Psychosis Market Size, Epidemiology, In-Market Drugs Sales, Pipeline Therapies, and Regional Outlook 2026-2036

Market Overview:

The psychosis market reached a value of USD 11.0 Billion across the top 7 markets (US, EU4, UK, and Japan) in 2025. Looking forward, IMARC Group expects the top 7 major markets to reach USD 18.5 Billion by 2036, exhibiting a growth rate (CAGR) of 4.86% during 2026-2036.

The psychosis market has been comprehensively analyzed in IMARC's new report titled "Psychosis Market Size, Epidemiology, In-Market Drugs Sales, Pipeline Therapies, and Regional Outlook 2026-2036". Psychosis refers to a mental health condition characterized by a loss of contact with reality, leading to significant disturbances in a person's thoughts, perceptions, emotions, and behaviors. Individuals suffering from psychosis may have difficulty distinguishing between what is real and what is not, resulting in hallucinations (perceiving things that are not there) and delusions (strongly held false beliefs). Disorganized thinking and speech may manifest as incoherence or difficulty organizing thoughts. Additionally, patients may exhibit social withdrawal, lack of motivation, and impaired cognitive abilities. The diagnosis of psychosis involves a comprehensive evaluation by a qualified mental health professional, typically a psychiatrist or a clinical psychologist. The process includes a thorough assessment of the patient's symptoms, medical history, and family history of mental health conditions. Diagnostic criteria from recognized classification systems, such as the Diagnostic and Statistical Manual of Mental Disorders (DSM-5), are used as guidelines. In addition to this, the healthcare professional may conduct interviews, psychological testing, and observation to gather information as well as determine if the patient meets the criteria for psychosis.

The increasing cases of mental health conditions, such as schizophrenia, bipolar disorder, severe depression, etc., which can disrupt normal brain functioning, are primarily driving the psychosis market. In addition to this, the rising prevalence of numerous associated risk factors, including sleep disorders, postpartum complications, genetic predispositions, substance-induced effects from drugs or alcohol, neurodegenerative diseases, etc., is also creating a positive outlook for the market. Moreover, the widespread adoption of typical antipsychotics, such as haloperidol and chlorpromazine, which work by targeting the brain's dopamine receptors, thereby helping to reduce hallucinations, delusions, and disorganized thinking, is further bolstering the market growth. Apart from this, the inflating application of cognitive behavioral therapy, since it helps to develop coping strategies, increase problem-solving skills, and manage stress in patients, is also acting as another significant growth-inducing factor. Additionally, the escalating utilization of mindfulness-based interventions, such as mindfulness-based cognitive therapy (MBCT) and mindfulness-based stress reduction (MBSR), for alleviating stress levels, enhancing emotional regulation, and improving overall well-being is expected to drive the psychosis market during the forecast period.

IMARC Group's new report provides an exhaustive analysis of the psychosis market in the United States, EU4 (Germany, Spain, Italy, and France), United Kingdom, and Japan. This includes treatment practices, in-market, and pipeline drugs, share of individual therapies, market performance across the seven major markets, market performance of key companies and their drugs, etc. The report also provides the current and future patient pool across the seven major markets. According to the report, the United States has the largest patient pool for psychosis and also represents the largest market for its treatment. Furthermore, the current treatment practice/algorithm, market drivers, challenges, opportunities, reimbursement scenario, unmet medical needs, etc., have also been provided in the report. This report is a must-read for manufacturers, investors, business strategists, researchers, consultants, and all those who have any kind of stake or are planning to foray into the psychosis market in any manner.

Recent Developments:

• In February 2026, the U.S. FDA approved Bysanti (Milsaperidone), a novel atypical antipsychotic developed by Vanda Pharmaceuticals Inc., for the treatment of schizophrenia and bipolar I disorder. This approval introduces a new chemical entity into the psychosis treatment landscape, expanding therapeutic options and reinforcing continued innovation within the atypical antipsychotic class. The drug is expected to launch commercially in 2026.

Key Highlights:

• It is estimated that 13 to 23 percent of persons experience psychotic symptoms at some point in their lifetime, and 1 to 4 percent meet the criteria for a psychotic condition.
• A first-time episode of psychosis occurs in around 50 out of every 100,000 people, whereas schizophrenia occurs in about 15 out of every 100,000.
• Males often begin in their teens to mid-20s, while females begin in their teens to late 20s.
• Psychosis is very infrequent in children.
• According to statistics on psychotic disorders, 0.25 to 0.64% of people in the United States suffer from one or more.

