Drug Delivery Systems (DDS) Global Market

–Forecast to 2027

Drug Delivery Systems (DDS) Global Market estimated to be worth $158.0

billion by 2027

IQ4I Research & Consultancy published a new report on “Drug Delivery Systems
(DDS) Global Market – Forecast To 2027” This report analyzes and studies the overall
market, major Drivers & Opportunities, Restraints & Threats in North America, Europe, Asia-
Pacific and Rest of the World.

IQ4I’s Report Contains 109 market data tables and 105 figures spread through 693
pages and an exhaustive TOC on “Drug Delivery Systems Global Market”, [By Route
of Administration(Oral DDS, Parenteral DDS, Topical DDS, Inhalation DDS), By
Product {Lipid based DDS (Emulsion DDS, Vesicular DDS (Liposome), Lipid
Particulate DDS)}, {Polymeric Drug Delivery Systems (Polymer-Drug Conjugate &
Antibody Drug Conjugate DDS, Polymeric Nanoparticles DDS, Enzyme based DDS,
Hydrogel DDS, Other Polymeric DDS)}, {Viral Vector and Other DDS}, By Application
{Oncology, Infectious Diseases, CNS Disorders, Autoimmune diseases, Respiratory
Diseases, Ophthalmology, Cardiovascular Diseases and Other Applications}, By Drug
Molecule Type (Small Molecule DDS, Large Molecule DDS), By Mechanism (Rate Pre-
programmed DDS, Targeted DDS and Stimuli responsive DDS), By Region (North
America, Europe, Asia-Pacific and Rest of the World)]

Drug Delivery Systems (DDS) are the engineered formulations or technologies developed
using inert, biocompatible substances to explicitly concentrate a therapeutic agent or
prophylactic agent at the desired site of pharmacological action and to achieve predictable or
reproducible drug release kinetics for a stipulated time period. Drug delivery systems that
are characterized by specificity, optimum drug loading capacity, capability to shield the
pharmaceutical agent from the hostile internal environment or bypass the various biological
barriers, minimal side effects have been used to enhance the therapeutic efficiency and
safety profile of the numerous medications or vaccines administered to treat or prevent
various kinds of chronic ailments or infectious diseases.

According to IQ4I analysis, drug delivery systems global market is expected to reach
$158,006.4 million by 2027 growing at a mid single digit CAGR from 2020 to 2027. The
necessity of targeted and controlled drug delivery systems to increase the therapeutic
efficiency and safety profile of medications, need for efficient biologics delivery systems,
requirement of novel DDS for satisfying the therapeutic variations of elderly and pediatric
population, increasing R&D expenditure of innovator pharma or biopharma companies and
their economical patent thicketing strategy, the vast drug delivery technology enhanced
product pipeline, the trend of acquisitions and collaboration agreements in the drug delivery
system industry and persistently increasing prevalence of infectious and non-infectious
diseases in need of efficient and safe prophylactics and therapeutics are some of the factors

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that are propelling the drug delivery systems market growth. Factors like high cost of drug
delivery technology integrated products, concerns about the adverse effects associated with
drug delivery systems, the inconsistent and evolving global drug delivery systems regulatory
landscape, emergence of several therapeutic medical devices and advanced drug delivery
devices and inefficiency of toxicity testing and evaluation studies in characterizing the novel
drug delivery formulations are hampering the market growth.

Based on the route of administration, the drug delivery systems market is segmented into
oral drug delivery systems, parenteral drug delivery systems, topical drug delivery systems
and pulmonary or inhalation drug delivery systems. Among these, oral drug delivery systems
is the largest and fastest emerging drug delivery systems segment and is expected to grow
at a mid single digit CAGR from 2020 to 2027 due to the increasing adoption of oral drug
delivery technology enhanced drug products by the value-centric patients across the globe.

The drug delivery systems market, based on product has been classified as Lipid based
drug delivery systems (LBDDS), Polymeric DDS and Viral vectors and other DDS consisting
of cellular DDS, inorganic or metallic nanoparticle DDS and plasmid DNA vectors. Among
these, the polymeric drug delivery systems segment accounted for the largest revenue in
2020 and is expected to grow at a low single digit CAGR from 2020 to 2027 due to the
increased utilization of polymeric drug delivery system enhanced drug products across the
globe. Viral vectors and other DDS segment is the fastest emerging segment and is
expected of growing at an exponential CAGR during the forecasted period. Some of the key
factors contributing to the rapid growth rate are the increasing adoption of advanced
biotherapeutics like gene therapeutics and other nuclear medicines for treating the highly
prevalent genetic or chronic disorders or for developing the advanced prophylactics and
promising potential of viral vectors in the development of most preferred non-invasive drug
dosage formulations.

