VaccineThe vaccine market has changed significantly during the past 35 years. BCC Research reveals in its new report how the market has experienced a significant decline in the number of vaccine manufacturers, chiefly due to costly R&D and production, lower profits and liability concerns. However, this market may see a reversal of this trend during the next 5 years.

Globally, infectious diseases are the second leading cause of death behind heart disease, especially in middle-income and upper-income countries. About 90% of all infectious disease-related deaths are caused by six deadly infections: HIV/AIDS, malaria, rotavirus/diarrhea, measles, pneumonia and tuberculosis, according to the World Health Organization. There are several methods for containing infectious diseases, including prevention, vaccinations and pharmaceutical treatments.

The global market for infectious disease diagnostic, vaccine and treatment products should reach $126.2 billion in 2016 and $183.2 billion in 2021, demonstrating a 5-year compound annual growth rate (CAGR) of 7.7%. Much of the growth is being driven by emerging markets in Brazil, Russia, India, and China. Hepatitis products will continue to expand in areas such as India and China, which have high infection rates.

Pharmaceuticals, the largest and fastest-growing product segment (5-year CAGR of 8.8%), should gain almost $41 billion during the forecast period (2016-2021) to reach $119.3 billion in the end year. Hepatitis drugs for hepatitis B and C treatments are driving this segment. The vaccine market for infectious diseases, the second fastest-growing product segment, is projected to yield a 5-year CAGR of 6.8%. This segment, which should constitute about 23% of the 2016 infectious disease product market, should gain about $11 billion during the forecast period to reach $39.7 billion in 2021.

The Worldwatch Institute estimates that immunization of 80% of the global population is necessary to break the virus transmission cycle. But widespread immunization is difficult, if not impossible, in many countries that lack the internal structures or political will to immunize their populations. Immunization at a 50% or more is found in virtually all countries outside Sub-Saharan Africa, while immunization rates of 80% or more are found in most developed countries.

In the past three decades, the vaccine market has changed considerably as the number of industry players has shrunk, according to BCC Research analyst Peggy Lehr. “Between 1988 and 2001, 10 of the 14 global vaccine manufacturers partially or completely stopped production of traditional childhood vaccines,” says Lehr. “However, in recent years more manufacturers have begun working in the vaccine market, largely because of technological advances, successful early stage research on multiple-valent vaccines and legislation designed to protect manufacturers against safety-related financial liability.”

Global Markets for Infectious Disease Treatments (PHM061C) examines infectious disease treatments, with a focus on the growth in demand for newer pharmaceutical treatments, vaccines, and environmental products. Analyses of global market drivers and trends, with data from 2014, estimates for 2015, and projections of CAGRs through 2021 are provided.