Market Scenario
Global Biopharmaceutical Logistics Market is expected to grow from US$ 95.66 Bn in 2022 to US$ 171.89 Bn by 2031, at a CAGR of 6.5% during the forecast period 2023-2031. The biopharmaceutical logistics market is a critical component of the healthcare industry, as the transportation and storage of biopharmaceuticals require specialized expertise and technologies to maintain the safety and efficacy of these valuable products.
One of the major drivers of this growth is the increasing popularity of bio pharmaceuticals as an effective clinical treatment modality for various diseases such as metabolic disorders and cancers. The demand for temperature monitoring across healthcare and pharmaceuticals sectors will drive the need for advanced storage solutions, which in turn will increase the demand for specialized logistics services.
The biopharmaceutical industry is rapidly growing, with increasing investment in logistics to ensure proper temperature management, protection, safety, conformity with laws, and custody chain from suppliers to distributors. Logistics is a critical supply chain management component in the bio pharmaceutical industry, allowing for the direct handling of the acquisition, transportation, and movement of resources to end-users according to their needs.
However, high operational costs and power shortages are significant challenges in the biopharmaceutical logistics market. Biopharmaceuticals are an energy-intensive field, which leads to high running costs that can obstruct market growth. Innovative and cost-effective solutions are required to address these challenges and enhance the efficiency and profitability of the biopharmaceutical logistics market.
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Market Dynamics
Drivers
Increasing Demand for Biopharmaceutical Products
The demand for biopharmaceutical products is rapidly increasing due to the rising prevalence of chronic diseases, a growing aging population, and increasing awareness about personalized medicine. Biopharmaceutical products such as vaccines, biologics, and cell therapies require specialized storage and transportation, particularly temperature-controlled conditions, which is driving the demand for cold chain logistics services. The need for safe, efficient, and timely delivery of these products to patients is driving the growth of the bio pharmaceutical logistics market.
Growing E-commerce Industry
The e-commerce industry is expanding rapidly, and the bio pharmaceutical industry is no exception. Consumers are increasingly purchasing their medicines and healthcare products online, creating new opportunities for logistics providers. E-commerce platforms allow customers to compare products, prices, and delivery options, making it easier for them to access the medicines they need. The convenience and accessibility of e-commerce platforms are driving the demand for logistics services in the bio pharmaceutical industry, particularly for last-mile delivery to customers.
Restraints:
High Cost of Logistics Services
The high cost of logistics services is a major restraint for the bio pharmaceutical logistics market. The specialized storage and transportation requirements of biopharmaceutical products, particularly those that require temperature-controlled storage and transportation, make logistics services expensive. This is a major challenge for small and medium-sized enterprises that may not have the financial resources to invest in expensive logistics services.
Stringent Regulatory Environment
The bio pharmaceutical industry is subject to stringent regulations and guidelines that govern the storage, transportation, and distribution of pharmaceutical products. Compliance with these regulations is critical for ensuring the safety and efficacy of pharmaceutical products, but it also adds to the cost and complexity of logistics services. The increasing complexity of regulations, particularly in emerging markets, is a major challenge for logistics providers.
Segmental Analysis of Global Bio Pharmaceutical Logistics Market Report
By Logistics Type
By logistics type, the cold chain logistics segment is expected to grow at the highest CAGR over the forecast period due to the increasing demand for biopharmaceutical products that require temperature-controlled storage and transportation. Cold chain logistics plays a critical role in maintaining the integrity and efficacy of biopharmaceutical products such as vaccines, biologics, and cell therapies, which are highly sensitive to temperature variations. The rising incidence of chronic diseases and the growing demand for personalized medicine are also driving the growth of the cold chain logistics market.
By Product Type
By product type, the branded drugs segment is expected to dominate the global bio pharmaceutical logistics market in terms of market share. Branded drugs are high-value products that require specialized storage and transportation facilities to maintain their efficacy and potency. The demand for branded drugs has been increasing globally due to the rising incidence of chronic diseases and the growing aging population. The generic drugs segment, on the other hand, is expected to grow at the highest CAGR over the forecast period due to the increasing demand for affordable healthcare and the expiration of patents for many branded drugs.
By Mode of Transportation
By mode of transportation, the air shipping segment is expected to witness the highest growth rate over the forecast period. Air shipping is the preferred mode of transportation for biopharmaceutical products that require fast and reliable delivery. The use of air shipping services ensures that the products are delivered within the required time frame and at the right temperature, which is critical for maintaining their efficacy. The increasing globalization of the biopharmaceutical industry and the growing demand for biopharmaceutical products in emerging markets are driving the growth of the air shipping segment.
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By Retail Format
By retail format, the departmental stores segment dominated the global bio pharmaceutical logistics market in 2022. Departmental stores offer a wide range of products and services, including prescription drugs, over-the-counter medicines, and healthcare products. The implementation of laws and regulations by government and regulatory bodies to ensure the safety and efficiency of retail pharmacies has increased the demand for logistics services in this segment. The growth of the e-commerce segment is also expected to drive the demand for logistics services in the bio pharmaceutical industry as more consumers prefer to purchase their medicines and healthcare products online.
