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Antipsychotic Drugs Market Size, Companies and Growth

Antipsychotic Drugs Market Size Envisioned at USD 37.40 Billion by 2032

The report covers Antipsychotic Drugs Market Size and Companies such as Otsuka Holdings Co., Ltd., Teva Pharmaceutical Industries Ltd., Eli Lilly and Company, Dr. Reddy's Laboratories Limited, AstraZeneca PLC, Johnson & Johnson, Pfizer Inc., Alkermes Plc., AbbVie Inc. and Bristol-Myers Squibb. Segmented by therapeutic class into first and second generation drugs, Applications includes schizophrenia, dementia, bipolar disorder, depression and other applications. Distribution channels include hospital, retail and online pharmacies. The report offers the value (in USD Billion) for the above segments.

Antipsychotic Drugs Market Size and Opportunities

The antipsychotic drugs market size was estimated at USD 18.04 billion in 2023 is to anticipate around USD 37.40 billion by 2032, increasing at a CAGR of 7.8% between 2024 and 2032.

Antipsychotic Drugs Market Size 2023 - 2032

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Report Highlights:

  • Second-generation antipsychotic drugs dominated the market in 2023 with 65% market share.
  • Schizophrenia was the most widely treated disorder with antipsychotic drugs in 2023, reporting the largest 52% market share in 2023.
  • North America led the antipsychotic drugs market in 2023 with 37% market share.

World’s 0.32% of the population accounting for around 24 million individuals are affected with schizophrenia.

Antipsychotic drugs also called neuroleptics are prominently used to reduce the symptoms associated with psychosis. Many symptoms, such as delusions and hallucinations, like paranoia and hearing voices, can be effectively reduced and controlled by antipsychotic medicines. Fear and severe agitation, such as those resulting from being threatened, nonsensical speech, confused thoughts, violent or disruptive behavior, or manic episodes can also be managed with antipsychotic drugs. Antipsychotic drugs act by blocking the action of dopamine and other neurotransmitters in the brain. Currently marketed therapeutics include first and second-generation antipsychotic drugs. Major conditions treated with antipsychotic drugs include schizophrenia, dementia, bipolar disorder, depression, and other conditions. The two major uses of antipsychotics include the reduction of severe (acute) symptoms and the prevention of symptom relapses and hospitalization. Both generations of medicine are efficient but the newer ones have improved benefits with lessened side effects over the typical first-generation antipsychotics. Schizophrenia is one of the major conditions treated with antipsychotic drugs. The rising number of schizophrenia patients is one of the major growth factors for the antipsychotic drugs market.

For instance,

  • According to the WHO’s January 2022 estimates, approximately  24 million people or around 0.32% of the global population.

Schizophrenia is Reported to be a Major Disability Due to Mental Health

A clinical and research study was conducted by the Danish national health registries related to the disability caused by Schizophrenia. Researchers developed new predictions of the degree of disability linked to various mental health and substance use disorders by utilizing the wealth of medical data found in Danish national health registries.

Years of Living with Disability Per 100,00 Individuals

Schizophrenia was found to be the most burdensome mental illness at both the individual and population levels by John McGrath, M.D., Ph.D., the Niels Bohr Professor at the National Centre for Register-based Research at Aarhus University in Denmark, and colleagues when they took into account the length of illness and degree of disability. After alcohol use disorders in males and anxiety disorders in women, personality disorders were the second most incapacitating conditions for both sexes. The Lancet Psychiatry published these findings. McGrath and colleagues used data from the Danish Psychiatric Central Research Register to compute the YLD (years lived with disability) for 18 mental health and substance abuse problems. The YLD is derived by multiplying the duration of an illness by a predetermined impairment index ranging from 0 to 1.  Though major depression was the most common problem in Denmark, schizophrenia was the largest cause of impairment from mental illness for both men and women, accounting for 273 years of life lost per 100,000 people. Personality problems were the second most debilitating, followed by anxiety disorders.

National Institute of Mental Health Conducting Clinical Trials for Schizophrenia

Clinical trials drive the antipsychotic drug industry by driving innovation, establishing proof of drug efficacy, and influencing treatment practices.  As a result, the antipsychotic drug market has become more robust, and schizophrenia patients have a broader selection of treatment alternatives.

