The global vaccine industry has been forecast to increase at a compound annual growth rate (CAGR) of 11.3% over the next five years, increasing from a value of $32.05 billion at the start of 2013, to reach a total of $84.44 billion by 2022.
The vaccine market is an established segment and is widely accepted as an indispensable division of the healthcare industry. It is poised to grow rapidly by addressing the following: emerging infectious agents, various types of cancer, allergies, cardiovascular diseases, diabetes, smoke cessation, and neurodegenerative disorders.
For decades vaccines were a neglected corner of the drugs business, with old technology, little investment and abysmal profit margins. Many firms sold their vaccine divisions to concentrate on more profitable drugs. This trend troubled public-health experts because vaccines are a highly effective way of dealing with diseases. Happily, a renaissance is under way.
Insurers and governments in the developed countries have started to pay higher prices, and firms making new vaccines against pneumococcal disease or the human papilloma virus have been earning rich dividends.
North America is the largest hub for the vaccine market, accounting for the largest share, followed by Europe and Asia. North America and Europe are expected to grow at a steady pace.
However, the Asia-Pacific market, particularly India and China, is expected to witness a boost in demand and is poised to register maximum growth over the next 10 years, owing to the increase in aging population and prevalence of various infectious diseases.
The massive growth in the vaccine market globally has out figured the traditional business in the pharmaceutical sectors. As an ongoing trend the market is experiencing a number of M&A activities round the corner. The global market is gradually inclining towards the consolidation leading to handful of dominant players.
In general, the vaccine market is largely perceived negatively as a low-profit venture owing to the domination of top five companies, namely, Sanofi (France), Glaxo Smithkline (UK), Merck (US), Pfizer (US), and Novartis (Switzerland).
Furthermore, a strong patent portfolio and the need for large investments towards vaccine development have limited the scope of entry for new companies.
For more information on the global vaccine industry, see the latest research: Global Vaccine Industry
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.