The virology market size was USD 2.06 billion in 2021 and is expected to register a revenue CAGR of 5.0% over the forecast period. Rising prevalence of viral diseases, such as Human Immunodeficiency Virus (HIV), SARS-CoV-2 (COVID-19), Ebola, pox, influenza, Nipah virus, and others and surge in cases of viral diseases generating demand for more doses of vaccines and more disease detection kits are major factors driving market revenue growth. Virology is the discipline of science that deals with study of viruses and viral diseases. According to World Health Organization (WHO), morbidity and mortality value of HIV was 38.4 million and 0.65 million respectively in 2021.
WHO also reports that global fatality (mortality) rate for Ebola virus is approximately 50%, SARS-CoV-2is 2.2%, Nipah virus is 40% to 75%, and Marburg virus disease is 23%-90%. Every year around 1 billion cases of influenza are reported globally, among which 3 to 5 million cases are severe and 0.29 to 0.65 million cases among them lead to influenza-based respiratory deaths. This high fatality rate owing to influenza or influenza-based diseases is generating significant demand for developing drugs for emergency usage. Furthermore, decrease in rate of mortality determines better success rate of vaccines. These are factors driving demand for manufactured vaccines by generating a level of trust among people.
Monkeypox outbreak in 2022 is creating several opportunities for virology product manufacturers. According to WHO, fatality rate of monkeypox is 3% to 6%. Though this virus has affected primarily central and western African countries, it is projected to spread in other regions as well. These factors are providing growth opportunities for virology market players to invest in new product development. In addition, increase in global funding is another factor driving revenue growth of the market. For instance, Government of France has funded USD 14.02 billion to WHO for prevention of HIV among other diseases. In March 2020, a fund of USD 3.0 billion has been jointly funded by governments of the US, Netherlands, and Switzerland, as a part of their COVID-19 Response Mechanism (C19RM). Also, a fund of USD 500,000 was raised by ViiV Healthcare Ltd., a joint venture by Pfizer and GSK, to the U.S., as an emergency response to monkeypox outbreak. This global funding is aiding a new platform for research & development in vaccine and drug technology, which ultimately leads to launch of novel anti-viral products, in turn, driving market revenue growth. Various multinational companies, such as QIAGEN, Bavarian Nordic, Sinopharm, Pfizer Inc., and Serum Institute of India Pvt. Ltd., are rapidly investing in making vaccines and diagnostic kits, for meeting demand of the virology market.
Driver: Increased Food And Drug Administration (FDA) approvals and funding in Research & Development (R&D)
Rapid rate of mutation of viruses results in Multiple Drug Resistance (MDR), which is driving revenue growth of the market. With increased variation in strains of different viral species, new scope for viral research and drug discovery is generated, which ultimately leads to an enhanced platform for production of new batches of vaccines. In 2022, The United States Food and Drug Administration (FDA) approved an array of anti-viral vaccines and rapid diagnostic test kits. For instance, ID NOW molecular diagnostic test kit for influenza virus can provide results within 5 to 13 minutes. It can make patients avoid unnecessary use of antibiotics. DIGIVAL is a digital platform that precisely reads and interprets lateral flow test results and delivers automated and objective results in seconds. Influvac Tetra 2021/2022 is an inactivated, quadrivalent influenza vaccine launched in 2021. Approval of these virology products is significantly driving market revenue growth. Moreover, U.S. FDA has also approved oral anti-viral pills, such as Lagevrio and Paxlovid, which have been launched by Merck and Pfizer respectively. FDA has also approved vaccines RotaTeq and Rotarix for rotavirus. Investments in virology product R&D are further contributing to market growth. The UK Government has funded around GBP 1.6 million to researchers at Pirbright Institute, for conducting vaccine research, which includes development of anti-viral vaccines such as Nipah and Ebola virus disease vaccines. These funding are facilitating high-end research works and increasing revenue of the virology industry as well. These factors are expected to drive demand for virology products over the forecast period.
Restraint: High cost of upstream and downstream processing of anti-viral vaccines
Production of anti-viral vaccines is heavily cost intensive, which is associated with production of virology products such as installation of expensive upstream and downstream facilities and procuring rare and costly raw materials. Also, highly skilled workers, scientists, and researchers are required to operate manufacturing and research & development facilities. According to United Nations Children's Fund (UNICEF), the market price of FDA-approved vaccine for Ebola virus disease is USD 98.60 per vial as of 2022. FLUZONE, the FDA-approved vaccine for influenza costs USD 56.62 per vial in 2022. Higher prices of vaccines are an impediment for a middle-class and low-income group of patients. These factors are restraining revenue growth of the market.
