The global viral vector production (research-use) market size was valued at USD 993.0 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.8% from 2021 to 2028. Rapid and extensive R&D in the advanced therapy arena has resulted in the growing employment of viral vectors in research settings. Also, the ongoing COVID-19 pandemic has encouraged investment in this space for vaccine development against SARS-CoV-2, thereby driving the market for viral vector production (research-use).
Viral vectors were being studied extensively by research communities well before the COVID-19 pandemic. This is because of their proven efficiency and successful application in gene and cell therapies. With the COVID-19 outbreak, applications of viral vectors were repurposed to manufacture vaccines. Moreover, the technology and platform developers are making significant attempts to simplify the production process, thereby addressing the process and scale-related challenges associated with viral vector manufacturing.
According to the U.S. FDA estimates, approval of 10 to 20 gene and cell therapy products is expected annually. This indicates the expansion of pipeline and R&D programs for advanced therapy products by key market entities. This is anticipated to spur demand for viral vectors by therapy developers and researchers. However, the currently available capacity is a major concern faced by the researchers.
Several manufacturers have invested a significant amount to expand their manufacturing capabilities to address the supply bottleneck in the space. For instance, on 12th February 2021, CDMO Vigene Biosciences signed a lease agreement for a new facility in Maryland to enhance its viral vector capacity by 50.0%. Similarly, Vibalogics has also initiated Phase I of its planned USD 150 million investment for capacity expansion. Such initiatives are anticipated to propel the growth of the market for viral vector production (research-use) in the coming years.
Furthermore, expensive and highly regulated processes have slowed down the vector production for large-scale clinical trials. The high cost of advanced therapies and technological challenges pertaining to financial sustainability is anticipated to hamper the manufacturing services. Despite several challenges, the market for viral vector production (research-use) is constantly growing owing to improved clinical outcomes and favorable regulatory bodies, thus witnessing considerable growth throughout the forecast period.
In 2020, the AAV segment dominated the market for viral vector production (research-use) and accounted for the largest revenue share of 22.0%. The adenovirus segment accounted for a significant revenue share in 2020 owing to the increased employment in COVID-19 vaccine research. Research institutes such as the University of Oxford, CanSino Biologics, and Johnson and Johnson are engaged in adenoviral vector-based vaccine R&D for SARS-CoV-2. Similarly, the German Center for Infection Research has used attenuated measles vaccine strain for the development of the COVID-19 vaccine.
Lentiviral vectors have witnessed huge success in reprogramming induced Pluripotent Stem Cells (iPSC). This has created opportunities for therapeutic research using iPSC technology. Researchers are also deciphering the potential of Non-integrating lentiviral vectors (NILVs) as a tool to avoid insertional mutagenesis, resulting in the fastest growth of this segment.
Viral vectors are increasingly being employed in ongoing clinical trials owing to their efficiency in gene delivery. Significant advancements in delivery vectors that have resulted in the increased therapeutic efficacy of such vectors for gene delivery are driving the market for viral vector production (research-use). Amongst all viral vectors, lentivirus, adeno-associated virus, and adenovirus are the most used vectors across research settings.
The vaccine development segment dominated the market for viral vector production (research-use) and accounted for the largest revenue share of nearly 29.0% in 2020 owing to the tremendous increase in research activity for vaccine development against COVID-19 infection. As a response to the ongoing pandemic, a substantial number of research groups have been working on the development of viral vector-based vaccines.
Viral vectors have been thoroughly studied in various animal models and several viruses have been explored as vaccine vectors eventually entering clinical development. Adenovirus and vaccinia virus are some of the most commonly used viral vectors for vaccine development, owing to their high potential for inducing a strong immune response against a foreign body.
The cell and gene therapy development segment is gaining momentum over the past few years. With high investment flow, the R&D activities in this space are rapidly increasing, consequently leading to market growth. As per an article published in June 2020, 70% of clinical trials conducted for gene therapy have utilized viral vectors.
