Dementia-related Psychosis Market Set for 26% Growth Through 2036

According to new data from DelveInsight, the market for dementia-related psychosis reached a valuation of USD 690 million across the seven major markets in 2025. The United States currently dominates this sector, accounting for 77% of the total market share, with over 2 million diagnosed cases reported domestically. The overall patient pool across the 7MM exceeded 5 million individuals, highlighting the escalating burden of dementia-related symptoms.

Pharmaceutical development is shifting toward more targeted mechanisms of action. Companies including Acadia Pharmaceuticals, Bristol Myers Squibb, and Cognition Therapeutics are advancing clinical trials for therapies such as Remlifanserin (ACP-204) and COBENFY (xanomeline–trospium chloride). These candidates aim to improve upon the current standard of care, which relies heavily on off-label use of traditional antipsychotics that often carry safety risks. By focusing on pathways like selective serotonin receptor modulation and muscarinic acetylcholine receptor activation, researchers hope to provide effective symptom relief while maintaining motor stability in patients.