Oncolytic Virus Therapy Market By Virus Type (Adenovirus, Herpes Simplex Virus (HSV), Vaccinia Virus, Newcastle Disease Virus (NDV), Reovirus, Others), By Application (Melanoma, Breast Cancer, Lung Cancer, Colorectal Cancer, Pancreatic Cancer, Others), By Therapy Type (Monotherapy, Combination Therapy), By Route of Administration (Intratumoral, Intravenous, Others), By End-user (Hospitals, Cancer Research Institutes, Specialty Clinics, Others.), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Oncolytic Virus Therapy market accounted for USD 26.12 Million in 2024 and USD 33.04 Million in 2025 is expected to reach USD 346.7 Million by 2035, growing at a CAGR of around 26.5% between 2025 and 2035. Oncolytic Virus Therapy Market deals with the development and monetization of the therapies where the genetically engineered virus is used to destroy cancerous cells preferentially without harming healthy tissue. These viruses multiply the tumors and cancer cells rupture, thus inducing an anti-tumor immune response. In contrast to the conventional cancer therapies like chemotherapy or radiotherapy, oncolytic viruses specifically act on cancer and are potentially less harmful in terms of side effects. The usual viruses adopted are adenovirus, herpes simplex virus, and reovirus, which have been modified to achieve high killing efficiency in cancers.

The use of this therapy is becoming more popular because of soaring cancer rates worldwide and the mounting need for novel, personalized treatment methods. They are conducting several clinical trials, and some special therapies, like Talimogene laherparepvec (T-VEC) against melanoma, have been approved by regulatory authorities. The improvements in the field of genetic engineering, immunotherapy, and the improved tumor biology support the market. Biotech firm collaborations of biotech and academic institutions and in healthcare organizations are also becoming a growth point. The development cost, regulatory burden, and sophisticated nature of the production of live viral products, however, act as stumbling blocks to the broader adoption.

Industry Experts Opinion

“Oncolytic viruses work to destroy cancer in multiple ways…stimulating the immune system and directly killing cancer cells.”

• Dr. John C. Bell, PhD, Senior Cancer Researcher, Ottawa Hospital Research Institute

Report Scope:

Market Dynamics

Oncolytic viruses act as both direct cancer killers and immune response activators.

Oncolytic Virus Therapy Market is motivated by two roles of oncolytic viruses in the context of cancer: it has a direct antitumor effect of virus-induced cancer cell lysis, and the immune reaction of the body against the tumor. These viruses are developed to specifically infect tumor cells, multiply in the tumor cells, and destroy them, and in the process release tumor antigens. This not only decreases the tumor load, but also activates the immune system that can identify and destroy any cancer cell that is still present and strengthens long-term, anti-tumor immunity.

This process highlights oncolytic viruses as a potentially useful method of immunotherapy, especially when used together with checkpoint inhibitors. The National Cancer Institute (NCI) states that several clinical trials on oncolytic virus therapy are currently being conducted worldwide as one of the most promising approaches in the treatment of cancer. This increase in scientific approval and acceptance by organizations of the general population is one of the main factors that are influencing the use of therapies in the Oncolytic Virus Therapy Market in current oncology therapy.

Rising number of cancer cases globally, particularly aggressive and treatment-resistant tumors.

One of the main stimulating factors in the Oncolytic Virus Therapy Market is the increased incidence of cancer, particularly the aggressive and resistant to therapy tumors worldwide. Several cancers, including glioblastoma, pancreatic, and metastatic melanoma, have minimal response to conventional treatment options, including chemotherapy and radiation.

Oncolytic virus treatment is used to specifically kill these tough cancer cells and, at the same time, boost the immune system in order to produce a widespread anti-cancer effect. With traditional methods having limitations as the disease progresses, the need for new alternative therapies, such as oncolytic viruses, is increasing. The World Health Organization (WHO) estimates that almost 10 million deaths in 2020 were attributed to cancer, and many are diagnosed at incurable stages of the disease. Such a trend is seen as evidence of the urgent necessity of more effective and personalized methods of cancer therapy, so the oncolytic virus treatment becomes a more and more tempting alternative in oncology care worldwide.

High cost and complexity of clinical trials involving live viral agents.

The costliness and complex nature of clinical live viral trials are a major constraint that will limit the oncolytic virus therapy market. Safety Checks: So, these treatment methods involve the application of genetically modified viruses, which implies thorough safety studies and special laboratories as well as high-security conditions.

