Vaccines Market

Market Overview

The global vaccines market was valued at USD 55.82 billion in 2023. It is estimated to reach USD 96.90 billion by 2032, growing at a CAGR of 6.32% during the forecast period (2024–2032). In recent years, there has been a massive surge in the number of infections and endemic diseases, like malaria, dengue, diphtheria, Ebola, HIV, flu (influenza), hepatitis, and COVID-19, which, in turn, increase the demand for vaccines, thereby creating opportunities for vaccines market expansion. In order to combat the growing burden of these diseases, there has been a subsequent rise in vaccine immunization and awareness campaigns organized by government bodies, thereby boosting the global vaccines market growth.

Vaccines are biologically engineered substances designed to provide immunity against specific infectious diseases. Vaccines consist of weakened or inactivated versions of a microorganism, components of the microorganism, or the toxins generated by the microorganism. Vaccines, if administered to an individual, activate the immune system of the body to identify and retain information about the microorganism or its components. This results in safeguarding against future infections.

Vaccines function by stimulating the production of antibodies and activating more immune cells to identify and destroy the infectious agent in the event of future exposure. Vaccines generate an immune response mimicking the body's normal response to disease exposure, but they confer protection without inducing the disease. Vaccination is a critical public health strategy that aims to control the spread of infectious illness. It has been instrumental in reducing the impact of many deadly diseases worldwide, such as smallpox, polio, measles, and, most recently, COVID-19.

Highlights

• Conjugate vaccines dominate the technology segment
• Monovalent vaccines dominate the type segment 
• Adult vaccine dominated the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Vaccines Market Drivers:

Growing Immunization Awareness

Vaccines have demonstrated themselves to be one of the most remarkable accomplishments in the annals of human health. As per the World Health Organization (WHO), immunization campaigns and government measures have substantially impacted, averting 3.5-5 million yearly fatalities. The global demand for vaccinations has been propelled by emphasizing immunization as a cost-effective preventative measure. Therefore, there has been an increase in global government-led immunization initiatives. For instance, in February 2024, Brazil initiated a dengue fever immunization campaign, making it the first country globally to administer the vaccine through its public health system in response to a significant increase in infections.

Similarly, Burkina Faso has become the second country in the African Region to incorporate the malaria vaccine into its regular immunization program. The nation has formally implemented the RTS,S malaria vaccine into its expanded vaccination scheme throughout 27 healthcare districts. The vaccine received formal approval from the World Health Organization two years ago, recognizing that despite its drawbacks, its utilization would significantly decrease the incidence of serious illnesses and hospitalizations. Hence, the increasing emphasis of government initiatives on vaccination programs is expected to propel the expansion of the global market.

Global Vaccines Market Restraint:

High Development Costs

The process of developing vaccines entails major investments in research and development, which encompass clinical trials and the costs associated with attaining regulatory requirements. Clinical trials are commonly carried out in phases involving more participants and complexity. Their implementation necessitates meticulous planning, coordination, monitoring, and data analysis, all adding to elevated development expenses.

Regulatory bodies, such as the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), impose strict criteria for developing and approving vaccines. Fulfilling these standards necessitates thorough documentation, implementation of quality control methods, and submission of regulatory documents, resulting in expenses. Consequently, the significant initial expenses can discourage investment in the development of vaccines, particularly for illnesses with limited target markets. The Lancet reports that vaccine development costs, including preclinical testing up to the conclusion of phase 2a, vary between USD 8 million and USD 350 million. Therefore, these issues impede the expansion of the global vaccines market.

Global Vaccines Market Opportunities:

Pandemic and Infectious Diseases

The rising incidence of infectious diseases such as malaria, dengue, diphtheria, Ebola, HIV, influenza, and hepatitis, as well as the worldwide COVID-19 pandemic and various other similar diseases, highlights the necessity for efficient vaccines. The market has an opportunity to cater to unmet medical requirements and safeguard populations from life-endangering diseases. As per the World Health Organization (WHO), the number of malaria cases in 2022 reached 249 million, reflecting a rise of 5 million cases compared to the previous year. Additionally, there were 608,000 fatalities attributed to malaria.

