Oncolytic Virus Therapy

Global Oncolytic Virus Therapy Market to Reach US$45.2 Million by 2030

The global market for Oncolytic Virus Therapy estimated at US$13.8 Million in the year 2024, is expected to reach US$45.2 Million by 2030, growing at a CAGR of 21.8% over the analysis period 2024-2030. Herpes Simplex Virus, one of the segments analyzed in the report, is expected to record a 20.8% CAGR and reach US$11.8 Million by the end of the analysis period. Growth in the Adenovirus segment is estimated at 19.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.8 Million While China is Forecast to Grow at 29.0% CAGR

The Oncolytic Virus Therapy market in the U.S. is estimated at US$3.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$10.7 Million by the year 2030 trailing a CAGR of 29.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.7% and 19.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 18.3% CAGR.

Global Oncolytic Virus Therapy Market – Key Trends & Drivers Summarized

Could Engineered Viruses Become the Next Frontier in Cancer Immunotherapy?

Oncolytic virus therapy (OVT) represents a cutting-edge approach to cancer treatment that harnesses genetically engineered or naturally occurring viruses to selectively infect and destroy cancer cells while sparing normal tissues. Once inside the tumor, these viruses replicate, induce immunogenic cell death, and stimulate systemic anti-tumor immune responses—effectively turning the tumor into its own vaccine. This dual mechanism of action—direct oncolysis and immune activation—positions OVT as a promising bridge between targeted therapy and immunotherapy, with applications in solid tumors and hematologic malignancies.

Clinical and preclinical interest in OVT has surged following the regulatory approval of Imlygic (Talimogene laherparepvec or T-VEC), an HSV-1 based therapy for advanced melanoma. Since then, a growing pipeline of OVT candidates based on adenoviruses, reoviruses, vaccinia, measles, and coxsackieviruses is being evaluated across various cancer indications, including glioblastoma, pancreatic, colorectal, and lung cancers. Advances in synthetic biology, tumor-targeting ligands, and immune-modulatory gene insertion are further enhancing the specificity and potency of oncolytic viruses, making them ideal combination partners with immune checkpoint inhibitors, CAR-T cells, and radiotherapy.

Why Is Combination Therapy Strategy Transforming the Clinical Landscape?

Monotherapy with oncolytic viruses has shown modest efficacy in some tumor types; however, their greatest therapeutic potential is being realized in combination with other immuno-oncology (IO) agents. OVTs can reprogram the tumor microenvironment (TME), overcome immune exclusion, and improve T-cell infiltration—creating a synergistic effect when used alongside PD-1/PD-L1 checkpoint inhibitors. Multiple trials are currently underway to evaluate OVT in combination with anti-CTLA-4, CAR-NK therapies, cytokine therapies, and bispecific antibodies, especially in immunologically “cold” tumors that are resistant to existing IO regimens.

A key trend in the field is the engineering of OVs to express transgenes that encode for cytokines (GM-CSF, IL-12), immune checkpoint inhibitors, or tumor-associated antigens, creating multi-functional virotherapies with enhanced immunogenicity. These next-generation platforms are not only increasing response rates but also improving tumor-specific selectivity, reducing systemic toxicity, and enabling personalized medicine strategies. As the regulatory environment becomes more supportive and trial designs more adaptive, OVT is increasingly seen as a cornerstone of next-wave immunotherapy pipelines.

How Are Technological Innovations and Delivery Platforms Expanding Market Reach?

One of the major challenges in OVT development has been efficient delivery and immune evasion. Intratumoral injection, while effective for accessible lesions, limits broader applicability. Recent advances in systemic delivery methods—including virus shielding, carrier cell-based delivery (e.g., mesenchymal stem cells), and nanoparticle encapsulation—are helping overcome the barriers of neutralizing antibodies and organ-specific sequestration. These delivery strategies aim to extend OVT to metastatic and deep-seated tumors.

Moreover, gene editing tools such as CRISPR-Cas9 are being used to fine-tune viral genomes for better safety, tumor tropism, and payload control. Companies are developing modular OVT platforms capable of rapid design and testing of virus variants with optimized replication kinetics, immune activation, and vector stability. Additionally, AI-driven drug design and digital pathology are improving patient stratification and predictive biomarker discovery, enabling more targeted and effective use of OVT in precision oncology.

What’s Fueling the Growth of the Oncolytic Virus Therapy Market?

The growth in the oncolytic virus therapy market is driven by rising cancer incidence, increasing resistance to conventional therapies, and expanding clinical validation of OVT mechanisms. A primary growth driver is the intensifying investment by biotech companies, pharmaceutical giants, and research consortia focused on next-generation immunotherapies. Strategic partnerships, licensing deals, and venture capital funding are pouring into companies developing OVT platforms, including Replimune, Oncolytics Biotech, SillaJen, CG Oncology, and Lokon Pharma.

Additionally, regulatory momentum is building, with fast-track and orphan designations being granted for OVTs in hard-to-treat cancers. Government-backed cancer moonshot programs and academic-industry collaborations are accelerating trial activity, particularly in North America, Europe, and East Asia. The convergence of immune-oncology, virology, and synthetic biology is opening avenues for OVT in both first-line and refractory settings, offering new hope for patients with limited options.

As delivery systems improve, clinical data matures, and commercial infrastructure strengthens, oncolytic virus therapy is poised to evolve from a niche experimental modality into a mainstream cancer treatment. With its unique ability to combine localized tumor destruction and systemic immune stimulation, OVT holds the potential to redefine therapeutic paradigms in oncology.

SCOPE OF STUDY:

The report analyzes the Oncolytic Virus Therapy market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product Type (Herpes Simplex Virus, Adenovirus, Vaccinia Virus, Reovirus, Measles Virus, Other Product Types); Application (Melanoma, Breast Cancer, Head & Neck Cancer, Bladder Cancer, Prostate Cancer, Lung Cancer, Other Applications); Development Stage (Commercial, Pipeline Phase); Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• Akamis Bio
• Amgen Inc.
• Calidi Biotherapeutics
• Candel Therapeutics
• CG Oncology
• Genelux Corporation
• Imugene Limited
• Lokon Pharma AB
• Oncolys BioPharma Inc.
• Oncolytics Biotech Inc.
• Replimune Group Inc.
• SillaJen, Inc.
• Theolytics Ltd.
• Theriva Biologics
• TILT Biotherapeutics Ltd.
• Transgene S.A.
• Turnstone Biologics Corp.
• Valo Therapeutics Ltd.
• VCN Biosciences S.L.
• Vyriad, Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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