The downstream processing segment dominated the market for viral vector production (research-use) and accounted for the largest revenue share of 53.3% in 2020. Given the growing need for vectors in gene and cell therapy production, the processing and supply of viral vectors are of utmost importance in the research setting, to maintain product quality and yield. This has led to the need for optimizing downstream and upstream processing. The companies are evaluating advanced platforms to overcome the bottleneck in manufacturing.
The downstream processing segment held a significant share in 2020 owing to the highly complex procedures administered to generate polished and purified clinical-grade final products. Also, the high cost associated with purification techniques has led to the high revenue generation in this segment.
Upstream processing involves vector amplification, expansion, and harvesting. The companies such as Sartorius AG offer advanced products like the ambr 15 micro bioreactor system, which is anticipated to accelerate the market growth. Moreover, the easy availability of single-use equipment for upstream processing that in turn offer several monetary benefits would spur the growth in this space.
The research institutes segment dominated the market for viral vector production (research-use) and accounted for the largest revenue share of 57.0% in 2020. This can be attributed to the high involvement of the global research community in the development of advanced therapies for the treatment of several genetic and acquired diseases that previously lacked an effective treatment paradigm.
The outbreak of the COVID-19 infection has encouraged the research community to shift their focus on the development of a vaccine against the disease in urgency. This increased the demand for viral vectors by the research institutes. Apart from COVID-19, the researchers are engaged in R&D in vaccinology for diseases such as HIV and Hepatitis B, thus leading to significant revenue growth.
On the other hand, several emerging biotechnology and pharmaceutical companies are actively engaged in the development of gene and cell therapies for several life-threatening diseases. The number of biopharmaceutical companies that are implementing vectors for therapeutics production continues to increase over the period. Abeona Therapeutics is evaluating the AAV9-based gene therapies for CLN1 and CLN3 diseases.
North America dominated the viral vector production (research-use) market and accounted for the largest revenue share of 49.0% in 2020. The rapidly growing number of advanced therapy products entering clinical trials, coupled with the presence of key operating players in the region, is the major driving factor for the dominance of the region.
In March 2020, the number of cell and gene therapies in the pipeline (phase III trials) reached 362 in the U.S, according to PhRMA. The number is expected to increase twofold if the preclinical pipeline is considered. This growing number depicts the increasing research activity in this space.
In Asia Pacific, China leads the vector production field with several global companies collaborating with local companies. Moreover, extensive efforts for COVID-19 vaccine development in the country have resulted in significant growth, consequently exhibiting the fastest CAGR for the region.
The increasing number of companies involved in gene and cell therapy development as well as the development of vaccines is anticipated to intensify the market competition in this space. Besides, contract research organizations are also supplementing the revenue generation by a robust increase in service demand.
Owing to the rapidly increasing demand for viral vectors in research settings, several strategic initiatives are being undertaken by the operating entities to enhance their market presence. Capacity expansion is the major initiative taken by the companies. For instance, in January 2021, FUJIFILM Corporation invested USD 40 million to advance viral vector manufacturing capabilities. Some of the prominent players in the viral vector production (research-use) market include:
FUJIFILM Diosynth Biotechnologies U.S.A., Inc.
Cobra Biologics Ltd.
Thermo Fisher Scientific
Advanced BioScience Laboratories, Inc. (ABL, Inc.)
Novasep Holding S.A.S
Orgenesis Biotech Israel Ltd (formerly ATVIO Biotech ltd.)
Vigene Biosciences, Inc.
General Electric Company (GE Healthcare)
CEVEC Pharmaceuticals GmbH
Batavia Biosciences B.V.
Wuxi AppTec Co., Ltd.
