Advanced Dermatology Drug Delivery Devices Market Size, Share & Trends Analysis Report By Product Type (Hardware, Software and Apps), By Sales Channel (B2B Sales (Pharma/Direct), B2C Sales (OTC/Indirect)), By End-User (Hospitals, Dermatology Practices, Home Use) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global advanced dermatology drug delivery devices market size was valued at USD 4,090.57 Billion in 2022. It is estimated to reach USD 10,000.56 Billion by 2031, growing at a CAGR of 9.25% during the forecast period (2023–2031).

Dermatology includes the study, research, and diagnosis of normal and abnormal conditions, diseases, cancers, cosmetic and aging conditions of the skin, fat, hair, nails, and oral and genital membranes, and the management of these through various investigations and therapies, including dermatohistopathology, topical and systemic medications, dermatologic surgery, and dermatologic cosmetics. Drug delivery devices are a specialized medical device class that focuses on delivering therapeutic agents at the target sites. These can be disposable or reusable and are made from various materials such as glass, plastic, and polymers.

Advanced dermatology drug devices are specialized drug delivery devices focused on delivering multiple drugs, vaccines, and therapeutic agents to the target sites through the skin. The advanced dermatology drug delivery device concept includes drug delivery with additional features for reduced discomfort, improved medication adherence, customer interaction, user-friendly design, and convenience of administration. Injectors, patches, airless dispensers and flasks, dermal pumps, valves, and safety and connectivity-enhancing add-on devices are available.

Highlights

• Hardware dominates the product type segment
• The B2B sales dominate the sales channel segment
• The hospital dominates the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Market drivers

Growing Focus on Prescription Adherence

Adherence is one of the key concerns in the healthcare industry. Key players in the global market have been focused on technological developments which can aid in improving adherence. The growth in effective adherence has the potential to affect patient health positively. In the future, drug-delivery devices will comprise features promoting adherence. With evolving technologies, key players in the market are also expected to integrate their offerings with connectivity features through apps. For instance, Portal Instruments, Inc. aims to use its injector to log all injections connected with patient apps or physician records. The collected data can provide real-time adherence insights that teams can use to improve adherence. Another example is the AdhereIT platform, which ensures dosage adherence for self-injecting drug patients. Likewise, the growth in medication adherence is also ultimately expected to aid in the market's growth.

Global Preference for Connected Devices

The healthcare sector is witnessing a digital revolution across the globe. As technology evolves, sensors and connectivity become essential elements in drug delivery. Connected devices are expected to be increasingly used for customized disease management. The market acceptance for connected devices is growing, mainly fueled by the overall increase in the adoption of connected devices and patient monitoring amidst the COVID-19 pandemic. Furthermore, several advanced dermatology drug delivery device manufacturers focus on making their products more connected and personalized for patients. Add-on devices are being used to transform existing products into fully connected systems. The future of advanced dermatology drug delivery devices is expected to include an ecosystem or a platform of devices working together to ensure timely and accurate dosage. Therefore, the preference for connected devices fuels the market growth.

Market restraint

Lack of Awareness in Emerging Countries

Healthcare at home and connected medical devices are relatively new and need more time to gain acceptance among the masses, especially in emerging countries. The impact of this restraining factor is expected to be negated in the future by a growing middle-class population and persistent efforts by both government and private entities. However, it is a gradual process. New players and local healthcare pharmacies must boost their presence in tier II and tier III cities to increase their consumer base in emerging economies. In addition, the COVID-19 pandemic sparked a transition in the healthcare sector and how consumers view digital health. Therefore, existing challenges due to the need for more consumer awareness are expected to restrict the market growth.

Market opportunities

Development of a Customized Apps Marketplace for Pharma Companies

The market for advanced dermatology drug delivery device software is still being determined and presents solid opportunities for market growth. This is attributed to the growth in the number of manufacturers looking to provide a fully connected device and a patient-facing app. In the future, several synergies between the manufacturers of advanced dermatology drug delivery devices and third-party software developers/cloud-service providers are expected to act as a catalyst for developing the customized app marketplace.