Based on the type of drug molecule being delivered, the drug delivery systems global market
is bifurcated into small molecule drug delivery systems and large molecule drug delivery
systems. Among these, the small molecule drug delivery systems segment accounted for the
largest revenue in 2020 and is expected to grow at a low single digit CAGR from 2020 to
2027 due to the necessity of drug delivery systems for the targeted delivery of the cytotoxic
to the intended site of action to prevent systemic toxicity. Large molecule drug delivery
system segment is the fastest emerging segment and is expected of growing at mid single
digit CAGR from 2020 to 2027. Some of the major factors contributing to this high growth

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rate are the escalating popularity of the highly efficient and targeted biopharmaceuticals
among the value centric patient population and the elevating research activities for the
development of patient-specific or friendly biotherapeutics through the utilization of novel
drug delivery systems

The drug delivery systems market, based on mechanism has been segmented into Rate
Pre-Programmed Drug Delivery Systems, Targeted or site-specific Drug Delivery Systems
and Stimuli responsive Drug Delivery Systems. Among these, the Rate Pre-programmed
drug delivery systems segment accounted for the largest revenue in 2020 and is expected to
grow at a mid single digit CAGR during the forecasted period due to elevated utilization of
drug delivery system incorporated drug products with modulated release kinetics across the
globe. Targeted or site-specific drug delivery system segment is the fastest emerging
segment growing at a mid single digit CAGR from 2020 to 2027 due to the increasing
demand to mitigate the various systemic adverse effects associated with the use of
medications and enhance their safety profile.

The Drug Delivery Systems global market based on application has been grouped into
Oncology, Infectious diseases, Central Nervous System (CNS) Disorders, Metabolic
Disorders, Autoimmune disorders, Respiratory diseases, Ophthalmology, Cardiovascular
diseases and other applications consisting of Hematological diseases, Rare diseases and
Genetic disorders, Hormonal disorders, Dermatological disorders and Wound Healing.
Among these, Oncology drug delivery systems segment is the largest and fastest emerging
segment and is expected to grow at a mid single digit CAGR from 2020 to 2027 due to the
persistently escalating cancer patients across the globe and elevated adoption rate of the
oncological drug products enhanced with DDS.

The drug delivery systems global market is divided into four major geographies namely,
North America, Europe, Asia Pacific (APAC) and Rest of World (ROW). The major share of
the global market is occupied by North America in 2020 and is expected of growing at a mid
single digit CAGR from 2020 to 2027 mainly due to persistently elevating chronic and
infectious disease patient burden in the region and presence of huge number of pharma and
biotech companies in the region and the various strategies of pharma companies to
economically maintain their market exclusivity in the highly attractive U.S. market through
incremental innovation or repurposing of drugs by using novel drug delivery systems. APAC
is the fastest emerging region and is expected of growing at a mid single digit CAGR from
2020 to 2027. The rapid market growth rate in this region is due to steadily elevating

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communicable and non-communicable disease patient pool in the region, the growing
pharmaceutical market and the pharmaceutical and biotech formulation services sector in
the region and the increasing awareness and demand for value-enhanced therapeutics or
prophylactics from the patient base of the region.

According to IQ4I analysis, the carrier linked prodrugs global market is expected to grow at a
mid single digit CAGR from 2020 to 2027 due to the potential of carriers in realizing the
envisioned therapeutic effects of the pharmacological agent by facilitating the parent drug to
mitigate its various inherent limitations. According to our analysis, the nanotechnology
enabled drug delivery systems global market is expected to grow at a mid single digit CAGR
during the forecasted period due to the potential of nano-drug delivery systems to improve
the delivery and bioavailability of poorly water soluble therapeutics and to enhance the site-
specific delivery of medications through enhanced permeability and retention (EPR) effect.

