VACCINE CONTRACT MANUFACTURING MARKET INSIGHTS
The global vaccine contract manufacturing market size to reach USD 4 billion by 2026, growing at a CAGR of 13% during the period 2021-2026. The global market has experienced radical transformations after the outbreak of the COVID-19 pandemic, which has been a massive health catastrophe. The commercial segment accounted for 64.53% of the global vaccine contract manufacturing market share in 2020. This is mainly due to the requirement of large-scale production of vaccines, especially during epidemics/pandemics.
Companies such as Johnson & Johnson, AstraZeneca-University of Oxford, Pfizer-BioNTech, Moderna, Novavax, Inovio, and Vaxart have formed international alliances to fast-track development and clinical trials and simultaneously set up vaccine manufacturing and distribution networks worldwide.
IMPACT OF COVID-19
A new era of vaccine and biological drug development has prevailed since the advent of the COVID-19 virus. The global pandemic has fueled vaccine innovations with the rapid acceleration of RNA-based COVID vaccines. Contract manufacturing companies are working to increase the availability of COVID-19 vaccines across the globe. In the development of the COVID-19 vaccine, pharma companies, CMOs, and suppliers are racing against time to introduce a larger production and supply chain plan so the vaccines can reach people speedily and securely. Vaccine sponsors as large as AstraZeneca and Johnson & Johnson are using CMOs for their pipeline vaccines. AstraZeneca’s AZD-1222, the COVID-19 vaccine candidate, has made manufacturing agreements with 12 service providers, including key players such as Emergent BioSolutions, Novasep, Catalent, and Merck, for its excess capacity manufacturing.
In Europe, the mass production of the COVID-19 vaccine is increasing at a faster rate. For instance, Novavax is utilizing its recently acquired manufacturing facility located in Bohumil in the Czech Republic to produce its own vaccine. Sanofi is investing more than USD 610 million in an advanced production site located in Neuville-sur-Saône as well as in a new vaccine research center in Marcy-l’Etoile. Such strategies will help the mass production of vaccines throughout the world.
GEOGRAPHICAL MARKET SHARE
North America contributed the highest revenue with a market share of 35.40% in the global vaccine contract manufacturing market share in 2020. North America has the most widespread contract manufacturing organizations (CMOs), with nearly 40 CMOs present at several US locations. The US accounted for over 90% of the North American vaccine contract manufacturing market share. The market observes the highest growth in this region due to the presence of major biopharmaceutical companies for clinical studies, increasing populations, the spread of bacterial and viral infections, growing hospitalization, and the growing demand for vaccinations.
Europe accounted for the second-highest share of 26% in the vaccine contract manufacturing market in 2020. The increasing elderly population, prevalence of bacterial and viral infections, increasing demand for new vaccinations, and expanding biopharma and biotech industry are major factors contributing to the growth of contract manufacturing in the Europe region.
APAC is expected to emerge as the fastest-growing market due to the prevalence of infectious diseases and high adoption of vaccinations to prevent these diseases. APAC is expected to witness the highest absolute growth of 118.91% and the highest CAGR of 13.95% during the forecast period.
- The spread of infectious diseases across regions and the subsequent implementation of vaccination programs have raised the clinical demand for vaccines, thereby driving the market growth.
- The vaccine contract manufacturing market in India expect to grow at a CAGR of over 15% during 2020–2026.
- The clinical vaccine contract manufacturing market is likely to observe an absolute growth of over 113% during the forecast period.
- The sub-unit market is likely to account for the highest incremental growth of over USD 633 million during the forecast period.
- APAC is likely to observe the highest CAGR because of the high prevalence of infectious diseases, high demand for vaccine programs, and the presence of several contract manufacturers.
GLOBAL VACCINE CONTRACT MANUFACTURING MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Scale of Operation
- Vaccine Type
The global commercial vaccine contract manufacturing market accounted for over 64% in 2020.
There has been a high demand for contract manufacturing services due to the growth in infectious diseases and the onset of endemics and pandemics worldwide. North America expects to contribute maximum revenue to the commercial vaccine market due to the increased focus to prevent deaths caused by vaccine-preventable diseases. The emergence of the RNA platform has accelerated the vaccine development process.
The clinical vaccine contract manufacturing market is expected to witness an incremental growth of over USD 492 million during the forecast period.
Several serums are in the pipeline for wide-ranging contagious diseases and COVID-19, which are likely to boost the market growth. The preclinical segment accounted for a share of 13% of the global vaccine contract manufacturing market in 2020. Growing populations, healthcare awareness, demand for newer vaccination products, increasing global vaccination coverage are also some of the factors for the increased need for immunizations globally.
Sub-unit vaccines accounted for a major share of approx. 34% in 2020, and they are likely to witness the highest incremental growth of over USD 633 million during the forecast period.
Growing infectious diseases leading to endemic/pandemics, majorly due to decreasing immunization coverage in many regions, have made national and international bodies implement vaccination programs strictly, allowing more people to get vaccinated. This is likely to increase the demand for vaccine production and benefit CMOs’ expertise in the manufacturing services. Contract manufacturing service agreements are high for recombinant vector COVID-19 vaccines.
The global live-attenuated vaccines contract manufacturing market expects to cross over USD 1 billion by 2026.
Live attenuated serums are among the most widely used vaccination technologies. They have complex manufacturing requirements, which increase pharma and biotech R&D budgets. Therefore, companies try to meet vaccine demands via a low-cost and highly effective manufacturing process, thereby facilitating contract manufacturing services.
The fill/finish services market expects to grow at a CAGR of approx. 13% during 2020-2026.
Fill/finish services are subject to extreme scrutiny by regulatory agencies and tend to be costly in the manufacturing process. Hence, vaccine manufacturers outsource these services to CMOs, which help them meet unexpected demands, source policies or better matching scales. Moreover, biopharmaceutical companies outsource fill-and-finish needs to gain access to specialized technology. CMOs are extremely helpful in meeting balanced production volumes and commercial validation of manufactured products. Hence, the growth in biopharmaceuticals is likely to fuel the demand for fill-and-finish contract services.
COMPETITOR MARKET SHARE
Ajinomoto BioPharma, Albany Molecular Research Institute, Catalent, Cytovance Biologics, Emergent Biosolutions, Fujifilm Diosynth Biotechnologies, and GlaxoSmithKline are a few vendors accounting for the global vaccine contract manufacturing market share. Established players are entering into strategic alliances and co-marketing agreements to elevate the market competitiveness and penetration. They also make long-term relationships with distributors and suppliers for scale-up production and expand geographical presence in the market. North America offers a high quantity of contract manufacturing service offerings. Europe and APAC have a few prominent players and several small and mid-sized vendors. Emerging economies, including China, India, Brazil, and Mexico, are likely to offer significant growth opportunities for vendors.
The global vaccine contract manufacturing market research report includes in-depth coverage of the market dynamics with revenue, supply chain, and forecast insights for the following segments:
Scale of Operation
- Live Attenuated
- Analytical & QC Studies
- Cell/Virus Banking
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa