Schizophrenia Drugs Market Report [2032]- Size & Share

Market Definition

The market involves the development, production, and distribution of medications used to treat schizophrenia. It includes a variety of antipsychotic drugs in both branded and generic forms. The market covers oral and injectable formulations, addressing treatment across different stages of care.

It serves inpatient and outpatient settings, supporting ongoing symptom management and long-term therapy. The report provides insights into the core drivers of market growth, supported by an in-depth evaluation of industry trends and regulatory frameworks.

Schizophrenia Drugs Market Overview

The global schizophrenia drugs market size was valued at USD 7.84 billion in 2024 and is projected to grow from USD 8.25 billion in 2025 to USD 12.02 billion by 2032, exhibiting a CAGR of 5.44% during the forecast period.

This rapid growth is driven by an increase in diagnosed cases and rising global awareness of mental health. Additionally, the use of long-acting injectable medications is improving patient adherence to treatment.

Government initiatives to expand access to psychiatric care further boost demand for antipsychotic drugs. Increased healthcare spending and advances in diagnostic tools are facilitating earlier diagnosis and more consistent treatment, supporting sustained market expansion.

Major companies operating in the schizophrenia drugs industry are Johnson & Johnson Services, Inc., Eli Lilly and Company, AbbVie Inc., Alkermes, Otsuka Pharmaceutical Co., Ltd., AstraZeneca, Bristol-Myers Squibb Company, Pfizer Inc., Sumitomo Pharma Co., Ltd., VANDA PHARMACEUTICALS, Teva Pharmaceutical Industries Ltd., Neurocrine Biosciences, Inc., Novartis AG, Sanofi, and Cipla.

Expanding healthcare infrastructure in developing regions is opening new opportunities for market growth by improving access to psychiatric care. Pharmaceutical companies are intensifying research efforts and forming strategic partnerships to develop and introduce more effective therapies. Together, these factors are driving steady progress in the global market.

In October 2024, AbbVie and Gedeon Richter Plc. collaborated to develop novel treatments for neuropsychiatric conditions. This partnership builds on their long-standing alliance, which includes the development of cariprazine (VRAYLAR), approved for schizophrenia. Under the agreement, AbbVie holds global commercialization rights for the therapies, except in regions where Gedeon Richter has an established presence.

Key Highlights

The schizophrenia drugs market size was valued at USD 7.84 billion in 2024.
The market is projected to grow at a CAGR of 5.44% from 2025 to 2032.
North America held a market share of 35.95% in 2024, with a valuation of USD 2.82 billion.
The second-generation antipsychotics segment garnered USD 3.17 billion in revenue in 2024.
The oral segment is expected to reach USD 7.40 billion by 2032.
The hospital pharmacies segment is expected to reach USD 3.96 billion by 2032.
The market in Asia Pacific is anticipated to grow at a CAGR of 6.29% during the forecast period.

Market Driver

Expanding Treatment Options Through Innovative Mechanisms

The market is driven by the increasing approval of novel antipsychotic medications that act on pathways beyond traditional dopamine receptors targeted by existing treatments. These innovative therapies address significant unmet needs in patients who exhibit poor response or resistance to current medications.

By providing alternative mechanisms of action, they enhance symptom management and improve overall patient outcomes. Furthermore, these new treatments promote better patient adherence to prescribed medication and facilitate more effective clinical management. Consequently, the introduction of such advanced antipsychotics is a critical factor propelling growth and innovation in the market.

In September 2024, the U.S. FDA approved Cobenfy capsules for the treatment of schizophrenia in adults. This is the first approval of antipsychotic targeting cholinergic receptors instead of dopamine receptors.

Market Challenge

Limited Effectiveness in Treating Negative and Cognitive Symptoms

A major challenge in the schizophrenia drugs market is the limited effectiveness of existing therapies in addressing negative and cognitive symptoms. Current treatments primarily target positive symptoms like hallucinations and delusions with limited effectiveness in addressing social withdrawal, lack of motivation, and cognitive impairments.

These untreated symptoms significantly reduce patients’ quality of life and daily functioning. To address this, new add-on therapies to standard antipsychotics are being developed.

These therapies aim to manage negative and cognitive symptoms alongside existing treatments. Such advancements could improve patient outcomes and fill critical gaps in schizophrenia care, supporting better long-term management of the disorder.

In May 2025, Newron Pharmaceuticals received approval for its pivotal Phase III ENIGMA-TRS program evaluating evenamide as an add-on therapy for treatment-resistant schizophrenia. The program includes two international, placebo-controlled studies targeting patients unresponsive to current antipsychotics, with a novel glutamatergic mechanism.

Market Trend

Rising Adoption of Long-Acting Injectable Therapies

The market is witnessing a strategic shift toward long-acting injectable (LAI) therapies. These treatments are increasingly adopted to address medication adherence challenges common in schizophrenia care.

By reducing dosing frequency, LAIs help ensure consistent drug levels and improve patient compliance. Improved adherence leads to better symptom control and lowers relapse rates. This approach also reduces the burden on healthcare providers by minimizing the need for frequent monitoring and intervention.

As a result, LAIs contribute to more stable long-term disease management. The growing preference for LAI formulations highlights the market’s focus on optimizing treatment outcomes and addressing unmet needs in patient care.

