Global Pharmaceutical Logistics Market – Industry Trends and Forecast to 2031

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Pharmaceutical Logistics Market Analysis and Size

In the pharmaceutical logistics market, efficient transportation and distribution networks ensure timely delivery of medical supplies, minimizing product spoilage and maintaining quality standards. Advanced tracking technologies optimize inventory management, reducing the risk of stockouts and enhancing supply chain visibility. These streamlined processes ultimately enhance patient care by ensuring uninterrupted access to vital medications.      

The U.S. Food and Drug Administration (FDA) has granted Emergency Use Authorization for hydroxychloroquine, permitting licensed healthcare providers to administer it to teens and adults hospitalized with COVID-19 weighing over 50 kg. Consequently, the trade of hydroxychloroquine is surging in countries such as the U.S. and India, reflecting heightened demand for the medication amid the pandemic.                   

Data Bridge Market Research analyses that the global pharmaceutical logistics market size was valued at USD 247.47 billion in 2023, is projected to reach USD 485.90 billion by 2031, with a CAGR of 8.8% during the forecast period 2024 to 2031. This indicates that the market value. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.

Pharmaceutical Logistics Market Scope and Segmentation

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Market Definition

Pharmaceutical logistics involves the intricate management of storing, transporting, and distributing pharmaceutical products, ensuring their safe and timely delivery to healthcare providers and patients. It encompasses stringent quality control, temperature monitoring, regulatory compliance, and efficient supply chain operations to safeguard product integrity and meet healthcare demands while minimizing risks and optimizing efficiency.         

Pharmaceutical Logistics Market Dynamics

Drivers

• Increasing Demand for Temperature-Controlled Logistics

The stringent requirements of biologics and vaccines underscore the rising importance of temperature-controlled logistics in pharmaceuticals. Maintaining precise temperatures throughout the supply chain is crucial to preserve their efficacy. This demand for reliable pharma cold chain logistics solutions is driven by the imperative to prevent spoilage and ensure product integrity, contributing significantly to the growth of the pharmaceutical logistics market.

• Focus on Patient-Centric Logistics

The pharmaceutical industry prioritizes patient-centric logistics, enhancing outcomes via streamlined supply chains. Direct-to-patient delivery and support programs optimize experiences, while real-time tracking ensures visibility and communication at every stage. These initiatives underscore a commitment to improving patient satisfaction and access to vital medications through efficient and transparent delivery processes.

For instance, in November 2022, Sarepta Therapeutics, Inc. revealed that the U.S. Food and Drug Administration (FDA) accepted the company's Biologics License Application (BLA) for SRP-9001 (delandistrogene moxeparvovec), aiming for accelerated approval to treat ambulant individuals with Duchenne muscular dystrophy.

Opportunities

• Rise in Pharmaceutical Research and Development Innovation

The production of novel drugs, notably biopharmaceuticals and personalized medicines, fuels demand for adaptable logistics. Catering to clinical trials, product launches, and global distribution necessitates agile solutions. Meeting these requirements ensures efficient supply chain management amid the dynamic landscape of pharmaceutical research and innovation is creating lucrative opportunities for market growth.

• Expansion of E-commerce in Healthcare

The surge in healthcare e-commerce, such as online pharmacies and direct-to-patient distribution, presents new avenues for pharma logistics providers. Meeting this demand necessitates agile last-mile delivery solutions and seamless integration with digital platforms for streamlined order processing and real-time tracking, thus facilitating the efficient distribution of pharmaceutical products to end consumers. 

For instance, in September 2020, FedEx introduced SenseAware ID, a lightweight sensor-based logistics device tailored for tracking high-value specialty shipments such as biologics. This innovative tool offers real-time visibility and monitoring, specifically catering to the needs of temperature-sensitive biopharma products.

Restraints/Challenges

• Risk of Product Spoilage or Damage

The risk of product spoilage or damage due to mishandling during transportation or storage poses a significant threat to the pharmaceutical logistics market. Without stringent adherence to proper handling procedures and packaging standards, the integrity of pharmaceuticals may be compromised, potentially leading to ineffective or harmful products, thereby hindering market growth. 

• Concern about Temperature Sensitive Product

Strict temperature control requirements for pharmaceutical products pose a significant challenge in logistics, particularly in regions with extreme climates. Ensuring consistent temperatures throughout the transportation process is difficult and costly. This constraint limits market growth as companies struggle to meet regulatory standards and maintain product integrity, impacting efficiency and increasing operational expenses. 

