Photodynamic Therapy Market Size and Forecast – 2025-2032
Photodynamic Therapy Market is estimated to be valued at USD 5.32 Bn in 2025 and is expected to reach USD 9.48 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 8.6% from 2025 to 2032.
Key Takeaways
Market Overview
Photodynamic therapy is a medical intervention that employs a blend of photosensitive drugs and light to eradicate cancer cells and address diverse medical ailments. Multiple determinants influenced the dimensions of the market. These factors encompassed technological advancements, the prevalence of conditions amenable to PDT such as cancer, regulatory endorsements, and overarching trends in healthcare.
Escalating incidences of skin cancer and other malignancies, coupled with escalating demand for procedures characterized by minimal invasiveness are expected to drive the market growth. Furthermore, the heightened adoption of PDT for addressing pre-cancerous conditions further fueled the market growth.
Current Events and their Impact on the Photodynamic Therapy Market
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Role of Artificial Intelligence (AI) in Photodynamic Therapy Market
The integration of artificial intelligence into photodynamic therapy has transformed its application, making it more precise, safe and effective. AI helps in the diagnosis and target identification through medical imaging. Deep learning technique is used which processes the imaging data such as MRI, CT, Fluorescence and may to identify tumor more precisely and differentiate between healthy and diseased tissues. AI can also analyze biopsies or in vivo images to determine the accurate staging and diagnosis before photo dynamic therapy. Additionally, it aids in treatment planning by optimizing light dose and exposure time and helps in real-time monitoring with the help of AI algorithms.
Reimbursement Scenario in Photodynamic Therapy Market
Photodynamic Therapy (PDT) is a treatment that involves the use of light-activated medications to treat certain medical conditions. The reimbursement process for PDT requires accurate coding and compliance with billing guidelines to ensure appropriate compensation for the services rendered. The reimbursement process relies heavily on the documentation of medical necessity for the services provided. Physicians are responsible for using independent judgment when selecting the most appropriate codes to describe the services rendered. The clinical rationale for performing PDT must be clearly documented, as it directly impacts reimbursement. For example, PDT may be considered medically necessary for conditions such as actinic keratosis, certain types of skin cancers, or age-related macular degeneration. The physician must ensure that the treatment meets the payer's requirements for medical necessity. While reimbursement is a standard process, coverage and reimbursement amounts can vary significantly by payer and geographic region. Physicians must be aware that Sun Pharmaceuticals and its affiliates do not guarantee reimbursement for PDT procedures. As a result, healthcare providers are advised to contact the relevant Medicare Fiscal Intermediary, Carrier, or CMS for specific guidelines and requirements that may differ by payer.
Photodynamic Therapy Market Insights, By End-User, Cancer Treatment Centers is Dominating Due to Specialized Treatment Setting
The cancer treatment centers segment is anticipated to dominate the market holding a share of 37.1% in 2025. Several cancer treatments all over the world utilize photodynamic therapy (PDT) to treat various caner and precancerous conditions. The adoption of photodynamic therapy is constantly expanding as people are preferences a targeted and minimally involves technique compared to the tradition treatment such included surgery, chemotherapy, and radiation. Countries such as Switzerland, Germany, and the United States are widely popular for their cancer treatment centers, equipped with latest diagnostic tools and cutting-edge treatments. It is estimated that the United States alone that 7,882 cancer treatment centers, and Europe have over 1,00 centers. This is further propelling the photodynamic therapy market demand.
Photodynamic Therapy Market Insights, By Product Type- Photosensitive Drugs, To Initiate the Therapeutic Effect
The photosensitive drugs segment is expected to dominate the market with largest share in 2025, as it is a primary component that initiates the therapeutic effect. The photosensitive molecules absorb light of the appropriate wavelength, initiating activation processes leading to the selective destruction of the inappropriate cells. These drugs are absorbed by the target cells that is the cancer cells. When the light is exposed to a specific wavelength, they become activate and produce reactive oxygen (ROS), leading to cell death. Photosensitive drugs are classified into porphyrin derivative, which further bifurcate into hematoporphyrin derivative (HpD) and benzoporphyrin derivative (BPD). Apart from this, other photosensitizers include texaphyrin, aminolevulinic acid (ALA) and certain chlorins.
In May 2024, researchers developed a light-sensitive drug that enhances adenosine activity in the brain, inducing sleep in mine with genetic modification. This innovation overcomes the limitations of conventional photosensitive drugs, offering precise control over sleep and motivation through A2A receptors.