Furthermore, as per the same source, there is an estimated annual occurrence of around one billion instances of seasonal influenza, encompassing 3-5 million cases of severe disease, resulting in 290,000 to 650,000 deaths related to respiratory complications. Moreover, the World Health Organization (WHO) reported in 2019 that approximately 296 million individuals globally were affected by hepatitis B, with 1.5 million new cases of chronic hepatitis B infection. There were 58 million people with hepatitis C and an additional 1.5 million individuals newly infected with the disease. Similarly, UNAIDS reports that there were a total of 39 million individuals worldwide who were living with HIV in 2022 and 1.3 million individuals who were newly infected with HIV during that year.

Regional Analysis

Based on region, the global vaccines market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global vaccine market shareholder and is expected to expand substantially during the forecast period. North America is at the forefront of vaccine research, development, and distribution. The region's dominance is ascribed to its robust healthcare infrastructure, government backing, and modern research facilities. Moreover, there has been an increase in the incidence of infectious diseases in this region. For instance, the CDC has estimated that there had been a minimum of 22 million cases of illness, 250,000 hospitalizations, and 15,000 deaths attributed to the flu in the year 2023. Likewise, vaccinations have successfully averted more than 21 million instances of hospitalization and 732,000 fatalities among infants born in the United States in the past two decades (CDC). Moreover, technological improvements are enhancing the expansion of the vaccine market in the region.

Furthermore, the market expansion is expected to be driven by a favorable regulatory environment and an increase in regulatory bodies' approval of innovative vaccines. For instance, Pfizer Inc. has announced that the U.S. Food and Drug Administration (FDA) has approved PREVNAR 20® for the prevention of invasive pneumococcal disease (IPD) caused by the 20 Streptococcus pneumoniae serotypes in the vaccine. This approval applies to infants and children aged six weeks through 17 years. PREVNAR 20® is also approved for preventing otitis media caused by the original seven serotypes contained in PREVNAR® in infants aged six weeks through five years.

The Asia-Pacific area experiences substantial vaccine demand due to its huge population. Increasing awareness, government initiatives, and collaborative collaborations drive vaccine adoption. For instance, in February 2024, the Kerala government took a significant measure to eliminate cervical cancer. The government intended to initiate a vaccination campaign targeting female students in Alappuzha and Wayanad's eleventh and twelfth grades. The Health Department has authorized a directive endorsing the plan for eliminating cervical cancer and initiating the immunization program for female students in two districts as a trial initiative.

Moreover, the market participants are introducing novel vaccines in this region to counter various infectious diseases. For instance, in November 2023, Indian Immunologicals (IIL), a manufacturer of vaccines, introduced a new vaccine called Mabella, specifically designed to protect children against measles and rubella. Mabella, a live-attenuated MR vaccine, was introduced on the 25th anniversary of the Human Biologicals Institute (HBI) division of IIL in Udhagamandalam (Ooty), Tamil Nadu. This vaccine was developed by collaborating with the Polyvac Institute of Vietnam. Therefore, these factors contribute to the expansion of the regional market.

Segmental Analysis

The global vaccines market is segmented by technology, type, disease indications, route of administration, and end-user.

Based on technology, the global vaccines market is bifurcated into conjugate vaccines, recombinant vaccines, inactivated and subunit vaccines, live-attenuated vaccines, toxoid vaccines, viral vector vaccines, m-RNA vaccines, and others. 

The conjugate vaccines segment dominates the global market. Conjugate vaccines are a specific category of vaccinations that merge a weak antigen (often a polysaccharide or sugar molecule) from the surface of a disease-causing agent with a carrier protein. This combination augments the immunological response to the weak antigen, particularly in young individuals whose immune systems may exhibit inadequate response to polysaccharide antigens alone.

