Neurodegenerative Diseases Drugs Market to Reach US$ 85.0 Bn by 2032, Says Persistence Market Research

The neurodegenerative diseases drugs market is poised for significant growth, with its valuation expected to increase from US$ 58.4 billion in 2025 to US$ 85.0 billion by 2032, reflecting a compound annual growth rate (CAGR) of 5.5% during the forecast period (2025-2032). This growth is largely driven by several market forces, including breakthrough regulatory approvals, innovations in biomarker-based precision targeting, and a rising demand for disease-modifying therapies. As global life expectancy increases, diseases such as Alzheimer's, Parkinson's, and multiple sclerosis (MS) are becoming more prevalent. This demographic shift is encouraging pharmaceutical companies to shift their research and development (R&D) strategies toward biologics, immunomodulators, and regenerative medicine, with a particular focus on addressing both the neurological and immunological aspects of these diseases.

Healthcare systems are increasingly prioritizing neurology, with expanding payer engagement and cross-border collaborations providing a solid foundation for long-term market growth. Additionally, advancements in diagnostic infrastructure and regulatory approval pathways for innovative therapies continue to create new opportunities for drug manufacturers. This environment presents both challenges and opportunities for pharmaceutical players looking to capitalize on the growing demand for treatments in the neurodegenerative space.

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Key Industry Highlights

Several key trends are shaping the neurodegenerative diseases drugs market. First, there is a marked shift from symptomatic treatment to targeted immunomodulation and biologics, a trend that is expected to gain momentum through 2032. This is coupled with a rising focus on disease-modifying therapies, as the pharmaceutical industry increasingly strives for treatments that halt or even reverse the progression of these debilitating diseases.

Second, healthcare expenditure is rising globally, with increased reimbursement frameworks for neurological care offering a significant boost to market growth. The emergence of therapies that target non-motor symptoms in Parkinson's disease is opening up new avenues for growth, with patients seeking comprehensive solutions that address a broader range of symptoms.

Immunomodulators are expected to capture 43.5% of the market share in 2025. These drugs are particularly effective in halting inflammatory pathways, which are central to neuroinflammatory conditions such as MS. As a result, MS remains the dominant indication in the market, with ongoing funding, advocacy, and new drug approvals driving consistent market development. In addition, the development of a diagnostic infrastructure that supports early-stage treatments is a key factor driving growth, particularly in North America.

Market Dynamics

Driver - Early Diagnosis Pushes Demand for Unique Treatments

One of the primary drivers of the neurodegenerative diseases drugs market is the increasing emphasis on early diagnosis and intervention. This focus on early-stage detection is expanding the eligible patient population and boosting demand for drugs that target the underlying pathophysiology of these diseases, rather than merely alleviating symptoms. The approval of lecanemab for early-stage Alzheimer's disease in the U.S., Japan, and select European countries has significantly increased demand for early screening, which in turn is driving investment in diagnostic tools such as PET imaging, CSF biomarker assays, and blood-based diagnostics.

Studies such as Eli Lilly's TRAILBLAZER-ALZ 2 trial, which demonstrated that donanemab could slow cognitive decline in early-stage Alzheimer's by 35%, have further validated the importance of early intervention. Healthcare institutions are now more willing to reimburse therapies supported by biomarker-confirmed diagnoses, pushing pharmaceutical companies to focus R&D efforts on prodromal-stage treatments.

Restraint - Reimbursement Bias and Diagnostic Gaps Stall Rollout of New Drugs

Despite the growing emphasis on early diagnosis and innovative treatments, several barriers remain. A major restraint on the market is the historical reliance on symptomatic treatments, which has hampered the adoption of disease-modifying drugs. Existing therapies such as donepezil and levodopa are primarily designed to provide temporary symptom relief and do not alter the disease trajectory. This focus on symptom management has fostered skepticism among clinicians and patients regarding the efficacy of newer, potentially disease-modifying drugs.

Additionally, the lack of comprehensive diagnostic infrastructure for neurodegenerative diseases poses a significant challenge. While newer treatments require biomarker-based diagnoses, a survey by the Alzheimer's Association found that fewer than 30% of U.S. neurologists routinely order the necessary PET scans or cerebrospinal fluid tests, primarily due to cost and limited access. Furthermore, reimbursement frameworks in many regions still favor established, lower-cost symptomatic drugs over newer, disease-modifying therapies, hindering the widespread adoption of these innovative treatments.

Opportunity - Stem Cell Developments Push New Drug Pipelines

Stem cell therapy is emerging as a promising area of research in the neurodegenerative diseases drugs market. The focus is shifting from merely alleviating symptoms to potentially restoring damaged neuronal circuits. Stem cell-based treatments, which aim to repopulate damaged neurons and promote long-term disease modification, are gaining attention from both pharmaceutical and biotechnology companies.

BlueRock Therapeutics, a subsidiary of Bayer, has initiated Phase 2 trials of its dopamine-producing induced pluripotent stem cell (iPSC) therapy for Parkinson's disease. Early results from Phase 1 trials have shown promise, demonstrating not only safety but also improved motor function. These developments are encouraging other companies to explore the potential of stem cell-based therapies, either as standalone treatments or in combination with immunomodulators or small molecules that modulate the neuroinflammatory environment.

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Category-wise Analysis

Drug Class Insights

The neurodegenerative diseases drugs market can be segmented based on drug class, including immunomodulators, interferons, decarboxylase inhibitors, dopamine agonists, and others. Immunomodulators are expected to hold a dominant share of the market, capturing around 43.5% in 2025. These drugs are particularly effective in treating neuroinflammatory conditions like MS, where they work by regulating the immune system's response to inflammation. Immunomodulators have already seen significant regulatory success and are a critical component of the treatment regimen for MS.

Dopamine agonists, which are gaining traction in the treatment of Parkinson's disease, are also experiencing growth. These drugs are being increasingly used in early-stage Parkinson's to delay the initiation of levodopa, the gold standard for symptomatic treatment. Dopamine agonists like pramipexole, ropinirole, and rotigotine are associated with fewer long-term complications compared to levodopa-based therapies.

Disease Indication Insights

The neurodegenerative diseases drugs market is segmented into several disease indications, including multiple sclerosis, Parkinson's disease, Alzheimer's disease, and spinal muscular atrophy (SMA), among others. Multiple sclerosis is expected to hold the largest share of the market (approximately 62.6% in 2025) due to its well-defined autoimmune pathology, the availability of biomarkers for early diagnosis, and the clear clinical endpoints for evaluating the effectiveness of Disease-Modifying Therapies (DMTs).

Alzheimer's disease, on the other hand, is gaining prominence due to its massive patient burden, visibility in the public health agenda, and the commercial incentives tied to disease-modifying breakthroughs. The increasing prevalence of Alzheimer's, with over 7 million people living with the disease in the U.S. alone, is propelling the disease to the forefront of both pharmaceutical pipelines and healthcare policies.

Regional Insights

North America

North America is predicted to dominate the neurodegenerative diseases drugs market, accounting for approximately 51.8% of the share in 2025. The U.S. market is experiencing steady growth driven by accelerated regulatory approvals, public funding, and a high unmet clinical need for disease-modifying therapies. Notably, the FDA's approval of Eisai and Biogen's Leqembi, the first fully approved anti-amyloid drug for early-stage Alzheimer's, marked a significant milestone for the industry. The U.S. Centers for Medicare & Medicaid Services (CMS) expanded coverage for this therapy, bolstering its market position.

Europe

Europe is characterized by stringent regulatory standards and a growing focus on cost-effectiveness. While the European Medicines Agency (EMA) granted conditional approval to Leqembi, countries like Germany and France have been slower to integrate it into their national reimbursement systems. However, the region is seeing increased investment in decentralized clinical trials and the development of Real-World Data (RWD) infrastructure, which is expected to enhance drug development and regulatory decisions.

Asia Pacific

The Asia Pacific region is experiencing rapid growth due to government-backed research incentives, increasing local development, and demographic pressures. Japan, in particular, has been a leader in regulatory agility and drug development. China and South Korea are also emerging as significant players, with China's Healthy China 2030 initiative supporting local drug discovery and South Korea becoming a hub for precision medicine.

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Competitive Landscape

The neurodegenerative diseases drugs market is highly competitive, with large pharmaceutical firms dominating the space. Companies such as Biogen, Pfizer, Roche, Merck, Novartis, and Sanofi lead the market with FDA-approved treatments and late-stage pipeline assets. At the same time, smaller biotech firms are developing innovative therapies, including blood-brain barrier-penetrant biologics, gene therapies, and antisense oligonucleotides for rare diseases. Strategic collaborations between large and small companies are expected to increase as they seek to develop next-generation treatments.

Key Industry Developments

In July 2025, Klotho Neurosciences received FDA Orphan Drug Designation for KLTO-202, a gene therapy aimed at treating Amyotrophic Lateral Sclerosis (ALS). This designation offers significant benefits, including market exclusivity and financial incentives for clinical trials.

In March 2025, Alpha Cognition Inc. launched ZUNVEYL, a new treatment for mild to moderate Alzheimer's, marking a major milestone in addressing the needs of Alzheimer's patients and their caregivers.

The neurodegenerative diseases drugs market is positioned for robust growth, driven by innovations in early diagnosis, disease-modifying therapies, and advancements in regenerative medicine. While challenges related to reimbursement and diagnostic infrastructure remain, the sector's outlook remains promising, with a wide array of opportunities for growth, particularly in immunomodulation, stem cell therapy, and emerging drug classes. As pharmaceutical companies continue to address unmet needs, the global market is expected to expand significantly, providing new hope for patients and caregivers alike.

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