The global vaccines market was valued at $32 bn in 2016 and is anticipated to reach $61.6 bn by 2024.
The vaccines market is expected to grow owing to factors such as rise in prevalence of chronic diseases, growing healthcare expenditure, improvement in access to healthcare, high investment in R&D, increasing support from government and stakeholders such as UNICEF, WHO (World Health Organization), PAHO (Pan-American Healthcare Organisation) and others. The rise in prevalence of tuberculosis, influenza, rotavirus infection, polio, measles and other diseases is a major concern for governments across the developed and emerging nations.
The increasing healthcare expenditure to support the treatment of millions of patients suffering from various diseases is a key challenge for the healthcare providers, payers, and governments. In 2014, the Ebola outbreak in western Africa was declared as a Public Health Emergency of International Concern under the WHO International Health Regulations (2005). As per estimates by WHO, the number of Ebola cases reported in Sierra Leone were 14,124, Guinea-3,811 cases, Liberia-10,675 cases.
To resolve the crisis and prevent future disasters, nearly 2 million doses of three candidate vaccines were manufactured by companies such as GlaxoSmithKline, Johnson & Johnson, and Merck. It is estimated that more than 20,000 people were vaccinated in 2014-15. Furthermore, GAVI Vaccine Alliance and Merck Sharp & Dohme Corporation have entered into a USD 5 million advance purchase agreement to support the development of Ebola vaccine stockpile. These drugs have not received the U.S. FDA, and EMEA approval, and are presently procured by countries to conduct clinical studies and treat the affected patients.
The U.S. spends the highest dollars toward healthcare expenses 17nditure, each year. At present, it allocates 17% of GDP which equals to USD 3.2 trillion and the required budget is increasing each year due to multiple economic, social and healthcare factors. It has one of the highest immunization rates for different diseases, and the data is presented below,
“Optimal Price Point (OPP) for Vaccines”
Estimated Average vaccine cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
Pricing is a key factor impacting the market dynamics across different regions. The high-income countries due to the high healthcare expenditure can afford the technologically advanced products. However, the low-income and developing nations cannot procure the high-end products. The introduction of generic versions is crucial to meet the growing demand for vaccines across these countries. The pricing power is skewed toward large purchase organizations such as UNICEF and PAHO, which negotiate and procure vaccines for supplying in more than 100 countries. In the U.S., the CDC procures vaccines at a discounted rate for its immunization programs across different states.
Based on product, the market is segmented as live attenuated vaccines, inactivated vaccines, subunit vaccines, toxoid vaccines, conjugate vaccines, DNA vaccines. The inactivated vaccines contain the antigenic part of the pathogen which is required to elicit an immune response. This segment is expected to continue its dominance over the forecast period due to advantages such as long shelf life and high stability.
The DNA vaccine segment is expected to register the maximum CAGR over the forecast period. The technology includes the extraction of genetic material from the specific disease-causing pathogen and introducing it into human cells. The DNA vaccines provide protection against a host of parasitic, fungal, bacterial and viral infections. Furthermore, the strong pipeline in this category is anticipated to propel the usage rates over the forecast period.
Disease and End-Use Outlook
Based on the type of disease, the market is categorized into the meningococcal disease, pneumococcal disease, tetanus, hepatitis, measles, mumps, and rubella (MMR), rotavirus, varicella, human papilloma virus (HPV) infection, polio, diphtheria, pertussis (DTP) and others. The pneumococcal disease category accounted for the largest revenue share due to the high incidence rate and growing government initiatives to improve the immunization programs.
Based on end use, the market is segmented into adults and pediatrics. The pediatrics segment accounts for the maximum share and is expected to be the fastest-growing category over the forecast period. The vaccination at a young age builds the immunity against these diseases. For instance, polio vaccination is given 4 doses of IPV at age 2 months, 4 months, 6 to 18 months, which is followed by a booster dose at the age of 4 to 6 years.
North America accounted for the maximum share, followed by Europe and Asia Pacific. The global vaccines market is dominated by the high-income countries due to their high healthcare expenditure on healthcare infrastructure, community development, research & development, and vaccination programs for different diseases. As per WHO estimates, the high-income countries in North America and Europe account for nearly 82% of the global vaccine sales by revenue and 20% by volume. These regions spend significantly on manufacturing and importing the most advanced vaccines and pay a higher premium for the products compared to other regions. In North America, U.S. dominates the regional market due to a high incidence rate of diseases, high focus on research & development and constant efforts by the government to provide the best healthcare services to its citizens.
Asia Pacific is expected to emerge as the fastest growing region due to increasing government efforts in providing vaccination to its citizens. The high prevalence of various diseases in the region is driving the increase in healthcare expenditure and improvement in access to basic healthcare facilities. The governments in coordination with agencies such as WHO, UNICEF are actively working toward eliminating the threat of infectious diseases by conducting extensive vaccination programs.
Merger & Acquisition Insight
The vaccines market in the recent past has witnessed several high value transactions and the market has a huge scope for consolidation. Some of the most notable transactions in recent times include the GSK and Novartis portfolio swap in 2015. In 2017, Serum Institute of India Pvt. Ltd., has acquired Nanotherapeutics, which has made it as the largest injectable polio vaccine in the world
Top Players & Company Share
Key players operating in the market include GlaxoSmithKline, plc., Novartis AG, Emergent BioSolutions, Inc., Sanofi Pasteur, Inc., AstraZeneca Plc, Takeda Pharmaceuticals Company Ltd., Valeant Pharmaceuticals International, Inc., Astellas Pharma Inc. and others
Vaccines Market by Product (Revenue, Million, 2014 – 2024)
- Live Attenuated Vaccines
- Inactivated Vaccines
- Subunit Vaccines
- Toxoid Vaccines
- Conjugate Vaccines
- DNA Vaccines
Vaccines Market by Disease Type, Revenue, USD Million, 2014 – 2024)
Vaccines Market by End-Use (Revenue, USD Million, 2014 – 2024)
Vaccines Market Regional Outlook (Revenue, USD Million, 20124- 2024)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia