Towards Healthcare
Atopic Dermatitis Market Size Soars at 12.97% CAGR by 2034

Atopic Dermatitis Market Innovations, Pipeline Progress and Dynamics by 2034

According to market projections, the atopic dermatitis sector is expected to grow from USD 6.14 billion in 2024 to USD 12.97 billion by 2034, reflecting a CAGR of 7.75%. The atopic dermatitis market is expanding due to increasing incidences of AD as well as rising treatment approaches. North America led the market due to the presence of the advanced healthcare sector.

Category: Therapeutic Area Insight Code: 5599 Format: PDF / PPT / Excel

Deepa Pandey

Principal Consultant

Aditi Shivarkar

Reviewed By

Atopic Dermatitis Market Size, Growth Drivers, Challenges and Opportunities

The global atopic dermatitis market size is calculated at USD 6.14 in 2024, grew to USD 6.62 billion in 2025, and is projected to reach around USD 12.97 billion by 2034. The market is expanding at a CAGR of 7.75% between 2025 and 2034.

Atopic Dermatitis Market Size 2024 - 2034

Key Takeaways

  • North America dominated the global atopic dermatitis market in 2024.
  • Europe is expected to grow significantly during the forecast period.
  • By type, the chronic atopic dermatitis segment dominated the market in 2024.
  • By type, the acute atopic dermatitis segment is estimated to grow significantly at a notable CAGR during the forecast period.
  • By treatment type, the topical corticosteroids segment dominated the market in 2024.
  • By treatment type, the biologics segment is anticipated to be the fastest growing during the forecast period.
  • By administration type, the topical segment dominated the market in 2024.
  • By administration type, the systemic segment is expected to grow significantly during the forecast period.
  • By severity, the severe segment dominated the global atopic dermatitis market in 2024.
  • By severity, the mild segment is predicted to grow significantly during the forecast period.

Key Metrics and Overview

Metric Details
Market Size in 2024     USD 6.14 Billion
Projected Market Size in 2034 USD 12.97 Billion
CAGR (2025 - 2034) 7.75%
Leading Region     North America
Market Segmentation By Type, By Treatment Type, By Route of Administration, By Severity, By Region 
Top Key Players     Sanofi, Eli Lilly, Pfizer, AbbVie, Galderma, Novartis, Dermira, UCB, Boehringer Ingelheim, Almirall, GSK, Amgen, Regeneron Pharmaceuticals, Mylan, AstraZeneca

Market Overview

An inflammatory skin disorder, characterized by persistent eczematous lesions along with intense itching, is known as Atopic dermatitis (AD). Atopic dermatitis can be associated with various risk factors such as allergic rhinitis, asthma, mental health disorders, and food allergies. It consists of complex pathophysiology and also includes multiple immune pathways. Thus, the use of topical steroids, emollients, and topical calcineurin inhibitors is increasing, as well as systemic immunosuppressants for patients with critical conditions. Furthermore, new therapeutic strategies are being developed to target the steps in the chain of molecular events causing AD.

  • In April 2025, Nurix Therapeutics, Inc. and Gilead Sciences collaborated to develop IRAK4 degrader GS-6791/NX-0479 to target inflammatory disorders such as Atopic Dermatitis (AD) and rheumatoid arthritis (RA). Nurix Therapeutics, Inc. further announced its clearance of the IND from the FDA.
  • In April 2025, a new app to support atopic dermatitis patients was developed by the collaboration between Pfizer and Sidekick Health, which will be used in Japan and Europe. Sidekick Health has already launched five chronic disease-focused lifestyle software programmes and a series of medication management programs with Pfizer.

AI Integration in the Atopic Dermatitis Market

Various methods for the management, diagnosis, and treatment of AD have been introduced utilizing artificial intelligence (AI). Recognition of skin images and effective differentiation of different skin lesion types can be carried out using AI algorithms with deep learning techniques. It can also be used to streamline the drug development processes, clinical trials, and the development of personalized treatment plans. These innovative applications can improve the benefits of diagnosis, treatment monitoring, and patient care. Thus, by using AI, precision medicine can be effectively developed, along with enhancing patient outcomes.

Market Dynamics

Driver

Increasing Incidences

The increasing occurrences of atopic dermatitis have increased the demand for its effective management. This is due to increasing population, pollution, as well as changes in lifestyles. Furthermore, due to AD recurrences and complexities associated with it, the need for treatments is rising. Thus, various medications are being made available by the hospitals. Furthermore, various industries are also developing new diagnostic and treatment options along with personalized medications. Similarly, various awareness campaigns are also being conducted for the early detection of AD. Thus, all these factors drive the atopic dermatitis market growth.

Total Number of Patients in U.S. with Atopic Dermatitis in 2023

The graph represents the total number of patients with atopic dermatitis observed in the U.S. in year of 2023. It indicates that there is a rise in cases of AD in adults. Hence, it increases the demand for new diagnostic and treatment options for the effective management of atopic dermatitis. Thus, this in turn will ultimately promote the market growth.

Restraint

Recurrence of AD

In most cases, the AD is seen to recur even after the treatment, which in turn can increase the complexities associated with it. It also increases drug resistance, which makes the treatment ineffective. Furthermore, it also contributes to the rising hospital visits as well as the cost associated with them. This causes dissatisfaction among the patients, decreasing treatment adherence. Thus, the demand for new and effective treatments increases.

Opportunity

Rising Treatment Approaches

Various new treatment options are being developed for the effective management of atopic dermatitis. New personalized treatment approaches, depending upon the patient's condition, age, and other related factors, are being developed to improve the patient’s condition. At the same time, new targeted treatments are also being developed by the industries that can minimize the side effects, increasing the adherence to the treatment. Thus, all these factors increase the patient outcome, which in turn promotes the atopic dermatitis market growth.

For instance,

  • In March 2025, the successful results of rocatinlimab in the phase 3 IGNITE study carried out in adults with moderate to severe atopic dermatitis were announced by Kyowa Kirin and Agmen

Segmental Insights

The Chronic Atopic Dermatitis Segment Dominated

By type, the chronic atopic dermatitis segment dominated the market in 2024. A long-term treatment was required for treating the chronic atopic dermatitis, which is a persistent condition. This also increased the demand for new treatment options, contributing to the atopic dermatitis market growth.

Acute Atopic Dermatitis Segment: Significantly Growing

By type, the acute atopic dermatitis segment is estimated to grow significantly at a notable CAGR during the forecast period. Due to the growing population, lifestyle changes, and pollution, as well as increasing awareness, early diagnosis and treatment of acute atopic dermatitis are improving.

The Topical Corticosteroids Segment Led in 2024

By treatment type, the topical corticosteroids segment dominated the market in 2024. The topical corticosteroids were the preferred treatment option for AD. Furthermore, the fast onset of action increased their use, enhancing the patient's adherence to the treatment.

Biologics Segment: Fastest Growing

By treatment type, the biologics segment is anticipated to be the fastest-growing during the forecast period. The biologics provide target-specific action, reducing the side effects. This, in turn, increases their use in the chronic atopic dermatitis.

The Topical Segment Dominated

By administration type, the topical segment dominated the market in 2024. The topical route of administration was the ideal choice of treatment as it was directly applied to the affected area. Furthermore, their availability also enhanced the market growth.

Systemic Segment: Significantly Growing

By administration type, the systemic segment is expected to grow significantly during the forecast period. The use of the systemic route of administration is rising in the severe cases of AD. Moreover, they are also being used to treat chronic conditions as well as for targeted treatments.

Severe Segment Held the Major Share in 2024

By severity, the severe segment dominated the global atopic dermatitis market in 2024. The severe cases of AD required long-term treatment, which increased the demand for new treatment options. Additionally, the industries were also involved in the development of new treatment and diagnostic approaches. This promoted the market growth.

Mild Segment: Significantly Growing

By severity, the mild segment is predicted to grow significantly during the forecast period. The increasing awareness is increasing the early diagnosis of AD. This, in turn, is raising the diagnosis of mild AD, contributing to increased use of medications for its treatment.

The Advanced Healthcare Sector Drives North America

North America dominated the atopic dermatitis market in 2024. The healthcare sectors in North America are well developed, along with the presence of specialized staff. This increased the effective diagnosis and treatment of patients with AD, contributing to the market growth.

The U.S. Atopic Dermatitis Market Trends

The presence of advanced healthcare sectors in the U.S. has increased the effective management of AD. At the same time, the diagnosis and treatment options provided to the patients are improving patient outcomes due to the presence of specialized staff.

The Canada Atopic Dermatitis Market Trends

Canada consists of well-established healthcare sectors that offer various screening and treatment approaches. Furthermore, various companies are also collaborating to develop new such strategies while increasing the production of existing treatment options.

Rising Atopic Dermatitis Boosts Europe

Europe is expected to grow significantly in the atopic dermatitis market during the forecast period. Due to increasing occurrences of atopic dermatitis, Europe is facing a rise in the demand for diagnosis and treatment options. These demands are further supported by the government and regulatory agencies for the effective management of AD, enhancing the market growth.

