"Designing Growth Strategies is in our DNA"
The global vaccines market size was USD 46.88 billion in 2019 and is projected to reach USD 104.87 billion by 2027, exhibiting a CAGR of 10.7% during the forecast period.
Vaccines are the most powerful and cost-effective way to protect billions of populations around the world. Vaccine development has the potential to transform health by eliminating the burden of life-threatening infectious diseases among the population of the affluent nations. World Health Organization (WHO) states that immunization awareness and government initiatives have helped in preventing 2-3 million deaths annually. Greater investments coupled with merging and partnerships of companies are boosting the production and sales of products all over the world.
One of the biggest challenges faced by organizations and companies around the world is the ongoing trial and error for effective vaccines to fight diseases such as malaria, HIV, and tuberculosis. Government and pharmaceutical companies are making enormous efforts in establishing arrangements for the development of products for such diseases. Additionally, increasing prevalence of infectious diseases and endemic is anticipated to propel the growth of the market during the forecast period. For instance, the global COVID-19 pandemic in 2019-2020 recorded more than 80 million cases worldwide.
Vaccine Development and Distribution Amid the COVID-19 Pandemic
The COVID-19 pandemic has currently affected more than 200 countries worldwide. This outbreak has exerted pressure on the manufacturers to increase production capabilities and escalate the supply of products and other commodities. The pandemic has brought a halt to the regular immunization programs conducted by UNICEF, WHO, PAHO, and other organizations. According to UNICEF in May 2020, 99 countries reported the termination of the immunization campaigns for measles/rubella, polio, meningococcal, DTP, and many other antigens.
The suspension of immunization campaigns and a decrease in the vaccination rate has generated enormous load on healthcare systems thus increasing the mortality rates by making population susceptible to the deadly antigens. The consequences resulting from this situation would be far worse than the pandemic itself. According to the GAVI, the ceasing of immunizations will result in a lack of vaccination of about 13.5 million people from the least developed countries. Also, a decrease in the pneumococcal vaccine supply may increase the prevalence of pneumococcal disease resulting in increased mortality rates.
To sum-up, the COVID-19 outbreak has significantly lowered the adoption of vaccines. There has been a relatively slower vaccination rate in low and middle-income countries. However, the market is likely to witness a positive growth in the year 2020 owing to a rise in investments for R&D against the diseases. Moreover, the launch of potential products is also anticipated to contribute to the growth of the market during the forecast period. For instance, multiple potential vaccine candidates are in pipeline manufactured by pharmaceutical companies such as Pfizer, Johnson and Johnson, and other prominent players.
Request a Free sample to learn more about this report.
Growing Vaccines Supply by UNICEF, WHO, PAHO to Aid Immunization Process
The occurrence of pneumonia to about 175,000 Americans each year has brought an alarming situation and requires adequate vaccines to prevent the disease. Additionally, increasing susceptibility of geriatric and children population towards deadly disease has led to the need for rapid immunization all over the world. The international bodies such as UNICEF, PAHO have been a helping hand by supplying millions of vaccine doses to the countries in need. For example, in November 2019, according to UNICEF news, it delivered more than 260,000 vaccine doses to fight measles in Samoa, Fiji, and Tonga. Large amounts of vaccine dose procurement by these organizations have led to a decrease in the prevalence rate of many diseases. Thus, increasing the immunity of population against the several infectious diseases.
Strong Supply Backed Up by Robust R&D to Drive the Market
One of the crucial and significant drivers for the vaccines market growth is the increasing supply of products across the globe to meet the unmet needs and abide by the immunization policies to eradicate endemic diseases. Pharmaceutical companies, government foundations, international organizations, and hospitals are strongly focused on providing cost-effective and regular immunization to people worldwide. Government surveillance in all the countries has become active in ensuring that every individual is vaccinated by recommended ones at a minimum cost or no cost. For instance, the pneumococcal conjugate vaccine was rolled out by the Universal Immunization Programme (UPI) to 21 lakh children in Himachal Pradesh and parts of Bihar in India. Escalating demand for those is one of the key factors for the rising contribution in the billion dollars’ market value. Moreover, government funding and company investments are boosting the R&D sector for launching novel products.
