Oncology Drugs Market Size, Share & Industry Analysis, By Drugs Class (Cytotoxic Drugs, Targeted Drugs, Hormonal Drugs, and Others), By Therapy (Chemotherapy, Targeted Therapy, and Immunotherapy), By Indication (Lung Cancer, Stomach Cancer, Colorectal Cancer, Breast Cancer, Prostate Cancer, and Others), By Dosage Form (Solid, Liquid, and Injectable), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and Regional Forecast, 2024-2032

The global oncology drugs market size was valued at USD 201.75 billion in 2023 and is projected to grow from USD 220.80 billion in 2024 to USD 518.25 billion by 2032, exhibiting a CAGR of 11.3% during the forecast period (2024-2032).North America dominated the oncology drugs market with a market share of 45.92% in 2023. Oncology drugs include wide range of medications such as targeted therapies, chemotherapy agents, immunotherapies, and hormone therapies to treat cancer. The market growth is attributed to various factors such as the rising prevalence of different type of cancer, increasing new drug launches and product approvals, and growing research activities by pharma companies in this field.

According to data published by the American Cancer Society in January 2023, there will be around 1,958,310 cancer patients in the U.S. alone by the end of 2023, a 28.0% increase from 2010. The oncology cancer drugs are primarily used to lower the total number of cancer cells in the body, shrink the tumor size, and reduce the symptoms.

The outbreak of COVID-19 had a significant impact on the oncology drugs industry globally due to disruptions in supply chains and bio-manufacturing changes. In addition, pharmaceutical companies shifted their R&D expenditure and workforce toward the development of COVID-19 therapeutics and vaccines. The shift witnessed a slow growth in the market in 2020. For instance, according to the annual report of Novartis AG published in 2020, the oncology drugs segment witnessed a slow growth of 2.4% as compared to 2019. Moreover, the market was heavily impacted by biosimilar erosion.

However, in 2022, the oncology drugs segment of Novartis AG witnessed a growth of 6.7% as compared to 2021. Furthermore, the market stabilized in 2022 and is anticipated to grow at a rapid pace in the coming years.

Oncology Drugs Market Trends

Growing Focus on R&D to Increase Adoption of Advanced Drug Therapies to Drive the Market Growth

The treatment of cancer patients involves efforts to cure the disease, prolong survival, and improve their quality of life. Immune cells play an essential role in tumor progression. Therefore, stimulating immune reactions to tumors is an attractive therapeutic and preventive strategy. Top market players are, hence, investing in the research and development of immunotherapy to treat various cancers.

For instance, in March 2020, FUJIFILM Corporation and the National Cancer Center Japan announced a joint research project for new cancer immunotherapy using a liposome formulation. Immunotherapy has a higher adoption in the market due to its achievement in efficient treatment resulting in improved patient outcomes. This is, therefore, contributing to market growth.

Apart from this, personalized medicine (PM) has revolutionized oncology management in countries with high human development indexes. By interrogating both disease and host factors through various tools, oncologists have been able to target an individual’s cancer better, leading to improved outcomes. The rising focus of government bodies and other regulatory bodies on structuring clinical pathways, trials, and reimbursement models to accommodate precision medicine by allowing physicians to pursue personalized treatment options holds the greatest promise for customized treatments.

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Oncology Drugs Market Growth Factors

Increasing Prevalence of Cancer to Augment the Oncology Drugs Market Growth

The rate of cancer incidence is increasing globally. Cancer is considered to be one of the major causes of death amongst the population of various countries. For instance, according to the Centers for Disease Control and Prevention (CDC), cancer is the second leading cause of death in the U.S. Some of the major factors for the rising prevalence of the condition are tobacco smoking, higher exposure to ultraviolet radiation, rising pollution levels, and changing diet patterns, among others.

• For instance, according to the 2022 statistics by the International Agency for Research on Cancer (IARC), there were an estimated 20.0 million new cancer cases, and the number is projected to grow to 35.0 million cases by 2050.

Therefore, the growing occurrence of cancer is expected to foster the global oncology cancer drugs market growth over the forecast period. Furthermore, growing awareness of cancer among the population is expected to favor the global market growth in the coming years.

Presence of a Strong Pipeline of Drugs to Spur Market Growth Opportunities

The pace of alteration in the treatment of cancer is speeding up. A group of innovative treatments often combined with other new or existing medicines is emerging from the research & development pipeline. Many pharma companies are investing in these research activities of novel drugs for the treatment of cancer. For instance, in December 2022, Novartis AG announced that its Phase III study with Pluvicto showed positive results in patients with PSMA–positive metastatic castration-resistant prostate cancer (mCRPC). Therefore, this, coupled with the growing preference for biosimilar and biologics entering the market, is projected to aid the market growth.

The robust efforts of the market players, national organizations, and healthcare institutions to fund and increase the accessibility of cancer research and treatment for patients are another significant factor contributing to the growing adoption of these drugs globally. For instance, in February 2024, The American Cancer Society (ACS) and St. Baldrick’s Foundation awarded USD 72,000 in Pilot Accelerator grants to fill the funding gap in clinical trials focused on childhood cancer patients.

