Rise in R&D Investments Accelerates Growth in the Neurodegenerative Disease Market 2032
Global neurodegenerative disease market is projected to witness a CAGR of 7.51% during the forecast period 2025–2032, growing from USD 55.21 billion in 2024 to USD 98.54 billion in 2032. The global neurodegenerative disease is experiencing rapid growth due to a growing population, investment in research and development, and innovation in therapeutic drugs.
The neurodegenerative disease market is undergoing significant growth, due to the increasing aging global population, leading to many instances of Alzheimer’s and Parkinson’s disease. The growth is also due to the increasing investment in developing new biomarkers or diagnostics to not only manage the symptoms of the disease but also to intervene on the disease itself. Additional strong trends in space are the move towards precision medicine with new genetic technologies or biomarkers, and the change from symptomatic therapies to disease-modifying therapies and targeting earlier stages of neurodegenerative disease. Despite the challenges of complexity (and drug development costs) in discovery and clinical development of these diseases, there are significant opportunities in technology and innovation, continuing government and private investments in medical research, and identifying new markets that have significant unmet medical needs.
Additionally, to support the neurodegenerative disease market in May 2025, Sanofi S.A. announced that enter into a transaction for Vigil Neuroscience, Inc., a clinical-stage biotechnology company that is publicly traded and develops novel therapies for people with neurodegenerative diseases. It also strengthens Sanofi’s early-stage pipeline and provides entry into a phase 2 clinical study of VG-3927, an oral small-molecule TREM2 agonist, in Alzheimer’s disease.
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Increase in Population and Growing Awareness Support Market Expansion
The growing aging population and rising awareness concerning diseases are major drivers of the global market. As life expectancy increases, the risk of age-related diseases such as Alzheimer’s and Parkinson’s will ramp up demand for standard of care diagnostic tools, treatments, and long-term care post-diagnosis for an exponentially larger pool of patients. Significant research and development investments will emerge due to the combined effects of rising healthcare demand and the system’s current overcapacity. The medical research funding will prioritize innovative disease-modifying treatments alongside advanced AI and digital health technologies. The increased public knowledge and efforts to detect neurodegenerative disorders sooner will generate greater market interest. A new generation of treatment models will develop which will deliver a better quality of life to vast populations dealing with these disorders. The new advancements will work toward creating medical solutions that can either reduce the rate of disease progression or completely stop its progression.
Additionally, to support aging populations who are affected by neurodegenerative disease, in March 2023, the Government of Canada announced it to invest USD 38.3 million in a research study to address the challenges of aging and brain health issues, including dementia, and provide quality of life for the aging population of Canada.
Increasing Role of Research and Development
The global neurodegenerative disease market is being driven by a surge in investments in research and development (R&D) activities aimed at addressing unmet medical needs. With the growing burden of neurological disorders such as Alzheimer’s, Parkinson’s, and ALS, companies are leveraging R&D to identify new treatment pathways, enhance drug efficacy, and reduce production costs.
R&D initiatives not only foster the creation of novel drugs and therapies but also support innovation in diagnostic technologies and patient management systems. These efforts enable pharmaceutical companies to remain competitive through feature enhancements, efficiency improvements, and new therapeutic functionalities. Cost-efficient production methods derived from R&D allow companies to reduce pricing and expand access to broader patient populations.
Furthermore, global federations and healthcare authorities are funding R&D to accelerate drug development.
📌 For example, in September 2023, the U.S. FDA announced over USD 16.9 million in funding under its Rare Neurodegenerative Disease Grant Program to support research on ALS and other rare conditions, including Niemann-Pick type C and myotonic dystrophy type 1.
Alzheimer’s Disease Retains Largest Market Share
Alzheimer’s Disease (AD) continues to dominate the neurodegenerative disease market due to its high prevalence and the growing global burden of dementia. The rising geriatric population significantly contributes to the expansion of this segment.
Breakthroughs in disease-modifying therapies — which target the root causes of Alzheimer’s rather than only alleviating symptoms — are reshaping the market landscape. Sustained R&D efforts are fueling advancements in both drug development and diagnostic solutions, ensuring Alzheimer’s disease remains a top priority for pharmaceutical companies, research institutions, and policymakers.
📌 According to the Alzheimer’s Association (December 2023), around 6.7 million Americans aged 65+ are living with Alzheimer’s disease, a number expected to grow to 13.8 million by 2060.
North America Leads the Global Market
North America holds the largest share of the neurodegenerative disease market, supported by:
- A well-established healthcare system and infrastructure.
- High prevalence of neurodegenerative disorders.
- Strong R&D ecosystem led by key players such as Biogen (Alzheimer’s), AbbVie (Parkinson’s), and Ionis Pharmaceuticals (ALS).
- Supportive public and private reimbursement policies.
- A large volume of clinical trials accelerating drug approvals and patient access.
📌 In March 2024, the U.S. Congress approved USD 100 million for NIH to advance Alzheimer’s and dementia research, along with USD 34 million for the BOLD Infrastructure Act, championed by the Alzheimer’s Association and AIM.
Such funding initiatives highlight the U.S. government’s commitment to bolstering research, innovation, and treatment accessibility in the neurodegenerative disease landscape.
Impact of U.S. Tariffs on the Market
The imposition of U.S. tariffs poses significant challenges for the neurodegenerative disease market by disrupting supply chains and raising treatment costs. Many medications for Alzheimer’s, Parkinson’s, and ALS rely on imported active pharmaceutical ingredients (APIs). Tariffs on these imports could escalate production costs, leading to higher treatment expenses for patients and potential delays in therapy availability.
Additionally, retaliatory tariffs could hinder the export of U.S.-manufactured drugs, affecting revenues of domestic biotech firms. Smaller biotech companies — key drivers of innovation — would face financial strain, slowing R&D efforts and delaying the introduction of cost-effective treatments.
Report Scope
“Global Neurodegenerative Disease Market Assessment, Opportunities, and Forecast 2018–2032F” by Markets and Data delivers a detailed evaluation of the industry. The report includes:
- Market size and forecasts (2025–2032).
- Segmental analysis by disease type, treatment, and geography.
- Industry dynamics, challenges, and opportunities.
- Profiles of leading players with insights into their market strategies, business models, and competitive positioning.
In summary: Rising R&D investments, government-backed funding, and innovation in drug discovery are fueling growth in the global neurodegenerative disease market. Alzheimer’s disease leads in market share, while North America remains the largest regional hub due to strong healthcare infrastructure, funding support, and a robust pipeline of clinical trials.
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