PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1464653
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1464653
Bio-Pharma Logistics Market size was valued at USD 92,391.74 Million in 2023, expanding at a CAGR of 9.51% from 2024 to 2032.
Bio Pharma Logistics (B.P.L.) is a self-governing transportation and logistics firm that prioritizes value-added services, including packaging solutions and transportation, specifically tailored for the biotech and life science sector. Their expertise lies in handling extremely delicate shipments of (bio) pharmaceutical products and blood samples for clinical trials. The role of bio-pharma logistics is pivotal in guaranteeing the secure and effective distribution of pharmaceutical products, ultimately safeguarding public health and patient well-being.
Bio-Pharma Logistics Market- Market Dynamics
Growing of bio pharmaceutical industry and increasing investment in logistics are expected to drive the growth of market.
The bio-pharmaceutical industry is experiencing a surge in investment, driven by factors such as advancements in research and development (R&D) and improvements in healthcare infrastructure. This growth is expected to lead to an increased demand for bio-pharma logistics services. The United States stands as the largest market for biopharmaceuticals globally, with around a third of the market share, and is a leader in biopharmaceutical R&D. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), biopharmaceutical companies spent approximately USD 97 billion on R&D in the U.S. in 2017, surpassing all other industries. The biopharmaceutical industry has a significant economic impact on the U.S. economy. Bio-pharma logistics providers play a vital role in supporting these developments by ensuring the timely and secure delivery of trial supplies. Additionally, advancements in technology and the globalization of clinical trials present opportunities for market growth. However, concerns regarding security may pose a challenge to the expansion of the market.
Bio-Pharma Logistics Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 9.51% over the forecast period (2024-2032)
Based on Type segmentation, Cold Chain Logistics was predicted to show maximum market share in the year 2023
Based on Service Type segmentation, Warehousing was the leading type in 2023
Based on Mode of transportation segmentation, Airways was the leading type in 2023
Based on Retail format segmentation, Departmental Store was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Bio-Pharma Logistics Market is segmented on the basis of Type, Service Type, Mode of transportation, Retail Format, and Region.
The market is divided into two categories based on Type: Cold Chain Logistics and Non-Cold Chain Logistics. Cold Chain Logistics dominates the market. the bio-pharma logistics market, especially cold chain logistics, is essential for ensuring the integrity and safety of pharmaceutical products throughout the supply chain.
The market is categorized into three segments according to the type of service provided: Warehousing, Transportation, Packaging, and Others. The dominant segment in the market is Warehousing, which plays a crucial role in the storage, handling, and distribution of pharmaceutical products. It ensures that these products reach their intended destinations in optimal condition and within the specified timeframe.
The market is segmented into three categories according to Mode of transportation: Roadways, Sea, Airways, and Railways. The Airways sector holds the largest market share. Air transport is essential in the bio-pharma logistics industry as it offers quick, dependable, and safe distribution channels for pharmaceutical goods.
The market is categorized into three groups according to the Retail Format: Speciality Stores, Hypermarkets, Departmental Stores, and Others. The Departmental Store segment holds the largest share in the market. Bio-Pharma companies have the opportunity to consider forming partnerships with department stores or their logistics providers in order to utilize their infrastructure for specific parts of their supply chain, such as last-mile delivery or returns management.
Bio-Pharma Logistics Market- Geographical Insights
Geographically, this market spans across North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further segmented by countries contributing to business activities. The market growth is expected to be primarily driven by North America, especially the United States, owing to the rising demand for personalized medicine. The United States has been a pioneer in the personalized medicine field, boasting a strong biopharmaceutical industry and substantial investments in precision medicine research. In 2018, 42% of drugs approved by the US FDA were associated with a diagnostic test or disease sub-group. As per the latest estimates from the Personalized Medicine Coalition, there are over 75,000 genetic testing products and 300 personalized medicines available in the market for various types of cancers, genetic rare diseases, and chronic and infectious diseases. Europe is the second largest region contributing to market growth, driven by the expanding pharmaceutical and biologic sales worldwide.
The bio-pharma logistics market is characterized by intense competition, influenced by globalization, technological progress, regulatory standards, and the increasing need for specialized services. Companies in the logistics sector strive to enhance their international presence, forge key partnerships, and streamline transportation routes to provide quicker delivery times, wider coverage, and seamless logistics solutions to bio-pharma customers. An illustration of this is the introduction of a groundbreaking temperature-controlled air cargo service in Indianapolis by DHL Global Forwarding, aimed at facilitating the transportation of pharmaceuticals. This USD1.5 million initiative extends its specialized life sciences and healthcare logistics network throughout the contiguous United States and Puerto Rico.
On July 10, 2023, PHSE, a prominent pharmaceutical logistics group, has successfully acquired 80% of Air Plus Srl and Bio Pharma Logistics Srl, two Italian companies specializing in temperature-controlled transportation of diagnostic samples, and biologicals, pharmaceuticals, particularly in the international sector. Stefano Cazzulani, one of the founders, will maintain a 20% stake in both companies and continue to lead their management.
In February 2024, as leaders in the biotech industry gear up for the implementation of the Drug Supply Chain Security Act (DSCSA) amidst a rapidly evolving market landscape, they are facing distinct challenges that are putting their logistics strategies to the test.
GLOBAL BIO-PHARMA LOGISTICS MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
DHL
FedEx
UPS
DB Schenker
Kuehne + Nagel
SF Express
Kerry Logistics
Agility Logistics
VersaCold Logistics Services
Marken
Air Canada Cargo
CEVA Logistics
Sofrigam
Nordic Cold Storage
Biocair
United Parcel Service
Cavalier Logistics
LifeConEx
AirBridgeCargo Airlines
World Courier
Others