Competitive Pipeline to Expand the Market Value During the Forecast Period
Another critical factor driving the vaccine market is the competitive pipeline, including products of major as well as emerging players. Being a vast and heterogeneous market, the players are struggling in getting approvals from the regulatory bodies for their products. Continuous R&D and focus on launching novel products in the market is the current challenge accepted by every company. Companies such as Novavax, Inovio Pharmaceuticals, and Bavarian Nordic are among the top 10 players expected to have opportunities for their pipeline products in the foreseeable period. GSK, Merck, Sanofi, and Pfizer also are potential pipeline candidates that are expected to grow & contribute positively to the market growth.
High Cost Associated with Vaccine Dose to Limit Adoption
Despite, higher prevalence of chronic and infectious diseases, certain factors are limiting the adoption of products. Among them is the high cost associated with the per dose vaccine volume. Though international organizations are playing their best part in supplying millions of volume doses to every corner of the country, still there are many parts to receive vaccination amid their high cost. According to the CDC updated vaccine price list for 2020, the private cost of Infanrix per dose is around USD 30. Additionally, the common Hepatitis A/ Hepatitis B vaccine is amounted to around USD 100. Therefore, the high cost can be major challenge for the market in low-income nations owing to its affordability and adoption.
To know how our report can help streamline your business, Speak to Analyst
Effectiveness of Recombinant/Conjugate/Subunit Segment to Generate the Highest Market Value
The vaccine type segment of the market is categorized into recombinant/conjugate/subunit, inactivated, live attenuated, and toxoid vaccines.
Ability to elicit an appropriate immune response, long term protection, and simplified large scale manufacturing are responsible for higher production, sales, and demand of recombinant/subunit/conjugate. These are also generally preferred as they pose no risk of pathogenicity. Additionally, the recombinant/conjugate/subunit is anticipated to have a higher CAGR as well owing to the availability of various delivery systems options. Recently, USFDA approved Vaxelis, a combination vaccine against DTP. It was developed by Sanofi and MSD under joint-partnership.
Inactivated products mark the second dominant position in the market owing to the surge in demand for influenza and hepatitis A & B vaccines. The increasing prevalence of seasonal influenza in the emerging countries is likely to contribute to the higher revenue generation of inactivated type. Live attenuated and toxoid segments are predicted to witness steady growth during the forecast period owing to lower revenue generation as compared to other types.
Higher Revenue Generation of Parenteral Vaccines Accounted for Majority Market Share
Based on the route of administration, the market is segmented into parenteral and oral. The maximum supply and sales of the parenteral route across the globe have led to the generation of larger revenue by parenteral products in the year 2019. This dominance is likely to remain constant throughout the forecast period owing to the increasing prevalence of bacterial and viral diseases. Moreover, higher procurement volume by governmental organizations is likely to increase the demand for parenteral dose reflecting higher revenue generation during the forecast period.
The oral segment is predicted to witness a comparatively slower growth rate owing to challenges faced in developing countries. These are required to overcome the harsh gastrointestinal environment and avoid tolerance induction to achieve effectiveness. This is the current pharmaceutical challenge for all the companies before planning to launch into the market.
Growing Demand for Bacterial Type to Dominate the Market
Based on disease indication, the market can be segmented into viral diseases (hepatitis, influenza, human papillomavirus, measles/mumps/rubella, rotavirus, herpes zoster, and others) and bacterial diseases (meningococcal disease, pneumococcal disease, diphtheria/tetanus/pertussis, and others). Bacterial diseases segment holds the dominant position in the market revenue owing to higher sales of pneumococcal, meningitis, and DTP across the globe. These are the first-line immunization for a newborn as well as booster doses for pediatrics.
Viral diseases segment is forecasted to have the highest CAGR owing to the upcoming launch of viral vaccines and an increasing demand for sales of HPV and influenza products. Recently, Janssen Pharmaceutical Companies announced providing 200,000 Ebola vaccines regimen to the citizens of Rwanda in East Africa, aiming to prevent them from Ebola outbreak.
Increase in Pediatric Injection Doses Responsible for Majority Market Share
The age group segment is classified as pediatric and adults. Pediatric Injections hold the highest vaccines market share in terms of value. The potential size of these are mainly dependent on two factors; worldwide growing birth cohort and increasing pediatric vaccination doses. According to the World Health Organization (WHO), during 2018 about 86% of the infants worldwide received 3 doses of DTP-3 injections that protect against diphtheria-tetanus-pertussis.
Adult injection products are anticipated to register a higher CAGR owing to a rise in research & development of this segment, and a strong pipeline with upcoming product launch is likely to increase the growth of the segment during the forecast period.
GAVI, PAHO, UNICEF, etc. to Accelerate the Delivery of Vaccines Across the Globe
Based on the distribution channel, the market can be segmented into hospital & retail pharmacies, government suppliers, and others. Hospital & retail pharmacies are anticipated to have a dominant revenue share because vaccinations are a shorter duration procedure often conducted at smaller institutions. Also, people prefer nearby vaccination access. Hospital and retail pharmacies across the globe are under government surveillance to ensure the demand is met and have adequate volume stock.
International government bodies such as Global Alliance for Vaccines and Immunization (GAVI), The United Nations Children's Fund (UNICEF), Pan American Health Organization (PAHO), and others are collectively focused on achieving a sustainable supply of products throughout the globe. These organizations procure the volume dose from the manufacturers in millions and mainly focus on supplying to countries having the lesser reach. The organizations are in a full swing expanding their reach to countries of Africa, the Middle East, lower regions of Asia Pacific, Latin America, and Europe. This is anticipated to boost the market value of government suppliers' distribution channel over the forecast period.
North America Vaccines Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America generated a revenue of USD 24.88 billion in 2019 and is anticipated to emerge dominant in the global market during the forecast period. Steady and dominant growth of the market in North America due to the number of factors that includes vaccination awareness, the presence of strong manufacturers, and secure government policy regarding health welfare. It also has a focus on implementing immunization across the North American countries through adequate financing policies. Asia Pacific is expected to witness tremendous growth in the market value across the region. The countries of Asia Pacific have heterogeneous classes of economic development, which results in varied approaches to immunization. Japan dominates Asia Pacific market with the highest market share. The increasing population of countries such as China and India is the major factor responsible for the demand for injections. On the other hand, Europe is projected to witness steady growth in the market. The high-growth countries such as Germany and France are likely to contribute to the expansion of the European market. Latin American and Middle East & Africa are expected to register slightly higher growth owing to the increasing demand for immunization to cater to the prevalence of chronic diseases requiring vaccination specifically in the African countries. Additionally, the launch of immunization implementation programs by the government is also likely to increase the sales-generating higher market value.
Strong Portfolio has Propelled Sanofi and Pfizer to Rule the Global Market
The global market is dominated by large suppliers across the globe. The top market key players, such as GlaxoSmithKline plc, Sanofi, Pfizer Inc., and Merck & Co., Inc., account for the majority of the market. These companies have a strong product portfolio, the capability of strategic decisions, and focus on resolving the unmet needs in eradicating complex diseases through vaccination. For instance, potential products such as Prevnar 13 of Pfizer and Polio/Pertussis/Hib vaccines of Sanofi are leading in the market. Constant exhaustive R&D resulting in approvals and launches of novel products worldwide is expected to maintain their position in the market. Furthermore, increasing demand for injection doses for viral as well as bacterial diseases is anticipated to fuel the company growth and market value in the human vaccines manufacturing industry.
The vaccines market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
To gain extensive insights into the market, Request for Customization
Value (USD billion)
By Route of Administration
By Disease Indication
By Age Group
By Distribution Channel
Fortune Business Insights says that the global vaccines market size was USD 46.88 billion in 2019 and is projected to reach USD 104.87 billion by 2027.
In 2019, the market in North America stood at USD 24.88 billion.
Growing at a CAGR of 10.7%, the market will exhibit remarkable growth in the forecast period (2020-2027).
The recombinant/conjugate/subunit segment is expected to be the leading segment in this market during the forecast period.
Strong vaccine supplies in the emerging nations, robust R&D for the introduction of novel products, competitive pipeline candidates, and powerful government support and funding are factors driving the market.
GlaxoSmithKline plc., Merck & Co., Inc., Sanofi, and Pfizer, Inc. are the major players in the market.
North America dominated the market share in 2019.
Increased awareness about the importance of immunization among the population, implementation of vaccination programs across the nations, and rising vaccination coverage are expected to drive the adoption of volume doses.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry