Drywall is often required as part of a living space, as it acts as a fire barrier...it satisfies the burn rating that is required to contain a fire in your house.
There are alternatives, though most are used in commercial applications. they are, essentially, panels that have a finished face. Some fabric, some textured...though before proceeding I'd ring up your local building official to see if that method is approved for residential.
There are other materials as well, but this is probably the least intensive in terms of required work.