Pediatric Drugs Market

The global Pediatric Drugs Market is valued at USD 156.78 Billion in 2023 and is projected to reach a value of USD 543.23 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 12.0% between 2024 and 2032.

Key highlights

• In 2023, North America led the market, capturing an impressive 36.2% of total revenue
• The Asia Pacific region is set for substantial growth, with a noteworthy projected CAGR of 17.1% throughout the forecast period
• Respiratory Disorder Drugs dominated the market landscape in 2023, securing a significant share of 36.5%
• Oral held it leading position, commanding the largest market share of 40.8% in the market for 2023
• In 2023, Hospital Pharmacies dominated the market with 45.5% market share
• Ongoing advancements in medical research, particularly in areas like genomics, personalized medicine, and drug delivery systems, have enabled the development of more effective and targeted therapies for pediatric patients drives the Pediatric Drugs market

{{bar_graph}}

Regional Overview

North America Dominated Sales with a 36.2% share in 2023.

North Americas leadership is attributed to several factors, including advanced healthcare infrastructure, significant investment in research and development, and a high prevalence of pediatric chronic diseases.

Access to cutting-edge pediatric therapies is made easier in the United States in particular by the strong support networks that are in place, including comprehensive insurance coverage and pediatric hospitals with specialized care. Strong legislative frameworks and financial incentives, such as the Best Pharmaceuticals for Children Act (BPCA) and the Pediatric Research Equity Act (PREA), also push pharmaceutical companies to focus on developing drugs for children, which expands the market in this area.

North America is anticipated to dominate the pediatric drugs market due to the increasing volume of pediatric patient cases involving autoimmune disorders, respiratory disorders, cerebral palsy, and muscular atrophy.

The adoption of advanced technologies in the U.S., which holds the major revenue share in North America, significantly contributes to this dominance. For instance, according to an article, asthma is one of the most common chronic diseases in children worldwide.

The launch of new products by key players in the region for pediatric patients, increased government initiatives to raise awareness about pediatric medicines, and early approvals with accelerated drug approval initiatives by the USFDA are likely to create more opportunities in the market. For instance, in April 2024, the FDA has granted accelerated approval for tovorafenib (Ojemda) to treat patients with relapsed or refractory pediatric low-grade glioma (pLGG) that exhibits BRAF alterations, the most common type of brain tumor diagnosed in children.

U.S. Market Overview

The US Pediatric Drugs market, valued at USD 26.8 Billion in 2023 to USD 80.47 Billion in 2032, is anticipated to grow at a CAGR of 12.8% from 2024 to 2032.

The United States market is distinguished by a strong infrastructure, cutting-edge medical research, and significant healthcare investment.

The increased incidence of both acute and chronic pediatric ailments, including asthma, diabetes, cancer, and congenital disorders, is a major factor propelling the market. Specific drugs that are adapted to each childs individual physiological and developmental requirements are required for these disorders.

The United States market is expected to expand as a result of rising healthcare costs and a greater emphasis on pediatric care. The detection and treatment rates of pediatric diseases have improved dramatically as a result of government initiatives and public awareness campaigns.

Technological developments that improve the efficacy and safety of pediatric therapies, such as customized medicine and innovative drug delivery systems, correspond with the increase in healthcare costs.

The market also benefits from a collaborative environment where healthcare providers, researchers, and advocacy groups work together to address the unique healthcare needs of children. This synergy is crucial in driving research, securing funding, and ensuring that children receive the best possible care.

Type Overview

In 2023, the Respiratory Disorder Drugs segment dominated the market with the largest share of 36.5%. The Pediatric Drugs market, segmented by the Type, includes Respiratory Disorder Drugs, Autoimmune Disorder Drugs, Gastrointestinal Drugs, Cardiovascular Drugs.

The Respiratory Disorder Drugs are primarily driven by the high prevalence of respiratory conditions such as asthma and bronchitis among children globally. Because these conditions require continuous care, there is a growing need for pediatric drugs that are specifically designed to address respiratory health issues.

