Oncology Segment, by Therapeutic Area to Account Largest Share in Prescription Drugs Market during 2025-2031

According to our new research study on "Prescription Drugs Market Forecast to 2031 - Global Analysis - by Product Type, Drug Type, Route Of Administration, Therapeutic Area, Distribution Channel and Geography," the market was valued at US$ 1,440.79 billion in 2024 and is projected to reach US$ 2,350.12 billion by 2031; it is expected to register a CAGR of 7.3% from 2025 to 2031. The prescription drugs market growth is attributed to the increasing prevalence of chronic disorders and development and adoption of innovative and specialty drugs.

Prescription drugs are medications that legally require a medical prescription from a licensed healthcare professional. They are regulated because they can have significant effects on the body, require monitoring for safety, or have potential for misuse.

Innovative drugs offer targeted therapies that significantly improve patient outcomes. Specialty drugs used for the treatment of complex, chronic, or rare conditions such as multiple sclerosis, cancer, or rheumatoid arthritis are characterized by high costs, specialized handling, and administration requirements. Their growing prevalence is reshaping the pharmaceutical market, which is driven by rising technological advancements, increasing unmet medical needs, and growing favorable regulatory environments. As per Biobusiness Briefs' article published by Nature, global investment made in pharmaceutical research and development was US$ 276 billion in 2021, which is 27% of the global pharmaceutical revenue. Further, the advent of gene therapies, such as Luxturna (for inherited retinal disease), exemplifies breakthroughs that target previously untreatable conditions. According to the United States Department of Health and Human Services, the US spending on specialty drugs was ~US$ 301 billion in 2021, accounting for ~50% of total prescription drug expenditures. Regulatory agencies worldwide have streamlined the drug approval process for medical advancements. The US Food and Drug Administration (FDA) has implemented prompt approval programs, which have led to the approval of over 50 innovative therapies. Additionally, companies are investing heavily in personalized medicine, tailoring treatments based on genetic profiles, which enhances efficacy and reduces adverse effects. Further, the adoption is fueled by increasing patient awareness and rising demand for effective treatments, especially for rare and severe conditions. Thus, growing technological advancements, increasing regulatory support, and changing healthcare dynamics play a pivotal role in driving the prescription drugs market growth.

Based on product, the prescription drugs market is bifurcated into branded and generics. The branded segment held a larger prescription drugs market share in 2024, and generics segment is expected to register a higher CAGR during 2025-2031. Branded drugs are developed through extensive research, requiring significant investment in clinical trials, regulatory approvals, and commercialization. Pharmaceutical companies prioritize branded drug development to introduce novel treatments, address unmet medical needs, and secure long-term revenue streams through patent protection and market exclusivity. Branded prescription drugs encompass a wide array of product types, including small molecules, biologics, and biosimilars. For instance, Humira (adalimumab) (developed by AbbVie) is a monoclonal antibody used to treat autoimmune diseases such as rheumatoid arthritis and Crohn's disease. It was one of the top-selling branded drugs globally, generating ~US$ 20.4 billion in sales in 2020.

The branded pharmaceuticals sector is propelled by substantial investments in research and development as leading companies prioritize innovation in biologics, precision medicine, and breakthrough therapies for chronic and rare diseases, strategic mergers and acquisitions, and the integration of advanced technologies. As per the Pharmaceutical Technology, Pfizer's acquisition of Seagen for US$ 43 billion in 2023 significantly enhanced Pfizer's oncology portfolio with Seagen's innovative antibody-drug conjugate technology. Additionally, as per Reuters, AstraZeneca's agreement to acquire EsoBiotec for up to US$ 1 billion in March 2025 aims to bolster its cell therapy capabilities, particularly in cancer and autoimmune diseases. In 2023, Merck & Co. led global R&D spending with US$ 30.53 billion, reflecting its focus on oncology, immunology, and vaccines, while Johnson & Johnson, Roche, and Novartis maintained strong investments to advance their drug pipelines. The growing demand for targeted therapies, mRNA technology, and AI-driven drug discovery has driven companies such as AstraZeneca, Pfizer, and Eli Lilly to allocate substantial resources toward research. These strategic moves underscore the industry's commitment to expanding therapeutic offerings and embracing precision medicine.

The adoption of digital health technologies and artificial intelligence is streamlining drug discovery and development processes, enhancing efficiency, and reducing time-to-market. Regulatory agencies have also introduced accelerated approval pathways to expedite the launch of breakthrough therapies, particularly in oncology, neurology, and rare diseases, reflecting a dynamic environment that continues to evolve with scientific advancements and strategic collaborations. As the branded drug market continues to evolve, companies are tasked with navigating a delicate equilibrium between innovation, cost-effectiveness, and long-term market viability. Organizations that adeptly align with shifting industry dynamics, invest strategically in advanced research and development, and proactively address global healthcare challenges will remain at the forefront of medical innovation.

