Towards Healthcare
Viral Vector Development Market Expands at 18.84% CAGR by 2034

Viral Vector Development Market Opportunities and Top Key Players

Based on market forecasts, the viral vector development sector will expand from USD 0.89 billion in 2024 to USD 5 billion by 2034, experiencing a CAGR of 18.84%. Globally, different targeted diseases are growing immensely, including genetic disorders like cystic fibrosis and muscular dystrophy, rising cases of cancer, and accelerating technological advancements in gene therapy and vaccine development. North America dominated the viral vector development market due to rising investments in gene therapy development and a robust pipeline in the clinical trials of these therapies.

Category: Biotechnology Insight Code: 5783 Format: PDF / PPT / Excel

The global viral vector development market size is calculated at US$ 0.89 in 2024, grew to US$ 1.06 billion in 2025, and is projected to reach around US$ 5 billion by 2034. The market is expanding at a CAGR of 18.84% between 2025 and 2034.

The global viral vector development market is developing significantly due to factors including increasing instances of genetic disorders and various cancers, with escalating technological advancements in gene therapy and cancer therapy. Also, accelerating initiatives and funding by governments in R&D of viral vector production and vaccine development is fueling the market growth.

In the future, numerous opportunities will develop, such as in vaccine development against diverse infectious diseases, including HIV, Malaria, Ebola, and, more recently, SARS-CoV-2, and in bioprocessing due to advancements in techniques, such as upstream processing are boosting efficiency and scalability of the production.

Viral Vector Development Market Size 2024 - 2034

Key Takeaways

  • The viral vector development market will likely exceed USD 0.89 billion by 2024.
  • Valuation is projected to hit USD 5 billion by 2034.
  • Estimated to grow at a CAGR of 18.84% starting from 2025 to 2034.
  • North America dominated the global viral vector development market share in 2024.
  • Asia Pacific is expected to grow at the fastest CAGR in the upcoming years.
  • By virus, the adeno-associated viral vectors segment was dominant in the market in 2024.
  • By virus, the retrovirus segment is expected to grow significantly during the forecast period.
  • By expression system, the transient segment dominated the market in 2024.
  • By expression system, the stable segment is expected to grow at the fastest CAGR over the projected period.
  • By application, the gene therapy segment held the major revenue share of the market in 2024.
  • By application, the cancer therapy segment is expected to grow at the fastest CAGR during 2025-2034.
  • By end user, the pharmaceutical & biotechnology companies segment led the global viral vector development market in 2024.
  • By end user, the contract research organization (CRO) segment is expected to be the fastest-growing segment in the predicted timeframe.

Key Metrics and Overview

Metric Details
Market Size in 2025  USD 1.06 Billion
Projected Market Size in 2034 USD 5 Billion
CAGR (2025 - 2034) 18.84%
Leading Region North America
Market Segmentation By Virus, By Expression System, By Application, By End User, By Region 
Top Key Players Lonza Group AG, Merck KGaA, Thermo Fisher Scientific Inc., Catalent Inc., WuXi AppTec, FUJIFILM Corporation, Oxford Biomedica.

Market Overview

The process of designing modified viruses to transfer genetic material into cells, mainly for gene therapy and vaccine development, is termed viral vector development. The global viral vector development market is primarily propelled by the growing several genetic disorders, rising focus on precision medicine, and the developing pipeline of gene therapy candidates. Moreover, it has wide-ranging applications across the development of different cell and gene therapies, cancer therapies, and vaccinology, as well, including COVID-19, cancer, and HIV/AIDS.

