The global vaccine market is expected to surpass a valuation of $77.5 billion by 2024, according to a report by Grand View Research. The market is anticipated to expand in size at around 10.3 percent CAGR from 2013 to 2024 (forecast period). The demand for vaccines is anticipated to rise owing to developments in healthcare infrastructure and awareness regarding benefits of immunization.

Nations across the world have formed coalitions to create awareness of vaccines with the objective of preventing the growth of communicable diseases. This is exemplified by the ‘Immunize Australia Program’ created to prevent transmission of maladies and saving lives of Australian citizens. Development of various molecules are expected to augur the growth of the market for vaccines during the forecast period. Agencies such as the World Health Organization (WHO) are publishing guidelines to create immunization plans for nations to achieve measurable vaccination targets. For instance, 129 countries have achieved nearly 90 percent vaccination coverage for diphtheria, pertussis, and tetanus (DPT3).

Rise in number of developmental pipeline drugs are expected to propel vaccine market growth over the forecast period. Vaccines in the phase III clinical trials such as the Herpes Zoster Subunit (HZ/su) have shown a 51 percent success rate in adults aged 60 and above. Research is ongoing to increase the efficacy of these drugs. Collaborations between players are expected to keep the prices competitive in the marketplace. For instance, Oklahoma Medical Research Foundation and Merck & Co. have decided to form a partnership in a research endeavor to develop the CAD106 vaccine, a vaccine with potential to cure Alzheimer’s disease.

The worldwide vaccine market is segmented by type, application, and region. By type, the market is divided into DNA, attenuated, inactivated, conjugate, toxoid, subunit, and others. In 2015, the inactivated vaccine segment held over 14.5% share owing to their stable nature. Other factors credited to the high market share of this vaccine type include easy storage and transport. In December 2015, Sanofi Pasteur launched a trivalent inactivated polio vaccine for consumers in India. The DNA vaccine segment, on the other hand, is likely to experience a robust growth rate during the forecast period owing to reduced risk of integration into the genetic structure combined with its efficacy.

Major applications include allergy, autism, cancer, infectious diseases, and others. The cancer application segment is anticipated to expand at a CAGR over 11.8% during the forecast period due to high demand for immunization against cancer and prevalence of cervical and colorectal cancers. The infectious diseases segment is estimated to retain a large market share due to concerns regarding infectious diseases. Rising incidence of chicken pox, measles, typhoid, hepatitis, cholera are expected to spur the growth of the segment in the forthcoming years. In addition, extensive research and development to tackle diseases such as Hepatitis C, Ebola, AIDS, and Chagas disease can further impel expansion of the market for vaccines in near future.

Regions covered in the market report include North America, Latin America, Middle East & Africa (MEA), Asia Pacific (APAC), and Europe. The North America market is projected to generate over $27 billion by 2024. Factors such as supportive government policies and investments by major pharmaceuticals in research and development of vaccines are expected to spur market growth. Presence of facilities with sophisticated healthcare infrastructure and awareness of residents are likely to bolster market volume in the forthcoming years.

The APAC market for vaccines is touted to experience a 10.7 percent CAGR during the forecast period due to increasing population and a strong economic growth rate of the countries such as Japan, India, and China. Availability of a skilled workforce coupled with low operation costs make it a viable region for testing vaccines in clinical trials. Rise in expendable incomes of consumers coupled with high awareness levels are expected to drive vaccine market growth by 2024.

Key market players include AstraZeneca, GlaxoSmithKline, Novartis, Johnson and Johnson, and Pfizer. Mergers, acquisitions, and product development are strategies employed by these players to gain a higher revenue share in the vaccine market. For instance, GlaxoSmithKline acquired the vaccine unit of Novartis in September 2015. In addition, it received approval for two pediatric vaccines, namely Infanrixin India and Boostrix.

Amruta Joshi is a content writer specialising in varied industry verticals including personal care, healthcare, chemical and technology