In addition, lack of in-house storage and packaging capabilities, expertise, and budget constraints faced by biopharmaceutical companies, government institutions, and academic institutions are anticipated to propel the growth of this market. Moreover, steadily rising global immunization coverage is driving the vaccine storage equipment market. For instance, according to WHO the estimated global vaccination coverage of Diphtheria-tetanus-pertussis (DTP3) was about 86.0% in 2018.
The market is anticipated to be driven by technological advancements such as SDD refrigerators and RFIDs in the industry. Most of the leading companies have made significant investments in R&D to address the unmet medical needs in the storage and packaging of vaccines in health care facilities. Moreover, rising awareness about early disease diagnosis and prevention and increasing incidence of infectious diseases has stimulated demand for protective vaccines, hence further driving the vaccine storage and packaging market.
Function Insights
The storage segment held the largest revenue share of 58.8% in 2019 owing to the increasing demand for vaccine storage equipment and services in the industry. The storage segment is further segmented into storage equipment and services. The services segment is anticipated to dominate the market over the forecast period as most of the biopharmaceutical companies hire third parties for warehouse storage and transportation services.
Based on packaging material, the vaccine packaging market is segmented into vaccine bags, vials, ampoules, corrugated boxes, and others. The vaccine bags, vials, ampoules segment is anticipated to dominate the market in 2019 owing to higher compatibility with the sensitive material. Furthermore, based on the packaging level the vaccine packaging market is segmented into the primary, secondary, and tertiary segments. The primary segment is anticipated to dominate the market in 2019 and also expected to register a higher CAGR over the forecast period owing to the higher cost of the design and development of the primary packaging in the industry.
Regional Insights
Europe dominated the market and accounted for a revenue share of 42.6% in 2019. Rising awareness about vaccination programs among people, increasing research on vaccines, rising prevalence of infectious diseases, and the presence of a large number of logistic providers with years of expertise in the region are the major factors driving the market in the region.
However, MEA is expected to register a higher CAGR over the forecast period owing to rising government investments in the healthcare infrastructure in the region. The rising focus of prominent players on the market for vaccine storage and packaging in MEA is also expected to drive growth. In addition, South Africa and Saudi Arabia offer several opportunities for market players. Also, the immunization programs in South Africa, are expected to largely contribute towards revenue generation over the next seven years. Increasing communicable diseases is also the main driver for this market in the region.
Key Companies & Market Share Insights
To sustain in the highly competitive environment and to improve market share, the key companies are adopting expansion and mergers and acquisitions as key business strategies. Currently, the industry is highly fragmented and maybe slightly more consolidated by the end of the forecast period owing to the former strategy. Some of the prominent players in the vaccine storage and packaging market include:
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Lineage Logistics
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AmerisourceBergen
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DHL
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DB Schenker
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Cardinal Logistics
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McKesson
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Thermo Fischer Scientific
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PANASONIC HEALTHCARE CO., LTD
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American Biotech Supply
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Arctiko A/S
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NIPRO