High morbidity and mortality rate of COVID-19 is a major factor driving revenue growth of the virology market. Following the outbreak of this pandemic, there has been a significant surge in virology research & development accompanied by manufacturing of anti-viral products including vaccines. According to WHO, 60.2 million cases of COVID-19 affected patients have been reported, among them, 6.4 million patients have been reported dead in 2022. One of the major causes of this high rate of infectivity is D614G mutation in viral genome. In addition, increasing rate of infection has created high demand for doses of vaccines globally. Top multinational pharmaceutical companies have launched several vaccines such as mRNA-1273 by Moderna, BNT162b2 by Pfizer BioNTech, VLA2001 by Valneva, ChAdOx1-S [recombinant] vaccine by AstraZeneca, and others. During COVID-19 various vaccine-manufacturing companies are involved in developing disruptive innovations and constructing ultra-modern vaccine facilities to meet high demand in the market.
Product Type Outlook:
Based on product type, virology market has been segmented into anti-viral drugs, anti-viral chemotherapy, interferons, medical instruments, and others. The antiviral-drug segment accounted for the largest revenue share in 2021. Innovative antiviral drugs are a potent means of treatment for patients. Antiviral drugs are mainly administered to decrease degree of disease symptoms in human body. These can check pathogenicity of virus and can lower the time period of human sickness. Each year, a large number of New Molecular Entities (NMEs) are introduced, which are considered for FDA approval. In addition, advent of COVID-19 has generated growth in this segment. Veklury (Remdesivir), and Olumiant (baricitinib) are some of the FDA-approved drugs, which are used to treat COVID-19 and influenza, respectively. Apart from that, in 2021-22, anti-influenza viral medications, such as Tamiflu (available as oral suspension and 75/45/30mg capsules), Relenza (available as inhalation powder), and Rapivap (injection), have been approved by FDA. High success rate of these drugs is a major factor driving market revenue growth.
The anti-viral chemotherapy segment accounted for a steady revenue share in 2021. Antiviral chemotherapeutic agents are substances other than a virus, virus-contain vaccine, or specific antibody, which can produce either a protective or therapeutic effect. This effect is a determining factor to decide if the virus is present in the body of host.
Molecular Diagnostic Method Outlook:
Based on molecular diagnostic methods, the virology market has been segmented into polymerase chain reaction-based approaches, in-vitro studies, in-vivo studies, next-generation sequencing, and mass spectrometry-based analyses. The polymerase chain reaction-based approaches segment accounted for largest revenue share in 2021. It is a test to detect genetic material from an organism, for instance, virus. Outbreak of COVID-19 has significantly increased demand for performing RT-PCR because this is a standard, trustworthy method to test possible infection by SARS-CoV-2 virus. Various companies have launched several RT-PCR kits. RT-PCR tests determine whether virus of COVID-19 is present in the sample collected from patient. If COVID-19 viral RNA is present in a sample collected from patient, then this test will amplify the content. This infers that the patient is infected by COVID-19, thus, it is the most sought-after choice by patients to test if they are COVID-19 positive. In September 2020, LabGenomics, a Korea-based company launched its FDA-approved RT-PCR kit called LabGun and on March 5, 2020, Labcorp Corporation of America was the first U.S.-based commercial company to launch first FDA-approved RT-PCR kit. There are many RT-PCR detection kits awaiting FDA certification such as U-TOP COVID-19 Detection Kit, AQ-TOP COVID-19 Rapid Detection Kit, and others. The cost of RT-PCR is nominal; as per UNICEF, a single RT-PCR test costs USD 7.8.
in the in-vitro studies segment accounted for a moderate revenue share in 2021. The market of standard viral detection assays, such as hemagglutination assay, and serological, will remain stable. Other advanced techniques, such as next-generation sequencing or mass spectrometry-based approaches, are highly adopted within the domain of university or institute-based research works. These factors are driving revenue growth of this segment.