Name of Study Type of Study Start Date
Anti-Inflammatory Challenge in Schizophrenia Interventional March 31, 2024
Young Adults with Violent Behaviour During Early Psychosis Interventional February 29, 2024
Tau Biomarkers in Late-onset Psychosis Observational February 16, 2024
Enhanced Coordinated Specialty Care for Early Psychosis Interventional February 1, 2024
Accelerated Transcranial Magnetic Stimulation for People with Schizophrenia Treated with Clozapine Interventional December 1, 2023
Auditory Control Enhancement (ACE) in Schizophrenia Interventional September 5, 2023
Restoring Spindle and Thalamocortical Efficiency in Early-Course Schizophrenia Patients Using Auditory Stimulation Interventional July 20, 2023
Improving Cognition Through Telehealth Aerobic Exercise and Cognitive Training After a First Schizophrenia Episode Interventional May 23, 2023
Deep Brain Stimulation in Treatment-Resistant Schizophrenia Interventional March 1, 2023

The Number of Prescribed Antipsychotics has Increased Over the Years

According to the MDPI’s published research article in January 2024, antipsychotic drug prescriptions have increased in Ireland in 2022. Ireland's population was 4.985 million in 2020, with a projected increase to 5.033 million in 2021 and 5.15 million by 2022. From 2020 to 2022, the number of prescriptions for psycholeptics climbed yearly, peaking at 328,572 in December 2020. In April 2021, Ireland had a minimum of 31,340 patients receiving at least one antipsychotic through payment systems. In 2021, 30.8% of the Irish population was registered under the GMS plan. Antipsychotics were prescribed to at least 1.9% of the 1.54 million medical card holders. The total ingredient cost of antipsychotics on GMS and DPS programs in 2021 was more than USD 26.6 million. A subsequent analysis found an increase in antipsychotic prescribing in the dementia and care home groups, which coincided with COVID-19 lockdowns and could have been attributable to antipsychotic prescribing for palliative care.

Boost in Patients Receiving Mental Health Treatments

According to the U.S. Department of Health and Human Services, from 2019 to 2021, the proportion of adults who had undergone any kind of mental health treatment rose from 19.2% to 21.6% for adults of all ages and from 18.5% to 23.2% for those in the 18–44 age group in the U.S. From 2019 to 2021, the percentage of U.S. people who received mental health care climbed by approximately 5 percentage points, primarily among those aged 18-44. In 2021, 23.2% of adults between the ages of 18 and 44 received therapy.

Percentage of Adults Aged 18+ who had Mental Health Therapy, By Aged Group and Year: U.S. 2019 - 2021

Among people aged 18-44, mental health treatment grew over time for both men and women, non-Hispanic White and non-Hispanic Asian, and throughout metropolitan and nonmetropolitan locations. In 2021, the highest estimates for adults aged 18-44 were among women (28.6%) and non-Hispanic White people (30.4%).

Possible Reasons for this Increase:

  • There is a greater awareness of mental health disorders, and the stigma associated with therapy is reducing.
  • People are now able to receive mental healthcare more easily as insurance coverage has been expanded and teletherapy has become more prevalent.
  • The pandemic has raised awareness of mental health issues, encouraging people to seek help.

This increase in treatment rates represents a positive step towards prioritizing mental health in the United States. However, additional effort is needed to ensure that everyone receives the care they require. The rising mental health conditions and increased demand for mental health treatments ultimately foster the anti-psychotic drugs market.

A rise in mental health disorders is one of the prominent reasons for increasing mental health treatments. This further augments the use of antipsychotic drugs and expands the antipsychotic drugs market. As mental health disorders are rising, there is an increasing demand for effective treatments is growing. In addition, an increased number of patients pool with conditions such as schizophrenia, depression, bipolar disorders, and other conditions significantly expands the antipsychotic drugs market growth. Furthermore, increased emphasis on early disease detection in mental health disorders results in the initiation of antipsychotic drug therapy recommended by doctors which in turn adds to the market growth. Moreover, the rising focus on R&D in antipsychotic drugs to detect novel formulations not only for managing but treating mental health disorders, accelerates the antipsychotic drugs market growth.

The Role of Increase in Product Approvals

In recent years there has been an increase in the R&D, clinical trials, and product approvals in antipsychotic drugs which ultimately foster the growth of the antipsychotic drugs market. Scientists are working to develop novel therapeutics for the treatment of psychotic disorders such as schizophrenia, dementia, bipolar disorders, depression, and other diseases.

