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Viral Vector Gene Therapy Market Size and Emerging Trends by 2034

Viral Vector Gene Therapy Market Gene Therapy Gains Momentum

The viral vector gene therapy market is growing due to rising demand for targeted treatments for genetic and rare diseases. Advancements in biotechnology and increasing clinical approvals are also fueling market expansion. 

Category: Therapeutic Area Insight Code: 5737 Format: PDF / PPT / Excel

The global viral vector gene therapy market is witnessing strong growth momentum, with projections indicating significant revenue expansion through 2025 to 2034. This emerging market is being propelled by advancing genetic engineering technologies and shifting healthcare paradigms toward personalized and precision medicine.

The viral vector gene therapy market is expanding rapidly due to increasing demand for precise and long-lasting treatments for genetic, rare, and chronic diseases. Technological advancements in vector design and delivery systems have improved the safety and effectiveness of these therapies. Additionally, rising investments in research, favorable regulatory support, and growing success in clinical trials are encouraging pharmaceutical companies to develop novel viral vector-based treatments. These factors, combined with increasing awareness and diagnosis of genetic disorders, are driving the growth of this market.

Key Takeaways

  • North America dominated the viral vector gene therapy market in 2024.
  • Asia-Pacific is expected to grow at the highest CAGR in the market during the forecast period.
  • By vector type, the adeno-associated virus segment dominated the market.
  • By vector type, the lentivirus segment is expected to grow at the fastest CAGR in the market during the studied years.
  • By application, the gene therapy segment held the largest revenue market share and is expected to grow at the fastest CAGR in the market during the studied years.
  • By end users, the pharmaceutical and biotechnology companies segment led the market.
  • By end user, the Contract Research Organizations (CROs) & Contract Manufacturing Organizations (CMOs) segment is expected to grow at the fastest CAGR in the market during the studied years.

How is the Viral Vector Gene Therapy Market Evolving?

Viral vector gene therapy is a form of treatment that uses genetically engineered viruses as carriers to deliver healthy genes into a patient's cells, aiming to correct or replace faulty genes responsible for specific diseases. The viral vector gene therapy market is growing due to increasing demand for advanced treatments for genetic and rare disorders. Improved vector technologies have enhanced the safety and efficiency of gene delivery, making therapies more effective. Rising investment in research, growing success in clinical trials, and supportive regulatory approvals are also driving development. Additionally, greater awareness and diagnosis of genetic conditions, along with breakthroughs in personalized medicine, are fueling the expansion of this innovative treatment market.

For Instance,

  • In May 2024, Charles River Laboratories launched new AAV and LVV reference materials to support cell and gene therapy development. The portfolio includes six AAV serotypes with improved capsid ratios and five LVV products with varied promoters and reporter genes. This expansion enhances their CDMO services, aiding researchers from early discovery through to commercialization. (Source: Charles River Laboratories)
  • In April 2025, Vertex Pharmaceuticals reported positive Phase 3 results for its CRISPR-Cas9 gene-edited therapy for sickle cell disease. The treatment significantly reduced vaso-occlusive crises, highlighting the potential of gene editing to provide lasting solutions for genetic blood disorders. (Source: Vertex)
  • In February 2025, Novartis entered a strategic collaboration with a major gene therapy manufacturer to strengthen its adeno-associated virus (AAV) vector production. This partnership aims to overcome manufacturing challenges in the gene therapy sector by improving the scalability and reliability of viral vector supply for clinical and commercial use. The initiative highlights the critical need for strong manufacturing infrastructure to support the broader application of gene therapies. (Source: Novartis)

How Can AI Affect the Viral Vector Gene Therapy Market?

AI is transforming the market by accelerating drug discovery, optimizing vector design, and improving manufacturing efficiency. It helps identify ideal gene targets, predict vector behavior, and streamline clinical trial processes through advanced data analysis. AI also enhances quality control and reduces development time, making therapies more cost-effective and accessible. These capabilities are driving innovation and faster commercialization, supporting the growing demand for precise and personalized gene-based treatments.

