The United States pharmaceuticals market is primarily driven by the growing prevalence of chronic diseases such as cancer, diabetes, cardiovascular diseases and other lifestyle-related diseases. Pharmaceutical drugs for treatment of these chronic diseases exhibit high demand in the country. The pharmaceutical drugs industry in the US is well-established with presence of global pharmaceutical giants as well as small & mid-sized local players.
United States pharmaceuticals market is estimated to be valued at US$ 599.47 Bn in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the United States pharmaceuticals market are Johnson & Johnson, Pfizer, AbbVie, Merck, Bristol-Myers Squibb, Amgen, Eli Lilly, Novartis. The United States Pharmaceuticals Market is dominated by few large players accounting for major market share. These players are focusing on developing novel drugs for treatment of chronic diseases through heavy investment in research & development.
The US pharmaceutical market offers huge opportunities for players in segments of oncology, immunology, neuroscience, cardiovascular and other specialty drugs. Rising demand for specialty and biologics drugs will drive high revenue growth in the coming years. Further, rapid adoption of personalized medicines and pharmaceutical drugs manufactured through advanced technologies such as 3D printing provides new opportunities.
Technological advancements such as artificial intelligence, big data analytics, 3D printing and other digital technologies are revolutionizing drug discovery and development processes. These technologies enable accelerated development of advanced cell and gene therapy products in the industry.
Market Drivers
Growing prevalence of chronic non-communicable diseases due to changing lifestyle and growing geriatric population is a key factor driving demand for pharmaceutical drugs in the country. According to statistics, around 133 million Americans were suffering from at least one chronic disease in 2016 with projections of rise to 157 million by 2026. Further, growth in healthcare expenditure per capita and overall healthcare spending in the US contributes to higher uptake of patented and specialty pharmaceutical drugs in the private healthcare system compared to generics. Strong economic growth and favorable healthcare reforms have boosted domestic pharmaceutical market growth over the past decade.
Current challenges in United States Pharmaceuticals Market:
The US pharmaceuticals market is facing several challenges currently. Patent cliffs of blockbuster drugs and lack of new drug approvals are posing serious threats. Stringent regulations around clinical trials and approval processes have increased compliance costs significantly. Development of specialty drugs entails high R&D costs but market exclusivity periods are getting shorter due to patent challenges. Rising costs of medications have put immense pressure on public and private payers. Greater generic competition and biosimilars are also impacting revenue growth of innovator companies.
SWOT Analysis
Strength: Strong R&D capabilities and focus on specialty/orphan drugs. Large domestic market size provides scope for growth.
Weakness: High dependence on few blockbuster drugs exposes to revenue risks. Rising development costs and longer approval timelines.
Opportunity: Untapped potential in emerging therapy areas like oncology, immunology, neurology. Scope to expand geographically in international markets.
Threats: Threat from generics/biosimilars. Price control regulations and political pressure on drug pricing. Fierce competition globally amid transition to value-based care models.
Geographical Regions: The United States accounts for majority of the revenues in the pharmaceuticals market currently due to its large domestic demand and higher drug prices as compared to other nations. According to estimates, the US market accounted for over 40% of global pharmaceuticals revenues in terms of value terms till 2019.
Fastest Growing Region: China is expected to emerge as the fastest growing regional market for pharmaceuticals during the forecast period between 2024-2031. The Chinese pharmaceutical industry is witnessing a phase of transition led by government policy reforms and increasing domestic demand for healthcare. Investments in local R&D and manufacturing are enhancing self-sufficiency of Chinese drug makers over time.
What Are The Key Data Covered In This United States Pharmaceuticals Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United States Pharmaceuticals’s growth between 2024 and 2031.
:- Accurate calculation of the size of the United States Pharmaceuticals and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United States Pharmaceuticals Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United States Pharmaceuticals vendors
FAQ’s
Q.1 What are the main factors influencing the United States Pharmaceuticals?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United States Pharmaceuticals companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the United States Pharmaceuticals’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
About Author – Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile