Central Nervous System (CNS) Therapeutics Market

CNS Therapeutics Market Outlook (2025 to 2035)

The CNS therapeutics market is USD 128.4 billion in the year 2025, according to Fact.MR analysis, the CNS therapeutics market is anticipated to witness growth at a CAGR of 5.6% and will become USD 220.9 billion by 2035.

The development of one of the prominent drivers is driving this growth by increasing the cases of neurodegenerative as well as psychiatric disorders, raising the need for effective as well as personalized central nervous system treatments in all leading healthcare systems.

The global CNS therapeutics market is undergoing profound change, fueled by advances in neurobiology, targeted biologics, and digital psychiatry. Firms are redirecting their R&D efforts away from conventional small molecules to sophisticated modalities such as monoclonal antibodies, gene therapies, and RNA-based therapies.

These treatments are now supported by improved diagnostics, including neuroimaging and biomarker-based screening, enabling more precise patient segmentation and outcome prediction. This trend is accelerating product pipelines and improving clinical trial success rates, which were historically low in this field.

The second core transformation involves the inclusion of digital health products in mental and neurological care. Cognitive applications, AI-assisted diagnostics, digital therapy platforms, and remote tracking devices now join pharmacologic therapy.

Hybrid care models not only enhance care accessibility but also reinforce adherence and enduring treatment success. With mental illness awareness increasing globally, digital treatments are fast catching up, as well as legitimacy as well as insurance coverage.

Aging populations of North America, Europe, and East Asia are driving Alzheimer's, Parkinson's, and multiple sclerosis treatments strongly. Rising occurrences of anxiety, depression, ADHD, and addiction among younger segments are forcing drug makers to expand their CNS pipelines.

The government's drives toward mental health overhaul, early diagnostics, and rehab care are boosting the backbone toward mass adoption of next-generation CNS treatments in the public as well as private healthcare systems.

Although the opportunity environment is robust, there are challenges in the shape of complicated disease pathways, trial dropout rates, regulatory uncertainty for psychiatric therapies, and pricing pressure. Nonetheless, increasing cross-industry collaborations between pharmaceutical firms, tech companies, and academic research centers are building momentum toward a more personalized, data-integrated, and outcomes-oriented therapeutics ecosystem that is set to evolve dramatically by 2035.

Key Metrics

Metric	Value
Estimated Global Size in 2025	USD 128.4 billion
Projected Global Size in 2035	USD 220.9 billion
CAGR (2025 to 2035)	5.6%

Fact.MR Survey Results for Industry Dynamics Based on Stakeholder Perspectives

The CNS therapeutics market is undergoing a science and digital evolution, with patients, payers, and regulators converging on valuing regulatory harmonization, precision medicine diagnostician, and digital therapy complementarity.

Regional specificity is establishing the investment drivers: North America leads in AI-based diagnostics and psychedelic-assisted therapy; Europe is leading on convergent drug-digital model development and RNA therapies; the Asia-Pacific is developing accessibility with mobile platforms and expanded care networks.

Technology adoption and limitations in the supply chain remain disproportionate geographically, impacting the tempo of innovation. While biologics logistics, trial optimization, and reimbursement gaps are issues, innovation-led players in the CNS therapeutics market are investing in AI-driven trials, wearable-connected diagnostics, and public-private collaboration. Government regulation is moving towards faster approvals and telehealth growth, allowing quicker industry access and continuity of care.

To dominate the CNS therapeutics market, companies will need to infuse real-world data, individualize care delivery, and strengthen biologics infrastructure. The CNS therapeutics market will reward those who marry precision science with digital innovation. Strategic investments in neuro analytics, blockchain tracking, and adaptive care models will determine long-term leadership in this fast-evolving space.

Shifts in the Market from 2020 to 2024 and Future Trends 2025 to 2035

 

Between 2020 and 2024, the CNS Therapeutics Market saw steady growth due to the increasing prevalence of neurological disorders such as Alzheimer's disease, Parkinson's disease, depression, anxiety, and multiple sclerosis. The growing number of elderly people, along with the heightened awareness about neurodegenerative disorders, was one of the main factors behind this growth.

Pharma firms invested heavily in research and development to create new CNS therapies, i.e., in biologics, gene therapy, and new biologics to treat complex neurological diseases. Precision medicine was also becoming increasingly important, with the treatment being tailored according to the patient's genetic and molecular profile.

