The market was valued at $176.3bn (€155bn) in 2018 and is expected to witness sustained growth through 2026.
The ResearchAndMarkets report identifies an ageing global population and patent expiration on various blockbuster drugs, leading to the creation and launch of multiple generics and biosimilar competitors, as two significant factors fuelling this growth.
The report points to figures published by the WHO, which identifies the over 60 age group as set to become 22% of the total global population by 2050, up from 12% in 2000. In terms of region, this growth is led by Latin America, Asia and Africa, respectively.
A similar report, produced by Acumen Research and Consulting, notes that the North American market is the largest due to the high occurrence of diabetes and cancer. Additionally, a high proportion of the population is over 65, at 15.6% in 2017.
However, the report suggests that the market in the Asia Pacific region, driven in particular by China and Japan, is growing at a faster rate than the global trend, at 8.2% compound annual growth rate (CAGR).
In addition to the growth of the market in the region, more companies are expected to set up manufacturing in the Asia Pacific region to capitalise on the growing market and the lower cost of labour.
The main disease areas that are fuelling the growth are in oncology and cardiovascular, with the latter registering the largest segment of the overall market.
Cardiovascular disease is the largest cause of death worldwide and generic treatments, such as statins that are regularly prescribed to the elderly, are a major contributor to 6% overall CAGR seen in this area. In 2017, medicinal services expenditure for hypertension was approximately $25bn in the ‘developed world’.