Global Vaccines Market Is Estimated to Witness High Growth Owing To increasing investments in R&D programs and growing initiatives to immunize population against various infectious diseases.
The global vaccines market is estimated to be valued at USD 77.12 Bn in 2024 exhibiting a CAGR of 6% over the forecast period 2024-2031. Furthermore, rising government support for immunization programs globally will further propel the market growth during the forecast period.
Market Dynamics:
The growth of the global vaccines market is driven by increasing investments in R&D programs aimed at development of novel and advanced vaccines as well as growing initiatives by government and non-government organizations to immunize population against various infectious diseases. Extensive investments by pharmaceutical companies and government bodies are being made to accelerate clinical trials and approval processes to introduce new preventive vaccines against diseases like HIV, Ebola, and various strains of influenza viruses. According to the World Health Organization (WHO), vaccinations prevented at least 2-3 million deaths every year globally between 2010-2015. Continued financial support for vaccine development and immunization programs will remain a key growth driver. However, stringent regulations for vaccine approval and high costs associated with R&D, clinical trials and production of vaccines could pose a challenge to market players over the forecast period.
Increased Government Focus on Immunization Programs
Governments around the world have recognized the importance of vaccination and have increased their focus on immunization programs. This has led to higher healthcare budgets being allocated for vaccination initiatives. For example, in India the government's universal immunization program spends over USD1 billion annually on vaccines. Similarly, other developing nations have also ramped up their immunization drives. This increased government support and funding is a key driver boosting demand for vaccines globally.
Growing Prevalence of Infectious Diseases
The prevalence of various infectious diseases continues to rise globally due to factors like increasing global air travel, migration, antibiotic resistance, and others. Diseases like influenza, pneumonia, tuberculosis, HPV, and others are posing serious threats. This has emphasized the need for effective vaccines against such diseases. Recent epidemics of Ebola and Zika virus have also highlighted the vulnerabilities. The growing threat from infectious diseases is compelling more people as well as governments and international organizations to focus on immunization as a preventive healthcare strategy. This is fueling market growth for relevant vaccines.
High Development Cost of Vaccines
Vaccine development requires huge investments in R&D as well as clinical trials to ensure safety and efficacy. It can take 10-15 years and cost over USD1 billion to develop a new vaccine from the stage of basic research to final regulatory approval. High costs act as a deterrent, especially for private players. Only a few large pharmaceutical companies have the capability and financial strength to undertake costly vaccine development programs. This significant entry barrier limits the entry of new players into the market.
Stringent Regulatory Requirements
Vaccines undergo rigorous regulatory testing and licensing procedures due to safety concerns. Regulatory authorities around the world have implemented strict guidelines for clinical trials, manufacturing, quality control, distribution etc. Coordinating with regulatory processes in different countries further increases costs and complexity. Obtaining all necessary approvals before commercialization of a new vaccine can take several years. The stringent regulatory environment poses challenges, especially for small manufacturers trying to enter the vaccines market.
Expanding Vaccine Portfolios
While vaccines exist for many common diseases, there are still opportunities to develop vaccines against various other pathogens. For example, vaccines are still not available against HIV/AIDS, Malaria, Tuberculosis etc. which collectively cause millions of deaths every year. Research is also ongoing for vaccines against cancer and for universal influenza vaccines effective against multiple strains. Successfully developing new class of vaccines against high burden diseases will open up multi-billion-dollar market opportunities.
Growth in Low- and Middle-Income Countries
Most of the future market growth is expected from developing countries of Asia Pacific, Latin America, Africa, and Middle East where immunization rates are currently lower than global average. As incomes rise in these regions, more focus and investments will be diverted towards preventive healthcare and vaccination. International organizations are also working to improve access to existing vaccines in poorer nations through donations and subsidies. Tapping into the vast population base in emerging markets provides significant business opportunities for vaccine manufacturers.
Link: https://www.coherentmarketinsights.com/market-insight/vaccines-market-4914
Key Developments:
- In June 2024, Sanofi and Cape Town-based Biovac announced a partnership to locally manufacture inactivated polio vaccines (IPV) in Africa. This agreement will enable Biovac to produce IPV for over 40 African countries, making it the continent’s first IPV producer. The initiative supports the Africa Centers for Disease Control and Prevention’s goal of having 60% of vaccines produced locally in Africa by 2040.
- In May 2024, Novavax and Sanofi announced a co-exclusive licensing agreement to jointly market a COVID-19 vaccine and develop novel combination vaccines for COVID-19 and influenza. This partnership allows both companies to combine their expertise and resources to deliver innovative vaccine solutions, strengthening their position in the competitive vaccine development and distribution market
- In January 2024, The Serum Institute of India Pvt. Ltd (SII), the world’s largest vaccine manufacturer, joined CEPI's network of vaccine producers in the Global South. This partnership aims to enhance rapid and equitable vaccine responses to future health crises.
- In April 2023, Pfizer revealed phase 3 trial results for its RSV vaccine, showing it was 67% more effective in preventing infections with two related symptoms and 86% effective against severe disease. This approval will mark Pfizer's entry as the first company in the RSV vaccine market.
Key Players:
GlaxoSmithKline plc (GSK), Merck & Co., Inc., Pfizer Inc., Sanofi, Moderna, Inc., AstraZeneca, Johnson & Johnson, Novavax, Inc., CSL Limited, Emergent BioSolutions Inc., Bharat Biotech, Serum Institute of India, BioNTech SE, Takeda Pharmaceutical Company, Sinovac Biotech Ltd., Sinopharm (China National Pharmaceutical Group), Vaxart, Inc., Inovio Pharmaceuticals, Inc., Valneva SE, and Vaccitech plc