Regional Analysis
North America is a significant market for bio pharmaceutical logistics, with the region expected to witness a high CAGR over the forecast period. The presence of leading pharmaceutical companies and the strong demand for medicines are the key factors driving the growth of the bio pharmaceutical logistics market in this region. Additionally, the increasing production of pharmaceutical drugs and ongoing product development are contributing to the significant growth of the bio pharmaceutical industry in North America.
The United States is the largest market for bio pharmaceutical logistics in North America, accounting for a significant share of the regional market. The country is home to several leading pharmaceutical companies, such as Pfizer, Merck, and Johnson & Johnson, among others. The high demand for specialized pharmaceutical products, such as biologics and vaccines, is driving the growth of the bio pharmaceutical logistics market in the region.
Canada is another important market for bio pharmaceutical logistics in North America, with the country witnessing significant growth in the biopharmaceutical industry in recent years. The Canadian government has implemented several policies to encourage investment in the biopharmaceutical industry, including tax incentives and funding for research and development. This has led to the growth of several biopharmaceutical companies in the country, driving the demand for specialized logistics services.
Competitive Landscape
The global bio pharmaceutical logistics market is highly competitive and is characterized by the presence of several leading players. Some of the key players in the market include Deutsche Post DHL, Kuehne+Nagel, DB Schenker, FedEx, Amerisource Bergen, XPO Logistics, Panalpina, Versacold, Agility, DSV, and UPS, among others.
To maintain their market position, these companies have adopted various competitive strategies such as mergers and acquisitions, partnerships, collaborations, and expanding their geographical reach. For instance, many of these players have been acquiring small brands and domestic companies to expand their service offerings and reach new markets. This allows them to better serve their clients and gain a competitive edge in the market.
Another strategy adopted by leading players in the bio pharmaceutical logistics market is investing in technology and innovation. Companies are continuously investing in new technologies, such as blockchain and IoT, to improve their supply chain visibility and offer value-added services to their clients. For example, some logistics providers are using IoT sensors to monitor temperature and humidity levels in real-time, ensuring that pharmaceutical products are transported in optimal conditions.
List of Key Companies Profiled:
Segmentation Overview
Global Bio Pharmaceutical Logistics Market is segmented based on logistics type, product type, mode of transportation, retail format and region in order to get a holistic view of the global marketplace.
By Logistics Type:
By Product Type:
By Mode of Transportation:
By Retail Format:
By Region:
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 95.66 Bn |
| Expected Revenue in 2031 | US$ 171.89 Bn |
| Historic Data | 2018-2021 |
| Base Year | 2022 |
| Forecast Period | 2023-2031 |
| Unit | Value (USD Bn) |
| CAGR | 6.5% |
| Segments covered | By Logistics Type, By Product Type, By Mode of Transportation, By Retail Format, By Region |
| Key Companies | Deutsche Post DHL, Kuehne+Nagel, DB Schenker, FedEx, AmerisourceBergen, XPO Logistics, Panalpina, Versacold, Agility, DSV, UPS, Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
These drugs are increasingly being used in practically all branches of medicine. They have become one of the most effective clinical treatment modalities for various diseases, including cancers and metabolic disorders.
Enhancement in the production rate of biologics, hormone medications, vaccines, complex proteins and temperature-specific by products requiring cold chain shipment has also witnessed significant growth in the bio-pharmaceutical logistics market.
The growth rate of the global bio pharmaceutical logistics market is 6.5%, with an estimated value of US$ 171.89 Billion by 2031.
North America held the major share in terms of revenue, in the global bio pharmaceutical logistics market in 2022.
Factors such growing of bio pharmaceutical industry and increasing investment in logistics drives the growth in the global bio pharmaceutical logistics market.
High operational costs are a restraining factor which inhibits the growth of the market during the forecast period.
Logistics type, product type, mode of transportation, retail format and region are the different segments of the global bio pharmaceutical logistics market.
The air shipping segment are expected to project the highest CAGR over the forecast period as air shipping is the fastest mode of transportation for medical goods with zero loss or product degradation.
China is expected to project the highest CAGR in the Asia Pacific bio pharmaceutical logistics market during the forecast period.
UK held the major share in the Europe market in 2022 driven by surging pharmaceutical production and exports along with the strategic initiatives taken up by the private organization indulged in offering bio pharmaceutical logistics services.
Rapid technological advancements in logistics provides a lucrative growth opportunity in the global bio pharmaceutical logistics market.
The key players operating in the market include Deutsche Post DHL, Kuehne+Nagel, DB Schenker, FedEx, Amerisource Bergen, XPO Logistics, Panalpina, Versacold, Agility, DSV and UPS among others.
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