Here are some recent drug approvals of the antipsychotic drugs:

  • In January 2024, Pimavanserin Capsules, 34 mg (USRLD: Nuplazid Capsules) and Pimavanserin Tablets, 10 mg (USRLD: Nuplazid Tablets) were authorized by the FDA in January 2024 for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis.
  • In November 2023, the FDA accepted Karuna Thgerapeutics Inc.’s new drug application KarXT (xanomeline-trospium) for the treatment of schizophrenia in adults.
  • In May 2023, Otsuka Pharmaceuticals and Lundbeck Inc. received FDA approval for their new drug Rexulti (bexpiprazole) for treating schizophrenia in pediatric patients 13-17 years of age.
  • In April 2023, MedinCell and Teva Pharmaceuticals received FDA approval on their extended-release injectable suspension UZEDY (risperidone) for treating schizophrenia in adults.
  • In June 2021, the FDA approved Alkermes plc’s LYBALVI (olanzapine and samidorphan) for the treatment of schizophrenia and bipolar disorders.
  • In December 2021, the FDA tentatively approved Zydus Cadila’s Capriprazine for the treatment of schizophrenia and treatment of episodes associated with bipolar disorders.

Rising product approvals significantly augment the market growth by availing advanced and more effective drugs for psychosis and related conditions.

Adverse Effects of Antipsychotic Drugs Causing Hurdles to Market Growth

Side effects such as tardive dyskinesia, weight gain, and sleepiness can greatly reduce a patient's motivation to take their prescription as prescribed. This can lead to symptom recurrence and hospitalization, which raises overall healthcare costs. Unwanted side effects can have a significant influence on a patient's daily life, including their ability to work, socialize, and maintain relationships. This can result in lower productivity and higher utilization of healthcare resources to manage side effects. In addition, managing side effects frequently necessitates additional medications or therapies, increasing the overall expense of treatment. Considering all the factors, the adverse effects of antipsychotic drugs are a prominent restraining factor for the market growth.

North America Leads the Antipsychotic Drugs Market

North America dominated the antipsychotic drugs market in 2023 due to the high prevalence of associated disorders, rise in healthcare costs, and strong existence of market players. Mental diseases such as schizophrenia and bipolar disorder are highly prevalent. In addition, leading biopharmaceutical companies are heavily involved in the development and marketing of these medications. Furthermore, healthcare spending is rather high, as is insurance coverage for mental health services. Government measures to raise mental health awareness and improve access to medication can have a big impact on the market. The availability of qualified mental health specialists and well-equipped healthcare facilities are essential for efficiently administering antipsychotic medicines. Individuals and families with higher disposable income can afford to use these drugs.

Antipsychotic Drugs Market Players

  • Otsuka Holdings Co., Ltd. (Otsuka Pharmaceutical Co., Ltd.)
  • Teva Pharmaceutical Industries Ltd.
  • Eli Lilly and Company
  • Dr. Reddy's Laboratories Limited
  • AstraZeneca PLC.
  • Johnson & Johnson (Janssen Pharmaceuticals)
  • Pfizer Inc.
  • Alkermes Plc.
  • AbbVie Inc. (Allergan Inc.)
  • Bristol-Myers Squibb

Antipsychotic Drugs Market Segments

By Therapeutic Class

  • First Generation
  • Second Generation

By Application

  • Schizophrenia
  • Dementia
  • Bipolar Disorder
  • Depression
  • Other Applications

By Distribution Channel

  • Hospital Pharmacies
  • Retail Pharmacies
  • Online Pharmacies

By Geography

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • South America

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About The Author

Namrata Bukshet is not just a market researcher; she is a detective, a storyteller, and a champion for healthier lives. Her journey began with a Bachelor of Pharmacy degree and a thirst for knowledge that led her to pursue a Post Graduate Diploma in Pharmaceutical Management. Her curiosity for consumer behaviour and market trends burned bright. She delved deep into the world of lifestyle disorders, conducting extensive research that sheds light on the intricate dance between personal choices and societal pressures. This exploration culminated in a groundbreaking paper on E-Biz: Indias 1st G2B Online Portal, presented at an international conference, where her insights resonated with a global audience. But Namrata has impact extends far beyond a single paper. Her expertise has shaped the very landscape of market research and pharmaceuticals. Her keen eye for detail and unwavering commitment to understanding the why behind consumer behaviour have made her a sought-after professional in the industry. She is the decoder ring that unlocks the secrets hidden within data, the translator who turns complex trends into actionable insights. As she continues to unravel the mysteries of consumer behaviour, she paves the way for a future where healthcare is not just about treatment but about understanding the why and building a bridge to a healthier world, one insightful discovery at a time.


Rising prevalence of mental illnesses like schizophrenia and bipolar disorder, Growing geriatric population with increased risk of dementia and Increasing government initiatives for mental healthcare awareness and access to medication.

Asia Pacific, due to growing awareness, rising disposable income, and development of local pharmaceutical industries.

Generic alternatives will become available, making treatment more affordable and potentially expanding market reach.

World Health Organization, Food and Drug Administration, Centers for Disease Control and Prevention, and ScienceDirect.