Lonza, Evonik and Thermo Fisher are perpetuating their leading positions in the drug
delivery systems market due to their strong patent portfolio that enables them to offer unique
or differentiated drug delivery enabling technology, products or services and survive the
competition from new entrants. The huge number of clinical trials evaluating the feasibility of
liposome, lipid nanoparticles or antibody-drug conjugates suggests the growing interest of
pharmaceutical companies in the development of drug delivery system incorporated drug
products to enhance the therapeutic and economical value of their innovative, incrementally
innovated or repurposed pharmaceutical agents. According to IQ4I analysis, funding
received by the drug delivery technology or novel product developers during the period
January 2020 – June 2021 is estimated to be around $463 million, majority of which was
aimed to facilitate clinical translation of innovative DDS based drug products and for
research and development of novel drug delivery technologies.

The global COVID-19 pandemic that led to havoc on majority of the industries has been a
blessing in disguise for the drug delivery systems industry and brought it to the limelight from
the backwaters of pharmaceutical industry. To address the various challenges associated
with the COVID-19 vaccine or therapeutic candidates, efficient drug delivery systems (DDS)
became a necessity. The FDA emergency use authorized (EUA) COVID-19 mRNA vaccines,
BNT162b2 of Pfizer-BioNTech and mRNA-1273 of Moderna, both use the protective shell of
lipid nanoparticles (LNPs) for the safe and efficient delivery of mRNA into the body and to
trigger the immune cells to induce the desired immune response against the potential
Corona virus infections. Many of the pipeline COVID-19 vaccines candidates of Sanofi,

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Arcturus Therapeutics, Precision Nanosystems and others are also using LNPs as the DDS.
Viral vectors have also been employed on a large scale for the development of COVID-19
prophylactics. The European Medicines Agency (EMA) conditional or EUA Astrazeneca’s
Vaxzevria vaccine (Covishield in India) uses Adenoviral vector for delivering the corona virus
genetic material and illicit an immune response against COVID-19. The FDA and EMA EUA
Johnson & Johnson’s single shot COVID-19 vaccine, Russian Gamaleya Institute’s Sputnik
V COVID-19 vaccine (restricted use approved in Russia and India) also use viral vectors as
gene delivery systems. The FDA approved antiviral drug, Veklury (Remdesivir) of Gilead
Sciences uses Ligand Pharmaceutical’s cyclodextrin based drug delivery system, Captisol
technology that improves the solubility, stability and safety profile of drugs.

Drug delivery systems are being increasingly investigated for the development of drug or
vaccine dosage formulations that can be administered through the non-invasive, patient
compliant routes. Pharma firms like Vaxart is exploring the feasibility of using adenoviral
vector and an enteric coating for the development of oral COVID-19 vaccine while
companies like Bharat Biotech, Altimmune are using adenoviral vectors for developing
intranasal COVID-19 vaccines. Companies like Oramed Pharmaceuticals (Israel) are
exploring the feasibility of using their novel proprietary drug delivery technology platform,
Protein Oral Delivery (POD) technology in delivering the therapeutic agent for metabolic
disorders like diabetes through the non-invasive oral route.

To gain more market share, drug delivery system companies are constantly striving to
launch innovative and differentiated drug delivery enabling technology, service or products.
For instance, in May 2021, Evonik launched a new enteric protected, EUDRACAP functional,
ready-to-fill capsules that optimizes gastric resistance, improves intestinal absorption and
increases drug bioavailability, on commercial scale.

To enhance the therapeutic and economic value of their therapeutic or prophylactic products
and thereby their market reach, pharmaceutical or biopharmaceutical companies are
harnessing the novel drug delivery enabling technologies, products or services of the drug
delivery companies. For instance, in November 2020, Horizon Therapeutics plc collaborated
with Halozyme Therapeutics, Inc. to gain access to Halozyme’s ENHANZE Technology for
the development of subcutaneous formulations of medications targeting for treating Thyroid
Eye Disease.

To gain full access to novel, differentiated drug delivery platforms, captivate it and prevent
further competition in the field, pharmaceutical companies have adopted the strategy of

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acquiring their long term DDS partners. For instance, in April 2021, U.S. based Amneal
Pharmaceuticals acquired Kashiv Specialty Pharmaceuticals of Kashiv Biosciences (U.S.),
to gain full control and access to Kashiv’s novel drug delivery platforms and its vast pipeline
of 505(b)(2) drugs and generics.