In addition, the uptake of digital health technologies and telemedicine solutions helped broaden access to CNS treatments and enabled real-time monitoring for patients with chronic neurologic disorders.

During the forecast period 2025 to 2035, the CNS therapeutics market is expected to undergo further transformations, primarily driven by advancements in gene editing technologies, AI-powered drug discovery, and more personalized treatment options.

The application of regenerative medicine, stem cells, and biologics to treat chronic neurological disorders is expected to increase further. Also, the increasing focus on mental illness, such as depression and anxiety treatments, will increase demand for therapeutics.

A Comparative Market Shift Analysis (2020 to 2024 vs. 2025 to 2035)

2020 to 2024	2025 to 2035
Rising incidence of CNS disorders, aging population, and enhanced diagnosis	Gene editing, AI-enabled drug discovery, and personalized therapy
Biologics, gene therapies, and targeted small-molecule drugs	Application of regenerative medicine, cell therapies, and AI-assisted drug discovery
Growing need for personalized CNS medicines and digital wellness solutions	Wider application of precision medicine, gene therapy, and mental healthcare
Greater importance of treating Alzheimer's, Parkinson's, MS, depression, and anxiety	Creation of innovative treatments for increasingly diverse CNS ailments, including neurodegeneration
Greater focus on cost-effective cures and streamlined drug delivery methods	Emphasis on green production of biologics and environmentally friendly drug development processes
More regulatory monitoring over the approval of novel CNS drugs, particularly biologics	Further evolution of regulatory paradigms for gene therapies, biologics, and digital health solutions
Growth in emerging regions, specifically in Asia and Latin America	Increased global availability of gene therapies and advanced CNS treatments, including in low-income countries
Biologics and gene therapy development for complex neurologic disorders	Machine learning- and AI-led drug discovery, regenerative medicine, and stem cell therapy for neurological disorders

Country-wise Analysis for the CNS Therapeutics Market (2025 to 2035)

Country	CAGR (2025 to 2035)
U.S.	7.2%
UK	6.6%
France	6.2%
Germany	6.4%
Italy	5.9%
South Korea	6.8%
Japan	6.3%
China	7.6%
Australia-New Zealand	6.5%

The U.S.

The U.S. CNS therapeutics market will grow at 7.2% CAGR over the study period. High incidence of central nervous system (CNS) disorders like Alzheimer's, Parkinson's disease, epilepsy, and depression is fueling robust demand for CNS therapeutics in the U.S. With the world's biggest pharmaceutical R&D ecosystem, the U.S. remains at the forefront of clinical trials, new drug approvals, and commercialization of new therapies.

The advent of precision medicine and biologics for neurodegenerative disorders is changing the treatment landscape, particularly for disorders with traditionally limited therapeutic choices. Further, progress in neuroimaging, biomarker science, and AI-based diagnosis is allowing earlier diagnosis and directed treatment.

Awareness campaigns and growing acceptance of treatment for psychiatric illness also support greater adoption of CNS therapies. Sturdy reimbursement networks, a sophisticated health infrastructure, and increasing consumer affordability of specialist treatment facilitate sound growth in the CNS therapeutics market. The U.S. remains the center of world CNS treatment modality innovation, thus maintaining a robust revenue share in the CNS therapeutics market.

UK

The UK CNS therapeutics market will increase by 6.6% CAGR between study years. Growing emphasis on mental health, neurodegenerative diseases, and neurological rehabilitation is fueling investment and innovation in the UK's CNS therapeutics market.

Early intervention is a focus of public health policy, mitigating the long-term effects of chronic neurological and psychiatric disorders. Close partnerships among universities, research institutions, and pharmaceutical firms are driving the creation of new treatments, such as disease-modifying therapies and targeted biologics.

NHS programs are facilitating access to new drugs, especially through specialist mental health services and neurology departments. Moreover, digital therapeutics and remote monitoring devices are being launched to complement pharmacological treatments for CNS conditions.

Patient-oriented policies and augmented funding for neuroscience research support an environment that fosters growth. The UK's regulatory backing for clinical studies and expedited drug approval mechanisms further encourage innovation and time-to-market for CNS therapeutics.

France

The French CNS therapeutics market is anticipated to develop at 6.2% CAGR throughout the study period. Increased incidence of neurodegenerative and psychiatric disorders is providing a positive environment for the development of CNS therapeutics in France.