The cost of manufacturing, storing, and handling live viral products adds to the costs of operation. Also, clinical trials need to fulfil stringent biosafety and ethical standards, which usually increases the development timeline and approvals. The financial burden is increased by the necessity of conducting large-scale, multi-phase trials to reveal efficacy as well as safety. All of these factors may prevent smaller biotech companies from entering the market and may affect the general speed of innovations and commercialization in this area.

Development of virus therapies for rare and pediatric cancers with unmet needs.

The oncolytic virus therapy market has a good opportunity in the development of therapies for rare and pediatric cancers. Treatment of such cancers is usually lacking, and the discovery of new methods, such as oncolytic virotherapy, that can be used to treat such cancers is the ideal target. Oncolytic viruses have a potential avenue in the treatment of tumors that cannot be treated by means of conventional forms of treatment due to the selective targeting capability and immune-stimulating characteristics of the oncolytic viruses.

There are also special regulatory encouragements through orphan designation and accelerated approvals of pediatric products and rare cancer products to gain an entry into the market more quickly and lower drug research and development costs. This sphere has considerable development potential since, with the enhancement of research, research and the development of more specific viral vectors, it will be possible to fill vital gaps in cancer treatment.

Use in neoadjuvant or adjuvant cancer treatment settings to prevent recurrence.

An opportunity that is being experienced on the Oncolytic Virus Therapy Market is the application of oncolytic viruses in the field of neoadjuvant (pre-surgery) or adjuvant (post-surgery) cancer application, where cancer recurrence is to be avoided. They have the potential to stop the metastasis of tumors by means of administering such therapies around the period of operations, as they will be able to shrink the tumor preoperatively and/or remove any cancer cells left behind after the operation.

The oncolytic viruses not only destroy the cancer cells, but also cause the immune memory, which can protect the body from disease recognition and once again overcome the disease. These two actions make them suitable to be used in integrated therapy aimed at the long-term remission and survival. With the growing length of clinical trials in such applications, the Oncolytic Virus Therapy Market is anticipated to widen its clinical application into several cancer typologies. In addition to that, their application in the perioperative context expands the prospect of combination approaches with radiation and immunotherapy, enhancing the position of virotherapy in the overall cancer care.

Segment Analysis

Based on the product type, the Oncolytic Virus Therapy market is classified into Adenovirus, Herpes Simplex Virus (HSV), Vaccinia Virus, Newcastle Disease Virus (NDV), Reovirus, and Others. The most powerful segment in the oncolytic virus therapy market is Herpes Simplex Virus (HSV). The success of Talimogene laherparepvec (T-VEC) as an oncolytic virus based on Herpes Simplex Virus-1 is attributed to this dominance as the first and only approved oncolytic viral therapy by the FDA concerning the treatment of melanoma.

HSV can be genetically modified relatively easily, and it has a propensity to infect a broad spectrum of human cells, hence inducing a high efficacy in the targeting of tumor cells. It has a large genome, which permits insertion of therapeutic genes to boost immune response and destroy tumors. The success of clinical trials and the continued trials with the use of HSV-based treatment mechanisms are reinforcing its leadership of the segment.

Based on the application, the Oncolytic Virus Therapy market is classified into Melanoma, Breast Cancer, Lung Cancer, Colorectal Cancer, Pancreatic Cancer, and Others. The most powerful application segment within the oncolytic virus therapy market is Melanoma. This is mostly because it is the approval of and clinical success of an oncolytic viral therapy, T-VEC, that was specifically designed to treat advanced melanoma.

Melanoma would be susceptible to oncolytic virus treatment due to its great immunogenicity. This segment has also been enhanced by the availability of targeted therapies and clinical information, which proves the effective use of oncolytic viruses in the treatment of skin cancers. Research is still going on and more treatment is being developed concerning melanoma, and thus it is at the top of the clinical and commercial rat-a-tat in this market.

Regional Analysis

The North American oncolytic virus therapy is the fastest-growing market in oncolytic virus therapy due to the developed health infrastructure, high cancer rates, and investment in immunotherapy research. The biggest share is brought by the United States since it was an early adopter of new treatments and vigorous clinical trial efforts. The FDA regulatory programs, such as the FDA-T-VEC approval for melanoma, have boosted the process of innovation in this field. Another contribution that Canada makes to the market is active academic and biotech activity in the field of cancer therapeutics.