Photodynamic Therapy Market Insights, By Light Source: Laser, Due to High- Intensity Light
The laser segment is anticipated to lead the market with largest share in 2025, credited to its focused, high-intensity light which is needed to activate the photosensitizer, a drug that selectively targets and destroys cancerous or diseased cells. Laser has the ability to be coupled to fiber optics for internal access, it has a specific wavelength and can achieve higher irradiance, ultimately reducing the treatment time.
In January 2025, researchers in South Korea designed a drug to hit cancer cells where it hurts the extreme. The development of a laser-activated drug that targets and destroys chemotherapy-resistant pancreatic cancer cells in mice.
Photodynamic Therapy Market Insights, By Application- Growing Prevalence of Cancer is driving the Segment’s Growth
The cancer segment is showing exceptional growth and is expected to lead the market in 2025, as photosensitizer, a drug that reacts to lights, lead to targeting and killing cancer cells. This procedure involves a minimally invasive and targeted approach that destroys cancer cells while sparing the surrounding healthy tissue. There is constant research going on to improve photodynamic therapy effectiveness and expand its use to various cancer types such as skin care, lung cancer, esophageal cancer, bladder cancer, head and neck cancer and many more.
In February 2025, scientists have developed a new light-sensitive chemicals that can improve the treatment of aggressive cancer with minimal side effects. The new chemicals called cyanine-carborne salts, and their role in next-generation of cancer treatments.
Regional Insights
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North America Photodynamic Therapy Trends
North America is anticipated to command the most significant share of 30.0% of the photodynamic therapy market. The predominant factor attributing to the growth of photodynamic therapy in North America is due to the increasing prevalence of skin condition and cancer such as actinic keratosis. This is a precancerous skin condition. It is common among the population of North America, affecting over 58 million people. This skin condition is causes by prolonged exposure to sun, resulting in rough, scaly patches on skin. For deal with this problem, in May 2025, on the day of global AK awareness day, Biofrontera Inc. and Almirall launched the Hats on Challenge, a social media initiative to raise awareness regarding Actinic Keratosis (AK). About 14% of the North American popular is suffering from this condition. Under photodynamic therapy, aminolevulinic acid (ALA or Levulan) drug is used to treat the skin, which is further positively influencing the photodynamic market forecast.
Europe Photodynamic Therapy Trends
Europe is projected to rank as the second-largest PDT market by 25.3% during the forecast timeframe, Europe's position derives from the escalating incidence of skin disorders and cancer across the region. Key players within this market include Germany, France, and the U.K. the photodynamic Therapy is gaining traction in Europe is due to the presence of various medical conditions, primarily for the treatment of non-melanoma skin cancer such as actinic keratosis, Bowen’s disease, and superficial basal cell carcinoma. A data published in the European Academy of Dermatology & Venereology, Europe has the largest population with consisting of 44,689 adults from 27 European countries including European Union, UK, Norway and Switzerland. About 43% of EU citizens had at least one skin disease is a year. This is further escalating the photodynamic therapy market revenue in Europe.
Asia Pacific Photodynamic Therapy Trends
Asia Pacific is poised to emerge as the fastest-growing PDT market throughout the projected period. Asia Pacific's ascent can be attributed to the mounting awareness regarding PDT and the surging prevalence of skin disorders and cancer in the region. Leading markets within Asia Pacific encompass China, India, and Japan. Asia Pacific market has displayed the highest growth trajectory. Factors propelling this growth include expanded healthcare accessibility, a substantial patient pool, and augmented healthcare investments, particularly in China and India. China consists of approximately 784 million new cases of skin disease, which mainly includes atopic dermatitis and psoriasis. India and China, combines accounts for 18% of the global population. This is further escalating the photodynamic therapy market demand.
United States Photodynamic Therapy Trends
The United States is leading the Photodynamic therapy (PDT) due to the presence of various cancer treatment method gaining increasing attention in among the population. It involves using a photosensitizing agent that is activated by light to kill cancer cells. The US Food and Drug Administration (FDA) has approved several photosensitizers for treating specific cancers and precancers. PDT is often used as a local treatment, targeting specific areas of the body. For instance, in February 2025, researchers of United States identified and optimized a news type of light-sensitive molecules that improves the treatment of aggressive cancer using photodynamic therapy.
Global Photodynamic Therapy Market Trends
Increasing Product Launches
Increasing new product launches in the market is expected to drive the photodynamic therapy market growth over the forecast period. For instance, in July 2022, Biolitec Pharma Ltd., a medical technology company, introduced the latest generation laser device named ELVeS Radial Laser System. The device offers advanced treatment options for various medical conditions including cancer, benign prostatic hyperplasia, and varicose veins, and thus, showcasing the continuous innovation in photodynamic therapy technologies.