The government has prioritized mental health within national healthcare planning, leading to better funding, earlier diagnosis, and wider access to therapy. French pharmaceutical and biotech firms are increasingly involved in developing advanced CNS drugs, particularly for treatment-resistant depression, Alzheimer's disease, and multiple sclerosis.

Academic hospitals and public research centers are contributing significantly to clinical research, often in collaboration with European counterparts. Also, policies encouraging patient-focused care and digitalization of healthcare are facilitating the integration of pharmacological treatment with behavioral and cognitive interventions.

Access to subsidized treatment by the national healthcare system facilitates the uptake of newer, frequently more expensive CNS drugs. Although regulatory routes are cautious, they provide for safety and efficacy, and therefore, the segment continues to experience steady growth.

Germany

The German CNS therapeutics market is anticipated to grow at 6.4% CAGR over the forecast period. A combination of robust clinical infrastructure, an aging population, and high incidence rates of psychiatric and neurological disorders supports Germany's CNS therapeutic market. The nation has a well-organized healthcare delivery system, with easy access to specialized neurology and psychiatry services.

Pharmaceutical companies are investing in pipeline development for therapies targeting Alzheimer's, epilepsy, bipolar disorder, and Parkinson's disease. Clinical uptake of biosimilars and combination treatments is also growing.

Germany has introduced several mental health programs with the goal of enhancing awareness and de-stigmatizing treatment, which is, in turn, driving therapeutic demand. In addition, digital health integration within psychiatric treatment-e.g., app-based CBT and virtual consultations-is proving to be a robust complement to conventional pharmacotherapy.

Funding for research and academic-industry partnerships continue to drive CNS drug development and availability. Germany continues to be a stable and innovation-supportive CNS therapeutics market.

Italy

The Italian CNS therapeutics market is anticipated to grow at 5.9% CAGR over the study period. In Italy, the increasing prevalence of mental and neurological disorders has resulted in raising awareness and demand for CNS therapeutics. The country's national health system ensures universal coverage, and this facilitates access to branded as well as generic CNS drugs in urban and rural regions.

Italy emphasizes neurorehabilitation and community-based psychiatric services with a focus on early intervention and the management of diseases in the long term. There is increased cooperation between local drug firms and research organizations, leading to innovation, especially in the treatment of neurodegenerative diseases.

Though conventional drug categories lead to present consumption, increasing attention is given to biologics and extended-release products enhancing patient compliance. Digital mental health platforms are also gaining popularity among young people seeking unobtrusive and convenient forms of treatment.

National depression and dementia health campaigns will further spur wider usage of CNS medicines and drive the CNS therapeutics market to increase over the decade ahead steadily.

South Korea

The South Korean CNS therapeutics market is anticipated to grow at a 6.8% CAGR over the study period. South Korea's CNS therapeutics market is growing fast because mental health disorders and neurological diseases are gaining more and more recognition in a demographically and culturally transforming society. Healthcare technology and biopharmaceutical innovation, such as CNS-specific drug development and clinical trials, are being invested heavily in the country.

Public campaigns and online mental health services are assisting in decreasing stigma and inducing treatment-seeking. Increased smartphone penetration and healthcare-tech adoption have led to an escalation of tele-mental health consultations and app-based therapy monitoring, commonly combined with pharmacological treatment.

Local pharmaceutical companies are also playing a role in developing new CNS medications, particularly in the fields of anxiety, depression, and epilepsy. Government-sponsored health programs and regulatory incentives for rare neurological disorders further boost the potential. With increasing access and innovation, South Korea will increasingly be a key player in the Asia-Pacific CNS therapeutics market.

Japan

The Japanese CNS therapeutics market is anticipated to grow at 6.3% CAGR over the study period. Japan's huge elderly population and increasing incidence of neurodegenerative diseases like Alzheimer's and Parkinson's disease are key growth drivers in CNS therapeutics.

Japan is renowned for its medical technology and R&D capabilities, which are driving improvements in drug development for central nervous system disorders. Japan's national insurance scheme offers broad access to prescription CNS medicines, both generics and new drugs.

There has been increased interest in disease-modifying drugs and cognitive enhancement drugs that address the root cause of neurodegenerative illness. Psychiatric illnesses like depression and anxiety are becoming increasingly prevalent, especially with the rise of societal stressors and mental health awareness campaigns.

Integration of AI into treatment planning and diagnostics of neurological conditions is on the increase, with hospitals and research centers taking the lead. With robust backing from government policy and research infrastructure, the Japanese CNS therapeutics market is set for consistent growth.

