Global Biopharmaceutical Third-party Logistics Market Insights Forecasts to 2030

• The global biopharmaceutical third-party logistics market was valued at USD 119.8 billion in 2021.
• The market is growing at a CAGR of 6% from 2021 to 2030
• The global biopharmaceutical third-party logistics market is expected to reach USD 202.3 billion by 2030
• The Asia Pacific is expected to grow the fastest during the forecast period

The global biopharmaceutical third-party logistics market is expected to reach USD 202.3 billion by 2030, at a CAGR of 6% during the forecast period 2021 to 2030. The most major reason that is driving the expansion of this market is the enormous market demand for biopharmaceuticals that is caused by the increasing prevalence of chronic illnesses and the expanding population of elderly people. In addition, the expanding healthcare sector along with rising awareness about the efficacy and availability of biopharmaceuticals among the population is also anticipated to act as a cushion for the growth of the market during the forecast period.

Market Overview:

Biopharmaceuticals are drugs that are utilized in the medical field and are manufactured by extracting proteins and nucleic acids directly from biological sources using biotechnology. These medications are then employed in the treatment of medical conditions. The most important factor contributing to the expansion of the market is the introduction of new technologies within the warehousing industry. These new technologies include temperature management, mobile cloud solutions, data mining, real-time monitoring, and warehouse robotics. In addition, these developments are innovations that are designed to eliminate human mistakes, reduce damages and complexity during transit, and keep the quality of items comparable to those that are factory-produced. Robotics in warehouses is becoming increasingly popular as a result of their ability to lower labor costs while simultaneously raising warehouse throughput.

In 2019, Amazon created over 25 fulfillment facilities across the United States, each of which required approximately 100,000 robotic systems along with 800 Pegasus and Xanthus robotics systems. As a result of the temperature sensitivity of pharmaceutical components, which calls for continuous monitoring while in transit, robotics monitoring is exerting a significant amount of influence on the market. In addition, businesses such as DHL have released a brand new app for Android and iOS called LifeTrack. This software is designed to assist in monitoring the cold chain tracking platform for the transportation of healthcare and pharmaceutical component products. The software has a capability that will send an alarm to the shipper whenever there is a problematic situation. During the time covered by the analysis, the biopharmaceutical third-party logistics market is projected to benefit from the presence of this aspect.

Report Coverage

This research report categorizes the market for global biopharmaceutical third-party logistics market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global biopharmaceutical third-party logistics market. Recent market developments and competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each global biopharmaceutical third-party logistics market sub-segments.

Segmentation Analysis

• In 2021, the Non – Cold Chain segment dominated the market with the largest market share of 60% and market revenue of 71.88 billion.

Based on the supply chain, the biopharmaceutical third-party logistics market is categorized into Cold Chain and Non–Cold Chain. In 2021, the non-cold chain segment dominated the market with the largest market share of 60% and market revenue of 71.88 billion. Due to a growth in the number of pharmaceutical products sold through distributors, the non-cold chain logistics sector accounted for the biggest percentage of the overall revenue. Greater scalability is provided by 3PL services, and increased visibility helps to minimize total operating costs while also contributing to the development of a more robust logistics network with higher returns and reduced risks. As a result, third-party logistics (3PL) has evolved into an essential component of the business strategies employed by pharmaceutical businesses.

• In 2021, the Warehousing and Storage segment accounted for the largest share of the market, with 40% and a market revenue of 47.92 billion.

Based on service type, the biopharmaceutical third-party logistics market is categorized into Transportation [ Air Freight, Sea Freight, Overland], Warehousing and Storage, and Others. In 2021, the bulk disposable tubing segment dominated the market with the largest market share of 40% and market revenue of 47.92 billion. This is because the pharmaceutical and healthcare industries have a significant need for third-party logistics (3PL) services. Many businesses in the life sciences industry are turning to third-party logistics providers (3PLs) in order to save their operational costs and other overhead expenses. As a result of the dramatic increase in customer demand, service providers have expanded their product lines to include a wide variety of value-added services such as warehousing and packing.

Regional Segment Analysis of the Biopharmaceutical Third-party Logistics Market

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Among all regions, North America emerged as the largest market for the global biopharmaceutical third-party logistics market with a market share of around 39.1% and 119.8 billion of the market revenue in 2021.

• In 2021, North America emerged as the largest market for the global biopharmaceutical third-party logistics market, with a market share of around 39.1% and 119.8 billion of the market revenue. The rising import and export of pharmaceutical ingredients, medicines, biologics, vaccines, and other related products is the primary driver of growth in this sector. In addition, there is high cost of medical treatment, this region has the highest rate of implementation of various cutting-edge technology. Therefore, pharmaceutical businesses situated in North America are increasingly depending on 3PL service providers for the purpose of improving storage and shipping, which is driving the overall expansion of the region.

• The Asia-Pacific market is expected to grow at the fastest CAGR between 2021 and 2030, as a consequence of the rising investment in research & development as well as the rise in the number of rare illness diagnoses in the area. It is projected that the sales of pharmaceutical items, as well as their import and export, would increase as a result of this aspect. The demand for pharmaceuticals and biologics is being fueled in part by the prevalence of an increasing variety of ailments. For instance, because of the high prevalence of type 2 diabetes patients throughout Asia and the Pacific, there is a greater need for insulin in those regions.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global biopharmaceutical third-party logistics market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Market Players:

• FedEx.
• SF Express 
• AmerisourceBergen Corporation
• DB Schenker
• KUEHNE + NAGEL
• Kerry Logistics Network Limited
• Agility
• McKesson Corporation
• Nippon Express
• C.H. Robinson Worldwide
• CEVA Logistics

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities
• Consulting And Research Firm
• Venture capitalists
• Third-party knowledge providers
• Value-Added Resellers (VARs)

Recent Development

• September 2020: Nippon Express Co. Ltd. declared that it is creating pharmaceutical supply chain networks that adhere to best distribution standards in terms of both hardware and software, enabling a safer and more secure supply of medicines.
• August 2020: UPS was constructing two enormous freezer farms that could super-cool millions of vials of the COVID-19 vaccine in preparation for the day when it might be necessary to ship the medication quickly over the globe.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Spherical Insights has segmented the global biopharmaceutical third-party logistics market based on the below-mentioned segments:

Global Biopharmaceutical Third-party Logistics Market, By Supply Chain

• Cold Chain
• Non–Cold Chain

Global Biopharmaceutical Third-party Logistics Market, By Service Type

• Transportation [ Air Freight, Sea Freight, Overland]
• Warehousing and Storage
• Others

Global Biopharmaceutical Third-party Logistics Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

• Drivers- Increased use of third-party logistics providers

Restraint- Lack of logistics professionals

• Opportunity- Increases in both globalization and commercial activities

• Challenge - Weak shipper oversight of logistics services