For instance,

  • In April 2025, a change of terms of marketing consent for LEO Pharma’s Adtralza (tralokinumab) was approved by the European Commission (EC) and the Medicines and Healthcare products Regulatory Agency (MHRA), for including the adolescent patients (12-17 years of age) who are candidates for systemic therapy and are suffering from moderate-to-severe atopic dermatitis (AD).

The Germany Atopic Dermatitis Market Trends

The hospitals in Germany are increasing the demand for various diagnoses and treatment options for the management of rising AD cases and their complications. At the same time, the industries are developing new treatment approaches, which are funded by the government.

The UK Atopic Dermatitis Market Trends

Due to the growing incidence of AD, the demand for its management is rising. Thus, various industries in the UK are focused on the development of new strategies for the effective management of AD. Along with the government, the regulatory agencies are also supporting these developments.  

Asia Pacific Driven by Rising Population

Asia Pacific is estimated to host the fastest-growing atopic dermatitis market during the forecast period. The growing population in the Asia Pacific is driving the demand for the treatment and screening of AD. Furthermore, the government is offering its support for making the treatments affordable, which in turn, promotes the market growth.

The China Atopic Dermatitis Market Trends

The growing population in China is increasing the number of patients affected with AD, increasing the demand for treatment options. Hence, the technological advancements and specialized personnel, along with the schemes provided by the government, are improving patient outcomes.

The India Atopic Dermatitis Market Trends

As the population increases, the number of patients infected by AD also increases. This, in turn, increases the demand for treatment and diagnostic options. Thus, various industries are developing new strategies which is supported by the government to make them affordable.

Top Companies in the Atopic Dermatitis Market

Atopic Dermatitis Market Companies

Latest Announcements by Industry Leaders

  • In April 2025, in the study directed by Yung-Yu Chu, MD, from the Department of Ophthalmology, Chi Mei Medical Center, Tainan, Taiwan, the Taiwanese Investigators stated that, in the cohort study, the children with early-onset AD were compared with the control without dupilumab use or autoimmune conditions showed increased risk of pediatric uveitis. This indicated the need for ophthalmologic monitoring for children suffering from early-onset AD to detect and manage uveitis.
  • In April 2025, in a conference on systemic therapies for AD, Eric Lawrence Simpson, from Oregon Health & Science University, Portland, stated that, as a first-line systemic therapy for AD, JAKi should be authorized. He further stated that it can be used to replace the biologics with insufficient responses, as well as that it has demonstrated increased efficacy.

Recent Developments in the Atopic Dermatitis Market

  • In April 2025, as per the study released in the Archives of Dermatological Research, a cardiometabolic safety profile was obtained with the use of dupilumab during its first year of treatment in patients with atopic dermatitis when compared to cyclosporine and methotrexate.
  • In April 2025, at the American Academy of Dermatology Annual Meeting 2025 (AAD 2025) it was demonstrated that for the management of atopic dermatitis (AD) the ruxolitinib cream therapy decreased the patients’ dependence on oral corticosteroids, biologics, and other topical treatments signifying that this Janus kinase (JAK) inhibitor can be used as effective steroid-sparing agent for long-term disease management.

Segments Covered in the Report

By Type

  • Chronic Atopic Dermatitis
  • Acute Atopic Dermatitis
  • Adult Atopic Dermatitis
  • Pediatric Atopic Dermatitis

By Treatment Type

  • Topical Corticosteroids
  • Topical Calcineurin Inhibitors
  • Biologics
  • Antihistamines

By Route of Administration

  • Topical
  • Systemic
  • Injectable

By Severity

  • Mild
  • Moderate
  • Severe

By Region

  • North America
    • U.S.
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Latin America
    • Brazil Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
  • Last Updated: 06 May 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Deepa Pandey is a healthcare market research expert with 2+ years of experience, specializing in analyzing market trends, regulatory impacts, and emerging opportunities to guide strategic decision-making in the healthcare sector.

Learn more about Deepa Pandey

Aditi Shivarkar, with over 14 years of experience in consumer goods, leads research at Towards Consumer Goods, ensuring precise, actionable insights on trends, consumer preferences, and sustainable packaging for businesses.

Learn more about Aditi Shivarkar

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FAQ's

An inflammatory skin disorder, characterized by persistent eczematous lesions along with intense itching, is known as Atopic dermatitis (AD).

Sanofi is the major player in the market.

Ministry of Health and Family Welfare, Government of India, National Institutes of Health, FDA, WHO, PIB, CDC.