Market Dynamics

Driver

Rising Prevalence of Genetic and Rare Disorders

The increasing number of genetic and rare disease cases is pushing the need for more effective and targeted therapies. Viral vector gene therapy offers a promising approach by correcting faulty genes at the source, providing lasting benefits that conventional treatment often can’t achieve. With advances in diagnostics and awareness, more patients are being identified, increasing demand for innovative therapies. This trend is fueling research, development, and investment in the viral vector gene therapy market.

For Instance,

  • In April 2024, the FDA approved Pfizer’s Beqvez (fidanacogene elaparvovec), an AAV-based gene therapy for hemophilia B, enabling patients to potentially stop frequent clotting factor infusions. (Source: Pfizer)

Restraint

High Cost and Complexity of Manufacturing

The complex and costly manufacturing process of viral vectors poses a major barrier to growth in the gene therapy market. It involves sophisticated equipment, highly skilled personnel, and strict regulatory standards, making large-scale production difficult. These factors contribute to long development timelines and limited availability of therapies. As a result, treatment prices remain high, reducing affordability and access for many patients, and creating challenges for broader market expansion and adoption across healthcare systems.

Opportunity

Advanced Therapies

Advanced therapies offer a promising future for the viral vector gene therapy market by enabling more efficient and targeted treatment approaches. Emerging innovations, such as synthetic vectors, tissue-specific delivery systems, and improved payload capacity, are enhancing the therapeutic potential of gene therapy. These breakthroughs not only expand the range of treatable conditions but also improve treatment outcomes. As research progresses, these advancements are expected to make gene therapies more accessible and sustainable for a larger patient population.

For Instance,

  • In November 2024, the FDA approved eladocagene exuparvovec (marketed as Kebilidi), an advanced AAV-based gene therapy for aromatic L-amino acid decarboxylase (AADC) deficiency. Administered through a single infusion directly into the brain’s putamen, this therapy enables dopamine production in patients with this rare neurological disorder. Kebilidi’s approval highlights how cutting-edge, vector-driven therapies are transforming treatment options for previously intractable genetic conditions, exemplifying growth in the viral vector gene therapy sector. (Source: FDA)

Segmental Insights

How does the Adeno-Associated Virus Segment Dominate the Viral Vector Gene Therapy Market in 2024?

The adeno-associated virus segment lead the viral vector gene therapy market in 2024 because of its strong clinical success and flexibility in treating a range of genetic diseases. Their ability to carry therapeutic genes with minimal side effects and deliver them precisely to targeted tissues has made them a preferred choice for developers. Additionally, ongoing innovations and regulatory approvals using the AAV platform have further strengthened their role as a dominant presence.

For Instance,

  • In the January 2024 clinical trial, TILT-123 an oncolytic adenovirus engineered to express TNF-α and IL-2 showed promising tumor-targeting ability and a favorable safety profile in patients with advanced solid tumors. This outcome highlights the growing importance of adenoviral vectors in cancer treatment and their expanding use in gene therapy approaches. (Source: Onclive)

The lentivirus segment is projected to grow at the fastest rate in the viral vector gene therapy market due to its ability to integrate genetic material into both dividing and non-dividing cells, making it highly effective for long-term gene expression. It is especially valuable in therapies involving stem cells and hematological disorders. The growing focus on treating complex genetic diseases and successful clinical outcomes using lentiviral vectors is driving increased research investment and accelerated expansion in the market.

How Does the Gene Therapy Segment Dominate the Viral Vector Gene Therapy Market?

The gene therapy segment led the viral vector gene therapy market in 2024 and is expected to grow at the fastest CAGR during the forecast period due to its ability to provide long-term or curative treatments for genetic disorders. Rising demand for innovative therapies, especially for conditions with limited or no treatment for genetic disorders. Rising demand for innovative therapies, especially for conditions with limited or no treatment options, has accelerated their development. Continuous breakthroughs in viral vector technologies and increasing support from regulatory bodies have further encouraged market growth.

Why Did the Pharmaceutical and Biotechnology Companies Segment Dominate the Viral Vector Gene Therapy Market in 2024?

The pharmaceutical and biotechnology companies segment dominated the market because of its robust capabilities in innovation, technology integration, and regulatory navigation. These companies are at the forefront of developing novel gene therapies and advancing vector production techniques. Their strong global presence, strategic alliances, and access to funding enable them to drive clinical progress and bring therapies to market efficiency, making them a key player in pushing the viral vector gene therapy market.

