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. Vaccine CMOs have gained significant attention as the virus starts spreading far and wide. 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.
The vaccine manufacturing landscape has changed dramatically over few decades. Almost three-fourths of the pharmaceutical industry and biotech companies have entered into mergers and agreements with contract manufacturers to develop COVID-19 vaccines. Outsourcing has gained high significance as it offers significant advantages such as end-to-end manufacturing solutions and expertise in vaccine manufacturing. A high level of capital expenditure combined with complexity for manufacturing has limited the entry of new players. With maturing pipelines of vaccine products developed, biotech companies face decisions to partner with existing manufacturers or contract manufacturers or develop in-house manufacturing capabilities.
- 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
INSIGHTS BY SCALE OF OPERATION
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. The emergence of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) in 2019 and the Ebola and Lassa fever epidemics in Western and Southern Africa demonstrate an urgent need for vaccines and therapeutics against emerging and re-emerging infectious diseases. 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.
INSIGHTS BY VACCINE TYPE
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. On the contrary, RNA vaccines are faster and less expensive than traditional ones, and they are not produced using infectious elements; hence they are safe. The global RNA market expects to observe an incremental growth of over 124% during the forecast period. The mRNA platform is an emerging, non-infectious, and non-integrating technology with minimum risk for insertional mutagenesis.
INSIGHTS BY 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.
The analytical and QC studies services market is expected to observe an incremental growth of over USD 322 million by 2026. An increase in product-pipeline manufacturing requiring both method development and method validation drives several biopharmaceutical companies to opt for analytical method development services. CMOs perform method development, method validation, manufacturing support, release testing, and stability. Hence, the demand for analytical and QC studies services expected to grow in biopharmaceutical companies.
INSIGHTS BY GEOGRAPHY
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 increasing trend of outsourcing is benefitting contract manufacturers in the region. Regulations related to the manufacturing of vaccines, especially in the US and Canada, are boosting the market growth. The prevalence of infectious diseases and the increasing number of deaths due to vaccine-preventable diseases has increased the need for manufacturing.
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 of new vaccinations, and expanding biopharma and biotech industry are major factors contributing to the growth of contract manufacturing in the Europe region. The Asia Pacific region witnesses growing market demand mainly due to a large and growing population which increases the access to vaccines. In APAC, various opportunities associated with the growing vaccine pipeline, rise in outsourcing of vaccine manufacturing services, implementation of novel and innovative technologies are expected to have a significant influence on the future of the vaccine contract manufacturing market.
INSIGHTS BY VENDORS
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. Vaccine contract manufacturing companies in India are show promise as the two biopharmaceutical companies - Serum Institute of India and Bharat Biotech- have also received emergency approvals for their serums.
The global vaccine contract manufacturing market research report includes in-depth coverage of the industry analysis with revenue 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