The drug delivery enabling technology, product or service providers market is fragmented
with the top five players occupying only a minor share of the market and the majority of the
market being occupied by other players. The top players in drug delivery enabling
technology, product or service providers market are Thermo fisher Scientific Inc. (Patheon)
(U.S.), Lonza Group Ltd. (Switzerland), Catalent, Inc. (U.S.), Merck KGaA (Germany),
Evonik Industries (Germany), Halozyme Therapeutics Inc. (U.S.), Ligand Pharmaceuticals
Incorporated (U.S.), Mitsubishi Chemical Holdings Corporation (Qualicaps CO. Ltd.) (Japan),
FujiFilm Holdings Corporation (Japan), ACG (Associated Capsule Group) Worldwide (India)
and others. The drug delivery system enhanced product providers market is consolidated
with the top five pharmaceutical players occupying majority of the market share and the
remaining minority share of the market being occupied by other players. The top players in
drug delivery enhanced product providers market are Johnson and Johnson (U.S.), Gilead
Sciences Inc. (U.S.), F. Hoffmann-La Roche AG (Switzerland), Abbvie Inc. (U.S.), Takeda
Pharmaceutical Company (Japan), Astellas Pharma (Japan), Biogen (U.S.), Pfizer Inc.
(U.S.), Abbvie Inc. (U.S.), Amgen Inc. (U.S.), Novartis AG (Switzerland) and others.

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Reasons for buying this report:

 Drug Delivery Systems global market is projected to reach $158,006.4 million by
2027.
 Identification and analysis of the Drug Delivery Systems market by route of
administration, products, drug molecule type, mechanism, applications and
geography.
 Revenue forecast of Drug Delivery systems market and strategic analysis of each
sub segment with respect to segmental growth trends.
 Identification of major market trends, Porter's model, factors driving and restraining
the Drug Delivery systems market.
 Analysis of clinical trials, patent trends, supply chain, funding scenario, Carrier linked
Prodrugs, Nanotechnology enhanced drug delivery systems, Impact of COVID-19 on
DDS industry, major companies DDS product or technology or service and purpose
matrix, global market share analysis of drug delivery enabling technology, product or
service providers and of drug delivery system enhanced drug product providers.
 Analysis of the opportunities for stakeholders by identifying the high-growth
segments of the market.
 Revenue forecast of Drug Delivery Systems market with respect to North America
(U.S., Rest of North America), Europe (Germany, Italy, France and Rest of Europe),
Asia-pacific (China, Japan, India and Rest of Asia-Pacific) and Rest of the World
(Brazil, Rest of LATAM and Middle East and Africa).
 Profiles of major players in Drug Delivery Systems market and analysis of their
product offerings, financial revenue, business strategies, SWOTs and market shares.

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FIGURE 1

DRUG DELIVERY SYSTEMS GLOBAL MARKET SEGMENTATION

Drug Delivery Systems Global Market

Route of Drug Molecule Product Application Mechanism Region

Administration Type

Small Rate Pre-

Oral Oncology North
Molecule programmed
DDS America
DDS DDS
Lipid Based Polymeric Viral Vector
Large DDS DDS and Other DDS Infectious Targeted
Parenteral Diseases Europe
Molecule DDS
DDS Polymer Drug
DDS Emulsion
DDS Conjugate & CNS Stimuli
Topical ADC Disorders Responsive APAC
DDS Polymeric DDS
Vesicular
DDS Nanoparticle Autoimmune
DDS diseases ROW
Inhalation
DDS
Enzyme based Metabolic
Liposome
DDS Disorders

Lipid Hydrogel Respiratory

Particulate DDS Disorders
DDS
Other
Polymeric Ophthalmology
DDS

CVD

Other
Applications

Source: Controlled Release Society (CRS), Parenteral Drug Association (PDA), Inhalation Drug Delivery Association (IDDA),
Institute for Drug Delivery and Biomedical Research (IDBER), Drug Delivery Foundation (DDF), Drug Delivery Special Interest
Group, Japan Society of Drug Delivery System, Drug Delivery Research Group, Biomaterials and Drug Delivery Research
Group (BADD), OECD, WHO, Industrial Experts and IQ4I Analysis.

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