Drugs:

Abilify (Aripiprazole) is an atypical antipsychotic medication used to treat conditions like schizophrenia, bipolar disorder, and major depressive disorder. It works by modulating dopamine and serotonin receptors in the brain to help reduce symptoms of psychosis, such as hallucinations, delusions, and disorganized thinking. Abilify helps restore balance to neurotransmitters, improving mood, cognition, and behavior in patients with psychotic disorders.

Risperdal (Risperidone), developed by Janssen, is an atypical antipsychotic medication used to treat conditions like schizophrenia and bipolar mania. It functions by regulating neurotransmitters, such as dopamine and serotonin, in the brain. This helps to reduce psychotic symptoms, including delusions, hallucinations, and agitation, while also enhancing mood and cognitive function.

NBI-1117568 (NBI-568) is an investigational, oral, muscarinic M4 selective agonist developed by Neurocrine Biosciences for the treatment of schizophrenia and psychosis. It targets the muscarinic M4 receptor to improve cognitive and behavioral symptoms while potentially reducing side effects associated with traditional dopamine-based therapies. The drug has shown promising results in Phase 2 clinical trials for adults with schizophrenia and related psychotic disorders.

Time Period of the Study

• Base Year: 2025
• Historical Period: 2020-2025
• Market Forecast: 2026-2036

Countries Covered

• United States
• Germany
• France
• United Kingdom
• Italy
• Spain
• Japan

Analysis Covered Across Each Country

• Historical, current, and future epidemiology scenario
• Historical, current, and future performance of the psychosis market
• Historical, current, and future performance of various therapeutic categories in the market
• Sales of various drugs across the psychosis market
• Reimbursement scenario in the market
• In-market and pipeline drugs

Competitive Landscape:

This report also provides a detailed analysis of the current psychosis marketed drugs and late-stage pipeline drugs.

In-Market Drugs

• Drug Overview
• Mechanism of Action
• Regulatory Status
• Clinical Trial Results
• Drug Uptake and Market Performance

Late-Stage Pipeline Drugs

• Drug Overview
• Mechanism of Action
• Regulatory Status
• Clinical Trial Results
• Drug Uptake and Market Performance

*Kindly note that the drugs in the above table only represent a partial list of marketed/pipeline drugs, and the complete list has been provided in the report.

Key Questions Answered in this Report:

Market Insights

• How has the psychosis market performed so far and how will it perform in the coming years?
• What are the markets shares of various therapeutic segments in ​2025​ and how are they expected to perform till ​2036​?
• What was the country-wise size of the psychosis across the seven major markets in ​2025​ and what will it look like in ​2036​?
• What is the growth rate of the psychosis across the seven major markets and what will be the expected growth over the next ten years?
• What are the key unmet needs in the market?

Epidemiology Insights

• What is the number of incident cases (​2020-2036​) of psychosis across the seven major markets?
• What is the number of incident cases (​2020-2036​) of psychosis by age across the seven major markets?
• What is the number of incident cases (​2020-2036​) of psychosis by gender across the seven major markets?
• What is the number of incident cases (​2020-2036​) of psychosis by type across the seven major markets?
• How many patients are diagnosed (​2020-2036​) with psychosis across the seven major markets?
• What is the size of the psychosis patient pool (​2020-2025​) across the seven major markets?
• What would be the forecasted patient pool (​2026-2036​) across the seven major markets?
• What are the key factors driving the epidemiological trend of psychosis?
• What will be the growth rate of patients across the seven major markets?

Psychosis: Current Treatment Scenario, Marketed Drugs and Emerging Therapies

• What are the current marketed drugs and what are their market performance?
• What are the key pipeline drugs and how are they expected to perform in the coming years?
• How safe are the current marketed drugs and what are their efficacies?
• How safe are the late-stage pipeline drugs and what are their efficacies?
• What are the current treatment guidelines for psychosis drugs across the seven major markets?
• Who are the key companies in the market and what are their market shares?
• What are the key mergers and acquisitions, licensing activities, collaborations, etc. related to the psychosis market?
• What are the key regulatory events related to the psychosis market?
• What is the structure of clinical trial landscape by status related to the psychosis market?
• What is the structure of clinical trial landscape by phase related to the psychosis market?
• What is the structure of clinical trial landscape by route of administration related to the psychosis market?