Miltenyi Biotec GmbH
SIRION Biotech GmbH
BioNTech IMFS GmbH
Cell and Gene Therapy Catapult
Market size value in 2021
USD 1.3 billion
Revenue forecast in 2028
USD 3.9 billion
CAGR of 18.8% from 2021 to 2028
Base year for estimation
2017 - 2019
2021 - 2028
Revenue in USD million and CAGR from 2021 to 2028
Revenue forecast, company share, competitive landscape, growth factors, and trends
Vector type, workflow, application, end-use, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; Germany; U.K.; France; Italy; Spain; China; Japan; India; South Korea; Australia; Brazil; Mexico; South Africa; Saudi Arabia
Merck KGaA; Lonza; FUJIFILM Diosynth Biotechnologies U.S.A., Inc.; Cobra Biologics Ltd.; Thermo Fisher Scientific, Inc.; Waisman Biomanufacturing; Genezen; YPOSKESI; Advanced BioScience Laboratories, Inc. (ABL, Inc.); Novasep Holding S.A.S; Orgenesis Biotech Israel Ltd (formerly ATVIO Biotech ltd.); Vigene Biosciences, Inc.; General Electric Company (GE Healthcare); CEVEC Pharmaceuticals GmbH; Batavia Biosciences B.V.; Biovion oy; Wuxi AppTec Co., Ltd.; VGXI, Inc.; Catalent Inc.; Miltenyi Biotec GmbH; SIRION Biotech GmbH; Virovek Incorporation; BioNTech IMFS GmbH; VIVEbiotech S.L.; Creative Biogene; Vibalogics GmbH; Takara Bio.; Cell and Gene Therapy Catapult; BlueBird Bio; Addgene, Inc.; Aldevron, L.L.C.; Audentes Therapeutics; BioMarin Pharmaceutical; RegenxBio, Inc.
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global viral vector production (Research-use) market report on the basis of vector type, application, workflow, end-use, and region:
Vector Type Outlook (Revenue, USD Million, 2017 - 2028)
Adeno-associated virus (AAV)
Application Outlook (Revenue, USD Million, 2017 - 2028)
Cell & Gene Therapy Development
Biopharmaceutical and Pharmaceutical Discovery
Workflow Outlook (Revenue, USD Million, 2017 - 2028)
Vector Amplification & Expansion
Vector Recovery & Harvesting
End-use Outlook (Revenue, USD Million, 2017 - 2028)
Pharmaceutical and Biopharmaceutical Companies
Regional Outlook (Revenue, USD Million, 2017 - 2028)
Middle East & Africa (MEA)
b. The global viral vector production (research-use) market size was estimated at USD 0.99 billion in 2020 and is expected to reach USD 1.32 billion in 2021.
b. The global viral vector production (research-use) market is expected to grow at a compound annual growth rate of 18.8% from 2021 to 2028 to reach USD 3.9 billion by 2028.
b. The research institutes end-use segment dominated the global viral vector production (research-use) market with a share of 57% in 2020. This is attributed to the increasing involvement of scientific communities in gene and cell therapy research.
b. Some key players operating in the viral vector production (research-use) market include Takara Bio, GE Healthcare, Lonza, Merck KGaA, Thermo Fisher Scientific, Inc., and Fujifilm Corporation.
b. Key factors that are driving the market growth for viral vector production (research-use) include a robust pipeline for gene therapies and viral vector vaccines, technological advances in the manufacturing of vectors, and highly competitive market, and various strategies undertaken by market entities.
b. The AAV segment dominated the market for viral vector production (research-use) and accounted for the largest revenue share of 22.0%, in 2020.
b. The vaccine development segment dominated the viral vector production (research-use) market and accounted for the largest revenue share of nearly 29.0% in 2020, owing to the tremendous increase in research activity for vaccine development against COVID-19 infection.
b. The downstream processing segment dominated the market for viral vector production (research-use) and accounted for the largest revenue share of 53.3% in 2020.
b. The North America region dominated the viral vector production (research-use) market and accounted for the largest revenue share of 49.0% in 2020.
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