Type 2 Diabetes Market Size, Share, and Trends 2025 to 2034

Type 2 Diabetes Market Size and Forecast 2025 to 2034

The global type 2 diabetes market size was accounted for USD 37.15 billion in 2024 and is anticipated to reach around USD 76.39 billion by 2034, growing at a CAGR of 7.47% from 2025 to 2034. The rising prevalence of type 2 diabetes, technological advancements, and growing research and development boost the type 2 diabetes market.

Type 2 Diabetes Market Key Takeaways

• North America dominated the global type 2 diabetes market with the largest market share of 36% in 2024.
• Asia Pacific is expected to expand at a solid CAGR during the forecast period. 
• By drug class, the insulin segment led the global market in 2024.
• By drug class, the SGLT2 inhibitors segment is observed to witness a significant growth in the market during the predicted period.
• By route of administration, the oral segment captured the largest market share in 2024.
• By route of administration, the subcutaneous segment expects notable growth during the forecast period.
• By distribution channel, the retail pharmacies segment accounted for the biggest share in the market in 2024. 

Impact of AI on Diabetes Management

The advent of advanced technologies such as artificial intelligence (AI) and machine learning (ML) has transformed the healthcare sector. In type 2 diabetes, AI and ML play a crucial role in every aspect from diagnosis to treatment. AI and ML also have huge potential in the research field to develop novel anti-diabetic drugs resulting in increased effectiveness and reduced side effects. They are also used to identify potential drug targets involved in the complexity of the disease. Additionally, AI and ML are used to screen large amounts of patients for their diabetic presence. This reduces a lot of time and costs for government and private organizations. AI-enabled sensors enable patients to check their blood glucose levels frequently, without visiting pathology labs. 

U.S. Type 2 Diabetes Market Size and Growth 2025 to 2034

The U.S. type 2 diabetes market size was evaluated at USD 10.03 billion in 2024 and is predicted to be worth around USD 21.05 billion by 2034, rising at a CAGR of 7.69% from 2025 to 2034. 

North America dominated the global type 2 diabetes market with the largest market share of 36% in 2024. The growth of type 2 diabetes market in the region is being driven by the growing prevalence of diabetes. Diabetes affects more than 29 million people in North America, with that number anticipated to rise to 32 million by 2025. In 2019, the U.S. alone had over 25 million diabetic sufferers. The factors such as expansion of healthcare sector and favorable government regulations are driving the growth of North America type 2 diabetes market. In addition, growing number of initiatives by government and favorable reimbursement policies are boosting the type 2 diabetes market growth in the region.

Asia Pacific is expected to expand at a solid CAGR during the forecast period.  The UK dominates the type 2 diabetes market in Europe region. The growing number of type 2 diabetic patients is driving the growth of type 2 diabetes market in Europe region. The factors such as rising research and development activities as well as rising prevalence of obesity are propelling the demand for type 2 diabetes drugs. In addition, improved supply chain management is providing lucrative opportunities for the expansion of Europe type 2 diabetes market.

Type 2 Diabetes Market Growth Factors

• Rising Prevalence of Type 2 Diabetes: Type 2 diabetes is a major public health concern, especially in emerging economies. The rising prevalence of type 2 diabetes globally necessitates its early detection and treatment.
• Increasing Geriatric Population: The geriatric population is more prone to developing type 2 diabetes compared to other age groups.
• Rising Obesity Rates: The rising obesity rates are one of the major factors causing type 2 diabetes. 
• Growing Research and Development: The growing research and development promote the development of novel diagnostics and drugs for the treatment of type 2 diabetes.
• Favorable Government Support: Government organizations launch initiatives for screening and early detection of type 2 diabetes cases.
• Increasing Investments: The market players as well as the government are heavily investing in research and development initiatives.