Oncolytic virotherapy Research funding by both governments and companies has also prompted the companies to develop more pipelines in the treatment option. The collaboration between the research institution and the pharmaceutical industry is enhanced when it becomes strong. Furthermore, the availability of highly qualified professionals, growing awareness towards the personalized use of cancer treatments are boosting the growth of the market. Its region is also at the forefront of clinical trials, regulatory improvements, and commercialization of the virus-based therapeutics.

The Asia Pacific oncolytic virus therapy market is gaining traction with a rise in cancer cases, growing healthcare infrastructure, and an interest in newer advanced biologic therapy. Rising clinical research and government funding in countries such as China, Japan, South Korea, and India have been used to promote the innovation of cancer treatment wards. In particular, China has invested strongly in biotech and created partnerships and domestic development of oncolytic virus platforms. In Japan, virotherapy is additionally researched, and some institutions already have clinical trials.

Increasing knowledge of precision medicine and immuno-oncology is boosting the utilization of such technologies throughout the region. Market penetration is being helped by better reimbursement policies and access by patients to new forms of treatment, despite regulatory and logistical constraints. Partnerships between universities and local biotech companies are also contributing to the growth and innovation, as well as pipeline development. Comprehensively, the Asia Pacific is still becoming one of the research and ultimate commercialization centres of the oncolytic virus therapies.  

Competitive Landscape

The competitive analysis of the Oncolytic Virus Therapy Market is defined by the presence of a number of innovative biotech and pharmaceutical companies that concentrate on the development of new war against cancer virus-based therapeutic solutions. Amgen Inc. is the leader in the field, having the FDA-approved T-VEC against melanoma. Oncolytics Biotech Inc. has a reputed REOLYSIN therapy, whereas SillaJen Inc. has produced Pexa-Vec against liver cancer. Vyriad Inc. and Targovax ASA are some of the companies that are in clinical trials on oncolytic virus candidates against many solid malignancies. Lokon pharma AB and Transgene SA both concentrate on gene-modified viruses’ tumor-selective targeting.

Other competitors like PsiOxus Therapeutics and ViroCure Inc. are researching combination therapy with immunotherapies. Genelux Corporation and Virttu Biologics Ltd. are associated with the HSV-based and vaccinia-based treatments respectively. Amgen was once BioVex Inc., which was an early leader in the field. Replimune Group Inc. is in the process of extending its trials in its next-generation T-VEC versions. CG Oncology Inc. is a pipeline company that deals with anti-cancer therapy with intravesical viral therapies to treat bladder cancer, and Virogin Biotech Ltd. focuses on developing a multi-armed oncolytic viral therapy in preclinical and clinical stages. The competitors fight based on pipeline power, advances in the engineering of the viruses, development of clinical trials, and partnerships with research centers and medical institutions.

Oncolytic Virus Therapy Market, Company Shares Analysis, 2024

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Recent Developments:

• In June 2025, ImmVira / OncologyTimes: ImmVira dosed the first patient in a pivotal Phase 2 trial of MVR‑T3011, a next-generation oncolytic virus engineered to produce PD-1 antibody and IL-12 for BCG-unresponsive high-risk non-muscle invasive bladder cancer (NMIBC) in both the U.S. and China.

Report Coverage:

By Virus Type

• Adenovirus
• Herpes Simplex Virus (HSV)
• Vaccinia Virus
• Newcastle Disease Virus (NDV)
• Reovirus
• Others

By Application

• Melanoma
• Breast Cancer
• Lung Cancer
• Colorectal Cancer
• Pancreatic Cancer
• Others

By Therapy Type

• Monotherapy
• Combination Therapy

By Route of Administration

• Intratumoral
• Intravenous
• Others

By End-user

• Hospitals
• Cancer Research Institutes
• Specialty Clinics
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Amgen Inc.
• Oncolytics Biotech Inc.
• SillaJen Inc.
• Vyriad Inc.
• Targovax ASA
• Lokon Pharma AB
• Transgene SA
• PsiOxus Therapeutics
• ViroCure Inc.
• Virttu Biologics Ltd.
• Genelux Corporation
• BioVex Inc.
• Replimune Group Inc.
• CG Oncology Inc.
• Virogin Biotech Ltd.

Frequently Asked Questions (FAQs)