Immunotherapy Drugs Market Size

Immunotherapy Drugs Market Analysis

The Immunotherapy Drugs Market size is estimated at USD 118 billion in 2024, and is expected to reach USD 192 billion by 2029, growing at a CAGR of 8.40% during the forecast period (2024-2029).

The immunotherapy drugs market is expected to register a CAGR of 8.4% during the forecast period.

COVID-19 had a significant impact on the immunotherapy market as the pandemic increased the demand for immunotherapy drugs for the treatment of COVID-19. For instance, in January 2021, an article published in Open Forum Infection Diseases reported that monoclonal antibody treatment of high-risk ambulatory patients with early COVID-19 was well tolerated and likely effective at preventing the need for subsequent emergency department or hospital care. Furthermore, the rise in immunotherapy product approvals by the regulatory authorities was also expected to boost the growth of the market.

For instance, in May 2022, the United States Food and Drug Administration approved Olumiant (baricitinib) to be administered together for the treatment of mild to moderate COVID-19 in adults and pediatric patients with positive results of direct SARS-CoV-2. Thus, COVID-19 had a significant impact on the growth of the market. However, as the pandemic has currently subsided, the adoption of immunotherapy is taking place at pre-pandemic levels.

The major factors contributing to the growth of the immunotherapy drug market are the rising adoption of targeted therapy over traditional therapy, the emergence of biosimilars, the rising prevalence of chronic diseases and lifestyle disorders, and the rising demand for monoclonal antibodies.

Furthermore, factors such as growing research collaborations, increasing numbers of research laboratories, and growing direct and indirect investments in research and development (R&D) by pharmaceutical and biotechnology companies will also support the market's growth in the coming years. For instance, in January 2022, GlaxoSmithKline plc and Vir Biotechnology partnered with the United States government to purchase an additional supply of sotrovimab for the early treatment of COVID-19. Such partnerships with government organizations for the supply of immunotherapy drugs are also expected to drive the growth of the market.

Globally, there has been a continuous rise in the prevalence of several chronic diseases which require the immunotherapy drug for effective management and treatment. Major chronic diseases include cancer, kidney failure, autoimmune and inflammatory diseases, and heart diseases. 

For instance, according to Cancer Facts and Figures 2023, published in January 2023 by the American Cancer Society, an estimated 1.9 million new cancer cases will be diagnosed in 2023, among which prostate cancer is estimated to be 288,300, followed by 238,340 cases of lung cancer, and 300,590 cases of female breast cancer. Thus, the growing burden of cancer in the country is expected to increase demand for advanced treatment and management of cancer, which is likely to propel the market for immunotherapy drugs over the forecast period.

Overall, the rising R&D activities in developing novel immunotherapies for various chronic diseases are anticipated to drive the global immunotherapy drug market's growth. For instance, in March 2022, Imugene reported a new clinical trial collaboration and supply agreement with MSD, a tradename of Merck & Co., Inc., Kenilworth, NJ, USA, to evaluate the safety and efficacy of Imugene's HER-Vaxx, a B-cell activating immunotherapy, in combination with MSD's anti-PD-1 therapy, pembrolizumab (KEYTRUDA), in patients with HER-2 positive gastric cancer. 

Additionally, in March 2022, Gufic Biosciences Limited reported that it had entered into a research and collaboration agreement with M/s. Selvax Pty Ltd, a biotechnology company based in Perth, Western Australia, to accelerate the commercialization of Selvax's cancer immunotherapy treatment.

Thus, due to the above-mentioned factors, the market is expected to grow during the forecast period. However, the high cost of immunotherapy treatment and the high attrition rate in the product development cycle may impede the growth of the market.