The Germany Pharmaceuticals market size was valued at USD 49.46 billion in 2022, and is projected to reach USD 82.85 billion by 2031, with a CAGR of 5.9% from 2023 – 2031. The growth of the market is attributed to the rising patent applications which are focused on the determination of the latest drug delivery systems, formulations, and new drugs.
The European Patent Office or the EPO Patent Index of 2019 shows that the number of patent applications has risen by 4.3% in 2018 in this pharmaceutical field. Pharmaceutical organizations discover, produce, develop and market pharmaceutical drugs for usage as medications that can be self-administered to all patients, which can vaccinate them, alleviate their symptoms, and cure them with proper diagnosis and treatment.
These firms can deal in brand or generic medical devices and medications. They have their own subject to regulations and laws that govern the testing, efficacy, marketing, safety, and patenting of drugs.
The research and development tasks that these firms are operational upon include a wide variety of activities from introductory & basic research to late-stage development involving genetic engineering, assay development, efficacy & safety tests in animal models, clinical trials that involves humans, target validation, and lead optimization plus hit exploration using candidates as a service.
According to the WHO report survey of 2020, the cost of research every pharmaceutical firm undertakes ranges from one billion for every individual project ranging to various activities such as marketing, financing, patenting, and supply chain.
The COVID-19 pandemic made a significant impact on the pharmaceutical market, including Germany, owing to the social distancing and restrictions involving travel disrupting supply chains to transport drugs to other countries or even within Germany.
However, the shift began when the hospital, government authorities, and administration bodies decided to increase their investments and funding to the pharmaceutical firms to focus their activities on the coronavirus vaccine. This benefitted the pharmaceutical industry as they had access to and played a crucial role in the supply chain management of the vaccination. This along with the further investment by the pharmaceutical & biotech firms in artificial intelligence & machine learning becomes a major reason for the boosting of the pharmaceutical market.
Market Trends, Drivers, Restraints, and Opportunities
An increase in spending and investment in research and development activities is the primary reason for the projection for boosting the German pharmaceuticals market growth during the forecast period, 2021-2028.
There have been significant changes in the drug approval process by their respective regional administration bodies, making it more lenient and swift. In the United States, the Century Cures bill was passed on the primary notion of increasing the pace of the launch of medical devices and breakthrough drugs. These modifications in the approval processes are major factors boosting the German pharmaceuticals market growth.
High prices for the development of drugs, diagnosis, and treatments and high cost & maintenance of services from the company’s perspective are anticipated to hinder the German pharmaceuticals market growth. This becomes extremely difficult to function in developing countries such as India, South Africa, and Brazil where there is limited healthcare infrastructure that the pharmaceutical companies can leverage.
Lack of standardization in the biotechnology & pharmaceutical firms does not necessarily comply with international regulatory requirements can lead to quality issues and thereby can present as main challenges that can restrict the market expansion in the coming years.
R&D investment and technological advancement are expected to offer significant opportunities for the market players. Researchers and scientists have now discovered advanced diagnostic techniques such as customized care that can shorten any product’s life cycle which can thereby lead to the rapid development of the latest drug products and derivatives.
Scope of the Report
The report on the German pharmaceuticals market size includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Pharmaceuticals Market - Germany Industry Analysis, Growth, Share, Size, Trends, and Forecast
Drug Classes (Anti-Cancer, Anti-diabetics, Anti-rheumatics, Vaccines, Anti-viral, Immunosuppressants, Bronchodilators, Dermatological, Anti-hypertensive, and Others), Applications (Oncology [Breast Cancer, Lung Cancer, Colorectal Cancer, Ovarian Cancer, Prostate Cancer, and Others], Infectious Diseases, Cardiovascular Diseases, Central Nervous System Disorders, Immunological Disorders, Metabolic Disorders, Gastrointestinal Disorders, Respiratory Diseases, Ophthalmology, Dermatology Disorders, and Others), Types (Branded and Generics), and Formulations (Solid Formulation [Tablets, Capsules, and Others] and Liquid & Semi-Liquid Formulation [Oral, Topical, Sublingual & buccal, Rectal, and Parenteral])
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Trends, and Revenue Forecast
Key Players Covered in the Report
Boehringer Ingelheim International GmbH; Bayer AG; Merck & Co Inc; Fresenius Kabi AG; STADA Arzneimittel AG; Pfizer Inc; Abbott Laboratories; Abbvie Inc; Teva Pharmaceuticals Industries Ltd; and Novartis AG
Germany Pharmaceuticals Market Segment Insights
Anti-cancer segment is projected to represent a large market share
Based on drug classes, the Germany pharmaceuticals market is divided into anti-cancer, anti-diabetics, anti-rheumatics, vaccines, anti-viral, immunosuppressants, bronchodilators, dermatological, anti-hypertensive, and others. The anti-cancer segment is expected to constitute a major share of 15.5% of the market during the forecast years, 2021-2028 owing to the increase in merger & acquisition activities with respect to the constant change of regular protocols.
