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Healthcare Landscape Transformation and Pharma Shifts Driving DDS Industry Growth
Chapter of the 2025 Global Drug Delivery System Trends Report
4 minute read
The global healthcare landscape is undergoing a significant transformation, shaped by the rising burden of chronic diseases, evolving care delivery models, and movement towards value-based healthcare.
The prevalence of chronic and lifestyle-related diseases, such as diabetes, cardiovascular disease, respiratory illnesses (including asthma and COPD), and cancer, has risen significantly in recent years, particularly in developing countries.
Changes in healthcare delivery are reshaping drug delivery systems (DDS) design and adoption. The COVID-19 pandemic accelerated the shift to home-based care and self-administration, which is now sustained by a broader push to decentralize treatment as a practical response to hospital overcrowding and infection risk.
At the same time, value-based payment models are gaining traction amid growing pressure from governments and payers for measurable outcomes and cost-effectiveness. These models prioritize actual health improvements over the volume or cost of care delivered.
These changes in the global healthcare landscape are impacting the pharmaceutical industry, resulting in two shifts driving the demand for the DDS solutions:
R&D Pipeline Growth Fueled by Biologics Therapies
The pharmaceutical industry is experiencing a surge in drug development. Oncology emerged as the leading therapeutic area in global clinical development, accounting for 20% of all trials initiated worldwide between January 2020 and August 2025. Central nervous system (16%) and infectious diseases (10%) follow, while cardiovascular and metabolic disorders account for about 7%. Notably, immunology, cardiovascular, metabolic disorders, and respiratory diseases show the highest concentration of Phase I trials (>45%), highlighting strong early-stage innovation and sustained investment in next-generation therapies. This clinical pipeline expansion creates significant growth opportunities for the DDS industry, as the influx of new complex and targeted therapies requires more sophisticated, tailored delivery mechanisms to ensure safety, efficacy, and patient adherence.
Abbreviations: CNS: central nervous system; CV: cardiovascular; GI: gastrointestinal; MS: musculoskletal. Sources: GlobalData; Alira Health analysis.
Notes: 1Planned, suspended, terminated, and withdrawn clinical trials were excluded; 2Trials with start date between 01/01/2020 and 16/09/2025; 3Phase I/II trials were counted as Phase I trials; Phase I/II trials were counted as Phase II trials; Phase III/IV trials were counted as Phase III trials; Phase 0 and IV trials were excluded; 4Others include women’s health; genitourinary system; hematological disorders; ophthalmology; mouth and dental disorders; undisclosed; genetic disorders; ear nose throat disorders; hormonal disorders; toxicology; other diseases; nutritional disorders; non-malignant disorders.
Momentum is also fueled by the expanding biologics market, which grew 14% in 2024 to $474 billion, up from $417 billion in 2023, driven by strong demand in oncology, immunology, and metabolic diseases. Biologics often present unique delivery challenges due to their high molecular weight, viscosity, and sensitivity to degradation. The result is rising demand for advanced DDS, such as large-volume autoinjectors and on-body injectors for subcutaneous administration, that can accommodate these characteristics while enhancing the patient experience.
The GLP-1 Market Boom
The rise of GLP-1 receptor agonists is a prominent example of how therapeutic innovation is reshaping DDS demand. These drugs were initially developed for Type 2 diabetes but have emerged as game changers in obesity treatment, thanks to their dual impact on glucose regulation and appetite suppression.
Most GLP-1 agonists are administered parenterally via weekly injections, with approximately 80% of pipeline programs relying on injectable delivery. This creates a major opening for DDS providers to play a pivotal role in enabling and scaling these therapies. Four strategic opportunity areas are emerging:
- Opportunity to scale proven platforms: The GLP-1 surge is creating unprecedented demand for large-scale, reliable manufacturing. This presents a major opportunity for DDS providers with pre-validated, off-the-shelf autoinjector platforms, who can scale rapidly and cost-effectively to meet soaring volume needs.
- Opportunity for differentiation through custom design: Pharma clients also seek bespoke delivery devices to match unique formulation needs or stand out in an increasingly competitive GLP-1 landscape. This sustains demand for DDS providers with strong design, engineering, and customization capabilities.
- Opportunity to shift toward intellectual property (IP) ownership: Pharma companies are more open to delivery partners that bring proprietary technologies rather than operating solely under CMO/CDMO models, given the high value and margins of GLP-1 therapies. DDS providers pursuing their own IP strategies can secure stronger differentiation, long-term client retention, and higher value capture.
- Opportunity to grow across the value chain: The GLP-1 wave is driving significant expansion across the drug delivery value chain, with suppliers pursuing strategies that include scaling manufacturing capacity, investing in advanced fill–finish and ready-to-use component capabilities, securing long-term supply agreements, and expanding assembly and packaging infrastructure.
Impact of Oral GLP-1s
Oral GLP-1s represent a growing threat to the DDS market due to their potential for greater convenience and adherence, although injectables are expected to remain dominant. Innovation in oral peptide formulations has accelerated, with 12 oral GLP-1 drugs in Phase III trials or pre-registration as of 2025. Both Novo Nordisk and Eli Lilly are advancing oral versions of GLP-1, and API CDMOs are ramping up their oral formulation capabilities to complement injectable offerings.
Note: As of September 2025.
Sources: GlobalData; Alira Health analysis.