Global Pharmaceutical Logistics Market - 2023-2030

Overview

Pharmaceutical logistics deals with manufacturing, processing, shipping materials, and resources. It even deals with activities related to the handling of manufactured goods to their customers. For any Pharmaceutical company, the logistics companies play a very crucial role in its functioning. The reason is that they have the responsibility to deliver equipment and drugs on time as at times there are critical and emergencies where the patient needs it urgently. In such a situation every second counts.

Pharmaceutical logistics is one of the most important stages of the operations for any pharmaceutical business as the activities are highly time-sensitive. It is very critical to provide the right medicine to the right patient at the right time, place and dosage and most importantly at the right price.

Market Dynamics: Drivers and Restraints

Rise in advancements in cold chain logistics

Advancements in cold chain logistics are one of the significant factors that help the market to drive during the forecast period. Cold chain logistics ensures that pharmaceutical products are stored and transported at specific temperature ranges to maintain their efficacy and safety. Advancements in temperature monitoring and control technology help prevent temperature excursions, reducing the risk of product spoilage.

For instance, in February 2021, leading supply chain visibility provider Sensitech expanded its suite of IoT devices to include air-carrier-approved and non-lithium battery models for real-time tracking of shipments when cargo is traveling by plane.

The enhanced family of TempTale GEO and VizComm View products support shipments including vaccines, pharmaceuticals and test kits with validated data, enabling critical accept/reject decision-making, regardless of how cargo is moving - by air, land or sea. Sensitech is a part of Carrier Global Corporation, the leading global provider of healthy, safe and sustainable building and cold chain solutions.

Furthermore, factors such as growth in the pharmaceutical sector, increase in demand for reverse logistics in the pharmaceutical sector and increase in international trade activities are anticipated to boost the growth of the global pharmaceutical logistics market during the forecast period. Moreover, the rise in demand for temperature-sensitive pharmaceutical drugs, and RFID technologies for pharmaceutical logistics is expected to create an opportunity for the pharmaceutical logistics industry shortly.

Market Dynamics: Restraint

Lack of standardization in pharmaceutical logistics and storage is one of the factors that hamper the market growth during the forecast period. Pharmaceutical logistics and storage demand is influenced by various sources, but the absence of standards and accreditations poses challenges to the market. This leads to concerns about warehouse space quality and flexibility, and increased pressure on manufacturers to adapt to industry requirements.

It is not straightforward to upgrade the facility in terms of temperature compliance or accommodating automated equipment. Training and growing employees in technology and product handling require significant financial expenditure. As a result, the lack of standardization in pharmaceutical logistics is expected to restrict pharmaceutical logistics market growth.

Segment Analysis

The global pharmaceutical logistics market is segmented based on service type, mode of transport, pharmaceutical product type and region.

The cold chain logistics segment from the service type segment accounted for approximately 41.7% Pharmaceutical Logistics market share

The cold chain logistics segment from the service type segment accounted for approximately 41.7% and it is expected to be dominated during the forecast period. Cold chain logistics is the technology and process that allows for the safe transport of temperature-sensitive goods and products along the supply chain. It relies heavily on science to evaluate and accommodate the link between temperature and perishability. Any product is known to be labelled "perishable" will likely need cold chain management.

For instance, in March 2022, Lineage Logistics LLC, the world's largest and most innovative temperature-controlled industrial REIT and logistics solutions, acquired MTC Logistics, a leading cold-chain provider in four strategic locations on or near the ports of Baltimore, MD, Wilmington, DE, and Mobile, AL. These facilities will expand Lineage's current footprint, which already includes over 400 strategically positioned facilities with a combined capacity of over 2 billion cubic feet across 19 nations.

Moreover, in December 2020, A.P. Moller - Maersk has signed a three-year logistics agreement with Novo Nordisk, covering ocean services and inland logistics. The agreement aims to reduce the pharmaceutical company's carbon footprint in transportation by using sustainable biofuel to power selected Maersk vessels. The agreement demonstrates A.P. Moller-Maersk's rapid transformation into a modern end-to-end logistics company. The partnership also aligns with Novo Nordisk's ambitious sustainability goals, as it demonstrates the company's commitment to sustainability.

Geographical Analysis

North America accounted for approximately 38.4% of the market share in 2022

North America is estimated to hold about 38.4% of the total market share throughout the forecast period, owing to the increasing sales of generic drugs, as well as reforms in the healthcare sector favoring generics, several regional and international companies, collaborations with the key players and others help this region to have the highest market share during the forecast period.

For instance, in April 2023, MD Logistics, LLC, a group company of Japan-based Nippon Express Holdings, has opened Garner 2000 Pharmaceutical Logistics Centre, a dedicated pharmaceutical warehouse established in Garner, North Carolina in January this year.

North Carolina is a key hub for the pharmaceutical industry in the United States (US), with numerous major pharmaceutical manufacturers and life science companies having expanded into the state. It is also home to many research institutes and universities that have amassed significant medical knowledge and technologies.

COVID-19 Impact Analysis

COVID-19 had a substantial impact on the pharmaceutical logistics market where the COVID-19 pandemic has necessitated the need for temperature-sensitive storage facilities for vaccinations. Also, there was an high demand for temperature-sensitive proteins and nutritional supplements due to evolving consumer lifestyles and dietary habits.

Market Segmentation

Service Type

• Cold Chain Logistics
• Non-Cold Chain Logistics

Mode of Transport

• Air
• Water
• Road
• Rail

Pharmaceutical Product Type

• Pharmaceutical Chemicals
• Bio-Pharmaceuticals
• Pharmaceutical end products
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Competitive Landscape

major global players in the market include: AIT Worldwide Logistics, Inc., Yusen Logistics, Air Canada Cargo, CEVA Logistics SA, Continental Carriers Pvt Ltd, Deutsche Post AG, FedEx Corporation, Kerry Logistics Network Limited, AWL, Nippon Express Holdings and among others.

Key Developments

• In November 2022, UPS acquired healthcare logistics provider Bomi Group to expand its temperature-controlled facilities. With this acquisition, the UPS Healthcare network in Europe and Latin America will gain access to temperature-controlled facilities in 14 countries and over 3,000 highly qualified Bomi Group team members.
• In November 2020, Pharma Logistics and ConsortiEX, market leaders in serving the needs of pharmacies and hospitals, launched their new program which is focused on improving inventory efficiency strategic collaboration programs, reducing cost, improving patient safety, and managing cash flow and compliance for their customers.

Why Purchase the Report?

• To visualize the global pharmaceutical logistics market segmentation based on service type, mode of transport, pharmaceutical product type and region as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pharmaceutical logistics market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global pharmaceutical logistics market report would provide approximately 61 tables, 58 figures and 187 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies