The global neurodegenerative disease market size was valued at USD 40,125 million in 2021, and it is expected to reach USD 53,275 million by 2030, registering a CAGR of 3.2% during the forecast period (2022–2030).
Neurodegenerative diseases are a diverse range of conditions characterized by the progressive degeneration of the function and structure of the central nervous system or peripheral nervous system. Neurodegenerative diseases, including Parkinson's Disease, Alzheimer's Disease, Multiple Sclerosis, and Huntington's disease, have been increasing worldwide. Thus, the growing burden of this disease is the primary factor driving the market growth, adding to it the rising geriatric population. According to NIH, roughly 1.2 million people in the United States will develop Parkinson's disease by 2030. In the United States, it is the second most prevalent neurodegenerative condition.
Furthermore, according to Alzheimer's Disease International, more than 50 million persons with dementia worldwide in 2020. This number is predicted to be more than twice every two decades, reaching 82 million in 2030 and 152 million in 2050. Additionally, much of the increase will be in developing countries. About 60% of people with dementia live in low and middle-income countries, but by 2050, this will rise to 71%. The fastest growth in the elderly population has occurred in China, India, and South Asian and western Pacific regions. Thus, the increasing burden of dementia is expected to boost market growth in the coming years.
With the population explosion and average lifespan, the prevalence of neurological disorders has been on the rise worldwide. According to the Parkinson's Foundation, nearly one million will be living with Parkinson's disease in the United States by 2020, more than the combined number of people diagnosed with multiple sclerosis, muscular dystrophy, and Lou Gehrig's disease. The Alzheimer's Association stated that around 5.8 million people in the United States would live with Alzheimer's dementia in 2019. This number includes an estimated
According to NORD, in 2019, around 30,000 people in the United States are estimated to be suffering from Huntington's disease, and another 200,000 are at risk of developing the condition. The frequency of these diseases among all races, genders, and geographic backgrounds increases with the rise in the world population. The numbers suggest that the prevalence of neurodegenerative disorders has been on the rise, contributing to the expansion of the market over the analysis period.
The government and various non-government organizations have been making constant efforts to increase public awareness. For instance, Parkinson's Disease community celebrates the Parkinson's disease (PD) month to raise awareness of Parkinson's disease every April. April is considered the Parkinson's Disease Awareness Month when the already active Parkinson's disease community increases its activities in the spirit of Parkinson's disease awareness.
Eisai Co. Ltd. and the United Kingdom Dementia Research Institute (UK DRI) inaugurated a cooperative postdoctoral program in May 2019 to advance new dementia research. This first-of-its-kind industry collaboration for the UK DRI seeks to offer innovative research that could lead to breakthroughs in dementia diagnosis, treatment, and prevention across the board.
Moreover, in the United States, Multiple Sclerosis Awareness Month is celebrated in March to bring attention to the current state of research on Multiple Sclerosis, including new ways to diagnose and treat the condition. Thus, owing to all of these initiatives to increase public awareness and funding for the research by the government and significant players boost the market growth.
The neurodegenerative disease market is expected to face restraints due to multiple patent expiries over the forecast years. Many innovative drugs are expected to lose their patent over the next few years. After expiration, the already approved generic alternatives to these drugs can be marketed at a lower price. Additionally, the emergence of multiple generics with the same brand name is expected to cost less than the market value. Although there is an increase in the volume of drugs, the decrease in the cost of generics is negatively affecting the market's overall value.
Additionally, in 2020, Teva/Lundbeck's Azilect/Agilent (rasagiline) used to treat Parkinson's disease is found to be expired. Also, there is an increasing generic competition in the market studied that includes the ropinirole (GlaxoSmithKline's Requip and GSK/SkyePharma's Requip XL/LP/RP/Modutab/Prolib) and pramipexole (Boehringer Ingelheim's Mirapex/Mirapexin/Sifrol/BI-Sifrol and Mirapex ER/Mirapexin ER/Sifrol Retard).
Apart from these drugs, few drugs used to treat other indications face patent expiries. The schizophrenia drug called Abilify lost the United States patent for its pediatric version in April 2015. The drug contributed a significant fraction to Bristol-Myers Squibb's revenues, which hampered the company's growth after the loss of patent exclusivity. Thus, due to the factors mentioned earlier, the patent expiry of neurodegenerative disease treatment products is predicted to hamper the market growth
Neurological diseases are becoming the leading source of disability. Aging is acting as the primary factor that is predicted to increase the burden of neurodegenerative disorders, including Parkinson's disease (PD), Alzheimer's, Multiple Sclerosis, Huntington's, and other indications. As per the World Aging 2020 Report, globally, 727 million people aged 65 years or over in 2020. Between 2020 and 2050, all world regions are predicted to see a rise in the number of older people. Worldwide, the population aged 65 and up ratio is predicted to rise from 9.3% in 2020 to roughly 16% in 2050, with 1,500 million people expected to be over 65 by 2020. This rise in the aging population is predicted to increase the burden of these neurodegenerative disorders and create enormous market opportunities.
The neurodegenerative disease market share is divided by indication type, drug type, and region.
