The neuroscience market involves research and applications associated with the functioning and development of the nervous system. This includes areas such as neurology, psychiatry, neurosurgery, neuroimaging, neurological disorders and neuro rehabilitation. The key products in this market include neuro-microscopes, MRI scanners, PET scanners, neuromodulation devices, intraoperative magnetic resonance imaging (iMRI) devices and neurostimulation devices. The functioning of the nervous system and the search for cures of neurological disorders are driving innovations in this field.
The neuroscience market is estimated to be valued at US$ 32.75 billion in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The key drivers fueling growth of the neuroscience market include rising geriatric population and subsequent growth in prevalence of neurological disorders such as Alzheimer’s, Parkinson’s, dementia etc. According to World Health Organization (WHO), around 50 million people worldwide were living with dementia in 2018 and the number is estimated to triple by 2050. Growing demand for early and accurate diagnosis of neurological conditions is also fueling adoption of advanced neuroimaging and neurodiagnostic devices in the market. Furthermore, ongoing research in the area of neurology, brain functioning, artificial intelligence and development of neuro rehabilitation technologies are creating new opportunities for players in this market over the forecast period.
Segment Analysis
The neuroscience market can be segmented into instrumentation, consumables, software, and services. Among these, the instrumentation segment dominated the market in 2022, accounting for nearly 42% share. This is because of the high costs associated with instruments such as imaging systems, electrophysiology instruments, microscopy instruments, Preclinical CRO services etc. The demand for such instruments is increasing across research institutions and pharmaceutical companies conducting research activities in neurobiology, neuroplasticity and neurodegeneration.
PEST Analysis
Political: Government funding for neuroscience research has been increasing over the years. For instance, the U.S. National Institutes of Health’s budget for the Brain Research through Advancing Innovative Neurotechnologies (BRAIN) Initiative has increased from $110 million in 2014 to $631 million in 2021.
Economic: The average annual healthcare spending per person in the U.S. has increased from $326 in 1990 to $11,172 in 2020. With high unmet clinical needs, neuroscience is attracting significant investments from biotech and pharma companies.
Social: Increasing prevalence of neurological disorders like Alzheimer’s, Parkinson’s, depression, stroke etc. has boosted social awareness and focus on brain health and cures.
Technological: Advent of novel tools like optogenetics, designer receptors, CLARITY, neurotransmitter imaging, brain organoids etc. are enhancing understanding of disorders like autism, schizophrenia at cellular and network levels.
Key Takeaways
The Global Neuroscience Market Size was valued at US$ 32.75 billion in 2023 and is expected to witness high growth, exhibiting a CAGR of 4.1% over the forecast period, due to increasing funding for neuroscience research across government as well as private organizations. North America dominated the neuroscience market in 2023 with a share of over 35%, owing to presence of major players and huge healthcare expenses in the region.
The regional analysis indicates that Asia Pacific is likely to witness the fastest CAGR of 5.3% during the forecast period. This is attributed to factors such as rising healthcare expenditure, increasing geriatric population, and expanding research infrastructure in major Asian countries.
Key players operating in the neuroscience market are Alpha Omega, GE Healthcare, Axion Biosystems, Inc., Siemens Healthineers, Scientifica Ltd., Blackrock Microsystems LLC, Femtonics Ltd., LaVision Biotec GmbH, Intan Technologies, NeuroNexus Technologies, Inc., Newport Corporation, Neuralynx Inc., Plexon Inc., Mediso Medical Imaging Systems, Noldus Information Technology, Sutter Instrument Corporation, Thomas Recording GmbH, Trifoil Imaging Inc. These players are focusing on inorganic growth strategies such as acquisitions and collaborations to expand their product portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it