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The global vaccines market size was valued at USD 119.05 billion in 2022. The market is projected to grow from USD 78.27 billion in 2023 to USD 122.27 billion by 2030, exhibiting a CAGR of 6.6% during the forecast period.
Vaccines are the most powerful and cost-effective way to protect billions of people across the globe. Their development has the potential to transform health by eliminating the burden of life-threatening infectious diseases among the population of affluent nations. World Health Organization (WHO) states that immunization awareness and government initiatives have helped prevent 2-3 million deaths annually. Greater investments coupled with mergers and partnerships of companies are boosting the manufacturing and sales of products globally.
One of the biggest challenges faced by organizations and companies across the globe is the ongoing trial and error for an effective fight against diseases, such as malaria, HIV, and tuberculosis. Pharmaceutical companies and governments are making huge efforts to establish arrangements for the product’s development for such diseases.
Moreover, the growing prevalence of endemic and infectious diseases is anticipated to propel the industry growth during the forecast period. For instance, the global COVID-19 pandemic in 2020-2021 recorded more than 479 million cases globally.
Vaccine Introduction and Distribution During Pandemic Boosted Market Growth
The COVID-19 pandemic pushed producers to expand manufacturing capabilities and increase the supply of products and other commodities needed to fight the pandemic. The COVID-19 outbreak brought a halt to the regular immunization programs conducted by the United Nations Children's Fund (UNICEF), World Health Organization (WHO), Pan American Health Organization (PAHO), and other organizations.
The suspension of immunization campaigns and a decrease in vaccination rates generated an enormous load on healthcare systems, thus increasing the mortality rates by making the population susceptible to deadly antigens.
To sum up, the COVID-19 outbreak reduced the adoption of non-COVID vaccines. There had been a relatively slower vaccination rate in the low and middle-income countries. However, the market witnessed a positive growth in the year 2020 owing to a rise in investments for R&D against diseases. Moreover, the launch and approval of potential products is also anticipated to contribute to the growth of the market during the forecast period. In 2021, the market especially witnessed explosive growth trends owing to the strong adoption of the COVID-19 vaccines. However, the market will face some negative trends in 2023, owing to the decline in the sales of the COVID-19 vaccines.
During the post-pandemic period, the market returned to a normal growth rate owing to the launches and approval of vaccines for other diseases along with the commencing of various vaccination and immunization programs.
Growing Supply of Products by UNICEF, WHO, and PAHO to Aid Immunization Process
The occurrence of pneumonia in about 175,000 Americans each year has brought an alarming situation and needs adequate doses to avoid the disease. The geriatric and children population is more prone to deadly diseases, which increases the demand for rapid immunization all over the world. International bodies, such as UNICEF and PAHO, have been a helping hand by supplying millions of vaccine doses to the countries in need.
Furthermore, initiatives by the governments of different nations to provide easy access to vaccination through the launch of immunization programs also contribute to market growth.
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Strong Supply Backed Up by Robust R&D to Fuel Market Growth
The increased global supply of products to meet the needs of immunization policies to eradicate endemic diseases is supporting market growth. Government foundations, hospitals and pharmaceutical companies are strongly focusing on regular immunizations and offering affordable immunization to people globally. To ensure that every person is vaccinated at a minimum or no cost, government surveillance in all countries has become active.
The increasing demand for shots, such as diphtheria, tetanus, pertussis, and others, is one of the key factors for industry growth. Moreover, government funding and company investments are boosting the R&D sector for launching novel products.
The competitive pipeline, including products of emerging as well as major players is augmenting market growth. As the market is heterogeneous and vast, these companies are struggling for approvals from the regulatory bodies for their products. Moreover, increasing investments in R&D activities and launching of new products also bolster market growth.
Companies, such as Inovio Pharmaceuticals, Novavax, and Bavarian Nordic are among the top ten players expected to have opportunities for their product pipeline during the forecast period. Pfizer, GSK, Sanofi, and Merck are also potential pipeline candidates that are expected to contribute positively to the global vaccines industry growth.
High Costs Associated with Vaccine Dose to Hinder Market Growth
The growing incidence of chronic and infectious diseases is driving market growth. However, high costs associated with the per-dose vaccine volume are hampering market expansion. Though international organizations are supplying millions of volume doses to every corner of the world, many parts are yet to receive vaccination due to their high cost.
According to the CDC’s updated vaccine price list for 2023, the cost of dengue tetravalent vaccine single dose is around USD 100, and the Hepatitis A-Hepatitis B 18 was to around USD 121 in the private sector. Therefore, the high cost of products can be a major challenge for the market in low-income nations.
Recombinant/Conjugate/Subunit Segment to Lead the Market Due to Its Effectiveness
The type segment of the market is categorized into recombinant/conjugate/subunit, inactivated, live attenuated, viral vector, mRNA, toxoid, and others.
The recombinant/conjugate/subunit is anticipated to have a higher CAGR during the forecast period owing to the availability of various delivery system options. The ability to elicit an appropriate immune response, long-term protection, and simplified large-scale manufacturing are responsible for recombinant/subunit/conjugate’s higher production, sales, and demand. These are also generally preferred as they pose no risk of pathogenicity.
The inactivated segment marks the second dominant position in the market owing to the surge in demand for influenza and hepatitis A & B. The increasing prevalence of seasonal influenza in emerging countries is likely to contribute to inactivated type’s higher revenue generation.
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.
Increasing Prevalence of Bacterial and Viral Diseases Boosted Parenteral Segment Growth
Based on 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 2022. 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 boost parenteral dose’s demand for reflecting higher revenue generation in the coming years.
The oral segment is predicted to witness a comparatively slower growth rate over the forecast period 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.
Launch of Viral Vaccines to Boost Viral Diseases Segment Growth
Based on disease indication, the market is segmented into viral diseases and bacterial diseases.
The viral diseases segment is further sub-segmented into hepatitis, influenza, human papillomavirus, measles/mumps/rubella, rotavirus, herpes zoster, and others. The bacterial diseases segment can be sub-segmented into meningococcal disease, pneumococcal disease, diphtheria/tetanus/pertussis, and others.
The viral diseases segment holds the leading position in the market due to the forthcoming introduction of viral vaccines and increasing HPV and influenza product sales.
In 2019, Janssen Pharmaceutical Companies announced providing 200,000 Ebola regimens to the citizens of Rwanda in East Africa, focusing to inhibit the Ebola outbreak.
The bacterial diseases segment is estimated to have the highest CAGR owing to higher sales of pneumococcal, meningitis, and DTP across the globe. These are the first-line immunization for newborns as well as booster doses for pediatrics.
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Increase in Pediatric Injection Doses Fueled Segment Growth
Based on age group, the market is classified into pediatric and adults.
The pediatric segment held the highest global vaccines market share in terms of value. The potential size of these is mainly dependent on two factors: a worldwide growing birth cohort and increasing pediatric vaccination doses.
The adults segment is anticipated to register a higher CAGR owing to a rise in research & development of this segment and a strong pipeline. Upcoming product launches are likely to increase the growth of the segment during the forecast period.
Growing Demand for Smaller Institutions for Vaccinations to Fuel Hospital & Retail Pharmacies Segment Growth
Based on distribution channel, the market is segmented into hospital & retail pharmacies, government suppliers, and others.
In terms of revenues generated, the hospital & retail pharmacies segment is anticipated to have a dominant revenue share as vaccinations are a shorter-duration procedure often conducted at smaller institutions. Increasing preference for nearby vaccination access is driving segment expansion. Hospital and retail pharmacies globally are under government surveillance to ensure the demand is met and the retailers have adequate volume stock.
On the other hand, government suppliers, such as the Global Alliance for Vaccines and Immunization (GAVI), The United Nations Children's Fund (UNICEF), the Pan American Health Organization (PAHO), and others are collectively focused on achieving a sustainable supply of products globally. These organizations procure the volume dose from the manufacturers in millions and mainly focus on supplying to countries having a lesser reach.
Organizations are in full swing to expand their reach in 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 channels in the coming years.
The market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America Vaccines Market Size, 2022 (USD Billion)
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North America generated revenue of USD 40.94 billion in 2022 and is set to emerge dominant in the global market over the forecast period. Vaccination awareness, the presence of strong manufacturers, and secure government policy regarding health welfare are the key factors contributing to market growth in the region. Growing focus on implementing immunization across North American countries through adequate financing policies is also assisting market growth.
Asia Pacific is projected to witness tremendous growth in the market. The countries in Asia Pacific have heterogeneous classes of economic development, which results in varied approaches to immunization. Japan dominates the Asia Pacific market with the highest market share due to the increasing population in China and India. This factor is the major parameter responsible for injections’ rising demand.
Europe is expected to register steady growth in the market. High-growth countries, such as Germany and France, are likely to contribute to the expansion of the market in the region.
Latin America and the Middle East & Africa are expected to register growth prospects owing to the increasing demand for immunization to cater to the prevalence of chronic diseases that require vaccination, specifically in African countries. Moreover, the launch of immunization implementation programs by the government is also likely to boost market growth.
Sanofi and Pfizer Hold Prominence in the Market due to their Strong Portfolio
Key providers dominate the global market. Leading companies, including GlaxoSmithKline plc, Sanofi, Pfizer Inc., and Merck & Co., Inc., hold prominence in the market. These companies have a strong product portfolio and the capability of strategic decisions. They emphasize resolving the unmet requirements in eradicating complex diseases through vaccination.
Key companies focus on continuous R&D initiatives for approvals and launches of new products globally to maintain their positions in the market. Surging need for injection doses for viral as well as bacterial diseases is projected to boost the company's growth and market value in the human industry. For instance, in June 2023, Pfizer received the U.S. FDA approval for RSV vaccine in older adults.
An Infographic Representation of Vaccines Market
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The global vaccines market 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.
ATTRIBUTE | DETAILS |
Study Period | 2019-2030 |
Base Year | 2022 |
Forecast Period | 2023-2030 |
Historical Period | 2019-2021 |
Growth Rate | CAGR of 6.6% from 2023-2030 |
Unit | Value (USD Billion) |
Segmentation | By Type
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By Route of Administration
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By Disease Indication
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By Age Group
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By Distribution Channel
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By Region
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Fortune Business Insights says that the global market size was USD 119.05 billion in 2022 and is projected to reach USD 122.27 billion by 2030.
In 2022, the market in North America stood at USD 40.94 billion
Growing at a CAGR of 6.6%, the market will exhibit remarkable growth over the forecast period (2023-2030).
The viral vaccines segment is expected to be the leading segment in this market during the forecast period.
Strong supplies of the products in 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., Novartis AG, Emergent BioSolutions, Inc., CSL Limited, Inovio Pharmaceuticals, Inc., Bavarian Nordic and Mitsubishi Tanabe Pharma Corporation are the major players in the market.
North America dominated the market by holding the largest share in 2022.
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.