United States Ophthalmic Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023-2031)

United States Ophthalmic Market Analysis

The United States ophthalmic market size is expected to reach US$ 36.50 billion by 2031, from US$ 15.90 billion in 2023, at a CAGR of 8.6% during the forecast period.

The United States ophthalmic market is expected to witness positive growth over the forecast period. Factors, such as rising cases of eye diseases, growing elderly population, and increasing investment in R&D, are expected to drive the market growth. According to the National Eye Institute's 2020-2025 strategic plan, around 4.2 million Americans over age 40 live with uncorrectable visual impairment. The prevalence of age-related eye diseases, such as glaucoma, diabetic retinopathy, and age-related macular degeneration, is projected to increase substantially due to the rapid growth of the geriatric population. Moreover, major market players are increasingly investing in the development of innovative and advanced pharmaceutical products to treat ophthalmic conditions which is further expected to boost the market during the forecast period.

United States Ophthalmic Market Drivers:

• Aging Population and Prevalence of Eye Diseases: As individuals get older, they become more prone to developing eye diseases. Some of the most common vision conditions that affect the elderly population include age-related macular degeneration, cataracts, glaucoma, and diabetic retinopathy. As life expectancy continues to rise in the country, the number of people suffering from age-related eye diseases will also witness a significant surge. This will drive the greater demand for various prescription eye medications that are used for treating these conditions. Pharmaceutical companies have been undertaking extensive R&D initiatives to develop newer and more effective drugs having lower side effects. The growing elderly population suffering from multiple eye diseases signals promising growth opportunities for players in the U.S. ophthalmic industry. The population of the U.S. is aging rapidly, with over 55 million Americans currently aged above 65 years, according to the United States Census Bureau's 2020 national population projections. This geriatric segment is more prone to develop age-related ophthalmic conditions and eye diseases such as cataracts, glaucoma, macular degeneration, and diabetic retinopathy. For instance, the National Center for Chronic Disease Prevention and Health Promotion estimates that 1.8 million Americans aged 40 years and older are affected by age-related macular degeneration and an additional 7.3 million with large drusen are at substantial risk of developing age-related macular degeneration in 2020.
• Rising awareness and health consciousness among consumers: The rise in vision related disorders coupled with increasing health awareness among Americans is fueling the growth of the US ophthalmic market. With advancing age and changing lifestyle habits, conditions like glaucoma, cataract, dry eyes, and macular degeneration have witnessed a steady rise over the past decade. As more people recognize vision care as an important aspect of overall wellness and medical advancement leads to newer treatment options, demand for ophthalmic drugs is rising significantly. People are no longer reluctant to seek medical interventions and are preferring prescription eye drops, drugs, and surgical procedures over traditional remedies for treating eye disorders. Moreover, increasing awareness related to vision loss by various associations and key players is expected to drive the market growth over the forecast period. For instance, on October 30, 2023, the American Diabetes Association (ADA), a sponsor of the 2023 Magic City Classic (MCC) and one of the leading voluntary health organizations in the U.S. fighting to bend the curve on the diabetes epidemic and Genentech, a biotechnology company anchor partner of the ADA's Health Equity Now program launched the Eye Pledge to Fight Diabetes. This program encourages people with diabetes and their loved ones to get an annual eye exam, which are shown to help reduce the risk of diabetes-related vision loss.

United States Ophthalmic Market Opportunities:

• Increased R&D investments in the U.S.: Increased R&D investments in the United States ophthalmic market provide a significant opportunity for growth in this sector. Stepping up investments in research and clinical trials can help pharmaceutical companies develop drugs that target major blinding diseases as well as newer conditions. Several promising areas for R&D include developing more effective therapies for diabetic retinopathy and wet age-related macular degeneration, both leading causes of vision loss. researchers are also working on new drug delivery methods such as implants that could provide longer-lasting treatment through sustained drug release. Investing in startups exploring gene therapies and stem cell treatments also holds potential to revolutionize care for currently untreatable retinal degenerations.  For instance, on November 14, 2023, researchers from Massachusetts Eye and Ear, an international center for treatment and research and a teaching hospital of Harvard Medical School, provided a new research study in which researchers changed the microenvironment in the eye in a way that enabled them to take stem cells from blood and turn them into retinal ganglion cells that were capable of migrating and surviving into the eye’s retina. Using chemokines to direct the movement and integration of donor cells presents a hopeful strategy for restoring vision in individuals with glaucoma.
• Growing online pharmacy markets: The online pharmacy space offers immense potential for growth in the US ophthalmic market. As virtual care and telemedicine gain widespread acceptance among consumers and healthcare providers due to the pandemic, online purchase, and home delivery of ophthalmic drugs can become more mainstream. This represents a significant opportunity for pharmaceutical companies to tap into the large target population requiring frequent eye care and long-term medication management for chronic conditions like glaucoma, macular degeneration, and diabetic retinopathy. Online pharmacies reduce barriers to access by allowing people to order medications without having to physically visit brick-and-mortar stores or clinics, which many find more convenient. This model works especially well for ophthalmic drugs which are often prescribed for lifelong use. The pandemic has exacerbated conditions like dry eyes due to excessive screen time, creating new patients that can benefit from convenient virtual care pathways. Companies that integrate online and tele-ophthalmology services with quick drug delivery stand to capture more loyal customers over time.

United States Ophthalmic Market Restraints:

• High cost of ophthalmic drugs: The high costs of ophthalmic drugs present a significant challenge for growth in the United States ophthalmic market. Eye care and treatments can be very expensive in the country, putting critical medications out of reach for many Americans. For example, the average annual cost of treating diabetic retinopathy, a leading cause of blindness, is over US$5,000 according to a 2020 study by the National Institutes of Health. This includes expenses associated with doctor visits, tests, procedures, and prescription drugs. Similarly, the average five-year cost of treatment for retinitis pigmentosa, an inherited eye disease, ranges from US$54,000 to US$86,000 per patient as per a 2021 report by the Fight for Sight, a non-profit eye research organization.

United States Ophthalmic Market Trends

• Adoption of personalized medicine: The trend of personalized medicine is having a significant impact on the U.S. ophthalmic market. Personalized medicine takes into account individual variability in genes, environment, and lifestyle for each person. This allows doctors to better predict treatment responses, and tailor therapy and preventive care to each patient. When applied to ophthalmology, personalized medicine enables targeted treatment based on a patient's specific condition and biomarkers. Pharmaceutical companies are developing more precise drug therapies that focus on an individual's genetic profile or other health data. This paradigm shift will lead drug makers to concentrate on smaller patient segments that can benefit most from personalized treatments. For example, Novartis' anti-VEGF treatment Beovu is indicated for less frequent dosing in wet age-related macular degeneration patients identified as low-risk for retinal adverse events using Novartis's proprietary biomarker algorithm. This biomarker test helps minimize side effects by avoiding overtreatment in healthier patients. Data from the National Eye Institute also shows genetic factors play an important role in certain eye diseases such as age-related macular degeneration and glaucoma. With more insight into genetic contributions, drug companies can develop therapies targeted at patients with high-risk genetic profiles.

United States Ophthalmic Market Regional Insights:

• Northeast: The northeast region holds the leading position in the United States' ophthalmic market, boasting a market share of over 40%. The region is home to some of the largest and most affluent cities in the U.S., as well as a number of major pharmaceutical companies.
• West: The western region ranks as the second-largest ophthalmic market in the United States, holding a market share exceeding 30%. The region is home to a number of large and growing cities, as well as a number of biotech companies.
• South: The southern region ranks as the third-largest ophthalmic market in the United States, commanding a market share exceeding 15%. The region is home to a number of large and growing cities, as well as a number of pharmaceutical companies.
• Midwest: The Midwest region holds the position of the smallest ophthalmic market in the U.S., with a market share of less than 15%.
• The region is home to a number of large and growing cities, but it also has a number of rural areas.

Figure 1.  United States Ophthalmic Market Size (US$ Bn), 2023

Recent Developments in United States Ophthalmic Market

United States Ophthalmic Market Segmentation