  • In May 2025, Wacker Biotech US, a CDMO, partnered with Expression Manufacturing, which specializes in viral vector technology to accelerate the development and manufacturing of lentiviral-based gene and cell therapies.  (Source - Geneng news)
  • In May 2025, Cytiva, a global biotechnology leader, and Eureka Biotechnology, a clinical-stage biopharmaceutical company, made a strategic partnership to advance lentiviral vector (LVV) manufacturing in China. (Source - Endpoints)
  • In March 2025, Bharat Biotech invested US$75M in the production of cell and gene therapy in Hyderabad. (Source - Fiercepharma)
  • In March 2025, Apollo Hospitals partnered with Ion Beam Applications (IBA) for proton beam therapy to invest ₹ 250 cr over the coming three years. (Source - Medicalbuyer)
  • In December 2024, Matica Biotechnology, a global contract development and manufacturing organization (CDMO) specializing in viral vector development and manufacturing, collaborated with Treovir to enhance novel therapies for pediatric brain Tumors. (Source - Businesswire)

What is the Role of AI in the Viral Vector Development Market?

In 2025, AI has experienced numerous advancements in other aspects, such as automation and high-throughput screening technologies, which are making it more rapid and efficient in the production and development of viral vectors. Moreover, AI-powered enhancement of manufacturing processes can decrease the expenses of production and allow making gene therapies more approachable and cost-effective as AI algorithms can do the analysis of huge biological datasets, including genomic data, protein structures, and viral vector properties, in the identification of potential candidates for gene therapy, and improve their design.

Market Dynamics

Driver

Rising Instances of Targeted Conditions and Technological Breakthroughs

Around the world, different targeted diseases are growing enormously, including genetic disorders like cystic fibrosis and muscular dystrophy, rising cases of cancer that need immunotherapy, and other concerns, such as infectious diseases and autoimmune disorders, are primarily driving the viral vector development market growth. Besides this, many technological advancements are happening, like novel production platforms, including in development of new cell lines and culture techniques, and developing automated and digital tools in the manufacturing of viral vectors, which enhances process control, reliability, and complete effectiveness with reduced costs.

Restraint

Requirement of Specialized Infrastructure and Strict Regulatory Considerations

Challenges arising across the viral vector development market growth are the need for specialized facilities and equipment in viral vector production, which may result in high upfront and operational expenditure. Along with this, another challenge is the rigorous guidelines set by regulatory agencies like the FDA and EMA for the development and production of viral vectors, which are increasing the difficulties in the process.

Opportunity

Escalating Applications in gene therapy & vaccine development, and bioprocess

The number of opportunities is developing by using viral vectors, such as viral vectors have major role in delivering genetic materials in gene therapies for different conditions, like metabolic, cardiovascular, muscular, hematologic, ophthalmologic, and infectious diseases, and different types of cancer. As well as viral vectors are broadly employed in vaccine development against diverse infectious diseases, including HIV, Malaria, Ebola, and, more recently, SARS-CoV-2. Furthermore, it has rising opportunities in bioprocessing due to advancements in techniques, such as upstream processing are boosting efficiency and scalability of the production.

Segmental Insights

How did the Adeno-Associated Viral Vectors Segment Dominate the Market in 2024?

By virus, the adeno-associated viral vectors segment held the largest revenue share of the viral vector development market in 2024. As these vectors have a broad target range, ongoing R&D approaches are focused on optimizing AAV vector design, such as capsid engineering and transgene expression control are fueling the further market expansion. Also, numerous AAV-reliant gene therapies have acquired regulatory approvals and are showing potential clinical trial results in spinal muscular atrophy and inherited retinal diseases. 

By virus, the retrovirus segment is expected to grow at a notable CAGR during 2025-2035. The segment growth is driven by growing cases and awareness about genetic disorders, which often demand gene therapies in which retroviral vectors are highly employed. Also, accelerating research activities into enhancing retroviral vector design, production approaches, and safety characteristics is propelling further market growth.

Which Expression System Led the Viral Vector Development Market in 2024?

By expression system, the transient segment was dominant in the market in 2024. This segment enables a quick and highly flexible approach in viral vector manufacturing and making it ideal for research and early-stage clinical trials.

By expression system, the stable segment is expected to grow rapidly during the forecast period. However, various conditions targeted by gene therapy need long-term gene expression for therapeutic advantage, in which a stable system plays a vital role.