In this crucial therapeutic area, pharmaceutical companies are concentrating on creating novel formulations and delivery systems to improve therapy efficacy and patient compliance.

Given the factors that contribute to chronic respiratory conditions like Asthma and Chronic Obstructive Pulmonary Disease (COPD), including weakened immunity, increased environmental pollution, and allergen exposure, the respiratory disorder drugs segment is expected to hold the largest share of the pediatric drugs market.

COPD, a significant contributor to the global pediatric healthcare burden, was reported by the World Health Organization in 2021 as the third leading cause of death worldwide, resulting in 3.23 million fatalities in 2019.

Given the increased need for efficient treatments to address these disorders, the rising prevalence of COPD in children is anticipated to propel market expansion over the course of the forecast period.

Key Trends

• There is a growing incidence of chronic pediatric conditions such as asthma, diabetes, and epilepsy among children. This trend is driving the demand for effective and safe pediatric medications to manage these long-term illnesses.
• There is a rising demand for personalized medicine and targeted therapies which tailors’ treatment to individual genetic profiles, is becoming more prevalent in pediatric care. Targeted therapies, designed to treat specific conditions with precision, are also gaining traction, leading to more effective treatments with fewer side effects for children.
• Innovations in drug formulations are making medications more palatable and easier to administer to children. This includes the development of liquid formulations, chewable tablets, and dissolvable strips that cater to the needs and preferences of young patients.
• There is a growing emphasis on developing orphan drugs for rare pediatric diseases. These drugs, which may not be profitable due to the small number of patients, receive special incentives and expedited approval processes to address unmet medical needs.

{{dialog}}

Premium Insights

The primary driver of the Pediatric Drugs market is the rise in the incidence of both acute and chronic illnesses in children, which has increased the need for pediatric drugs that are both safe and effective. The prevalence of ailments like diabetes, asthma, congenital impairments, and juvenile malignancies is rising, calling for more specialized care for young patients. Pharmaceutical companies have been forced to make large investments in research and development in order to produce novel medicines as a result of this increasing prevalence.

Arise in birth rates over the previous year and an increase in critical pediatric cases that result in fatalities from a range of illnesses, including viral infections, gastrointestinal disorders, lung cancers, and malnutrition drives the market. For instance, according to the 2022 United Nations International Childrens Emergency Fund (UNICEF) report, an estimated 4.9 million children under the age of five were projected to have died by that year, translating to approximately 134,00 deaths per day.

New treatment options for pediatric ailments are made possible by developments in gene therapy and customized medicine, which is driving market expansion. In order to improve treatment outcomes and safety, pediatric-specific clinical studies are pushed, which guarantees that medications are examined and optimized for this age group.

Regulatory incentives and ethical imperatives also play a crucial role in driving the market. Government initiatives like the Pediatric Research Equity Act (PREA) and the Best Pharmaceuticals for Children Act (BPCA) in the U.S. Encouraging pharmaceutical companies to concentrate on developing drugs for pediatric patients by offering them financial and regulatory help. These frameworks make it more appealing for businesses to engage in pediatric pharmaceuticals by providing prolonged market exclusivity and accelerated review procedures.

{{dashboard_image}}

Track market trends LIVE & outsmart rivals with our Premium Data Intel Tool: Vantage Point

Market Dynamics

The increase in pediatric health issues, such as chronic diseases, allergies, and mental health conditions, is a significant driver in the market

Conditions like asthma, diabetes, childhood cancer, obesity, and ADHD are becoming more prevalent among children, leading to a higher demand for specialized medications and treatments.

According to Nationwide Childrens Hospital estimates from May 2023, approximately 90% of the 17,000 children diagnosed with cancer annually in the U.S. receive care through more than 1,000 medical research grants at 150 institutions and over 240 ongoing clinical trials funded each year.

Among youngsters, obesity is one of the most common conditions. Data from the National Survey of Childrens Health (NSCH) 2020–2021 show that American children between the ages of 10 and 17 are obese. One of the main issues with obesity is that it increases the risk of developing a number of ailments, including Type 2 Diabetes, hypertension, hyperlipidemia, liver and kidney problems, and cancer.

​This growing need prompts pharmaceutical companies to focus on developing effective and safe drugs tailored specifically for the pediatric population. As awareness and diagnosis of these conditions improve, the market for pediatric drugs is expected to expand, driving innovation and investment in this sector.

One of the primary restraints in the market is the limited market exclusivity that pharmaceutical companies often face

After a pediatric medication is created and approved, its patent may not be extended, which could result in the early release of generic substitutes. Due to the limited window of market exclusivity, corporations are discouraged from extensively investing in the development of pediatric drugs as there is little chance of recovering research and development costs. Additionally, the financial return on pediatric medications is often lower compared to adult medications due to the smaller patient population, further compounding this restraint.

Advancements in gene therapy present a significant opportunity in the market

Gene therapy presents the possibility of treating or perhaps curing hereditary problems that affect children by addressing the underlying genetic causes of illnesses,By addressing the underlying genetic causes of illnesses. Conditions that were previously incurable or only treatable with lifetime medicine can now be addressed with this novel technique. Advances in gene therapy research could lead to major improvements in the quality of life for children suffering by rare pediatric disorders. Pharmaceutical companies that invest in and develop gene therapies for pediatric applications can gain a competitive advantage and address unmet medical needs, positioning themselves as leaders in this cutting-edge field.

Competitive Landscape

The competitive landscape of the Pediatric Drugs market is characterized by the presence of both established pharmaceutical giants and emerging biotech firms. Major manufacturers like Pfizer, Novartis, GlaxoSmithKline, and Sanofi dominated the market offering wide range of pediatric pharmaceuticals in different therapeutic areas. To keep a competitive edge, these businesses rely on substantial financial resources, robust distribution networks, and considerable R&D skills. Strategic alliances, M&A transactions, and expenditures on cutting-edge medication delivery systems all serve to strengthen their market position. By concentrating on specialist markets and uncommon pediatric illnesses, up-and-coming biotech companies and specialty pharmaceutical companies are also making great progress. These companies frequently gain from orphan drug incentives and quicker regulatory clearances.

The key players in the global Pediatric Drugs market include - Pfizer Inc. among others.

Recent Market Developments

FDA Grants Accelerated Approval for Tovorafenib (Ojemda) to Treat Relapsed or Refractory Pediatric Low-Grade Glioma (pLGG)

• In April 2024, the FDA has granted accelerated approval for tovorafenib (Ojemda) to treat patients with relapsed or refractory pediatric low-grade glioma (pLGG) that exhibits BRAF alterations, the most common type of brain tumor diagnosed in children.

FDA Grants Priority Review for Harmony Biosciences’ sNDA for WAKIX® (Pitolisant) Tablets for Pediatric Narcolepsy

• In February 2024, Harmony Biosciences Holdings, Inc. announced that the U.S. Food and Drug Administration (FDA) has granted priority review for its supplemental New Drug Application (sNDA) for WAKIX® (pitolisant) tablets. The application seeks approval for the treatment of excessive daytime sleepiness (EDS) or cataplexy in pediatric patients aged 6 years and older with narcolepsy.

FDA Approves Rilpivirine (Johnson & Johnson) for HIV-1 Treatment in Pediatric Patients

• In March 2024, the FDA has approved rilpivirine (Johnson & Johnson) for use in combination with other antiretroviral therapies (ARVs) to treat HIV-1 in treatment-naïve children aged 2 years and older, weighing between 14 kg (30.86 lbs) and 25 kg (55.11 lbs).

The global Pediatric Drugs market can be categorized as Type, Route of Administration, Distribution Channel and Region.