Market Scope

Market Dynamics

Driver

Generic Alternatives

The major growth factor of the type 2 diabetes market is the development of generic alternatives to popular brand drugs. Pharmaceutical and biopharmaceutical companies manufacture generics to increase the widespread accessibility and affordability of type 2 diabetes drugs. Generics are relatively cheaper as they do not undergo preclinical and clinical testing as well as avoid marketing costs. The favorable regulatory frameworks by regulatory agencies also support the development of generics. The increasing number of patent expirations facilitates generic development, leading to a drug with a similar safety and effectiveness profile. 

Restraint

High Treatment Cost

The type 2 diabetes market faces formidable challenges including the high cost of medical treatments. Advanced diagnostic tools and newer-brand drugs are very expensive and cannot be afforded by a larger population. 

Opportunity

Growing Research and Development

The future of the type 2 diabetes market is promising, driven by growing research and development (R&D) activities. The R&D activities are strengthened by increasing investments and public-private partnerships globally. The growing demand for point-of-care diagnostics leads to the development of novel devices for diagnosing type 2 diabetes in the comfort of the patient’s homes. Needle-free devices increase accessibility to many people. Novel protein targets are investigated to design drugs targeting such proteins, treating type 2 diabetes from its root cause. The latest innovations are also made in revolutionizing the drug delivery systems to aid in targeted and timely drug delivery. 

The government all around the globe is taking constant efforts for the development of global type 2 diabetes market. The government bodies are collaborating with major market players for the launch of new products in the worldwide type 2 diabetes market. In addition, government of emerging nations are providing tax benefits such as tax incentives and subsidies to the manufacturers of type 2 diabetes drugs and medications. Thus, all these factors are driving the growth and development of global type 2 diabetes market.

The market players are not only introducing new drugs and medicines, but also introduced devices and tools that can be utilized for the treatment and diagnostics of type 2 diabetes. Thus, the growing research and development activities are propelling the growth of global type 2 diabetes market. The market players as well as government are heavily investing for research and development initiatives. Thus, this factor is contributing towards the growth and expansion of global type 2 diabetes market.

The global type 2 diabetes market has sparkled a surge in interest nowadays, owing to the fact that it is the major reason for cardiovascular diseases, as well as a variety of renal and neurological problems. Another factor that is supporting industry to generate the most money is the growing obesity epidemic in many regions of the world. Furthermore, rising demand for diabetes medications among adults is boosting the growth of global type 2 diabetes market. Impaired glucose tolerance, gestational diabetes, and impaired fasting glycemia are three more components of type 2 diabetes. Thus, the growth of global type 2 diabetes market is expected in near future.

Drug Class Insights

The insulin segment dominated the type 2 diabetes market in 2024. The increasing prevalence of diabetes cases in the population in which there is number of people suffering with type 2 diabetes which drives the demand for insulin as the major drug on a regular basis. Insulin is the major prescribed drug for type 2 diabetes mellitus. There are some types of insulin which are used by the type 2 diabetes patient such as a long-acting or intermediate-acting insulin, rapid-acting or short-acting insulin, and a mixed insulin (biphasic insulin) which contain intermediate and rapid-acting or short-acting insulin. The increasing intervention by the leading pharmaceutical firms in the development of the insulin drugs is further contributing to the growth of the segment. 

• In December 2024, Cipla announced to get the approval from Central Drugs Standard Control Organisation (CDSCO) for the exclusive marketing and distribution of inhalable insulin in India. The drug is developed by Afrezza and Mannkind as an alternative to the injectable drugs for the type 1 and type 2 adult diabetics.

The SGLT2 inhibitors is seen to grow at a significant rate in the market during the predicted period. The SGLT2 (Sodium-glucose Cotransporter-2) inhibitors offer the diversity in the medication it includes the nonglycemic and glycemic help in managing the diabetes level of number of diabetic patients. It helps in enhancing the glycemic control and reduces the cases like heart failure and progression of renal disease. The increasing cases of type 2 diabetes in the population and the demand for the efficient drug that can manage diabetes boosts the demand for the segment. 