Why did the Gene Therapy Application Hold a Major Share of the Market in 2024?

By application, the gene therapy segment dominated the viral vector development market in 2024. Various genetic disorders, such as cystic fibrosis, hemophilia, and a variety of cancer cases, are boosting and demanding for viral vector-based gene therapies. Also, in COVID-19 vaccines, viral vectors showed positive results, which has spurred prospective research and investment in this area, especially for other infectious diseases.

By application, the cancer therapy segment is expected to be the fastest-growing application in the upcoming years. Other factors, along with rising cancer cases, are escalating investments in cancer research and clinical trials, including a focus on gene therapy, and in the modification of immune cells in therapies like CAR-T cell therapy, which is used in cancer treatment, are driving the overall segment and market growth.

What Made the Pharmaceutical & Biotechnology Companies Segment Dominate in the Market in 2024?

By end user, the pharmaceutical & biotechnology companies segment held the highest revenue share of the global viral vector development market in 2024. The segment is driven by the increasing demand for gene therapy in which viral vectors are playing a crucial role, and also their successful application in vaccine development, especially in the COVID-19 pandemic, enhancing the usage of viral vectors in the same approaches.

By end user, the contract research organization (CRO) segment is expected to grow at the fastest CAGR over the projected period. As CROs enable companies to gain specialized knowledge, infrastructure, and economies of scale, minimizing development spending and timelines. Moreover, investments by various pharmaceutical and biotechnology companies in R&D demand for CRO services, as companies look for partners to boost their research programs and bring novel therapies to market faster.

Regional Insights

What made North America Dominate the Viral Vector Development Market in 2024?

North America held the largest revenue share of the market in 2024. Due to a surge in investments in gene therapy development is majorly impacting the demand for viral vectors. As well as a robust pipeline of these therapy products in clinical trials, particularly in the US and Canada, with this expansion generating major demand for viral vectors.

The U.S. Viral Vector Development Market Trends

Along with rising genetic disorder cases, various factors, including growing initiatives by the government and investments in biotechnology and gene therapy research activities, are driving the market growth. Also, an essential support from numerous contract development and manufacturing organizations (CDMOs) for viral vector production and supply is expanding the respective market.

The Canada Viral Vector Development Market Trends

In Canada, progressing research and development processes in biotechnology research, especially in gene therapy, vaccine development, and regenerative therapeutics with robust regulatory support, are propelling demand for viral vectors.

Accelerating Investments in Healthcare and R&D is Driving Asia Pacific

Asia Pacific is expected to be the fastest-growing region during 2025-2034. In ASAP, governments and private entities are primarily investing in healthcare infrastructure and research processes, including the development and adoption of viral vector and plasmid DNA manufacturing technologies. Also, clinical trial areas are developing by using viral vectors in the development of gene therapy is fueling the expansion of the market.

The China Viral Vector Development Market Trends

China is experiencing major growth in the market due to a shifting focus towards advanced therapies from biopharmaceutical companies, such as cell and gene therapies, as well as rising innovations and adoption of novel technologies to achieve affordable and scalable viral vector production.

The India Viral Vector Development Market Trends

In India, rising cases of cancer, genetic concerns, and infectious diseases are highly demanding for gene therapies in which viral vectors are widely employed. Besides this, expanding strategic collaborations among companies are supporting in manufacturing capacity, simplifying processes, and probably reducing the cost of production is also encouraging the market growth.

Advancements in Bioprocessing and Technology are Driving Europe

Europe is leading in the adoption of advanced bioprocessing technologies, automation, and analytical tools, which accelerate the effectiveness and quality of viral vector production. However, Europe is experiencing significant growth due to regulatory bodies such as the EMA are strongly supporting novel gene therapy products with developed regulatory guidelines.

The Germany Viral Vector Development Market Trends

Numerous applications of viral vectors are increasing, like in vaccinology, cell therapy, and gene therapy are majorly contributing to the market growth. Along with merging investment in the biotechnology area, especially in vaccine and gene therapy development, is also boosting the market.