The Contract Research Organizations (CROs) & Contract Manufacturing Organizations (CMOs) segment is experiencing accelerated growth in the viral vector gene therapy market as pharmaceutical and biotech firms increasingly outsource complex development and production tasks. These organizations offer advanced technical capabilities, regulatory expertise, and scalable infrastructure, which help reduce operational costs and speed up clinical and commercial timelines. As gene therapies become more advanced and widely adopted, CROs and CMOs are playing a vital role in supporting innovation, ensuring quality, and meeting the rising global demand efficiently.

How is North America Contributing to the Expansion of the Viral Vector Gene Therapy Market?

North America dominated the market in 2024 owing to its concentration of cutting-edge research institutions, skilled workforce, and early adoption of advanced therapeutic technologies. The region's emphasis on personalized medicine, combined with frequent clinical trials and government support for gene-based innovations, fuels ongoing progress. Additionally, collaborations between biotech startups and major pharmaceutical companies further enhance development capabilities, making North America a key hub for breakthroughs in viral vector gene therapy.

The U.S. Viral Vector Gene Therapy Market Trends

The U.S. market is growing due to heavy investment from both private and public sectors in biotech R&D, increasing FDA approvals of novel therapies, and a mature regulatory system that supports advanced clinical development. The country’s leading infrastructure, including specialized manufacturing facilities and numerous partnerships among academia, startups, and major pharma, is accelerating vector production and trial progress. These strengths are driving rapid market growth across the U.S. 

For instance,

  • In January 2023, Vector BioMed, a Gaithersburg-based biomanufacturing company, launched with $15 million in funding from Viking Global Investors and Casdin Capital. The company focuses on producing lentiviral vectors, essential for advancing cell and gene therapies. (Source: PR Newswire)

The Canada Viral Vector Gene Therapy Market Trends

Canada’s market is growing due to increasing focus on advanced therapies for genetic and rare diseases, along with supportive government initiatives in biotechnology. The country has witnessed a rise in clinical trials and partnerships between academic institutions and biotech firms, fostering innovation in gene delivery technologies. Additionally, improvements in manufacturing infrastructure and rising patient awareness are encouraging the adoption of gene therapies, making Canada a key player in this evolving healthcare segment.

How is Asia-Pacific approaching the Viral Vector Gene Therapy Market Growing in the Coming Years?

Asia-Pacific is anticipated to grow rapidly in the market during the forecast period due to rising collaborations between regional biotech firms and global pharmaceutical companies, along with growing government support for innovative treatment approaches. The region's large and diverse population presents significant opportunities for clinical research. Moreover, increased focus on rare disease diagnosis and treatment, along with improving regulatory frameworks, is encouraging the adoption and development of gene therapies, boosting market growth across emerging economies in the region.

The China Viral Vector Gene Therapy Market Trends

China's market is expanding rapidly due to significant biotech investments and strong government initiatives aimed at boosting domestic vector production. The country benefits from a growing pool of patients with genetic disorders and enhanced clinical research efforts, including increased trial activity. Improved infrastructure, such as specialized manufacturing facilities, and supportive national policies also foster innovation, making China a key emerging hub for viral vector-based therapies. 

The India Viral Vector Gene Therapy Market Trends

India's market is expanding due to a combination of increased investment in biotech infrastructure, supportive government initiatives, and a growing focus on rare and genetic disorders. Companies like Bharat Biotech and emerging CDMOs are enhancing domestic manufacturing of viral vectors such as AAV and lentivirus. Additionally, India’s large patient population and improved clinical trial capabilities are attracting global collaborations, positioning the country as a rising hub for gene therapy research, development, and production.

How is Europe Accelerating the Viral Vector Gene Therapy Market?

Europe is driving the market forward by enhancing manufacturing capacity, increasing research funding, and fostering innovation through supportive regulatory initiatives. In 2024, several European companies, such as Exothera and RDBiotech, expanded their viral vector production facilities to meet rising demand. Additionally, the European Union’s Horizon Europe program and updated regulations from the European Pharmacopoeia have improved development and quality standards for gene therapies, helping streamline clinical translation and commercial readiness across the region.

