22% of global production. US pharmaceuticals output and sales remained robust in 2022, driven by the global vaccination rollout and suppressed demand for essential and non-essential medical treatments. The US pharmaceutical market has made significant strides over the past few decades due to a greater focus on research and development (R&D). Pharma companies spend over 21% of their revenues on R&D, and this substantial investment is wasted if a medication does not receive regulatory approval. The R&D expenditure of the US pharmaceutical market totaled some US$ 102 billion in 2021. This figure is expected to increase significantly in the coming years due to the costs of developing effective and safe COVID-19 treatments and vaccines.
*Key Attributes*
*Report Attribute* *Details*
No. of Pages 292
Forecast Period 2022-2030
Estimated Market Value (USD) in 2022 $846.72 Billion
Forecasted Market Value (USD) by 2030 $1285.79 Billion
Compound Annual Growth Rate 5.3%
Regions Covered United States
*A selection of companies mentioned in this report includes:*
· Moderna Inc.
· AbbVie Inc.
· Gilead Sciences Inc.
· Regeneron Pharmaceuticals Inc.
· Merck & Co. Inc.
· Abbott Laboratories
· Bristol-Myers Squibb Co.
· Vertex Pharmaceuticals Inc.
· Pfizer Inc.
· Eli Lilly and Co.
· Bayer AG
· Johnson & Johnson
· Amgen Inc.
· Takeda Pharmaceutical Co. Ltd.
· Zoetis Inc.
For more information about this report visit https://www.researchandmarkets.com/r/2mrpv7
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· US Pharmaceutical Market
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