By indication type, the neurodegenerative disease market is divided into Parkinson's disease, Alzheimer's disease, multiple sclerosis, Huntington's disease, and other indication types. The multiple sclerosis segment dominated the market, with a revenue of USD 25,680 million in 2021. It is expected to reach USD 29,360 million by 2030, registering a CAGR of 1.5% during the forecast period.
The prevalence of multiple sclerosis has increased around the world. The high majority of multiple sclerosis cases globally are expected to propel the market. Further, the increasing interests of companies in pipeline products and extensive product approvals act as a significant growth factor. For instance, in October 2019, Biogen Inc. and Alkermes plc received the US Food and Drug Administration approval for its Vumerity (diroximel fumarate), oral fumarate for the treatment of relapsing forms of multiple sclerosis (MS), to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease.
By drug type, the neurodegenerative disease market is divided into N-methyl-D-aspartate receptor antagonists, cholinesterase inhibitors, dopamine agonists, immunomodulatory drugs, and other drug types. The immunomodulators segment dominated the market, with a revenue of USD 24,600 million in 2021. It is expected to reach USD 25,730 million by 2030 to register a CAGR of 0.5% over the forecast period.
The most commonly used immunomodulatory agents in multiple sclerosis are azathioprine, cyclophosphamide, methotrexate, and mitoxantrone. Since the interferons and glatiramer acetate are widely used in multiple sclerosis, immunomodulatory agents have found a role as combination therapy or monotherapy in instances where interferons and glatiramer acetate are ineffective in controlling the disease.
According to the Journal for Multiple Sclerosis and Related Disorders, 2020, a majority of the people with multiple sclerosis reported interruptions in their medical care. Postponements and delays in care were observed, with nearly 10% of participants reporting a change in their Disease-Modifying Therapies administration. The COVID-19 pandemic caused a significant economic burden on many organizations, leading to an inclination toward low-cost generics. Furthermore, the pandemic had a negative impact on new product launches, which are the most critical component of the market's growth.
The COVID-19 pandemic has also impacted the workflows of clinical trials, R&D, and pipeline products are likely to be affected, leading to the slow growth during the forecast period, despite the presence of a robust late-stage product pipeline. For instance, according to the Alzheimer Research Forum (Alzforum), in March 2020, Alzheimer's clinical studies in the United States, Europe, and Australia have suspended observational cohort studies. Many have suspended dosing and in-person clinic visits for therapy and preventative trials.
Furthermore, according to the Alzheimer Research Forum (Alzforum) March 2020, some pharmaceutical tried to balance participants and staff security against the need to continue treatment. For instance, in March 2020, Eli Lilly and the company halted enrollment. They postponed new trials while continued dosing in ongoing problems and other pharmaceutical companies shifted their priorities away from some current indications and toward the COVID-19 pandemic.
Hence, a short-term negative impact was witnessed on the global neurodegenerative disease market, primarily due to the reduced healthcare services by hospitals and slow down of research activities in neurodegenerative diseases during the outbreak of COVID-19 in 2020. However, market growth is expected to improve as COVID-19 cases decline, and the market resumes worldwide.
The neurodegenerative disease market share is divided into North America, Asia-Pacific, Europe, South America, and the Middle East and Africa. The North American region dominates the market studied, with a revenue of USD 16,915 million in 2021. It is predicted to reach a value of USD 21,125 million by 2030, growing at a CAGR of 2.5% over the forecast period. The parameters responsible for the growth of the US neurodegenerative disease market are the rise in funding for various research regarding neurodegenerative diseases, the increase in disease prevalence and awareness, and key market players.
There has been a rise in the financing of neurodegenerative diseases, including Alzheimer's and Parkinson's Disease, by the National Institute of Health (NIH). In 2020, the funding for neurodegenerative illnesses was USD 4,021 million, and it increased to an estimated USD 4,110 million in 2021. The rising funding for research is expected to attract the most significant players, thus, leading to the high growth of the market studied. The US is home to some of the most extensive research and academic institutes and pharmaceutical companies in the world. With increasing funding for the Research and Development of products by companies, there may be an increase in demand for neurodegenerative disease drugs.
Europe is the second-largest market, with a revenue of USD 11,500 million in 2021. It is expected to reach a value of USD 15,675 million by 2030, with a CAGR of 3.5% over the forecast period. Germany has a strong base of global companies working on developing neurodegenerative drugs. Moreover, due to the increasing prevalence of these disorders, disease awareness and an increase in drug launches by major pharmaceutical companies in the country are expected to drive the market studied.
Additionally, the number of people with dementia is expected to rise in the coming years, which would positively impact the market. As per Alzheimer Europe 2019 report, the number of people with dementia in Germany in 2018 was around 1,585,166, and this number is projected to rise to 2,748,178 by 2050. Similarly, the overall population with dementia is likely to represent 3.43% in 2050 compared to 1.91% in 2018.
Various strategies, such as R&D, mergers and acquisitions, and product launches, are being adopted by domestic and international companies to strengthen their market position. For instance, in May 2021, Bicoll GmbH announced that it collaborated with Galyan Bio Inc. to develop and optimize an orally available small molecule for Huntington's Disease Target. The drug has been scheduled for clinical trials in 2022. Such efforts by German companies are expected to aid in innovation and lead to market growth.
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