The UK Viral Vector Gene Therapy Market Trends

The UK market is expanding due to strong government support, advanced R&D infrastructure, and a growing number of GMP-certified manufacturing facilities. As of 2024, the UK has significantly increased its capacity for producing AAV and lentiviral vectors, which are crucial for gene therapy. This growth is also driven by collaborations between biotech firms and research institutions, allowing faster development and commercialization of therapies. These advancements position the UK as a key hub for gene therapy innovation in Europe.

The Germany Viral Vector Gene Therapy Market Trends

Germany’s market is witnessing growth due to increasing research collaborations, rising demand for advanced gene-based treatments, and strong government and academic support. Leading biotech companies are partnering with research institutions to develop innovative therapies, especially in areas like rare genetic diseases and cancer. The country’s well-established regulatory framework, robust healthcare infrastructure, and skilled workforce further support the development and commercialization of viral vector-based gene therapies, making Germany a key player in the European biotech landscape.

Top Companies in the Viral Vector Gene Therapy Market

Viral Vector Gene Therapy Market Companies

Latest Announcement by Industry Leaders

In 2024, NewBiologix launched its Xcell™ rAAV Production and Analytics Platform to improve the efficiency, quality, and scalability of viral vector production for gene and cell therapy. Built on the proprietary Xcell™ Eng-HEK293 cell line, the platform allows parallel screening of multiple rAAV gene candidates and offers complete data reporting for regulatory needs. CEO Igor Fisch stated that this platform was developed to reduce production risks and timelines, helping gene therapies advance more efficiently into clinical development. (Source: Busniesswire)

Recent Development in the Viral Vector Gene Therapy Market

  • In July 2024, Abeona Therapeutics partnered with Beacon Therapeutics to evaluate its AAV204 capsid for developing gene therapies targeting eye diseases. The collaboration aims to advance treatment options in ophthalmology using Abeona’s AAV-based technology. (Source: Ophthalmology Times)
  • In May 2023, REGENXBIO Inc. announced its participation in the 26th Annual Meeting of the American Society of Gene & Cell Therapy (ASGCT), held in Los Angeles from May 16 to 20. Among its presentations was a study titled "High-Resolution Biodistribution Analysis Following Suprachoroidal Administration of a Pool of AAV3B, AAV8, and AAV9 Vectors to Non-Human Primates," which explored spatial and cellular tropism differences in vector distribution. (Source: Regenxbio)

Segments Covered in the Report

By Vector Type

  • Adeno-associated virus (AAV)
  • Lentivirus
  • Adenovirus
  • Retrovirus
  • Others

By Application

  • Gene Therapy
  • Vaccine Development
  • Biopharmaceutical & Pharmaceutical Discovery

By End-User

  • Pharmaceutical and Biotechnology Companies
  • Academic and Research Institutes
  • Contract Research Organizations (CROs) & Contract Manufacturing Organizations (CMOs)

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: 17 June 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Rohan Patil is a seasoned market research professional with over 5+ years of focused experience in the healthcare sector, bringing deep domain expertise, strategic foresight, and analytical precision to every project he undertakes.

Learn more about Rohan Patil

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 gene therapy market is rapidly emerging, driven by biotech advances and rising demand for innovative genetic treatments from 2024 to 2034.

North America is currently leading the viral vector gene therapy Market due to its ability to accelerate drug discovery and optimize personalized treatment strategies.

Some key players include Novartis AG, Spark, Therapeutics, Merck KGaA, Regenxbio, and Uniqure NV.

The AI in Cancer Drugs Market includes 4 segments such as by vector type, application, end-user, and by region.

Key trends include the ability to accelerate drug discovery and optimize personalized treatment strategies.

Adeno-associated virus (AAV), lentivirus, adenovirus, and retrovirus are commonly used due to their ability to enter human cells and deliver genetic material.

Clinical trials and approved therapies have shown promising safety, but risks include immune responses, insertional mutagenesis, or off-target effects.

India Brand Equity Foundation, Food and Drug Administration, U.S. Environmental Protection Agency, European Medicines Agency, and National Medical Products Administration.