The cancer drugs market is projected to reach US$ 516.15 billion by 2031 from US$ 225.96 billion in 2024. The market is estimated to register a CAGR of 12.6% during 2025-2031. Major factors driving the market growth include a growing burden of breast and lung cancer, and surging investments in oncology research are propelling the adoption of cancer drugs. Further, the preference for personalized medicine will likely boost the market during the forecast period. However, the high cost of treatment is among the market deterrents.

The growing burden of lung cancer is a significant driver of the cancer drugs market, particularly in 2023. Lung cancer remains one of the most prevalent and deadly cancers globally, accounting for ~25% of all cancer deaths. According to the American Cancer Society, in 2023, an estimated 238,000 new cases of lung cancer were diagnosed in the US, and ~127,000 people died from the disease. Nearly half of the cases are diagnosed at distant (metastatic) stages, where survival drops to a 29% five-year survival, underscoring the critical demand for more effective therapeutic options. This grim statistic underscores the pressing need for effective treatment options and fuels the demand for innovative therapeutics. Although smoking remains the leading risk factor responsible for ~85% of cases, there is a rising share of lung cancer among never-smokers, driven primarily by air pollution, particularly in regions below WHO air quality standards. The increasing incidence among non-smokers accentuates the unmet need for more widely applicable treatments targeting adenocarcinoma and other subtypes not directly linked to tobacco exposure.

Advancements in early detection and precision medicine are pivotal in addressing this growing challenge. Developing targeted therapies, immunotherapies, and combination treatments improves survival rates and quality of life. In 2023, the approval of new drugs such as Tagrisso (osimertinib) for EGFR-mutant NSCLC and the ongoing clinical trials of novel immune checkpoint inhibitors continue to reshape the therapeutic landscape. Immunotherapy has shown promising results, with drugs such as Keytruda (pembrolizumab) and Opdivo (nivolumab) significantly improving patient outcomes by harnessing the body's immune system to fight cancer. Therefore, the increasing incidence of breast cancer drives the global cancer drugs market growth. Additionally, the rising awareness of cancer among the population is expected to contribute positively to the development of this market.

The comparative company analysis evaluates and categorizes the Cancer Drugs market based on product portfolio (product satisfaction, product features, and availability), recent market developments (merger & acquisition, new product launch & enhancement, investment & funding, award, agreement, collaboration, & partnership, recognition, and expansion), and geographic presence that aids better decision-making and understanding of the competitive landscape. The report profoundly explores the recent significant developments and innovations by the leading vendors in the global cancer drugs market. The key market players are Bristol-Myers Squibb Co.; AbbVie Inc.; Johnson & Johnson; F. Hoffmann-La Roche Ltd; Pfizer Inc.; AstraZeneca Plc; Merck KGaA; Novartis AG; Astellas Pharma Inc.; and Eli Lilly and Co.

Based on therapy types, the cancer drugs market is segmented into chemotherapy, targeted therapy, radiation therapy, hormone therapy, and other therapy types. The targeted therapy segment held the largest cancer drugs market share in 2024.

By indications, the market is segmented into blood cancer, lung cancer, breast cancer, colorectal cancer, prostate cancer, stomach cancer, cervical cancer, liver and intrahepatic bile ducts cancer, thyroid cancer, and other indications. The breast cancer segment held the largest share of the cancer drugs market in 2024 and is anticipated to register the highest CAGR from 2025 to 2031. Breast cancer is one of the most prevalent forms of cancer, with an estimated 2.3 million new cases diagnosed globally each year. It is the leading cancer in women and remains a prime cause of cancer-related mortality worldwide. However, significant advancements in breast cancer research and treatment have dramatically improved survival rates, particularly in early-stage diagnoses. Ongoing developments in targeted therapies, immunotherapies, and personalized treatment regimens continue to transform the therapeutic landscape for breast cancer.

In terms of distribution channel, the cancer drugs market is segmented into hospital pharmacies, retail pharmacies, and online stores. The hospital pharmacies segment held the largest share of the cancer drugs market in 2024 and is anticipated to register the highest CAGR during 2025-2031.

Companies operating in the cancer drugs market adopt various organic and inorganic strategies. The organic strategies mainly include product launches and product approvals. Inorganic growth strategies witnessed in the market are acquisitions, collaborations, and partnerships. These growth strategies allow the market players to expand their businesses, enhance their geographic presence, and contribute to the overall market growth. Furthermore, acquisitions and partnerships helped strengthen their customer base and extend their product portfolios. A few of the significant developments by key players in the cancer drugs market are listed below.

In 2024, Merck, known as MSD outside of the United States and Canada, and LaNova Medicines Ltd. (LaNova), a privately held clinical-stage biotechnology company, announced that Merck had entered into an exclusive global license to develop, manufacture, and commercialize LM-299, a novel investigational PD-1/VEGF bispecific antibody from LaNova.

In 2024, China's National Medical Products Administration accepted Astellas and Pfizer's Supplemental Biologics License Application for enfortumab vedotin with KEYTRUDA (pembrolizumab) for First-Line Treatment of Advanced Bladder Cancer.

In 2023, Pfizer Inc. announced the successful completion of its acquisition of Seagen Inc., a global biotechnology company that discovers, develops, and commercializes transformative cancer medicines. Pfizer completed its acquisition of all outstanding common stock of Seagen for US$ 229 in cash per share, for a total enterprise value of approximately US$ 43 billion.