There has also been a significant development on the activities which fall under the anti-cancer segment including the treatment of different viruses that can cause cancer. Recently the studies have been shifting towards the coronavirus , as German scientists were the first ones to patent the paper upon how the coronavirus can severely affect cancer patient. This improved the research activities holding upon the anti-cancer segment.
Oncology segment is anticipated to register a major market share
On the basis of applications, the Germany pharmaceuticals market is segmented into oncology, infectious diseases, cardiovascular diseases, central nervous system disorders, immunological disorders, metabolic disorders, gastrointestinal disorders, respiratory diseases, ophthalmology, dermatology disorders, and others.
The oncology segment is further segmented into breast cancer, lung cancer, colorectal cancer, ovarian cancer, prostate cancer, and others. The oncology segment is expected to constitute a major share of 15.4% of the market during the forecast years, 2021-2028 owing to the increase in strategic initiatives and projects such as partnerships, development, collaboration and strengthening of the portfolio. Organizations have also developed new methods for various problems within the oncology study itself, owing to the increasing prevalence of these diseases.
Branded segment is estimated to reach the largest market share
On the basis of types, the Germany pharmaceuticals market is bifurcated into branded and generics. The branded segment is expected to constitute a major share of 15.4% of the market during the forecast years, 2021-2028 owing to the increasing adaption of latest therapies, along with the strategic partnerships which drive the wide-scale penetration of branded drugs.
The introduction of biosimilars has announced a major shift in various cancer treatments in Germany. This was a follow through study from the branded drugs perspective when biosimilars were introduced.
Solid Formulation segment is expected to account for the largest market share
Based on formulations, the Germany pharmaceuticals market is bifurcated into solid formulation and liquid & semi-liquid formulation. The solid formulation segment is further segmented into tablets, capsules, and others. The liquid & semi-liquid formulation segment is further segmented into oral, topical, sublingual & buccal, rectal, and parenteral.
The solid formulation segment is expected to register a significant CAGR during the forecast years, 2021-2028 owing to the several benefits including cost-effectiveness with respect to their cost. The administrative bodies of the pharmaceutical organizations have been focusing upon new strategic initiatives to expand their presence outside Germany, and with the solid formulation.
The Germany pharmaceuticals market size has been segmented in terms of
- Breast Cancer
- Lung Cancer
- Colorectal Cancer
- Ovarian Cancer
- Prostate Cancer
- Infectious Diseases
- Cardiovascular Diseases
- Central Nervous System Disorders
- Immunological Disorders
- Metabolic Disorders
- Gastrointestinal Disorders
- Respiratory Diseases
- Dermatology Disorders
- Solid Formulation
- Liquid & Semi-Liquid Formulation
- Sublingual & buccal
- Boehringer Ingelheim International GmbH
- Bayer AG
- Merck & Co Inc
- Fresenius Kabi AG
- STADA Arzneimittel AG
- Pfizer Inc
- Abbott Laboratories
- Abbvie Inc
- Teva Pharmaceuticals Industries Ltd
- Novartis AG
Major players competing in the Germany pharmaceuticals market are Boehringer Ingelheim International GmbH; Bayer AG; Merck & Co Inc; Fresenius Kabi AG; STADA Arzneimittel AG; Pfizer Inc; Abbott Laboratories; Abbvie Inc; Teva Pharmaceuticals Industries Ltd; and Novartis AG.
These market players are involved in several business strategies such as mergers, acquisitions partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For example, Merck & Co Inc signed a collaboration project with Dohme Corporation for the Ebola and COVID vaccinations for the entire distribution across Germany and have been approved by the European Union.