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Pharmaceutical industry

Specialty Pharmaceuticals Market to Grow by USD 331.12 billion from 2022 to 2027, Driven by Increasing Demand for R&D and Government Healthcare Expenditure

Strategic Insights

— 2 min read

The specialty pharmaceuticals market is expected to grow significantly over the next five years, driven by the increasing demand for research and development (R&D) and government healthcare expenditure. The market size is expected to grow by USD 331.12 billion from 2022 to 2027, with a compound annual growth rate (CAGR) of 12.59% during the forecast period. The market is segmented by application, distribution channel, and geography, with North America contributing 53% to the growth of the global market during the forecast period.

Key Takeaways:

  • The oncology segment is expected to be significant during the forecast period, with chemotherapy, targeted therapy, immunotherapy, and hormone therapy being some of the types of oncology drugs available in the market.
  • AbbVie Inc. is one of the major vendors in the specialty pharmaceuticals market, offering specialty pharmaceuticals for immunology, neuroscience, and oncology.
  • The increasing demand for R&D due to government healthcare expenditure drives the growth of the specialty pharmaceuticals market, with pharmaceutical companies spending approximately 15%-20% of total revenue on R&D activities.
  • The Fiscal Year 2021 (FY21) Omnibus Appropriation Bill allocated USD 6.56 billion for the National Cancer Institute (NCI), which has contributed to the growth of the specialty pharmaceuticals market in the North American region.
  • The prevalence of cancer drives the market in countries such as the US and Canada, with the US and Canada being the largest markets in the North American region.
  • The specialty pharmaceuticals market is driven by the need for cost-cutting in specialty pharmaceutical discovery and development, as well as initiatives by government and non-profit organizations to spread awareness of complex diseases and their prevention.

Statistics:

  • The size of the global specialty pharmaceuticals market is expected to grow by USD 331.12 billion from 2022 to 2027.
  • The market is expected to grow at a CAGR of 12.59% during the forecast period.
  • North America is expected to contribute 53% to the growth of the global market during the forecast period.
  • The US and Canada are the largest markets in the North American region.
  • The Fiscal Year 2021 (FY21) Omnibus Appropriation Bill allocated USD 6.56 billion for the National Cancer Institute (NCI).
  • Pharmaceutical companies spend approximately 15%-20% of total revenue on R&D activities.

Sources:

  • [1] Technavio Research, "Specialty Pharmaceuticals Market Report", September 12, 2023.
  • [2] National Cancer Institute (NCI), "Fiscal Year 2021 (FY21) Omnibus Appropriation Bill", December 2020.
  • [3] AbbVie Inc., "Company Profile", 2023.
  • [4] Technavio Research, "Specialty Pharmaceuticals Market: Segmentation Analysis", September 12, 2023.

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