US Pharma Market Worth $475 Billion by 2020

Friday 31 May 2013, Amsterdam

The expansion of the insured population, prompted by the introduction of Patient Protection  and  Affordable  Care  Act  (PPACA),  will  play  a  key  role  in  driving  US pharmaceutical market revenue up by  a third by the end of the decade, says a research and consulting firm.

The company’s latest report on the US healthcare industry forecasts the country’s pharmaceutical market value to climb from $359 billion in 2012 to $476 billion in 2020, increasing by 33% over the eight year period.

With the PPACA (commonly known as Obamacare) extending health insurance to 32 million more Americans by 2016, patient pools and the demand for drug therapy are expected to increase significantly, driving up healthcare expenditure and pharmaceutical revenue as a result.

Like many other countries around the world, the US is expected to experience growth in its elderly population, climbing from a 19% share of all Americans in 2012 to more than 22% by 2020. The expansion of the 60 and over age demographic is another factor that will inevitably drive the US pharmaceuticals industry, owing to the corresponding increase in healthcare demand.

We also expects growth within the US medical devices industry in the near future, with the industry forecast to grow from $139 billion in 2012 to $206 billion in 2020, climbing at a Compound Annual Growth Rate (CAGR) of 5.0%. The US medical equipment industry is one of the largest and most stable in the healthcare industry, accounting for 50% of the global market and consuming approximately 40% of itsoutput.