Based on end-use, the virology market has been segmented into hospital, molecular diagnostic laboratories, and others. The hospital segment accounted for largest revenue share in 2021. Since the inception of COVID-19 outbreak, demand for COVID-19 testing has surged significantly. Since majority of COVID-19 tests are conducted in hospitals, majority of revenue share is generated from the hospital segment. In addition, market revenue for the hospital sector has also increased owing to increasing demand for COVID-19 vaccines accompanied by the booster dose. Various government and non-government hospitals have set up vaccination camps where free or paid vaccination facilities are conducted, which has increased adoption of virology products among hospitals. According to ministry of health and family welfare of the government of India, total 21.19 billion vaccinations were given to patients in government hospitals across India, as of August 2022. Moreover, increasing patients’ awareness regarding utilities of taking vaccines and various benefits are further contributing to revenue growth of this segment.
The molecular diagnostic laboratories segment accounted for a steady revenue share in 2021. Number of patients taking RT-PCR tests in different molecular diagnostic laboratories have also increased owing to COVID-19 outbreak. Increased market revenue of molecular diagnostic laboratories can also be attributed to increased public awareness towards COVID-19 testing, owing to various government and non-government awareness programs.
The North America market accounted for largest revenue share in 2021. Increasing number of COVID-19 cases in the U.S. is a major factor driving revenue growth in this region. According to WHO, there have been over 92 million confirmed cases of COVID-19, from January 2020 to August 2022 and 598 million doses of COVID-19 vaccines have been administered in the U.S., as of August 2022. These factors have generated demand for enhanced number of doses of vaccines and advanced diagnostic solutions to treat chronic and acute viral conditions. Increasing funding for virology research & development are significantly attributed to revenue growth of the market. For instance, The U.S. congress has funded around USD 940 million under Coronavirus Aid, Relief, and Economic Security (CARES) Act to National Institute of Health (NIH) in March 2020 for COVID-19 research on developing novel detection methods, vaccines, and other treatment facilities. Moreover, The Centers for Disease Control via Iowa Department of Public Health has funded USD 30.2 million to Iowa college of public health for developing an ultra-modern COVID-19 testing method to meet increasing demand for COVID-19 testing. These financial aids are generating several opportunities for new product development as well as market expansion.
The Europe market accounted for a moderate revenue share in 2021. Growth of the market is attributed to advancement of virology research & development infrastructure and high-class production facilities. According to European center for disease prevention and control, around 2,707 cases of influenza were reported in 2021. As of August 2022, new number of cases of COVID-19 in Germany were 31.92 million, 34.39 million in France, in Norway 1.45 million, and in Sweden 2.55 million. Rising cases of COVID-19 and newer strains in several European countries are generating high demand for virology products. Moreover, investments are creating opportunities for expansion of the virology market. For instance, European investment bank and Atriva Therapeutics GmbH have signed an agreement of 24 million euros for development of research facilities and clinical testing infrastructure for influenza
The Asia Pacific market accounted for a moderate revenue share in 2021 due to rising population in this region. The Association of Southeast Asian Nations (ASEAN) countries have collaborated and established ASEAN Regional Center for Public Health Emergencies and Emerging Diseases to perform research on viral diseases. This region accounts for 15% of entire drug development pipeline. According to World Bank, there has been an investment of USD 7.5 million in Pakistan, Thailand, Malaysia, Vietnam, and the Philippines for generating an increased number of COVID-19 vaccines to meet high demand for vaccines.
Competitive landscape of the global virology market is moderately fragmented with a few key players operating on global and regional levels. Key players are engaged in strategic alliances to expand their respective portfolio and gain a robust footing in the global market. Some of the major companies included in the global market report are BioNTech SE, Novartis AG, GSK plc., Merck & Co., Inc., Pfizer Inc., Moderna, Inc., Johnson & Johnson Services Inc., AstraZeneca, F. Hoffmann-La Roche Ltd., Boehringer Ingelheim International GmbH, and Shanghai Fosun Pharmaceutical?Group?Co.
Segments Covered in the report
This report offers historical data and forecasts revenue growth at a global, regional, and country level, and provides an analysis of market trends in each of the sub-segments from 2019 to 2030. For the purpose of this report, Reports and Data has segmented the global virology market based on product type, molecular diagnostic method, end use, and region:
Segments covered By Product Type Outlook, Molecular Diagnostic Method Outlook, End-use Outlook, Regional Outlook
By Product Type Outlook
By Molecular Diagnostic Method Outlook
Polymerase Chain Reaction (PCR) based Approaches
Next Generation Sequencing
Mass Spectrometry-based Analysis
By End-use Outlook
Molecular Diagnostic Laboratories
Middle East & Africa