• In January 2023, TheracosBio gets the approval for the Brenzavvy™ (bexagliflozin), an oral sodium-glucose cotransporter 2 (SGLT2) inhibitor from the U.S. Food and Drug Administration (FDA). The drug is especially developed for patients with type 2 diabetes.

Route of Administration Insights

The oral segment led the type 2 diabetes market in 2024. The rising implementation of oral routes of administration of type 2 diabetes drugs for managing their blood sugar level in regular basis driving the demand for the oral drug segment. It is prescribed for the patient with diabetes but still produces insulin in the body naturally. Alpha-glucosidase inhibitors, Biguanides, Bile acid sequestrants (BASs), Dopamine-2 agonists, DPP-4 inhibitors (gliptins), Meglitinides (glinides), SGLT2 inhibitors, Sulfonylureas, and Thiazolidinediones (TZDs) are some types of oral diabetes medication.

The subcutaneous segment expects a notable growth in the market during the forecast period. The increasing awareness regarding the subcutaneous administration of drug owing to its benefits like the rapid effects in management of the blood sugar level. The subcutaneous routes of administration is the process in which the person with diabetic gets insulin injections in the abdomen, upper arms, thighs, and buttocks. The insulin injections prescribed to the patient do not produce natural insulin into the body due to the enzymes present in stomach destroying the insulin before it reaches to the bloodstream.

Distribution Channel Insights

The retail pharmacies segment accounted for the largest share in the type 2 diabetes market in 2024. The easy availability of the retail pharmacies in the area, ease of reach, and availability of wide range of medications under the one roof is driving the growth of the segment. Retail pharmacists provide comfort and ease in buying medication, they also offer advice for a healthy lifestyle, correct type of insulin, needles, pens, and steps to use them. The retail pharmacies are equipped with all the essential and important type of type 2 diabetes mellitus treatment drugs and guidance related to managing the diabetes which enhance the customer experience.

Type 2 Diabetes Market Companies 

• Amgen Inc.
• AstraZeneca PLC
• Boehringer Ingelheim International GmbH
• Daiichi Sankyo Co. Ltd
• Eli Lilly and Co.
• Merck & Co. Inc
• Novartis AG
• Novo Nordisk AS
• Sanofi SA
• Takeda Pharmaceutical Co. Ltd

Latest Announcement by Industry Leaders

• Jeffrey Brewer, Co-Founder and CEO of BigFoot Biomedical emphasized the development of simpler diagnostic tools for detecting blood glucose levels. He commented that respec t for patients and understanding their needs are the two most essential aspects of the medical device and diabetes fields. 

Recent Developments

• In November 2024, Ascendis Pharma announced the grant of the exclusive worldwide license of the TransCon technology platform to Novo Nordisk. The collaboration was made to develop a once-monthly GLP-1 receptor agonist for the treatment of obesity and type 2 diabetes.
• In July 2024, Fitterfly announced a collaboration with Google Cloud to launch its latest AI feature – Fitterfly Klik – to enable people with diabetes to track and analyze their meals. The feature uses AI computer vision along with the Fitterfly Nutrition Database to recognize, analyze, and break down food.
• In May 2024, Eli Lilly and Company announced a total investment of $9 billion in its Lebanon, Indiana manufacturing site. The site was expanded to produce APIs such as Zepbound (tirzepatide) injection and Mounjaro (tirzepatide) for the treatment of obesity and type 2 diabetes

Segments Covered in the Report

By Drug Class Insights

• Insulin
• DPP-4 Inhibitors
• GLP-1 Receptor Agonists
• SGLT2 Inhibitors
• Others

By Route of Administration Insights

• Oral
• Subcutaneous
• Intravenous

By Distribution Channel Insights

• Retail Pharmacies
• Hospital Pharmacies
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
•  
• Middle East and Africa