Antipsychotic Drugs Market Size

Antipsychotic Drugs Market size was valued at USD 17.27 billion in 2023 and is poised to grow from USD 18.27 billion in 2024 to USD 28.69 billion by 2032, growing at a CAGR of 5.8% during the forecast period (2025-2032).

Awareness about mental health problems is one of the main reasons behind the growing demand for global antipsychotic drugs market. Governments, NGOs, and other health organizations are focusing on promoting education regarding mental health and raising awareness to increase early diagnosis and treatment.

The global antipsychotic drugs market is experiencing steady growth, resulting of an increase in mental health disorders, including schizophrenia, bipolar disorder, and major depressive disorder. Medications that constitute the antipsychotic group include first-generation, or typical, and second-generation, or atypical drugs, which play a vital role in controlling hallucinations, delusions, and cognitive impairments caused by psychiatric illnesses.

The market is expanding due to increased awareness of the issues of mental health, growing government initiatives to better psychiatry care, and increasing investments in drug development. There is an upswing in innovative LAIs as they promote patient adherence and resultant treatment outcomes compared to traditional oral tablets. The developments in pharmacogenomics and personalized medicine are also molding the global antipsychotic drugs market trends as they allow more targeted therapies with fewer side effects. The research is ongoing into new mechanisms of action, including glutamate receptor modulators and dopamine system stabilizers, which continues to drive the industry forward in innovation.

The global antipsychotic drugs market overview is experiencing several key trends that are reshaping the landscape. The most significant driving factor in this market is the rising preference toward atypical antipsychotics, with improved safety profiles and reduced extrapyramidal side effects compared to first-generation drugs. Another trend in revolutionizing treatment approach is the emergence of digital therapeutics and AI-driven drug development, allowing for real-time data-driven insights into patient behavior, medication adherence, and early symptom detection.

Combination therapies have emerged as a very important trend wherein antipsychotics are combined with mood stabilizers, antidepressants, or cognitive enhancers to improve treatment efficacy. There is an increased demand for over the counter and alternative formulations such as transdermal patches and sublingual films due to improved patient compliance. The pharmaceutical industries are currently indulging in research collaborations and strategic mergers as a part of their effort towards improving their discovery capabilities, introducing new products for the markets, and expanding presence in markets. With rising spending on mental disorder research, drugs approval regulations of regulatory agencies is also expected to be improved within the near term, leading towards faster development in the new year’s.

Key Market Attributes

In January 2025, Johnson & Johnson announced its $15 billion acquisition of Intra-Cellular Therapies to expand its neuroscience portfolio. This strategic move brings Caplyta, a key drug for bipolar depression and schizophrenia, into J&J’s product line. Caplyta has shown strong market potential, with analysts projecting annual sales of $4 billion by 2030. The acquisition strengthens J&J’s presence in the global antipsychotic drugs market, allowing it to compete more effectively with industry leaders. With rising demand for innovative psychiatric treatments, this deal positions J&J for significant growth in the next five years, particularly in long acting and targeted therapies.

In September 2024, Bristol Myers Squibb received FDA approval for Cobenfy (KarXT), a next-generation schizophrenia treatment acquired through its $14 billion takeover of Karuna Therapeutics. Unlike traditional antipsychotics, Cobenfy offers symptom relief with fewer side effects, addressing a major concern in psychiatric care. Analysts expect the drug to generate billions in U.S. sales by 2030, reinforcing Bristol Myers Squibb’s leadership in the global antipsychotic drugs market. With increasing demand for safer and more effective treatments, the approval of Cobenfy is expected to drive innovation and competition, shaping the industry’s future over the next four to five years.

In October 2023, Reviva Pharmaceuticals reported positive Phase III RECOVER trial results for brilaroxazine, a novel antipsychotic that targets multiple serotonin receptors. Brilaroxazine demonstrated significant improvements in both positive and negative schizophrenia symptoms while maintaining a favorable safety profile. Brilaroxazine is a new mechanism that could reduce common side effects such as weight gain and sedation compared to traditional antipsychotics. Pending the approval of the FDA and other regulatory agencies, this future drug may change the treatment of schizophrenia in the following decade. It could also further some other multi-receptor-targeting research, and it may lead to generations of safer and more effective antipsychotic drugs worldwide.

In April 2024, The FDA approved ultra innovative schizophrenia medicine developed by Japan's Sumitomo Pharma, and Otsuka Pharmaceutical with a new active ingredient. A difference between classic antipsychotics and these medicines is they do not address dopamine receptors: This reduces associated risks of a movement disorder - among the side effects most typical for antipsychotics of all types-and also other severe side effects related to this pathway. Over the next decade, approval of ulotaront is likely to dramatically alter prescribing patterns, which in turn could pressure the industry toward new drug development. Success would likely stimulate more research into non-dopaminergic pathways and transform the landscape of schizophrenia treatment around the world.