Pharma 5.0 Market Report 2025

The pharma 5 market size has grown strongly in recent years. It will grow from $73.66 billion in 2024 to $78.31 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth during the historical period can be attributed to increasing investments in digital health technologies, rising demand for cost-effective drug development, a growing focus on patient-centric healthcare, expanding use of automation in pharmaceutical manufacturing, and the increasing prevalence of chronic diseases.

The pharma 5 market size is expected to see strong growth in the next few years. It will grow to $98.68 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth during the forecast period can be attributed to increasing investments in big data analytics and cloud computing, a growing focus on sustainable and cost-efficient drug development, expanding collaboration between pharmaceutical and technology sectors, rising patient demand for personalized healthcare experiences, and increasing demand for precision medicine and tailored therapies. Key trends expected in the forecast period include advancements in personalized medicine platforms, development of AI-driven drug discovery and manufacturing, innovations in digital therapeutics and diagnostics, progress in IoT-enabled smart manufacturing, and the creation of connected health ecosystems with real-time monitoring.

The surge in digital health technologies is expected to drive growth in the pharmacy 5 market. Digital health tools including software platforms, devices, and AI-driven solutions support healthcare delivery, improve patient outcomes, and enhance operational efficiency. The rising demand for remote and integrated healthcare solutions has accelerated the adoption of telemedicine, personalized medicine, and automated pharmacy processes. Pharma 5 enables seamless integration of these technologies, improving patient monitoring, treatment accuracy, and overall healthcare delivery. For example, a February 2023 survey by Rock Health, a US-based health technology company, found that 76% of individuals over 55 had used telemedicine, with 80% of respondents having received care via telemedicine at least once, an 8% increase from 2021.

Companies in the pharmacy 5 market are leveraging cutting-edge AI innovations to advance pharmaceutical research and drug development. Generative AI cloud services provide scalable platforms for creating predictive models, optimizing clinical trials, and designing personalized treatment plans. For instance, in March 2023, NVIDIA Corporation launched BioNeMo Cloud, a generative AI platform developed with partners including Amgen and AstraZeneca. BioNeMo Cloud enables life sciences researchers to predict protein structures, molecular interactions, and novel drug candidates using large language models trained on biomolecular data.

In May 2025, AstraZeneca Plc acquired EsoBiotec BV, a Belgium-based biotechnology company specializing in AI-driven in vivo cell therapies. This acquisition allows AstraZeneca to accelerate the development and delivery of scalable cell therapies for cancer and immune-mediated diseases, reducing treatment time from weeks to minutes and expanding global patient access.

Major players in the pharma 5 market are Pfizer Incorporated, Johnson & Johnson, Roche Holding AG, Sanofi S.A., Bristol Myers Squibb Company, AstraZeneca Plc, Novartis AG, GSK Plc, Eli Lilly and Company, Ericsson AB, Merck KGaA, Moderna Inc., BioNTech SE, Teva Pharmaceuticals Industries Ltd., Rockwell Automation Inc., Sun Pharmaceutical Industries Ltd., 3D Systems Corporation, XtalPi Inc., Insilico Medicine Inc., and Hygenix Inc.

North America was the largest region in the pharma 5 market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in pharma 5 market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the pharma 5 market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the pharmaceutical companies contend with tariffs on APIs, glass vials, and lab equipment inputs with few alternative sources. Generic drug makers, operating on razor-thin margins, are especially vulnerable, with some reducing production of low-profit medicines. Biotech firms face delays in clinical trials due to tariff-related shortages of specialized reagents. In response, the industry is expanding API production in India and Europe, increasing inventory stockpiles, and pushing for trade exemptions for essential medicines.

Pharma 5 refers to the next generation of pharmaceutical development that combines advanced digital technologies with patient-centric healthcare solutions. It emphasizes precision treatment and automation to improve therapeutic outcomes while reducing costs and enhancing operational efficiency across the pharmaceutical value chain.

The primary types of Pharma 5 include personalized medicine platforms, digital therapeutics, AI-driven drug discovery, smart manufacturing, and AI-based diagnostics. Personalized medicine platforms are technologies that analyze individual genetic, environmental, and lifestyle data to customize medical treatments for each patient. These platforms leverage technologies such as cloud computing, artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and robotic process automation (RPA), and can be deployed in on-premise or cloud-based modes. They are applied across multiple therapeutic areas, including cardiovascular diseases, oncology, infectious diseases, neurology, and others, and are utilized by key end users such as pharmaceutical and biotech companies, healthcare providers, contract research organizations (CROs), and research institutes.

The pharma 5 market research report is one of a series of new reports that provides pharma 5 market statistics, including the pharma 5 industry global market size, regional shares, competitors with the pharma 5 market share, detailed pharma 5 market segments, market trends, and opportunities, and any further data you may need to thrive in the pharma 5 industry. This pharma 5 market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The pharma 5 market consists of revenues earned by entities by providing services such as remote patient monitoring, quality assurance support, pharmacovigilance services, and virtual healthcare services. The market value includes the value of related goods sold by the service provider or included within the service offering. The pharma 5 market consists of sales of personalized medicine products, automated manufacturing equipment, and smart wearable devices for patient monitoring. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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