Global Photodynamic Therapy Market Drivers
Increasing Incidence of Cancer and Skin Disorders
Rising prevalence of cancer, particularly skin cancers like basal cell carcinoma and squamous cell carcinoma, boosts demand for effective treatment options like PDT. As cancer rates continue to rise globally, for instance, in February 2022, according to the World Health Organization's (WHO), cancer accounted for around 10 million deaths worldwide, or roughly one in six fatalities in 2020. Thus, the increasing prevalence of cancer cases across the globe is expected to boost demand for photosensitizer drugs, thereby, accelerating the market growth.
Favorable Regulatory Approvals
Regulatory agencies around the world had been granting approvals for various indications of PDT, such as skin cancers, pre-cancerous conditions, and certain non-oncological applications. These approvals expand the market potential and encourage healthcare providers to adopt PDT as a treatment option. For instance, in September 2021, Soligenix, Inc., a biopharmaceutical company, announced that the Office of Orphan Products Development of the U.S. Food and Drug Administration had granted orphan drug designation to the active ingredient hypericin for the treatment of T-cell lymphoma, extending the target population beyond cutaneous T-cell lymphoma.
Global Photodynamic Therapy Market Restraints
Limited Awareness and Education: Lack of awareness among both patients and healthcare providers about PDT and its potential benefits can hinder its adoption. Education campaigns and training initiatives are needed to address this limitation.
High Treatment Costs: PDT can be cost-intensive, involving specialized equipment, photosensitive drugs, and skilled personnel. High treatment costs can deter both patients and healthcare facilities from adopting PDT, particularly in regions with limited healthcare budgets.
Complex Treatment Protocols: PDT involves multiple steps, including photosensitizer administration, light exposure, and post-treatment care. Complex protocols can require specialized training for healthcare professionals and may affect treatment accessibility.
Global Photodynamic Therapy Market Opportunities
Collaboration with Pharmaceutical Companies
Collaboration with pharmaceutical companies can lead to the development of innovative photosensitive drugs that enhance the efficacy of PDT. Collaborations can also facilitate the incorporation of PDT into combination therapies, thereby expanding its potential applications. For instance, on February 16, 2023, Lumeda Inc, a clinical-stage medical technology company that focuses on improving treatment outcomes of patients with lung cancer, and photonamic GmbH & Co KG, a pharmaceutical company involved in the development of 5-aminolevulinic acid (5-ALA) in various applications as a precursor for the photosensitizer PpIX, collaborated on a Phase I-II clinical study to evaluate the safety and efficacy of Photodynamic Therapy (PDT) with 5-ALA as an adjuvant in combination with Immune Checkpoint Inhibitors (ICIs) to prime the immune system in the treatment of lung cancer patients, which is further accelerating the photodynamic therapy market share.
Market Report Scope
Photodynamic Therapy Report Coverage
Report Coverage | Details | ||
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Base Year: | 2024 | Market Size in 2025: | USD 5.32 Bn |
Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
Forecast Period 2025 to 2032 CAGR: | 8.6% | 2032 Value Projection: | USD 9.48 Bn |
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Companies covered: |
Gladerma S.A., Sun Pharmaceutical Industries Ltd., Biofrontera, Novartis AG, Valeant Pharmaceuticals International, Inc., Quest Pharmatech, Inc., Hologic, Inc., Lumibird (Quantel Medical), Theralase Technologies Inc., Photocure ASA, Biolitec AG, IPG Photonics Corporation |
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Key Developments
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*Definition: Photodynamic therapy (PDT) is a medical treatment that involves the use of a photosensitive drug and specific wavelengths of light to selectively target and destroy abnormal cells, such as cancer cells or certain skin conditions, while minimizing damage to surrounding healthy tissues.
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About Author
Ghanshyam Shrivastava - With over 20 years of experience in the management consulting and research, Ghanshyam Shrivastava serves as a Principal Consultant, bringing extensive expertise in biologics and biosimilars. His primary expertise lies in areas such as market entry and expansion strategy, competitive intelligence, and strategic transformation across diversified portfolio of various drugs used for different therapeutic category and APIs. He excels at identifying key challenges faced by clients and providing robust solutions to enhance their strategic decision-making capabilities. His comprehensive understanding of the market ensures valuable contributions to research reports and business decisions.
Ghanshyam is a sought-after speaker at industry conferences and contributes to various publications on pharma industry.
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