The hospital pharmaceuticals market consists of pharmaceutical products used in hospitals for the treatment of both chronic and acute conditions. Some key products in this market include prescription drugs, over-the-counter medicines, vaccines, and others. Prescription drugs dominate the market and are used majorly to treat serious health issues such as cancer, infections, cardiovascular diseases, and other medical conditions that require hospitalization. The market has witnessed considerable growth in recent years due to the rising prevalence of chronic diseases worldwide and increasing demand for advanced drugs and therapies in hospitals.
The global hospital pharmaceuticals Market is estimated to be valued at US$ 280.3 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Surging Demand for Advanced Drugs and Therapies
The rising demand for advanced drugs and novel therapies among patients and healthcare providers is a major driver fueling the growth of this market. Pharmaceutical companies are continuously investing in research and development activities to develop innovative drugs with improved efficacy and reduced side effects. Advancements in fields such as cell and gene therapy have widened treatment options for various medical conditions. As a result, hospitals are adopting these new treatment modalities to offer enhanced patient care, thereby driving the demand for advanced hospital pharmaceuticals.
Rising Prevalence of Chronic Diseases
The increasing prevalence of chronic and life-threatening diseases worldwide is another key factor propelling the hospital pharmaceuticals market growth. According to the World Health Organization (WHO), chronic diseases accounted for approximately 60% of the global deaths in 2001. Cardiovascular diseases, cancer, diabetes, and respiratory diseases are some of the major chronic conditions requiring long-term medical treatment and hospitalization. Pharmaceutical drugs play a vital role in managing the symptoms and improving the quality of life of patients suffering from chronic illnesses. This is anticipated to augment the demand for pharmaceutical drugs in hospitals over the forecast period.
Segment Analysis
The hospital pharmaceuticals market can be segmented into pharmaceutical drugs, vaccines, blood products and medical equipment. The pharmaceutical drugs segment accounts for over 60% of the market share currently due to high demand for medicines to cure diseases. Within pharmaceutical drugs, generic drugs dominate as they offer similar efficacy and result as branded drugs but at lower costs. This makes generic drugs more affordable for hospitals.
PEST Analysis
Political: Regulations around drug testing and approval processes impact the time taken for new drugs to enter the market. Stringent regulations also increase compliance costs for companies.
Economic: As healthcare expenditures rise globally, demand for cost-effective pharmaceuticals from hospitals is increasing. The economic outlook also impacts discretionary healthcare spending.
Social: Rates of diseases and average age impact demand dynamics. Prevention and wellness are social priorities.
Technological: Advancements in drug R&D, manufacturing and digital technologies help improve access while reducing costs. Technologies like artificial intelligence are positively impacting the market.
Key Takeaways
The Global Hospital Pharmaceuticals Market Size is expected to witness high growth. The global hospital pharmaceuticals Market is estimated to be valued at US$ 280.3 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030.
The North American region currently dominates the global hospital pharmaceuticals market due to elderly population Demand is also high in Asia Pacific attributed to rising healthcare expenditures and growing patient volumes in countries like China and India.
Key players operating in the hospital pharmaceuticals market are Iofina Chemical, Inc., Sociedad QuÃmica y Minera (SQM), IOCHEM Corporation, ISR Holding, Qingdao Bright Moon Seaweed Group Co. Ltd., and Algorta Norte S.A. Iofina Chemical focuses on research and production of iodine and its derivatives which are used in X-ray contrast media and antiseptic solutions used in hospitals. Sociedad QuÃmica y Minera is a leading producer of lithium and iodine used in pharmaceutical applications.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it