For instance, transporting biologics within controlled temperature environments of 2-8°C using thermal shippers and refrigerants escalates transportation expenses by up to 30% compared to standard packaging and shipping at ambient temperatures.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In October 2023, UPS Healthcare launched a healthcare logistics service in Europe, marking a strategic move towards leadership in the sector. The launch of UPS Pickup Point locations across the U.K., Germany, Italy, France, and Spain enhances its offering, particularly for health laboratory customers, by providing a new reverse logistics service
• In March 2023, Dentons advised GEODIS to acquire trans-o-flex, a specialized provider of temperature-controlled transport for pharmaceutical and high-tech products. With this acquisition, GEODIS aims to strengthen its integrated freight network in Germany, advancing its position in the logistics industry and bolstering its capabilities in serving these critical sectors
• In February 2021, Agility launched an express road freight network in the GCC region, facilitating efficient connections for consumers and businesses. Offering both full truckload (FTL) and less-than-truckload (LTL) options, the service enhances agility and responsiveness in meeting the diverse transportation needs of its customers across the region
• In December 2020, Agility's 5,000 SQM warehouse project in Abidjan is chosen by Maersk as a storage, deconsolidation, and distribution facility. Positioned to meet the requirements of Maersk customers across various industries, this strategic partnership underscores Agility's commitment to providing efficient and reliable logistics solutions in key markets
• In May 2020, United Parcel Service of America, Inc. expanded its healthcare capabilities with the launch of UPS Premier. Leveraging next-generation sensor technology and monitoring, UPS Premier enhances service reliability and visibility for healthcare packages, meeting the evolving needs of the healthcare industry for secure and efficient transportation

Pharmaceutical Logistics Market Scope

The pharmaceutical logistics market is segmented on the basis of product, type, component, procedure, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Cold Chain Logistics
• Non Cold Chain Logistics

 Product

• Generic Drugs
• Branded Drugs

 Component

• Storage
• Warehouse
• Refrigerated Container
• Transportation
• Sea Freight Logistics
• Airfreight Logistics
• Overland Logistics
• Monitoring Components
• Hardware
• Sensors
• RFID Devices
• Telematics
• Networking Devices
• Software

Procedure

• Picking
• Storage
• Retrieval Systems
• Handling Systems

 Application

• Chemical Pharma
• Bio-Pharma
• Specialized Pharma

Pharmaceutical Logistics Market Regional Analysis/Insights

The pharmaceutical logistics market is analysed and market size insights and trends are provided by country, product, type, component, procedure, and application as referenced above.

The countries covered in the pharmaceutical logistics market report are U.S., Canada Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

North America is expected to dominate the pharmaceutical logistics market, sustained by the substantial involvement of key industry players. With advanced infrastructure and stringent regulations, the region ensures efficient handling and distribution of pharmaceuticals, fostering growth and reliability in supply chain management for the healthcare sector.

Asia-Pacific is expected to grow at the highest growth rate in the pharmaceutical logistics market, propelled by a growing senior population, rapid economic expansion in emerging giants such as China and India, and increasing medication demand. These factors drive innovation and infrastructure development, efficiently meeting the region's escalating healthcare needs.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Healthcare Infrastructure growth Installed base and New Technology Penetration

The market also provides you with detailed market analysis for every country growth in healthcare expenditure for capital equipment, installed base of different kind of products for market, impact of technology using life line curves and changes in healthcare regulatory scenarios and their impact on the market. The data is available for historic period 2016-2021.

Competitive Landscape and Pharmaceutical Logistics Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the pharmaceutical logistics market are:

• AmerisourceBergen Corporation (U.S.)
• CAVALIER LOGISITICS (U.S.)
• Continental Carbon Company (U.S.)
• DHL International GmbH (Germany)
• FedEx (U.S.)
• Kuehne+Nagel (Germany)
• Deutsche Post AG (Germany)
• LifeConEx (U.S.)
• American Airlines Inc. (U.S.)
• Air Charter Service (India)
• Agility (U.S.)
• VersaCold Logistics Services (Canada)
• Delhivery Limited (India)
• YUSEN LOGISTICS CO., LTD. (India)
• V-Xpress (India)
• FulfillmentHubUSA (U.S.)
• Prompt Brazil Logistics (Brazil)

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