RESTRAINING FACTORS

Adverse Effects of Drugs, Stringent Regulations, and Patent Expiry to Restrict Market Growth

Chemotherapy drugs not only kill cancer cells but also damages normal body cells. This results in various side effects for patients. Among the most common side-effects are bone marrow suppression, gastrointestinal disorders, neuropathies, hair loss, fatigue, and skin disorders.

Among the most common side effects are bone marrow suppression, gastrointestinal disorders, neuropathies, hair loss, fatigue, and skin disorders. Advances in chemotherapy have proved that anticancer drugs can cure cancer if they are combined with other treatment options, such as radiation therapy. The primary obstacles to the clinical efficacy of chemotherapy are the toxicities of the body's normal tissues.

Therefore, these adverse effects associated with oncology drugs are negatively influencing the growth of the market. In addition to this, stringent government regulations, the high cost of the drugs, and patent expiration are some of the other factors hindering the global market expansion during the forecast period.

Oncology Drugs Market Segmentation Analysis

By Drug Class Analysis

Targeted Drugs Segment to Dominate Owing to Rising Number of Pipeline Candidates

Based on drug class, the market includes cytotoxic drugs, targeted drugs, hormonal drugs, and others. The targeted drugs segment held a dominant share in the global market in 2023. Chemotherapy or targeted therapy is aimed at the disease while minimizing the off-target side-effects caused to the normal cells. This leads to its higher adoption among other drugs in the market, leading to its dominance. The rising number of approvals of new drugs for cancer by regulatory authorities is also contributing to the segment's growth. Along with this, a growing number of research and development activities to innovate and check the efficiency of potential candidates are also supporting the growth of the segment in the market.

Furthermore, the rising number of pipeline candidates for this category and the growing number of product approvals are anticipated to fuel this segment's growth during the forecast period. For instance, in June 2023, the U.S. FDA approved grant to the combination of dabrafenib and trametinib for the treatment of pediatric and adult patients suffering from BRAF V600E-mutated cancers. 

By Therapy Analysis

Growing Adoption and Preference for Targeted Therapy in Emerging Regions Enable the Segment’s Dominance

Based on therapy, the market includes chemotherapy, targeted therapy, and immunotherapy. The targeted therapy segment held a dominant share of the global market in 2023. The higher share of the segment is attributed to the growing adoption and preference for targeted drugs in emerging regions to treat various cancers. This is owing to its ability to target only the cancerous cells and treat certain advanced cancers such as metastatic breast cancer. For instance, in October 2023, according to the data published by St. John’s University College of Pharmacy & Health Sciences, it was reported that approximately 48.0% of agents were approved by the U.S. Food and Drug Administration (FDA) as targeted therapies out of a total of 573 agents.

On the other hand, the immunotherapy segment is anticipated to expand with the highest growth rate during the forecast period. The segment's highest growth rate is due to the launch of various drugs of this type by the key industry players and extensive research and development by the research organizations. For instance, in July 2020, Aichi Cancer Center and NEC Corporation announced the launch of fundamental research aimed at advanced cancer immunotherapy through the fusion of Artificial Intelligence (AI) and immunology.

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By Indication Analysis

Breast Cancer Segment to Exhibit Significant CAGR during the Forecast Period Owing to Rising Prevalence

Based on indication, the market is divided into lung cancer, stomach cancer, colorectal cancer, breast cancer, prostate cancer, and others. The breast cancer segment is expected to grow at the faster CAGR over the forecast period. The growing prevalence of breast cancer, rising awareness, increased breast cancer therapeutics launches, and extensive R&D investments by key market players are factors responsible for its faster growth during the forecast period.

• In January 2023, the U.S. FDA approved Orserdu, a breast cancer drug from Stemline Therapeutics, Inc., for the treatment of patients suffering from ER+, HER2-, and ESR1-mutated breast cancer.

The others segment accounted for the maximum share in 2023 and includes different cancer types such as bladder cancer, kidney cancer, thyroid cancer, uterine cancer, pancreatic cancer, lymphoma, and others.

The lung cancer segment is expected to grow significantly in the coming years. This can be attributed to the increasing prevalence of lung cancer, resulting in a growing diagnosis rate amongst the patient population. Furthermore, the increasing focus of key players toward research and development activities for launching innovative oncology drugs is likely to support the growing adoption of these drugs in the market.

By Dosage Form Analysis

Increasing Adoption of Biologics enabled Injectable Segment to Dominate the Global Market

Based on dosage form, the market is segmented into solid, liquid, and injectable. The rising number and adoption of biologics for cancer treatment render the leading position to the injectable segment during the forecast period. For instance, in September 2020, Mylan N.V. announced the U.S. launch of a 250 mg/5 mL (50 mg/mL) per single-dose prefilled syringe, Fulvestrant Injection, a generic version of AstraZeneca’s Faslodex injection. It is used to treat certain types of advanced breast cancer in women.

Solid dosage form of oncology drugs is available in capsules and tablets. The segment is expected to have a moderate growth rate during the forecast period. The strong focus of market players on research and development initiatives to explore and establish the clinical efficiency of potential candidates and possible routes of administration, as well as projected approvals of these drugs, is anticipated to drive the segment's growth during the forecast period.

By Distribution Channel Analysis

Hospital Pharmacies to Hold Major Oncology Drugs Market Share Impelled by Rising Prescription

In terms of distribution channel, the market is segmented into hospital pharmacies, retail & online pharmacies. The hospital pharmacies segment is projected to dominate the market, exhibiting a remarkable CAGR during the forecast period. The increasing prescription of medications at hospitals is due to the higher frequency of diagnoses at these institutions.

Moreover, the online pharmacies segment is likely to expand with the highest CAGR owing to its rising popularity due to its ease and convenience. The increasing penetration of the internet and the preferential shift of patients to buying medicines online appeal to e-commerce players who want to invest in online healthcare platforms.

REGIONAL INSIGHTS

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The market size in North America for oncology drugs stood at USD 92.65 billion in 2023. The growing incidence and rising prevalence of cancer in the U.S. and new product launches in the region are driving the dominance of North America in terms of oncology drugs market share. According to data published by the American Association of Cancer Research in 2022, the number of diagnosed cancer cases every year is projected to reach nearly 2.3 million by 2040.

Followed by North America, Europe is anticipated to account for the second-largest share in the global market. The high growth countries, including the U.K., Germany, France, Italy, and Spain, would contribute to the Europe market growth due to their increasing cancer burden.

The market in Asia Pacific is expected to exhibit a rapid growth rate over the forecast period. This is due to the increasing awareness among the population. The growing prevalence of cancer and rising healthcare expenditure will favor market growth in the region.

The Latin America and the Middle East & Africa regions are likely to witness limited growth over the study period due to less awareness and affordability of high-cost biologic drugs.

List of Key Companies in Oncology Drugs Market

F. Hoffmann-La Roche Ltd, Genentech, Inc., and Novartis AG to be the Leading Players in the Global Market

F. Hoffmann La Roche Ltd, Merck & Co. Inc., and Bristol-Myers Squibb Company held a significant global oncology drug market share. These companies are anticipated to continue to dominate in the coming years. This is driven by a strong oncology drugs product portfolio, key strategic business acquisitions, and robust product pipelines. These companies have a broader geographic presence and are actively involved in research & development, resulting in vital regulatory approvals. For instance, in June 2023, Genentech (Roche Group), announced the U.S. FDA approval for its drug Columvi, as a third-line treatment for diffuse B-cell lymphoma.

Some other prominent players in the market include Pfizer Inc., Novartis AG, AstraZeneca, and others. These companies are undertaking various strategic initiatives to strengthen their presence in the market.

LIST OF KEY COMPANIES PROFILED:

• F. Hoffmann-La Roche Ltd. (Switzerland)


• Abbvie Inc. (U.S.)


• Novartis AG (Switzerland)


• Pfizer Inc. (U.S.)


• Bristol Myers Squibb Company (U.S.)


• GlaxoSmithKline plc. (U.K.)


• Eli Lilly and Company (U.S.)


• AstraZeneca (U.K.)


• Sanofi (France)


• Bayer AG (Germany)


• Merck & Co., Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024 - AbbVie Inc. acquired ImmunoGen, a biotechnology company focused on the development of antibody-drug conjugate therapeutics for the treatment of cancer, to strengthen the company’s position in the oncology segment.


• February 2024 - Novartis AG acquired MorphoSys AG, a Germany-based, global biopharmaceutical company developing innovative medicines in oncology, to strengthen its oncology pipeline.


• January 2024 - AbbVie Inc. collaborated with Umoja Biopharma, a company focused on immunotherapy by reprogramming T cells in vivo to target cancer cells to develop novel In-Situ CAR-T cell therapies.


• December 2023 - AstraZeneca acquired Gracell, a global clinical-stage biopharmaceutical company developing innovative cell therapies for cancer and autoimmune diseases, aiming to strengthen cell therapies across oncology and autoimmune diseases among patients.


• May 2023 – AbbVie Inc. announced the U.S. FDA approval for its EPKINLY, among the only drugs for treatment of patients with relapsed or refractory diffuse large b-cell lymphoma (DLBCL).


• March 2023 - Pfizer Inc. announced a merger agreement to acquire Seagen, Inc., a global biotechnology company involved in manufacturing cancer medicines. The acquisition would strengthen Pfizer’s capabilities and expertise in oncology.


• December 2022 – The U.S. FDA approved Genetech’s Lunsumio (a monoclonal antibody) for the treatment of refractory follicular lymphoma patients who have already undergone at least two lines of systemic therapy.

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The report covers a detailed analysis and overview. It focuses on key aspects such as competitive landscape, drug class, therapy, indication, dosage form, distribution channel, and region. Besides this, it offers insights into the market drivers, market trends, market dynamics, and other key insights. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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