The UK Viral Vector Development Market Trends

Several factors, including advancements in genome sequencing, government initiatives, and the emergence of Contract Development and Manufacturing Organizations (CDMOs), are assisting in the expansion of the market.

Top Companies in the Viral Vector Development Market

Viral Vector Development Market Companies

Latest Announcements by Industry Leaders

  • In June 2025, Hyderabad-based AIG Hospitals announced its investments of Rs 800 crore for the installation of a Proton Therapy System for cancer treatment. Dr. D. Nageshwar Reddy, Chairman of AIG Hospitals, stated that this installation and collaboration with IBA will support in revolutionary step in their mission to provide cutting-edge, compassionate care. (Source - New indian express)
  • In November 2024, Ascend Advanced Therapies (Ascend), a gene-to-GMP development partner, announced its collaboration with EW Healthcare Partners to develop the footprint and capabilities of the company in the US. Fred Cohen, Chairman of Ascend and Founding investor at Monograph Capital, replied that this collaboration will create the best operators and technologies in the advanced production area. (Source - PR Newswire)
  • In August 2024, Abselion, a biotechnology company in Cambridge, England, announced a £1.1m project to expand its next-gen cell platform for viral vector production. This project is led by VVector Bio and along with the NRC, Revvity, and Abselion. Ruizhi Wang, CEO of Abselion, said that this project is the major opportunity for showcasing accelerating development and result in highly efficient and strong manufacturing of next-gen therapeutics. (Source - Pharmaceutical manufacturer)

Recent Development in the Viral Vector Development Market

  • In May 2025, 3PBIOVIAN, a CDMO company, launched the AAVion® platform, a completely integrated adeno-associated virus (AAV) manufacturing solution designed to escalate gene therapy development. (Source - Geneng news)
  • In March 2025, Bharat Biotech launched India’s only vertically integrated cell and gene therapy, viral production facility at Genome Valley. (Source - Etvbharat)
  • In May 2024, NewBiologix SA, a technology innovation company, launched its proprietary HEK293 Cell Line for the expression of viral vectors used in gene therapy. (Source - Businesswire)

Segments Covered in the Report

By Virus

  • Lentiviral Vectors
  • Adenoviral Vectors
  • Adeno-Associated Viral Vectors- dominated
  • Retrovirus- significant

By Expression System

  • Transient
  • Stable

By Application

  • Gene Therapy- dominated
  • Vaccines
  • Cancer Therapy- fastest
  • Others

By End User

  • Pharmaceutical & Biotechnology Companies- dominated
  • Contract Research Organization (CRO)- fastest
  • Academic and Research Institutes

By Region

  • North America
    • U.S.
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
  • Last Updated: 27 June 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Kesiya Chacko is an accomplished market research professional with over 4+ years of experience in the healthcare industry, known for delivering actionable insights and strategic analysis that empower healthcare organizations.

Learn more about Kesiya Chacko

Aditi Shivarkar, with over 14 years of experience in consumer goods, leads research at Towards Consumer Goods, ensuring precise, actionable insights on trends, consumer preferences, and sustainable packaging for businesses.

Learn more about Aditi Shivarkar

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FAQ's

The viral vector development market projected to grow from USD 1.06 billion in 2025 to nearly USD 5 billion by 2034 at a CAGR of 18.84%, the sector presents strong long-term investment opportunities.

The market is being driven by the increasing prevalence of genetic disorders and cancers, the rising adoption of gene and cell therapies, and supportive government funding in biotech R&D

While North America currently dominates due to mature biotech infrastructure and regulatory clarity, Asia Pacific.

Disruptions such as AI-driven manufacturing optimization, automated high-throughput screening, and novel vector engineering are transforming development speed and cost-efficiency

AI plays a pivotal role by accelerating candidate selection, optimizing vector design, and reducing production costs through predictive analytics.