Additionally, many device manufacturers have already partnered with app developers for their products. For instance, Credence MedSystems, Inc. offers the Credence Connect Auto-Sensing Injection System. The Connect system links to the Credence App on smartphones, providing reminders and instructions. Similarly, Syncro Medical, a division of Syncro Technology Corp., aided a pharmaceutical company in implementing its combination product offering, which consisted of companion apps for its new connected drug delivery devices. Similarly, smartphone and web-based apps and add-on devices for connectivity are expected to become the standard of connected advanced dermatology drug delivery devices during the forecast period.

Regional Analysis

North america dominates the global market

Based on region, the global advanced dermatology drug delivery devices market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and Rest-of-the-World.

North America is the most significant global advanced dermatology drug delivery devices market shareholder and is anticipated to exhibit a CAGR of 9.17% during the forecast period. One of the world's most technologically advanced healthcare systems is found in North America. It is the leading region in the global market for advanced dermatological medication delivery devices and has a sizable pool of early adopters. The region's growth is primarily driven by the rising incidence of chronic diseases, an increase in the geriatric population, and numerous well-established businesses in the area. In addition, the development of the North American market is attributed to the rise in the number of new product launches, business synergies, and FDA clearances. For instance, in October 2020, AptarGroup, Inc. launched the AdhereIT connected onboarding solution along with Noble International for disease management adherence and onboarding patients.

Europe is estimated to exhibit a CAGR of 9.22% over the forecast period. The Europe region is one of the key markets with early adopters of novel devices and is expected to remain among the top markets for advanced dermatology drug delivery devices. The Europe advanced dermatology drug delivery devices market is expected to be mainly driven by high technology awareness, affordability, and patient acceptance. There has been increased adoption of connected devices in Europe due to the benefits offered over conventional techniques, such as enhanced patient care and safety, reduced hospital stays, and quicker recovery. Furthermore, increased expenditure on research and development programs for advanced drug delivery technologies will positively impact the European market's growth. The Europe market is expected to be benefitted from strategic collaborations, M&As, and a high preference for advanced drug delivery devices among end-users. Some key European market companies include Bespak, Nemera, LTS Lohmann Therapie-Systeme AG, and Midas Pharma GmbH.

The Asia-Pacific region consists of many emerging economies undergoing significant technological advancements and improvements in their healthcare systems. The Asia-Pacific market is expected to be mainly driven by demographic factors such as increasing disposable income and growing acceptance and adoption of new technology, especially in emerging countries. The growing push for the self-administration of drugs and the increasing demand for non-invasive drug delivery is predicted to propel the expansion of the Asia-Pacific market.

The Latin American advanced dermatology drug delivery devices market represents substantial growth opportunities for manufacturers. Due to its proximity to the North American market, the emerging countries in the Latin America region serve as the ideal location for geographical expansion by mid-sized companies in the U.S. Further, the Latin American market is expected to be primarily driven by increased demand for medication adherence and advancement in communication technologies enabling patient engagement and monitoring through near-field communication (NFC), Bluetooth, Wi-Fi, and others for improving connectivity among device platforms.

The Rest-of-the-World region comprises the Middle East and Africa (MEA) countries. Several countries in the Middle East, especially the Gulf Cooperation Council (GCC) countries, have well-developed healthcare infrastructure. The overall MEA region faces acute healthcare challenges, including rising healthcare costs, the growing population of elderly citizens, and the general population. Many of the advanced dermatology drug delivery device companies are investing in product certifications to establish a more substantial presence in the Middle East and North Africa region, owing to the growing purchasing power of the countries. The reasons mentioned above are expected to propel the demand for the market in this region.

Segmental Analysis

The global advanced dermatology drug delivery devices market is segmented by product type, sales channel, and end-user.

Based on product type, the global market is bifurcated into hardware and software and apps. 

The hardware segment dominates the global market and is projected to exhibit a CAGR of 9.99% over the forecast period. The conventionally used needle-and-syringe combination poses tough competition to the upcoming generation of innovative drug delivery devices. The hardware segment includes injectors, patches, airless dispensers and bottles, dermal pumps, valves, and other devices. Some key players include Becton, Dickinson and Company, West Pharmaceutical Services, Inc., AptarGroup, Inc., Nemera, LTS Lohmann Therapie-Systeme AG, and Kindeva Drug Delivery L.P.

Software and apps are an upcoming segment in the global market. Several manufacturers collaborate with software developers to develop custom apps for their hardware offerings. Companies with products in the pipeline have also considered forming an in-house software team to design the patient-facing apps. These apps can perform roles such as sending refill reminders, informing the user about the device connectivity status, providing usage instructions, and more. As most of the industry inclines toward a connected ecosystem of products in the future, apps are expected to play a crucial role and be the interface between the hardware and the user.

Based on the sales channel, the global market is bifurcated into business-to-business (B2B) and business-to-communication (B2C) sales channels. 

The B2B sales segment is the most significant contributor to the market and is anticipated to exhibit a CAGR of 11.01% over the forecast period. B2B sales channel includes the drug delivery devices sold through contract manufacturers or drug delivery device manufacturers selling to pharmaceutical companies. In addition, pharmaceutical and biopharmaceutical companies partner with drug delivery system manufacturers to develop advanced drug delivery devices such as auto-injectors, prefilled syringes, patches, and airless dispensers and bottles. The market includes products such as pumps sold to the prescription drug market for topical applications.

The B2C sales channel includes the drugs sold over the counter directly to the consumer without needing a prescription. The B2C sales channel has grown steadily, mainly driven by increased pharma retail sales. The products sold to this market mainly include airless pump systems for dermal drug delivery applications. The market has different consumer healthcare applications, including spray and valve applications. Further, the market has grown toward child-resistant and senior-friendly (CRSF) packaging solutions. For instance, AptarGroup, Inc. has developed child-resistant and senior-friendly packaging solutions for topical applications. The application utilizes CRSF technology to provide solutions for semi-solid formulations.

Based on the end-user, the global  market is segmented into hospitals, dermatology practices, and home use. 

The hospital segment owns the highest market share and is projected to exhibit a CAGR of 12.03% during the forecast period. Hospitals are the major end-users of the global advanced dermatology delivery devices market. The acceptance of these devices in hospitals and dermatology practices (clinics) has continuously increased for vaccination purposes. In addition, manufacturers worldwide are encouraging the usage of advanced drug delivery devices for painless drug delivery to patients with needle anxiety. Due to the growing geriatric population, increasing prevalence of chronic disorders, upsurge in needle-stick injuries, and continuous technological advancements, there is a growing demand for easy-to-use devices in professional healthcare settings.

The benefits offered by advanced dermatology drug delivery devices in enhancing the efficiency of the process compared to traditional methods have enabled the growing preference for them. Advanced dermatology drug delivery devices are also used in academic institutions for educational purposes and in scientific research for technological enhancements. Further, the rise in the senior population and the concept of needleless drug delivery is a unique selling point for the increasing usage of advanced dermatology drug delivery devices in dermatology practices. Clinics and dermatology chains can also partner with industry stakeholders in the future.

Recent Developments

• October 2022- Emergex Vaccines Holding Limited bought the assets of Zosano Pharma Corporation of California. The acquired assets include intellectual property, license agreements, and production equipment. In addition, they include Zosano's proprietary microneedle array patch (MAP) intradermal drug delivery system.
• May 2022- BD (Becton, Dickinson, and Company) and Mitsubishi Gas Chemical Company, Inc. agreed to investigate further development of OXYCAPTTM - an innovation from MGC that combines the best plastic and glass for plastic syringes. Together, the companies will explore the potential application of the OXYCAPTTM technology to the next generation of pre-fillable syringes (PFS) for advanced biologic pharmaceuticals.