Based on therapeutic area, the market is segmented into oncology, cardiovascular diseases, neurological diseases, metabolic diseases, respiratory diseases, immunology, and others. The oncology segment held the largest prescription drugs market share in 2024, and the same segment is estimated to register the higher CAGR during 2025-2031. Oncology remains one of the most pressing global health challenges, driving significant investment and innovation in the medical industry. According to the World Health Organization (WHO), ~20 million new cancer cases were reported worldwide in 2023, and the number is expected to rise to ~30 million by 2040 due to aging populations, environmental factors, and lifestyle changes. The most common cancers-lung, breast, colorectal, prostate, and stomach-account for a significant portion of this burden, with lung cancer causing ~1.8 million deaths annually. The market has evolved rapidly, moving beyond traditional chemotherapy and radiation to targeted therapies, immunotherapies, and precision medicine. The rise of immune checkpoint inhibitors, such as pembrolizumab (Keytruda) and nivolumab (Opdivo), has revolutionized cancer treatment by harnessing the body's immune system to fight tumors more effectively. Similarly, chimeric antigen receptor (CAR) T-cell therapy has shown remarkable success in blood cancers such as leukemia and lymphoma, paving the way for further advancements in solid tumor treatments. In September 2023, the US FDA approved ten new anticancer therapeutics providing targeted therapies. A few approved drugs are pralsetinib (Gavreto), quizartinib (Vanflyta), and bosutinib (Bosulif).

Pharmaceutical companies are increasingly exploring biosimilars, combination therapies, and value-based pricing models to increase the accessibility and affordability of treatments. Additionally, regulatory agencies such as the FDA and EMA are expediting approval pathways for promising oncology drugs through initiatives such as the Breakthrough Therapy Designation and Accelerated Approval programs. Advancements in liquid biopsies, AI-driven drug discovery, and tumor microenvironment-targeted therapies are likely to shape the future of the cancer market. As cancer incidence continues to rise, the industry's focus is expected to shift toward early detection, personalized treatments, and innovative financing models.

Based on route of administration, the market is segmented into oral, injectable, topical, and others. The oral segment held the largest prescription drugs market share in 2024, and the same segment is estimated to register the highest CAGR during 2025-2031. The oral route of administration remains the most prevalent and preferred method for delivering prescription medications, owing to its convenience, noninvasiveness, and patient compliance. This route encompasses various formulations, including traditional tablets, capsules, and more advanced forms such as orally disintegrating tablets (ODTs), buccal tablets, and sublingual preparations.

ODTs are designed to dissolve rapidly on the tongue without the need for water, making them particularly beneficial for patients with swallowing difficulties. For instance, Zydis technology has been utilized in drugs such as Claritin RediTabs (loratadine) and Zofran ODT (ondansetron), which are used for allergies and nausea, respectively. These formulations offer improved patient adherence due to their ease of administration and rapid onset of action. Buccal tablets are placed between the cheek and gum, allowing its absorption through the buccal mucosa. This method bypasses the gastrointestinal tract, reducing the first-pass metabolism in the liver. Fentora (fentanyl) and Buccastem (prochlorperazine) utilize this delivery system to provide effective pain and nausea management, respectively. Sublingual administration involves placing a tablet or film under the tongue, where it dissolves rapidly and is absorbed directly into the bloodstream. This route offers a faster onset of action compared to traditional oral tablets. Nitroglycerin, which is used for angina, and Suboxone (buprenorphine/naloxone), which is used for opioid dependence, are delivered sublingually.

The oral route's dominance is also evident in the development of novel therapies. Oramed Pharmaceuticals has been working on an oral insulin capsule for type 2 diabetes, aiming to provide a needle-free alternative for insulin delivery. Advancements in drug formulation technologies have expanded the range of oral delivery options, enhancing patient compliance and therapeutic outcomes. As research progresses, the oral route is likely to remain central in the development of new and improved medications.

Johnson & Johnson; Pfizer Inc; Merck & Co Inc; Eli Lilly and Co; ESTEVE; AstraZeneca Plc; Sanofi SA; GSK Plc; F. Hoffmann-La Roche; Novartis AG; AbbVie Inc; Teva Pharmaceutical Industries Ltd are among the leading companies operating in the global prescription drugs market.

Companies operating in the prescription drugs market adopt various organic and inorganic strategies. Organic strategies mainly include product launches and product approvals. Acquisitions, collaborations, and partnerships are among the inorganic growth strategies witnessed in the prescription drugs market. These growth strategies allow the market players to expand their businesses and enhance their geographic presence, thereby contributing to the overall prescription drugs market growth. Further, acquisition and partnership strategies help them strengthen their customer base and expand their product portfolios.

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