Global Pharmaceutical Industry Outlook, 2024
Growing Competitive Intensity is Driving Pharma Digitization, Building Unique Growth Opportunities
Frost & Sullivan identifies and defines the leading trends shaping the global pharmaceutical landscape in this analysis. The study period is 2021–2028, with 2023 as the base year and 2024–2028 as the forecast period. The geographic scope includes 5 regions: North America, Latin America (LATAM) and the Caribbean, Asia-Pacific (APAC), Europe, and the Middle East and Africa. Chemicals/Small molecules and biologics are the 2 segments covered.
Other information covered include:
• Pharmaceutical industry overview
• Revenue forecasts by segment
• The top 5 predictions for 2024 and beyond
• Macro and micro trends driving the industry’s future
• R&D expenditure and leading therapeutic areas
• Growth opportunities
After a plateaued growth in 2023 due to the biologics segment slowdown and a decrease in the uptake of COVID-19 vaccines and therapeutics, the industry will likely realign its growth to record a 5.9% CAGR between 2023 and 2028. Year-on-year (YoY) growth will remain low in developed economies, including the United States and Europe. In contrast, emerging economies in APAC, LATAM, and the rest of the world will register comparatively stronger single-digit YoY growth.
The recession and ongoing inflation will remain pressing challenges for the pharmaceutical industry in 2024, affecting returns on investment. Pharmaceutical companies will continue to shift toward regional rather than global suppliers to ensure geographic proximity and a smoother, more reliable supply chain.
There continues to be a strong focus on environmental, social, and governance commitments and supply-chain digitalization through lighthouse manufacturing techniques, decentralized clinical trial approaches, and the application of artificial intelligence. The industry is also witnessing a healthy mergers and acquisitions landscape, with several successful transactions recently. In addition, Frost & Sullivan expects a rebound in initial public offerings (IPOs), with 5 IPOs completed by February 2024.
- Analyst Highlights
- Highlights
- Top Predictions for 2024
- Transformation in the Global Pharmaceutical Industry
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8
- The Impact of the Top 3 Strategic Imperatives on the Global Pharmaceutical Industry
- Ecosystem
- Segmentation and Scope
- Key Industry Themes
- Industry Trends
- Trend 1: Increasing M&As in Biopharma
- Trend 2: Higher Focus on Precision Medicine
- Trend 3: More RWE Integration in Drug R&D
- Global Pharmaceutical Industry-R&D Expenditure Outlook
- Global Drug Development Pipeline by Development Phase
- Key Therapeutic Area Outlook
- Macroeconomic Factors
- Top 10 Trends for 2024
- Top 10 Growth Opportunities
- Global GDP Growth-Global Growth will See a Mild Slowdown from 3% in 2023 to 2.6% in 2024 as Major Economies Lose Momentum
- Inflation and Interest Rates-Headline Inflation will Continue to Decline. H2 2024 will Shift Toward Rate Cuts for Advanced Economies
- Currency Trajectory-The Dollar will Remain Strong in H1 2024. Emerging Market Currencies will Receive a Boost From Q3 2024
- Oil Markets-OPEC+ will Cut Oil Production in Q1. Non-OPEC Production will Increase
- Labor Market-Unemployment will See a Moderate Uptick. Positive Expectations Over Market Sentiment will Support Labor Hoarding
- Critical Mineral Supplies-The Need for Economic Resiliency will Bolster Cross-border and Cross-industry Partnerships
- North America-The Region will See an Economic Slowdown Amidst a Discretionary Spending Pullback and Elevated Interest Rates
- Western Europe-The Region will See a Moderate Growth Pick-up as Inflation Headwinds Ease. Rebuilding Fiscal Buffers will Take Precedence
- The Middle East-Economic Diversification will Drive Non-oil Growth to Limit the Pullback From a Slowdown in Global oil Markets
- Asia-Emerging Economies will Drive Growth Momentum. Fiscal Measures will Support CHINESE Economic Recovery
- High Inflation and Global Recession
- Intensification of Supply Chain Resilience Strategies
- Sustainability Across the Pharma Value Chain
- Growth Generator
- Global Pharmaceutical Industry-Historic Sales and Forecast
- Segment Performance-Historic Sales and Forecast
- Revenue Forecast by Region
- Revenue Forecast Analysis by Region
- Regional Regulatory Trends-North America
- Regional Regulatory Trends-Europe
- Regional Regulatory Trends-APAC
- Regional Regulatory Trends-APAC, LATAM, the Caribbean, the Middle East, and Africa
- Predictions for 2024
- Prediction 1
- Prediction 2
- Prediction 3
- Prediction 4
- Prediction 5
- Growth Generator: Small Molecules
- Small Molecules Snapshot-2024
- Small-molecule Companies to Watch
- Growth Generator: Biologics
- Biologics Snapshot-2024
- Biologics Companies to Watch
- Growth Opportunity Universe
- Growth Opportunity 1: Scale Precision Oncology in Asia-Pacific Through Public-private Partnership Models
- Growth Opportunity 2: Target Undruggable Proteins with Emerging Biotech Platforms
- Growth Opportunity 3: Develop Agile Partnership Models for Drug Discovery and Development
- Best Practices Recognition
- Frost Radar
- Next Steps
- Benefits and Impacts of Growth Opportunities
- Next Steps
- Take the Next Step
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook