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The global vaccines market size was USD 55.44 billion in 2020. The market is projected to grow from USD 61.04 billion in 2021 to USD 125.49 billion in 2028 at a CAGR of 10.8% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with vaccines witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a stellar growth of 10.20% in 2020. The rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the pandemic is over.
Vaccines are the most powerful and cost-effective way to protect billions of people 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 prevent 2-3 million deaths annually. Greater investments coupled with merging and partnerships of companies are boosting the production and sales of products globally.
One of the biggest challenges faced by organizations and companies around the world is the ongoing trial and error for effective fight against 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 endemic and infectious diseases is anticipated to propel the vaccines market growth during the forecast period. For instance, the global COVID-19 pandemic in 2020-2021 recorded more than 479 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 United Nations Children's Fund (UNICEF), World Health Organization (WHO), Pan American Health Organization (PAHO), and other organizations. For instance, the Pan American Health Organization (PAHO) has launched a new platform aimed at easing the severe shortage of COVID-19 inoculations in Latin America and the Caribbean by producing them within the region. Also, 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 the population susceptible to deadly antigens. The consequences resulting from this situation would be far worse than the pandemic itself. According to the Global Alliance for Vaccines and Immunization (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 the product. 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.
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Growing Supply of Products 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 doses 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 instance, According to a survey conducted by Gavi, most respondents from Gavi-supported countries indicate that seasonal influenza vaccination for pregnant women or health care workers is likely to be introduced if Gavi were to offer support for seasonal influenza vaccination for these two groups. Large amounts of recombinant vaccine dose procurement by these organizations have led to a decrease in the prevalence of infectious diseases and many diseases. Therefore, this is increasing the immunity of population against several infectious diseases.
Strong Supply Backed Up by Robust R&D to Drive the Market
To meet abide and needs by the immunization policies to eradicate endemic diseases, the global supply of products increased which is one of the significant driver for the market growth. Government foundations, hospitals and pharmaceutical companies are strongly focusing on regular immunization and providing cost-effective immunization to the people globally. For ensuring that every person is vaccinated at a minimum or no cost, government surveillance in all the countries has become active. For instance, the Universal Immunization Programme (UPI) rolled out the pneumococcal conjugate vaccine out to 21 lakh children in Himachal Pradesh and parts of Bihar in India. The increasing demand for shots, such as diphtheria tetanus pertussis and others, is one of the key factors for the market growth. 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 major factor driving the market growth is the competitive pipeline, including products of emerging as well as major players. As a market is a heterogeneous and vast market, these players are struggling for the approvals from the regulatory bodies for their products. The main challenge faced by many companies is the continuous R&D and focus on launching novel products. Companies such as Inovio Pharmaceuticals, Novavax, and Bavarian Nordic are among the top ten players expected to have opportunities for their products pipeline during the foreseeable period. Pfizer, GSK, Sanofi, and Merck, are also the potential pipeline candidates that are expected to 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 supplying millions of volume doses to every corner of the country, there are many parts who are yet to receive vaccination because of 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 of products can be major challenge for the market in low-income nations owing to its affordability and adoption.
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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 toxoids.
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. Additionally, the recombinant/conjugate/subunit is anticipated to have a higher CAGR owing to the availability of various delivery systems options. Recently, USFDA approved Vaxelis, a combination vaccine against DTP was developed by Sanofi and MSD under a joint-partnership.
Inactivated products mark 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 the emerging countries is likely to contribute to inactivated type’s higher revenue generation of. 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 2020. 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 during the upcoming years.
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 newborns 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 increasing HPV and influenza products’ sales. Recently, Janssen Pharmaceutical Companies announced providing 200,000 Ebola regimen to the citizens of Rwanda in East Africa, aiming to prevent the 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 is mainly dependent on two factors; worldwide growing birth cohort and increasing pediatric vaccination doses. According to WHO, during 2020, about 83% of infant’s worldwide and about 113 million infants have received 3 doses of diphtheria-tetanus-pertussis (DTP3) vaccine which is protecting them against infectious diseases that can cause serious illness, disability or be fatal.
Adult injection products are anticipated to register a higher CAGR owing to a rise in research & development of this segment, and a strong pipeline. Upcoming product launch is likely to increase the growth of the segment during the forecast period.
GAVI, PAHO, UNICEF to Accelerate the Delivery of Products 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, the rising preference for nearby vaccination access is likely to fuel this segment’s progress. Hospital and retail pharmacies across the globe are under government surveillance to ensure the demand is met and the retailers 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 globally. 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 for expanding their reach in the 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 upcoming years.
North America Vaccines Market Size, 2020 (USD billion)
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North America generated revenue of USD 29.43 billion in 2020 and is anticipated to emerge dominant in the global market during the forecast period. Steady and dominant growth of the market in North America is expected to grow steadily and is expected to hold the dominant market share due to the number of factors that include vaccination awareness, the presence of strong manufacturers, and secure government policy regarding health welfare. It also focuses 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 the Asia Pacific market with the highest market share because of the increasing population in China and India. This factor is the major factor responsible for injections’ rising demand.
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.
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Latin America 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 that require vaccination specifically in the African countries. Additionally, the launch of immunization implementation programs by the government is also likely to boost the market growth.
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 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 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 industry.
An Infographic Representation of Vaccines Market
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The global market research report provides a detailed industry analysis 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.
Value (USD Billion)
By Type, Route of Administration, Disease Indication, Age Group, Distribution Channel, and Region
By Route of Administration
By Disease Indication
By Age Group
By Distribution Channel
Fortune Business Insights says that the global market size was USD 55.44 billion in 2020 and is projected to reach USD 125.49 billion by 2028.
In 2020, the market in North America stood at USD 29.43 billion.
Growing at a CAGR of 10.8%, the market will exhibit remarkable growth in the forecast period (2021-2028).
The recombinant/conjugate/subunit segment is expected to be the leading segment in this market during the forecast period.
Strong supplies of the products 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., 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 share in 2020.
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.
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