China

The China CNS therapeutics market is forecast to register a 7.6% CAGR over the study period. China is one of the most rapidly growing CNS therapeutics markets, fueled by rising incidences of mental health conditions, dementia, and other neurological conditions.

Increased urbanization, population aging, and increased awareness are driving growing demand for pharmacological treatments. Reforms in government healthcare are enhancing access to psychiatric and neurological treatment, and improving mental health services is a strategic national imperative.

Multinational and local pharmaceutical firms are aggressively developing and promoting CNS drugs, both conventional and next-generation treatments. In addition, China's digital health ecosystem is enabling hybrid models of therapy with teleconsultation and app-managed therapy augmented by prescription medication.

Regulatory authorities are also simplifying approval routes for faster entry of new CNS medicines in the CNS therapeutics market. Ongoing investments in neuroscience research, as well as the adoption of artificial intelligence in diagnostics, are set to further establish China as an important region in the CNS therapeutics market.

Australia-New Zealand

The Australia-New Zealand CNS therapeutics market is anticipated to register a growth of 6.5% CAGR over the study period. The CNS therapeutics market in Australia and New Zealand is propelled by increasing awareness of mental health, a growing population of older people, and a strong healthcare infrastructure.

Governments in the region are giving high priority to mental health services and neurological research, leading to a positive policy environment. National reimbursement schemes highly support the availability of CNS drugs, and both nations are experiencing growing acceptance of treatment for disorders like depression, ADHD, and dementia.

Remote consultation and management of prescriptions by digital health platforms are also helping to provide more convenient access to therapies. Pharmaceutical companies are emphasizing personalized treatment strategies, and a number of local biotech companies are investigating the development of new compounds for CNS diseases.

Also, increased public participation in mental health advocacy has contributed to the normalization of medication use and facilitation of growth. Academic-industry collaboration continues to promote clinical innovation and effective regulatory procedures, guaranteeing steady growth of the CNS therapeutics market.

Segment-wise Analysis

By Segment

Two important segments of the CNS Therapeutics Market are shaping the scenario in 2025: Pain Management accounts for a share of 26.8%, and Antipsychotic drugs command a 20.3% share. These segments are thriving upon the growing burden of different neurological and psychiatric disorders across the globe and the burgeoning therapeutic palette propelled by pharmaceutical innovation.

Due to the universe of chronic and acute pain conditions related to CNS disorders, Pain Management takes the lead. The International Association for the Study of Pain mentions that close to 20% of the adult population globally has chronic pain, with neuropathic pain forming a huge part of it; therefore, a demand for effective analgesics with action on the CNS.

Companies such as Eli Lilly have gained ground with the use of non-opioid pain relievers like Emgality (for migraine), and Teva and Endo Pharmaceuticals maintain a strong presence with various generics, including gabapentin and tramadol. Abbott's neuromodulation devices once more offer non-pharmacological options for treating refractory pain and signal a diversification in the area of pain management.

The Antipsychotics segment comprises 20.3% of the overall industry, with rising rates of schizophrenia diagnosis, other psychotic conditions, and mood disorders. Abilify Maintena from Otsuka Pharmaceutical and Aristada from Alkermes (both long-acting injectables) have greatly enhanced patient adherence and treatment outcomes.

Invega Sustenna from Janssen and alternative formulations such as Caplyta (by Intra-Cellular Therapies) are becoming increasingly popular, thanks to their excellent safety profiles. The segment is likely to progress, given the WHO's estimates that mental disorders affect more than 970 million people worldwide. An additional competitive edge arises from the development of next-generation antipsychotics with fewer extrapyramidal side effects and diminished metabolic risks.

Together with AEDs, others not mentioned among the huge two giants gaining momentum, such as granting a chance to UCB (Briviact) or SK Biopharmaceuticals (Xcopri) targeting the treatment of drug-resistant epilepsy, which is very relevant in underdeveloped regions with no access to surgical interventions.

Neurodegenerative disease therapeutics for Alzheimer's and Parkinson's are another emergent area in the CNS. The recently launched Leqembi (lecanemab) by Biogen and Eisai in key industries, directed toward amyloid-beta plaques, has therefore heralded the change toward disease-modifying therapies. In parallel, Denali Therapeutics is working on a unique BBB-penetrating drug delivery platform, developing biologics targeting neuroinflammation and lysosomal storage diseases with great promise within the CNS sphere.

From a business perspective, Novartis, Roche, and Sanofi gain strategic acquisitions and partnerships to bolster their CNS-focused pipelines. Roche, for example, is collaborating with Ionis Pharmaceuticals in the development of RNA-based therapies for Huntington's disease as an example of expanding investment in genetic and precision-based approaches.

Competitive Outlook

The CNS therapeutics market is extremely vigorous as a space for product innovation continues to evolve for neurodegenerative and psychiatric disorder treatments. AbbVie, Pfizer, Novartis, Janssen Pharmaceuticals, and Lundbeck are gems privileged to lead in this space.

These giants put in consistent investment in neurological pipelines and acquired other companies strategically. As of 2024, AbbVie has heightened its CNS footprint with expanded R&D partnerships focusing on Parkinson’s and Alzheimer’s disease candidates, while Pfizer is scaling its neurological biosimilar strategy in global markets.

Janssen Pharmaceuticals-the subsidiary of Johnson and Johnson-is strong in schizophrenia and depression drugs, including new phase III trials for promising antipsychotics. Meanwhile, Novartis is stepping up collaborations for rare CNS disorders and gene therapy applications. Lundbeck, as ever, continues its focus on the brain as its only area of concern and boasts strong sales coming from both its migraine and depression franchises.

There was a surge in licensing activity in 2024 when Alkermes, Neurocrine Biosciences, and Sumitomo Dainippon Pharma earned their names by focusing on a niche CNS condition, tardive dyskinesia. Breakthrough designation is also being pursued by emerging biotech firms in the field of CNS gene therapies, thereby adding to the competition and the avenues for partnerships opened to the incumbents. Increases in investment are highly favored by industry leaders in the rapidly evolving area, as illustrated by the recent FDA clearances associated with AI for CNS diagnostics and adherence tools.

Market Share Analysis by Company

Company Name	Market Share (%)
AbbVie Inc.	12-16%
Pfizer Inc.	10-14%
Janssen Pharmaceuticals Inc.	9-13%
Novartis AG	8-11%
H. Lundbeck A/S	7-10%
Other Players	39-49%

Key Company Offerings and Activities

Company Name	Offerings & Activities
AbbVie	The portfolio includes Vraylar and Qulipta, expanded trials in Alzheimer’s and Parkinson’s, and AI R&D collaborations.
Pfizer	CNS biosimilars, rare disease focus; co-development deals in Europe and Asia.
Janssen Pharmaceuticals	Leading schizophrenia and depression therapies late-stage pipeline additions.
Novartis	Targeted gene therapies for SMA, ALS; expanding precision neurotherapeutics.
H. Lundbeck	Brain health specialist; continued growth in migraine (Vyepti) and depression treatments.

Key Company Insights

AbbVie (12-16%)

Continues to lead with a robust pipeline in neurodegenerative conditions and strategic partnerships across AI-driven CNS discovery platforms.

Pfizer (10-14%)

It has reinforced its global presence in CNS through biosimilar growth and strategic collaborations for orphan indications.

Janssen Pharmaceuticals (9-13%)

Remains a top-tier player in psychiatric treatments, strengthening its position with new-generation antipsychotic trials.

Novartis (8-11%)

Invests heavily in gene and cell therapy for rare CNS disorders, supporting long-term growth with precision medicine platforms.

H. Lundbeck (7-10%)

Leverages its brain-focused portfolio, emphasizing commercial and clinical gains in migraine and psychiatric disorders.

Key Players

• AbbVie Inc.
• Pfizer Inc.
• Janssen Pharmaceuticals Inc.
• Novartis AG
• H. Lundbeck A/S
• Alkermes Plc.
• Neurocrine Biosciences Inc.
• Takeda Pharmaceutical Co. Ltd.
• AstraZeneca Plc.
• Eli Lilly and Co.
• Merck & Co. Inc.
• Sanofi
• Endo Pharmaceuticals Inc.
• UCB Group
• GlaxoSmithKline Plc.
• Shire Plc.
• Sumitomo Dainippon Pharma Co. Ltd.
• Otsuka Pharmaceutical Co. Ltd.
• Bristol-Myers Squibb
• Teva Pharmaceutical Industries Ltd.

Segmentation

• By Segment :

  • Pain Management
  • Antipsychotics
  • Anti-depressants
  • Anti-epilepsy
  • Anti-Alzheimer’s
  • Anti-Parkinson’s
  • Other Segments

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America