In November 2024, Teva Pharmaceuticals presented Phase 3 SOLARIS trial results at Psych Congress 2024, highlighting the efficacy of TEV-'749, a long-acting injectable olanzapine, in improving social functioning and quality of life in adults with schizophrenia.

Schizophrenia Drugs Market Report Snapshot

Segmentation	Details
By Therapeutic Class	Second-generation Antipsychotics, Third-generation Antipsychotics, Others
By Treatment	Oral, Injectable
By Distribution Channel	Hospital Pharmacies, Retail Pharmacies, Online Pharmacies, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

By Therapeutic Class (Second-generation Antipsychotics, Third-generation Antipsychotics, Others): The second-generation antipsychotics segment earned USD 3.17 billion in 2024 due to its wider acceptance and improved safety profile.
By Treatment (Oral, Injectable): The oral segment held 62.15% of the market in 2024, as it offers ease of administration and patient compliance.
By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies, Others): The hospital pharmacies segment is projected to reach USD 3.96 billion by 2032, driven by increasing inpatient psychiatric care.

Schizophrenia Drugs Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Schizophrenia Drugs Market Size & Share, By Region, 2025-2032

North America accounted for 35.95% share of the schizophrenia drugs market in 2024, with a valuation of USD 2.82 billion. The region’s leadership stems from its advanced healthcare infrastructure and wide access to innovative antipsychotic medications.

High patient awareness and early diagnosis contribute to steady demand. Leading pharmaceutical companies are investing heavily in research and development to introduce new therapies.

Additionally, the availability of diverse treatment options, including long-acting injectables, improves patient adherence. Well-established mental health services further enhance the quality of care. Together, these factors support sustained market growth across North America.

The schizophrenia drugs industry in Asia Pacific is expected to register the fastest growth in the market, with a projected CAGR of 6.29% over the forecast period. Expansion of healthcare infrastructure is improving access to diagnosis and treatment services across the region. Growing mental health awareness in countries such as China, India, Japan, and South Korea is increasing demand for schizophrenia therapies.

Moreover, the presence of local generic drug manufacturers provides affordable treatment options, enhancing patient access. Rising urbanization and changing lifestyles are leading to higher diagnosis rates, further boosting demand.

Additionally, increasing investments in pharmaceutical research and development are supporting the introduction of new and improved therapies. Together, these factors are driving rapid market growth in the Asia Pacific region.

In December 2024, Newron Pharmaceuticals and EA Pharma, a subsidiary of Eisai Co., Ltd., entered a license agreement for the development, manufacture, and commercialization of evenamide in Japan and other Asian territories. Evenamide is a novel modulator targeting excessive glutamate release in treatment-resistant schizophrenia, with a pivotal Phase III trial planned to start in H1 2025.

Regulatory Frameworks

In the U.S., the Food and Drug Administration (FDA) oversees the approval of new drugs and medical devices for schizophrenia treatment. It also regulates the manufacturing, marketing, and advertising of these products.
In Europe, the European Medicines Agency (EMA) evaluates and supervises pharmaceutical products used to treat schizophrenia. The European Commission (EC) grants marketing authorizations based on EMA’s scientific assessments.
In Japan, the Pharmaceuticals and Medical Devices Agency (PMDA) oversees the safety, efficacy, and quality of pharmaceuticals and medical devices used in schizophrenia treatment. The PMDA collaborates closely with the Ministry of Health, Labour and Welfare to ensure that new therapies comply with regulatory standards before entering the market.

Competitive Landscape

The schizophrenia drugs market is marked by key players prioritizing research and development to introduce innovative therapies. Companies form strategic partnerships and collaborations to enhance their drug pipelines and share development costs. Expanding geographic reach through licensing and distribution agreements allows access to new markets.

Additionally, investments in upgrading manufacturing capabilities improve production efficiency. Diversifying portfolios helps address varying patient needs and treatment segments.

To boost product adoption and retention, companies are implementing targeted marketing and patient support programs. These strategies enable market players to strengthen their positions and respond effectively to evolving industry demands.

In April 2025, Luye Pharma Group introduced ERZOFRI, an extended-release injectable suspension, in the U.S. for treating adults with schizophrenia and schizoaffective disorder. ERZOFRI features a simplified once-monthly starting dose, designed to enhance patient adherence and improve treatment effectiveness.

List of Key Companies in Schizophrenia Drugs Market:

Johnson & Johnson Services, Inc.
Eli Lilly and Company
AbbVie Inc.
Alkermes
Otsuka Pharmaceutical Co., Ltd.
AstraZeneca
Bristol-Myers Squibb Company
Pfizer Inc.
Sumitomo Pharma Co., Ltd.
VANDA PHARMACEUTICALS
Teva Pharmaceutical Industries Ltd.
Neurocrine Biosciences, Inc.
Novartis AG
Sanofi
Cipla

Recent Developments (Product Approval)

In September 2024, PureTech Health’s KarXT received FDA approval for treating schizophrenia in adults. The approval triggered USD 29 million in milestone payments to PureTech and potential future royalties. KarXT, now marketed by Bristol Myers Squibb as Cobenfy, is the first new drug mechanism for schizophrenia in over 50 years.

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