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March 2025
Principal Consultant
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The global dementia treatments market size is calculated at US$ 18.09 in 2024, grew to US$ 19.54 billion in 2025, and is projected to reach around US$ 39.16 billion by 2034. The market is expanding at a CAGR of 8.03% between 2025 and 2034. Aging populations are prone to dementia, and hence, the growing old-age population is driving the dementia treatments market.
One topic that is receiving more and more attention is the aging of the global population. In 2000, one in five individuals in the more developed areas, such as the US and Europe, were over 60. This percentage will rise to 35% by 2050. The proportion of adults 60 and older is likewise increasing globally, with projections indicating that it will rise from 10% in 2000 to 21% in 2050. Globally, dementia is the leading cause of care reliance among the elderly. Global dementia case counts are expected to rise, according to the GBD 2019 Dementia Forecasting Collaborators, an international working group. Over the next three decades, the number of persons with dementia is expected to increase threefold.
In dementia research, artificial intelligence (AI) and machine learning are powerful instruments that assist researchers in transforming disparate data points into a coherent story about the illness. It has enormous potential to enhance care, speed up a more precise, early diagnosis of dementia, and forecast how the disease will develop. Because more information can be extracted from a single test, subjective judgment mistakes are reduced, and AI elevates the automation of dementia screening. AI approaches improve the performance of dementia screening tests.
Rising Awareness and Acceptance of Dementia
Another important factor driving the market is the growing acceptance and knowledge of dementia. Dementia used to be frequently stigmatized and misinterpreted. Nonetheless, a significant push to increase dementia awareness and lessen the stigma attached to it has emerged in recent years. As a result, dementia is now more widely accepted, and people are more inclined to seek treatment. The climate is becoming more conducive to the creation and uptake of novel therapies as dementia is becoming more widely recognized and accepted.
High Cost Associated with Dementia Care
Medication, doctor visits, home care, and residential care are just a few of the medical, social, and supporting services that are part of dementia care. These costs can mount up quickly, especially as the illness worsens and the need for care grows. Long-term care and support services such as in-home care from qualified experts or nursing facility care, may be quite costly. In areas with limited access to reasonably priced healthcare services, this financial burden can be more severe, which may cause patients to put off seeking care or receive subpar treatment. The market's expansion may thus be hampered by the high expense of dementia therapies.
Innovative Therapeutic Solutions
The dementia treatments market has advanced considerably as a result of the creation and launch of novel therapeutic approaches. Five essential medications for the treatment of Alzheimer's disease have been authorized by the U.S. Food and Drug Administration: galantamine, donepezil, memantine, rivastigmine, and memantine with donepezil. With each medication focusing on a distinct element of the illness process, these approvals mark substantial improvements in available therapy choices.
By indication, the Alzheimer’s disease dementia segment dominated the dementia treatments market in 2024. The most prevalent cause is Alzheimer's disease dementia (AD). Between 60% and 80% of dementia cases are thought to be caused by it. The first disease-modifying medication for Alzheimer's disease to be authorized for use in the UK was lecanemab, which is sold under the brand name Leqembi. Donanemab, which is sold under the brand name Kisunla and has also received approval from the Medicines and Healthcare Products Regulatory Agency (MHRA), came next.
By indication, the Lewy body dementia segment is estimated to grow at the fastest rate in the dementia treatments market during the forecast period. One of the most prevalent degenerative dementias, after Alzheimer's disease (AD) dementia, is dementia with Lewy bodies (DLB). According to prevalence surveys, 7.5% of dementia diagnoses in secondary care and 4.2% of diagnoses in community settings are attributable to DLB. There are several ways to alleviate the symptoms; all of the drugs given for LBD have been licensed by the FDA to treat the symptoms of other illnesses, such as Parkinson's and Alzheimer's.
By drug class, the cholinesterase inhibitors segment was dominant in the dementia treatments market in 2024. The only symptomatic drugs now available for dementia patients' cognitive and overall functioning are memantine and cholinesterase inhibitors. In mild-to-moderate AD, these drugs have been shown to be effective in enhancing behavior, cognitive, everyday living activities, and overall functioning. They have also been demonstrated to postpone the period needed to be placed in a nursing home and to lessen caregiver stress. Their effectiveness in treating moderate-to-severe AD is becoming more and more supported by data.
By drug class, the combination drugs segment is expected to be the fastest-growing in the dementia treatments market during the forecast period. For example, several studies have shown that combination treatment (CT) is more clinically effective than monotherapy. In the case of AD, CT is more effective at slowing the pace of cognitive deterioration, especially when begun early. The effectiveness of this combo medication in treating Alzheimer's patients in humans will soon be tested in clinical studies.
By route of administration, the oral segment held the major share of the dementia treatments market in 2024. The most popular and widely accepted method of medication delivery, particularly for outpatients, is oral administration. It is the most straightforward, practical, and secure method of administering medication. It is practical for extended and frequent use. It is cost-effective since the patient incurs no additional expenses. It may be used without specialized expertise or equipment.
By route of administration, the injectable segment is anticipated to witness the fastest CAGR in the dementia treatments market during the predicted time frame. Parenteral pharmaceutical administration has several benefits, such as the ability to quickly administer a precise dosage because the drug is injected straight into the tissue and circulatory system, avoiding liver processing. Furthermore, those who have nausea and vomiting, cannot take oral fluids, or are taking gastrointestinal-irritating drugs and are unable to swallow may find that the parenteral route is the best alternative.
By distribution channel, the hospital pharmacy segment dominated the dementia treatments market in 2024. People who visit hospitals for regular visits for check-ups usually purchase medication from hospital pharmacies. Hospital pharmacies are associated with healthcare professionals, and hence, they are able to provide better options and ideas in disease management. It helps in improving the quality of the care and overall patient experience.
By distribution channel, the online pharmacy segment is expected to be the fastest-growing segment in the dementia treatments market during the forecast period. Senior citizens who are more prone to movement disability and dementia highly benefit from online pharmacies. Online pharmacies not only save time and cost but are also a convenient option for older people, especially those who are unable to travel long distances and live in remote areas.
North America dominated the dementia treatments market in 2024. driven by the high incidence of the condition, the existence of well-known pharmaceutical firms, and encouraging government programs. The market has grown even faster as a result of the region's significant emphasis on the creation and marketing of innovative dementia medications. The availability of cutting-edge treatments is improved by the strong healthcare system and rising R&D expenditures.
Currently, 6.9 million Americans 65 and older are thought to have Alzheimer's disease. If no medical advances are made to prevent or treat AD, this figure may increase to 13.8 million by 2060. Without accounting for the value of unpaid caring, it is estimated that the health and long-term care expenses for individuals with Alzheimer's and other dementias will total $360 billion in 2024. It is anticipated that out-of-pocket expenses will amount to $91 billion, with Medicare and Medicaid covering $231 billion (64%). In 2050, it is anticipated that the total cost of healthcare, long-term care, and hospice care for those with dementia would reach around $1 trillion.
In Canada, about 487,000 adults aged 65 and older had a diagnosis of dementia between April 2022 and March 2023. Nearly 99,000 adults 65 and older received a new dementia diagnosis. The Canadian government is funding research and innovation that will enhance the quality of life for those with dementia and their carers, develop treatments, and prevent dementia by lowering risk. Together with the $20 million announced in Budget 2022, the Government and partners have committed a total of nearly $79 million in financing for the BHCIA Research Initiative as of 2024–2025.
Asia Pacific is estimated to host the fastest-growing dementia treatments market during the forecast period. The region's sizable target population, high level of unmet clinical requirements, and evolving healthcare infrastructure—all of which provide substantial development prospects—are the main drivers of this expansion. With large patient populations and significant unmet medical needs, nations like China and India present alluring market opportunities for major regional firms.
In 2024, there will be 17 million people in China with MCI or mild dementia caused by AD (together known as early AD), according to Eisai. As the population ages, this number is predicted to rise. By 2050, the anticipated number of dementia sufferers is expected to reach 66.3 million, or 10.4% of China's population aged 50 and over, under the rising trend scenario. By 2050, this may result in a dementia load of 45–49 million people.
China announced a national action plan to fight senile dementia in January 2024. The action plan also suggests that by 2030, there should be 15 million trained dementia care workers overall and that 50 percent of senior care facilities with more than 100 beds and sufficient service capacities should be specialized care units for seniors with dementia.
More than 75% of Alzheimer's disease and associated dementia (ADRD) cases are predicted to happen in low- and middle-income nations by 2050. It is anticipated that by 2050, 319 million people, or about 20% of India's total population, will be seniors. Age is the biggest risk factor for Alzheimer's and associated conditions. Hence, the number of dementia cases in India might rise alarmingly. According to the National Institute on Aging, 18% (1.37 billion) of the world's population lives in India, where dementia prevalence is estimated to be high.
Europe is expected to be significantly growing in the dementia treatments market during the forecast period. With nations like Germany, the UK, France, and Italy taking the lead in government-funded national dementia plans, clinical trials for novel medicines, and digital health integrations, Europe accounts for a sizeable share of the dementia management market. The European Alzheimer's Plan and the WHO Dementia Strategy are the main forces behind it; they both support victim-centered healthcare infrastructure, community care initiatives, and early detection skills.
As of December 31, 2021, there were over 1.8 million dementia sufferers in Germany; between 360,000 and 440,000 new instances of dementia are predicted to occur in 2021. Depending on the situation, 1.65 to 2 million persons 65 and older might be impacted in 2033. In Germany, individuals with dementia and their family members can use a variety of advice centers in addition to Alzheimer's groups. Numerous digital and technical assistance are accessible in Germany.
Nearly 477,000 Canadians 65 and older have been diagnosed with dementia, according to the most recent national data. The Canadian government is dedicated to raising awareness about dementia risk reduction and enhancing the quality of life for those who have dementia and those who care for them. More dementia patients in the UK will be allowed to take part in dementia research starting in January 2024, which will hasten the creation of new therapies. This follows the government's announcement of fresh financing totaling £49.9 million. The funding will support the establishment of a centralized nationwide network of dementia study locations.
In July 2024, Lilly's Alzheimer's medication was authorized by the FDA. The possibility of stopping therapy is encouraging to me as a doctor since it might lower the out-of-pocket expenses and infusion burden for qualified patients, according to a statement from Lilly that was shared by Howard Fillit, co-founder and chief science officer of the Alzheimer's Drug Discovery Foundation.
By Indication
By Drug Class
By Route of Administration
By Distribution Channel
By Region
March 2025
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