Moreover, the conjugation process primarily involves the covalent attachment of the polysaccharide antigen to the carrier protein, enhancing the immune system's ability to identify and react to it with greater efficiency. This is especially crucial for specific strains of bacteria with polysaccharide capsules, enabling them to elude the immune system in their inherent condition. Conjugate vaccines have proven remarkably effective in preventing bacterial infections, including Haemophilus influenzae type b (Hib), Streptococcus pneumoniae, and Neisseria meningitidis.

Based on type, the global vaccines market is bifurcated into monovalent vaccines and multivalent vaccines. 

The monovalent vaccines segment accounts for the largest revenue share. Meningococcal disease is a severe bacterial infection resulting from the presence of the bacterium Neisseria meningitidis. This bacterium can induce meningitis, an inflammatory disorder affecting the membranes enveloping the brain and spinal cord, along with other potentially fatal conditions such as septicemia (blood poisoning). Meningococcal illness can be transmitted through respiratory droplets expelled while coughing, sneezing, or near an infected individual. Moreover, there has been an increase in the approval of innovative vaccines for this illness, thereby enhancing the growth of this segment. For instance, in October 2023, Pfizer announced that their vaccine, PENBRAYA, designed to protect against meningococcal groups A, B, C, W, and Y, received approval from the FDA.

Based on disease indications, the global vaccines market is bifurcated into pneumococcal disease, influenza, combination vaccines, HPV, meningococcal disease, herpes zoster, rotavirus, MMR, varicella, hepatitis, DTP, polio, and other disease indications.

Meningococcal disease is a severe bacterial infection resulting from the presence of the bacterium Neisseria meningitidis. This bacterium can induce meningitis, an inflammatory disorder affecting the membranes enveloping the brain and spinal cord, along with other potentially fatal conditions such as septicemia (blood poisoning). Meningococcal illness can be transmitted through respiratory droplets expelled while coughing, sneezing, or in close proximity to an infected individual. Moreover, there has been an increase in the approval of innovative vaccines for this illness, thereby enhancing the growth of this segment. For instance, in October 2023, Pfizer announced that their vaccine, PENBRAYA, designed to protect against meningococcal groups A, B, C, W, and Y, received approval from the FDA.

Based on the route of administration, the global vaccines market is bifurcated into intramuscular and subcutaneous, oral, and others.

Vaccine administration via the oral route involves delivering the vaccine through the mouth, usually as a liquid, tablet, or capsule. This method enables the vaccine to be assimilated via the mucous membranes of the oral cavity and pharynx, thereby triggering the immune system to generate a specific response against the pathogen in concern. Oral administration is used for certain vaccines, such as polio and rotavirus. Oral vaccinations have several advantages, including ease of administration, especially during large-scale immunization campaigns, and the capacity to elicit systemic and mucosal immune responses.

Based on end-users, the global vaccines market is bifurcated into pediatric vaccines and adult vaccines. 

The adult vaccine segment owns the highest market share. Adult vaccines are specifically formulated to safeguard individuals against various infectious diseases that can impact them during their adult years. Healthcare providers often recommend these immunizations based on age, health condition, occupation, travel plans, and lifestyle. Moreover, there has been an increase in the approval of novel vaccines in this segment, stimulating the market's expansion. For instance, in December 2023, the FDA prioritized Merck's Biologics License Application (BLA) for V116, a new 21-valent pneumococcal conjugate vaccination designed to be administered as a single dose. This vaccine aims to prevent invasive pneumococcal illness and pneumococcal pneumonia in adults.

Recent Developments

• December 2023- Panacea Biotec, a biotechnology firm, introduced EasyFourPol, a fully-liquid pentavalent vaccination based on wP-IPV, in India. The wP-IPV pentavalent vaccine provides protection to children against five life-threatening illnesses: diphtheria, tetanus, pertussis, polio, and invasive infections caused by Haemophilus influenza type B.
• January 2024- Indian Immunologicals Ltd. (IIL), a biopharmaceutical business in India fully owned by the National Dairy Development Board (NDDB), introduced 'Havisure,’ India's first Hepatitis A vaccine developed within the country.