Neuropsychiatric Disorders and Treatment Market Size, Share, and Industry Analysis, By Drug Class (Cholinesterase Inhibitors, Anticonvulsants, GABAergics, Opioid Antagonist, Selective Serotonin Reuptake Inhibitors (SSRIs), Serotonin-norepinephrine Reuptake Inhibitors (SNRIs), and Others), By Route of Administration (Oral and Parenteral), By Application (Neurodegenerative Diseases, Seizures, Sleep Disorders, Eating Disorders, Cognitive Deficit Disorders, and Others), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and Regional Forecast, 2025-2032

The global neuropsychiatric disorders and treatment market is witnessing significant growth due to the increasing incidence of these diseases across the globe. Neuropsychiatric disorders encompass a broad spectrum of conditions that merge neurological and psychiatric symptoms, reflecting the complex interplay between brain function and mental health. This include neurodegenerative diseases, seizures, sleep disorders, eating disorders, cognitive deficit disorders, substance abuse, and other disorders.

The market growth is further driven by rising governmental initiatives to increase awareness among the population. This is expected to increase the rate of diagnosis and advancements in growing number of drug candidates in the pipeline.

Neuropsychiatric Disorders and Treatment Market Driver

Increasing Geriatric Population to Augment the Prevalence of Neuropsychiatric Disorders

The growing geriatric population is significantly contributing to the rise in neuropsychiatric disorders, which include conditions such as Alzheimer's disease, Parkinson's disease, and multiple sclerosis. This demographic shift is expected to drive the demand for related healthcare products and services. Recent statistics indicate a notable increase in the prevalence of neuropsychiatric conditions among older adults.

• For instance, the Alzheimer's Association reports that 13.8 million Americans will have Alzheimer's by 2060. Additionally, the World Health Organization (WHO) has identified neurological disorders as the leading cause of disability globally, affecting more than 3 billion people as of 2021. This projection is expected to increase the demand for effective treatment.

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According to Alzheimer's Disease International, there were over 55 million people worldwide living with dementia in 2020. This number will almost double every 20 years, reaching 78 million in 2030 and 139 million in 2050.

Neuropsychiatric Disorders and Treatment Market Restraint

Side Effects Associated with these Drugs Can Limit the Market Growth

The neuropsychiatric disorders treatment market faces significant challenges that may hinder its broader adoption, particularly concerning the side effects associated with antipsychotic medications. While these drugs provide essential benefits for managing various psychiatric conditions, their adverse reactions are critical factors that restrict market growth.

• A 2022 observational study published by BioMed Central highlighted the incidence of psychiatric adverse events in pediatric patients receiving antipsychotic treatments for both psychotic and non-psychotic symptoms, indicating a substantial risk profile within this population.

Common side effects of some drugs include mild sedation, dry mouth, akathisia, gastrointestinal disturbances, weight gain, acute dystonia, and tardive dyskinesia. These adverse reactions can significantly impair patients' daily functioning and may lead to medication non-adherence, further complicating treatment outcomes.

Neuropsychiatric Disorders and Treatment Market Opportunity

Promising Pipeline Candidates to Foster Future Market Growth

The neuropsychiatric disorders drugs market presents a significant opportunity for growth and innovation, driven by the increasing prevalence of conditions such as depression, anxiety, schizophrenia, and bipolar disorder. With an aging global population and rising awareness of mental health issues, the demand for effective pharmacological treatments is on the rise. Pharmaceutical companies are investing heavily in research and development to create novel therapies, including biologics and personalized medicine approaches, which promise improved efficacy and reduced side effects. Additionally, advancements in technology, such as digital therapeutics and telemedicine, are facilitating better patient access and adherence to treatment regimens.

• For instance, in January 2024, Teva Pharmaceutical Industries Ltd., completed the enrollment of the anticipated 640 participants of the ongoing Phase 3 clinical trial of mdc-TJK (TEV-44749) in the EU and the U.S. It is an investigational once-monthly subcutaneous long-acting injection of the atypical antipsychotic olanzapine for the treatment of schizophrenia. As regulatory frameworks evolve to encourage faster approval processes for new drugs, coupled with the growing acceptance of mental health treatment, the neuropsychiatric disorders drugs market is poised for substantial expansion, offering lucrative opportunities.

Segmentation

Key Insights

The report covers the following key insights:

• Prevalence of Key Diseases, By Key Countries, 2023
• New Product Approval/ Launches, By Key Players
• Pipeline Analysis, By Key Players
• Overview: Regulatory Overview, By Key Countries
• Key Industry Developments (Acquisitions, Mergers, Partnerships)
• Impact of COVID-19 on the Market

Analysis by Drug Class

Based on drug class, the market is divided into cholinesterase inhibitors, anticonvulsants, GABAergics, opioid antagonist, selective serotonin reuptake inhibitors (SSRIs), serotonin-norepinephrine reuptake inhibitors (SNRIs), and others.

The GABAergics segment holds a significant market share, as they are widely used in the treatment of neuropsychiatric disorders. This expansion is primarily driven by the increasing prevalence of neuropsychiatric disorders such as anxiety, epilepsy, and insomnia, which are increasingly recognized as critical public health issues.

• For instance, the global incidence of anxiety disorders has surged, affecting approximately 300 million individuals worldwide, thereby creating a robust demand for effective therapeutic interventions targeting the GABA system.

Moreover, the aging population is a crucial factor contributing to market growth. The market is further supported by increased funding from both government and private sectors aimed at developing innovative GABA receptor agonists that offer improved efficacy and safety profiles compared to existing treatments

Analysis by Route of Administration

By route of administration, the market is divided into oral and parenteral.

The oral segment held a substantial share of the market. This administration remains the most popular due to its convenience and accessibility. Additionally, a wide range of products are available for oral administration, and higher patient adherence is expected to support the segment growth. Moreover, an increasing number of oral drug approvals for treating menopause symptoms are anticipated to drive the segment growth over the projected period.

• For instance, in March 2021, Johnson & Johnson received U.S. FDA approval for the launch of Ponvory as a daily oral drug for treatment against multiple sclerosis. Such effective product launches are expected to boost the segment growth.

Analysis by Application

Based on application, the market is fragmented into neurodegenerative diseases, seizures, sleep disorders, eating disorders, cognitive deficit disorders, and others.

The neurodegenerative diseases segment held a prominent market share in 2023. This growth is largely attributed to the rising prevalence of neurodegenerative disorders, particularly among the aging population, which increases the demand for effective therapies.

• For instance, the number of individuals diagnosed with Alzheimer's disease in the U.S. alone reached an estimated 6.2 million as of mid-2022, increasing the demand for treatments.

Analysis by Distribution Channel

By distribution channel, the market is fragmented into hospital pharmacies, retail pharmacies, and online pharmacies.

The hospital pharmacies accounted for significant share in the market. Growing reliance on hospitals for comprehensive care, where patients often receive specialized treatment for neuropsychiatric conditions. Hospital pharmacies are well-equipped to manage complex medication regimens and provide access to a broader range of advanced therapies, and rising awareness about neuropsychiatric disorders are expected to contribute to growth in the market.

• For instance, the released by MULLIN in June 2023, the Alzheimer's Association Oklahoma Chapter provides educational training to recognize the signs of Alzheimer’s disease. This increases the awareness about the diseases. As awareness of neuropsychiatric disorders continues to rise, the preference for hospital-based treatment is expected to further enhance the market share of hospital pharmacies in the coming years.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is projected to lead the global market for neuropsychiatric disorder medications throughout the forecast period. This dominance can be attributed to several key factors, including a high prevalence of psychiatric conditions and the presence of major biopharmaceutical companies in the region.

• According to the National Alliance on Mental Illness (NAMI), approximately 2.8% of the U.S. population is affected by bipolar disorder, translating to around 7 million individuals.

Additionally, the region benefits from a strong adoption rate of advanced antipsychotic treatments and increased awareness of mental health issues, which collectively are expected to drive market growth.

Europe is anticipated to hold the second-largest share of the market. This is largely due to increased governmental spending and awareness initiatives regarding mental health.

The Asia Pacific region is expected to experience the highest growth rate, particularly in emerging markets. The rising adoption of neuropsychiatric medications in these countries is fueled by awareness campaigns about mental health and a growing incidence of related disorders.

Latin America and the Middle East & Africa (MEA) currently represent a smaller share of the market. However, improvements in mental health awareness and increased healthcare spending in these regions are anticipated to stimulate growth in the neuropsychiatric disorder medication sector over the coming years.

Key Players Covered

The global neuropsychiatric disorders and treatment market is partially consolidated with few key players.

The report includes the profiles of the following key players:

• Novartis AG (Switzerland)
• Biogen Inc. (U.S.)
• Lundbeck A/S (Denmark)
• Otsuka Pharmaceutical Co., Ltd. (Japan)
• Pfizer, Inc. (U.S.)
• Hoffmann-La Roche AG (Switzerland)
• Merck & Co., Inc. (U.S.)
• Sanofi (France)
• Teva Pharmaceutical Industries Ltd. (Israel)

Key Industry Developments

• In April 2023, Teva Pharmaceuticals and MedinCell received the U.S. Food and Drug Administration (FDA) approval for UZEDY (risperidone) extended-release injectable suspension for the treatment of schizophrenia in adults.
• In March 2022, AbbVie entered into a co-development and license agreement with Gedeon Richter Plc. for the research, development, and commercialization of dopamine receptor modulators for potentially treating neuropsychiatric diseases.
• In September 2021, the Janssen Pharmaceutical Companies of Johnson & Johnson received U.S. FDA approval for the long-acting atypical antipsychotic INVEGA HAFYERA (6-month paliperidone palmitate). It is the first-and-only twice-yearly injectable for treating schizophrenia in adults.