Vaccines Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global vaccines market, valued at US$78.5 billion in 2023, is forecasted to grow at a robust CAGR of 4.0%, reaching US$78.0 billion in 2024 and an impressive US$94.9 billion by 2029. Similarly the vaccines market (excluding COVID -19 vaccines) is projected to reach USD 80.3 Billion by 2029 from USD 53.0 Billion in 2024, at a CAGR of 8.7% during the forecast period. Technological advancements in vaccine development, increasing government initiatives for immunization programs and expanding investments in research and development are some of the factors driving growth of this market.

Vaccines Market (Including Covid-19 Vaccines) Trends

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Vaccines Market (Excluding Covid-19 Vaccines) Trends

Vaccines Market Opportunities

Vaccines market Dynamics

Driver: Focus on vaccine development and launches

The field of vaccine development has received increasing attention in recent years due to the complexity of products. Although this makes the development process challenging, it ensures that the resulting product is hard to duplicate. Due to this, market players have intensified research in this sector and focused on building their infrastructure. This factor is anticipated to have a positive impact on market growth. For instance, in 2023, Pfizer Inc (US) received approval from the US FDA for ABRYSVO, its bivalent RSV prefusion F (RSVpreF) vaccine to prevent LRTD and severe LRTD caused by RSV in infants from birth up to six months of age by active immunization of pregnant individuals at 32 through 36 weeks gestational age.

Restraint: High cost of vaccine development

Vaccine development is expensive, taking 10 to 15 years and costing between USD 800 million and USD 1 billion. Success is rare, making it tough for manufacturers to secure funds and cover operational expenses. Creating vaccines requires significant investment in R&D, production facilities, and specialized knowledge. Technology transfer depends on strong collaborations between partners, adding to the challenge of entering this field.

These hurdles create significant obstacles for new players in vaccine production. Consequently, there are fewer manufacturers in the vaccines segment than in other parts of the pharmaceutical industry. Moreover, the global vaccines industry is relatively small, accounting for less than 2% of the overall pharmaceutical market, which means fewer suppliers are attracted to it. For example, according to the United Nations Health Agency, as of September 2021, only 3% of people had been vaccinated with at least one dose of the COVID -19 vaccine, compared to 60.18% in high-income countries. According to Duke University’s Global Health Innovation Center, high-income countries have purchased more than half of the COVID -19 vaccine supply to date, and low-income countries, just 9% as of April 2021, thus ultimately close to getting vaccinated half of its population.

Opportunity: Rising focus on therapeutic vaccines

Advancements in immunology have opened doors to therapeutic vaccines, offering corrective treatments for various conditions rather than just prevention. These therapeutic vaccines address illnesses such as cancer, allergies, physiological disorders, and infectious diseases, benefiting a substantial patient base seeking alternative treatments. Scientists have actively explored and created innovative therapeutic vaccines for hypertension, dyslipidemia, Alzheimer’s, cancer, and inflammatory diseases, targeting specific self-antigens. If these vaccines prove as effective and safe as traditional medications, they could replace daily drug regimens for managing lifestyle-related diseases. For instance, in 2023, Pfizer received US FDA approval for ABRYSVO, which is a (Respiratory Syncytial Virus Vaccine), the company’s bivalent RSV prefusion F (RSVpreF) vaccine, to prevent lower respiratory tract disease caused by RSV in individuals 60 years and older.

Challenge: Stringent Regulatory Processes

Vaccine development requires identifying suitable antigens, adjuvants, and delivery methods while complying with stringent regulatory requirements. The complexity extends to the entire vaccine development process, from laboratory research to animal studies and clinical trials. Furthermore, differences in regulatory rules and procedures between developed and emerging economies have caused delays in vaccine approvals. Developing and emerging economies often have divergent regulatory requirements and processes. This variation can hinder the registration of vaccines, making it difficult for vaccine developers to navigate multiple sets of rules and standards.

Vaccines Market Ecosystem Analysis

The conjugate vaccines segment is projected to hold the dominant position of vaccines market during the forecast period.

Based on technology, the market (excluding COVID -19 vaccines) is divided into various segments: conjugate vaccines, recombinant vaccines, inactivated & subunit vaccines, live attenuated vaccines, toxoid vaccines, and other vaccines. Conjugate vaccines effectively target challenging pathogens, preventing diseases such as meningitis and pneumonia this is factor is increasing adoption and demand for conjugate vaccines across the globe. Furthermore, expanding government immunization programs and rising awareness of preventive healthcare drive demand. Additionally, ongoing research and development efforts, strategic partnerships, and favorable regulatory environments support market expansion.

Multivalent vaccines segment accounted for dominant share of vaccines market during the forecast period.

Based on type, the market (excluding COVID-19 vaccines) is segmented into monovalent vaccines and multivalent vaccines. Multivalent vaccines segment accounted for dominant share in 2023. Multivalent vaccines offer convenience for healthcare providers and cost-effectiveness for healthcare systems by reducing the need for administering multiple separate vaccines. Furthermore, they contribute to herd immunity by increasing vaccination coverage across various target populations. Examples include combination vaccines like the measles, mumps, and rubella (MMR) vaccine and the pentavalent vaccine, which protects against diphtheria, tetanus, pertussis, Haemophilus influenzae type b (Hib), and hepatitis B.

HPV vaccine segment accounted for dominant share of vaccines market during the forecast period.

Based on disease indication, the market (excluding COVID-19 vaccines) is divided into pneumococcal disease, influenza, combination vaccines, HPV, meningococcal disease, herpes zoster, rotavirus, MMR, varicella, hepatitis, DTP, RSV, polio, and other disease indications. HPV vaccine segment accounted for dominant share in 2023. RSV disease indication segment is likely to grow at highest CAGR during the forecast period of 2024-2029. Launch of novel RSV vaccines and strong product pipeline are some of the factors uplifting the growth of the segment.

The intramuscular & subcutaneous segment accounted for the larger share of the vaccines market.

Based on route of administration, the market (excluding COVID-19 vaccines) is segmented into Intramuscular & subcutaneous, oral, and others. In 2023, the intramuscular & subcutaneous segment accounted for the larger share of the market. The dominance of intramuscular and subcutaneous routes of vaccine administration in the market is primarily due to their safety, effectiveness, and ease of administration.

Adult vaccine segment accounted for the dominant share of vaccines market during the forecast period.

Based on end user, the market (excluding COVID-19 vaccines) is segmented into pediatric vaccine and adult vaccine. In 2023, adult vaccine segment accounted for the domiant share. Launch of new RSV vaccine for adults, and aging population in many parts of the world has led to an increased focus on preventing vaccine-preventable diseases among adults are some of the factors uplifting the market growth.

North America accounted for the largest share of the vaccine market.

Based on the region, the market is segmented into North America, Europe, Asia Pacific, Latin America, the Middle East and Africa. In 2023, North America accounted for the largest share of the vaccine market (excluding COVID-19 vaccines), Europe is the second largest region in 2023. North America's dominance in the vaccine market can be attributed to several key factors such as advanced healthcare infrastructure and robust regulatory frameworks, facilitating the development, manufacturing, and distribution of vaccines. Furthermore, strong government support for vaccination programs and initiatives, coupled with favorable reimbursement policies, further bolster the demand for vaccines in North America. Asia Pacific region is anticipated to grow at a significant CAGR during the forecast period of 2024-2029.

Vaccines Market by Region

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Key players in the vaccines market include GSK plc (UK), Merck & Co Inc (US), Pfizer Inc (US), Sanofi (France), CSL (Australia), Emergent (US), Johnson and Johnson Services, Inc. (US), Astrazeneca (UK), Serum Institute of India Pvt Ltd (India), Bavarian Nordic (Denmark), Mitsubishi Tanabe Pharma Corporation (Japan), Daiichi Sankyo Company, Limited. (Japan), Panacea Biotec (India), Biological E Ltd. (India), Bharat Biotech (India), Novavax (US), Inovio Pharmaceuticals (US), Sinovac (China), Incepta Pharma (Bangladesh), Valneva SE (France), VBI Vaccines Inc (US), Bio Farma (Indonesia), FSUE NPO MICROGEN (Russia), Zhi Fei Biological (China) and Indian Immunologicals Ltd. (India).

Vaccines Market Report Scope

This report categorizes the vaccines market to forecast revenue and analyze trends in each of the following submarkets:

By Technology

• Conjugate Vaccines
• Recombinant Vaccines
• Inactivated and Subunit Vaccines
• Live Attenuated Vaccines
• Toxoid Vaccines
• Other Vaccine Technologies

By Type

• Monovalent Vaccines
• Mulitvalent Vaccines

By Disease Indication

• Pneumococcal Disease
• Influenza
• Combination Vaccines
• HPV
• Meningococcal Disease
• Herpes Zoster
• Rotavirus
• MMR
• Varicella
• Hepatitis
• DTP
• Polio
• RSV
• Other Disease Indications

By Route of Administration

• Intramuscular & Subcutaneous
• Oral
• Other Route of Administration

By End User

• Pediatric Vaccine
• Adult Vaccine

By Region

• North America
• US
• Canada
• Europe
• Germany
• UK
• France
• Italy
• Spain
• Rest of Europe (ROE)
• Asia Pacific
• Japan
• South Korea
• China
• India
• Rest of Asia Pacific
• Latin America
• Brazil
• Mexico
• RoLATAM
• Middle East
• Africa

Recent Developments of Vaccines Market

• In April 2024, Bharat Biotech and Bilthoven Biologicals B.V. entered into a collaboration to produce and supply oral polio vaccines.
• In April 2024, VBI Vaccines Inc. expanded its stratergic collaboration with government of Canada to accelerate development proprietary MLE platform, enveloped virus-like particle vaccine technology that enables the coding of eVLPs using mRNA.
• In January 2024, Indian Immunologicals Ltd (IIL), launched India’s ‘first’ indigenously developed Hepatitis A vaccine, Havisure.
• In August 2023, Pfizer Inc., received US FDA approval for ABRYSVO (Respiratory Syncytial Virus Vaccine) for the prevention of LRTD and severe LRTD caused by RSV in infants from birth up to six months of age by active immunization of pregnant individuals at 32 through 36 weeks gestational age.
• In May 2023, GSK plc, received US FDA approval for Arexvy (respiratory syncytial virus vaccine, adjuvanted) for the prevention of lower respiratory tract disease (LRTD) caused by respiratory syncytial virus (RSV) in individuals 60 years of age and older.

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