Global Overview of the Pharmaceuticals and Medical Equipment

July 2025

The briefing examines how the pharmaceuticals and medical equipment industry is performing globally and in the largest countries in terms of pharmaceuticals and medical equipment output. The report also provides data for production, market size, imports, exports, industry costs, industry profitability and number of companies. The industry and market overview provide benchmarks against other countries in the region.

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Key findings

Industry to maintain stable growth rate

The global pharmaceuticals and medical equipment industry is projected to maintain steady growth to 2029 driven by strong consumer demand in key regions. However, despite the positive outlook, the industry will need to navigate ongoing supply chain issues, economic uncertainties and rising input costs, which remain potential threats to sustained growth and profit margins.

China continues to lead

China maintains its global lead, accounting for 25% of global pharmaceuticals and medical equipment production value. The rapid expansion of China's healthcare sector and increased investments in research and development are forecast to support future growth and help China gain greater access to global supply chains.

Demand for value-based medicine grows

Private consumers and governments, especially in developed economies, are increasingly scrutinising pricing of pharmaceuticals and look for value-based pricing and reimbursement models. This will push medical companies to reduce prices of most popular drugs and search for new sales models to maintain profit margins intact.

Industry needs to prepare for potential trade disruptions

Changing global trade structure challenges established research, production and regulatory networks of the pharmaceuticals industry. Although in most cases pharma products are exempt from higher tariffs, growing uncertainty will encourage companies to invest more into production localisation where possible and implement supply diversification strategies.

 

Scope
Key findings
Industry maintains steady growth, yet operational challenges prevail
China and US lead production, while Ireland and India offer most growth opportunities
Cost pressures to continue, amplified by rising trade uncertainty
Industry’s profits remain stable as higher revenue offsets cost increases
Europe maintains its lead in the export market
US drives global imports of pharmaceuticals
Key trends in the pharmaceuticals and medical equipment industry
Key trends uncovered
Macroeconomic trends
Company rankings continue to change, influenced by new drug launches
Total number of companies continues to grow, spurred by strong global demand
Global industry remains fragmented, leaving room for smaller players
China : Expanding domestic demand to support industry’s growth
Demographic changes and increasing health awareness to support industry’s growth
USA : Industry forecast to maintain steady growth
Industry to maintain growth as strong domestic demand offsets negative effects
Ireland : Industry to enter a phase of slower, yet steady, growth
Industry forecast to maintain steady growth, although trade tensions cloud the outlook
Switzerland : Industry forecast to maintain steady growth by 2029
Growing demand in export markets to support industry’s growth
Germany : Industry forecast to maintain stable growth by 2029
Strong domestic and export markets to drive industry’s growth
Puerto Rico : Industry forecast to maintain moderate growth by 2029
Industry to maintain steady growth, supported by demand for affordable drugs
Japan : Industry forecast to enter a phase of sustained growth
Strong domestic demand and export opportunities to drive industry’s growth
France : Industry forecast to maintain steady growth by 2029
Growing domestic and foreign demand to support stable industry growth
India : Industry’s growth forecast to accelerate
Industry forecast to maintain healthy growth, capitalising on India’s cost advantages
United Kingdom : Industry forecast to maintain healthy growth by 2029
Focus on innovations to help maintain healthy growth
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