Growing Awareness and Rise in Government Initiatives
The growing awareness about the disease and vaccination coupled with government initiatives and investments in the healthcare sector is expected to increase the growth of the market over the forecast period. By 2016, the vaccine was available in 134 countries with an estimate of 42% global coverage as quoted by WHO. GAVI and USAID have been funding the companies that provide vaccines and healthcare facilities. For instance, the collaboration of GSK and Vodafone received funding, so that healthcare app installed smartphones could be provided in Africa region to administer the healthcare facilities and vaccine dosages.
Rise in Financial Funding and Expansion Projects
There has been a rise in financial funding and programs. For instance , GAVI has contributed in Advanced Market Commitment to provide pneumococcal vaccines to 60 countries as a regular immunization program. Additionally, GAVI has committed to contribute USD 4billion by 2021 for the vaccines. The ongoing trials for developing advanced medication by key players, that include Merck & Co. and Pfizer Inc. is expected to drive the growth of the market over the forecast period. Under the AMC, Pfizer Inc. has reduced the prices by 20% per dose, so that the vaccines are available to almost all GAVI affiliated countries. Merck & Co. has also reduced the prices by 10%, so that the vaccines are affordable to the low income economies as well. The 2 phase 3 studies of polyvalent conjugate vaccine by Merck in order to provide vaccination depending upon neonatal immunization, different age groups and childhood immunization is anticipated to positively drive the growth of the market over the forecast period.
High Cost and Longer Production
The high cost associated with the development of these vaccines coupled with longer production timelines is anticipated to decrease the demand for vaccines. Moreover, the companies find it expensive to produce these vaccines as compared to the return that is achieved, all of which are anticipated to limit the growth of the market over the forecast period.
Vaccine Limitations and Side Effects
The vaccines can only help prevent disease caused by streptococcus pneumoniae bacterium, but it is ineffective in case of pneumonia caused by other bacteria. Additionally, the vaccines cannot be used for people who suffer from hypersensitivity and pregnant women which would hinder the growth of the market over the forecast period.
By Vaccine Type (Conjugate Vaccine and Polysaccharide Vaccine); By Sector Type (Public and Private); By Product Type (Prevnar13, Synflorix and Pneumovax23); By Distribution Channel Type (Distribution Partner Companies, Non-Government Organizations and Government Authorities)
The global pneumococcal vaccine market is anticipated to record a CAGR of around 6.22% over the forecast period i.e. 2019-2027, owing to increase in pneumococcal disease incidences globally and growing awareness among the people. The market is segmented into vaccine type, sector type, product type and distribution channel type. On the basis of vaccine type, the market is further segmented into conjugate vaccine and polysaccharide vaccines, out of which the conjugate vaccine segment is anticipated to hold the leading market share, on the back of use of these vaccines for infants up to 5 years and adults above 50 years. The vaccines are capable of preventing invasive diseases, acute otitis media and pneumonia in case of infants.
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The rise in child birth rate and geriatric population is expected to positively impact the growth of the market. Additionally, the polysaccharide vaccine segment is anticipated to witness significant growth, owing to rise in use of Pneumovax23 for prevention between those belonging to 5 years to 50 years age group. On the basis of sector type, the market is segmented into private and public, out of which the private sector is anticipated to hold the leading market share, owing to high cost of vaccines in private hospitals and healthcare centers as compared to public sector. The prevnar13 segment is anticipated to hold the leading market share, on the back of its high use as vaccine mainly for ages below 5 years and above 50 years, coupled with global recommendation of WHO to use it as vaccine for pneumococcal disease prevention. On the basis of distribution channel, the market is categorized into distribution partner companies, non-government organizations and government authorities out of which the non-government organizations is expected to hold maximum market share, on account of various initiatives taken by WHO, UNICEF, GAVI and many others to provide the vaccines and other lifesaving medication facilities to low income countries.
Our-in depth analysis of the pneumococcal vaccine market includes the following segments:
By Vaccine Type
By Sector Type
By Product Type
By Distribution Channel
On the basis of regional analysis, pneumococcal vaccine market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America is anticipated to witness significant market growth, owing to presence of key market players and high awareness about the vaccine in the region. The government initiatives coupled with constant research & development in healthcare sector in the region is expected to drive the growth of the market over the forecast period. The market in Europe is anticipated to hold the leading market share, on the back of high adoption of vaccines and proper implementation of regular immunization program. Additionally, the provision of better healthcare facilities in Europe and North America is anticipated to increase the growth of the market over the forecast period. The market in Asia-Pacific is expected to record a CAGR of around 7% during the forecast period owing to increased private sector investment in healthcare sector and increased awareness in the region. The companies are engaged in developing advanced vaccines which is expected to increase the growth of the market. The market in Middle East and Africa region is anticipated to record an increase in the market share, on account of increasing awareness and rise in government and non-governmental initiatives such as initiatives by GAVI, WHO and UNICEF to provide vaccination to low income countries.
The pneumococcal vaccine market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.