Global Generic Drug Market Forecast to Hit $531.8 Billion by 2028
Study results show a compound annual growth rate of 5.2% from $392.4 billion in revenue in 2021.
The global generic drug market is expected to reach $531.8 billion in revenue by 2028, representing a compound annual growth rate of 5.2% from the $392.4 billion in revenue in 2021, according to an analysis conducted by Vantage Market Research.1 The growth will be accelerated by the increasing use of robotic process automation (RPA) to ensure regulatory and standards compliance and the low prices of generic drugs, according to the research firm’s Global Generic Drug Market report.1
RPA allows companies to focus more attention, capital, and time on higher-value operations. RPA and other process automation solutions are frequently used by pharmaceutical companies to manage high-volume production and research and development (R&D) tasks. In addition, RPA technology comprises software that logs into programs, enters data, and performs measurements.1
Meanwhile, chronic diseases necessitate long-term treatment, and commercially available medications are extremely expensive, both of which create greater demand for generic equivalents, according to Vantage Market Research.1
The growth will be led by demand for medications to treat chronic diseases, such as cancer, cardiovascular disease, diabetes, and respiratory disease, according to the analysis.1
The injectables subsegment of the route of administration segment is anticipated to dominate the generic drugs market.2
Although capsules, pills, and tablets are available administration routes, injectables are considered the most effective method, according to the analysis.2
The cardiovascular products subsegment of the application segment accounted for the largest generic drug market share in 2021, and that category is expected to grow during the forecast period.2
North America is the largest regional segment because of rising demand for generic drugs in developed economies, such as Canada and the United States.2
Other drivers of demand in North America include the availability of health care professionals, flexible market players, a growing health care industry, and technological advancements.2
On the other hand, developing countries such as China, India, and Indonesia are showing enormous potential for manufacturing generic drugs in their respective organizations, but insufficient funds, lack of skilled labor, and social issues make it difficult for the market to grow, according to the analysis.2
Accurate and quality manufacturing of generic drugs are considered crucial factors for the growth of the generic market, as are affordability and cost-effectiveness.
The analysis forecasts that branded manufacturers are expected to take financial risk and initiate heavy investments in R&D of generic drugs. Additionally, generic drugs must have the same performance and quality before they are introduced in market. Because of the substantial number of competitors, it is expected that the prices of similar drugs will not be volatile and not controlled by a single entity.
Finally, though the COVID-19 pandemic caused delays in the manufacturing of generic drugs, the Vantage Market Research analysis shows that supply should improve in the second half of 2022.1
References
1. $531.8 bn global generic drugs market forecast by 2022-2028 | high demand for generic medicines is driving the market, with rising CAGR of 5.2% | future scope, historic data, growth opportunities, market competition by Vantage Market Research. Vantage Market Research. News release. June 17, 2022. Accessed June 21, 2022. Email.
2. Generic drugs market to reach valuation of USD 531.8 billion by 2028 – increasing prevalence of chronic diseases & growing geriatric population drives the market. Vantage Market Research. News release. June 16, 2022. Accessed June 21, 2022. https://www.vantagemarketresearch.com/press-release/generic-drugs-market-970956
