Biopharmaceutical Third-party Logistics Market Forecasts to 2030 - Global Analysis By Service Type, Temperature Type, Mode of Transport, Application, End User and By Geography

According to Stratistics MRC, the Global Biopharmaceutical Third-party Logistics Market is accounted for $125.24 billion in 2024 and is expected to reach $189.62 billion by 2030 growing at a CAGR of 7.2% during the forecast period. Biopharmaceutical third-party logistics refers to the outsourcing of logistics services by biopharmaceutical companies to specialized providers. These providers manage key supply chain functions such as warehousing, transportation, inventory management, and distribution of biopharmaceutical products. By leveraging third-party logistics, companies can reduce costs, improve efficiency, and focus on their core competencies while ensuring timely and safe delivery of products to healthcare providers and patients.

According to a global survey carried out in July 2021, cold chain services by third-party logistics providers raised by 62%.

Market Dynamics:

Driver:

Rising demand for biopharmaceutical products

As the global healthcare landscape evolves, the need for efficient and compliant logistics solutions to handle temperature-sensitive and high-value products increases. 3PL providers offer specialized services such as cold chain logistics, regulatory compliance, and secure transportation, ensuring the integrity and safety of these products. Additionally, the expansion of biopharmaceutical manufacturing across regions boosts the need for reliable distribution networks. This growing demand drives innovation and investment in logistics infrastructure, fostering the market's overall expansion.

Restraint:

Risk of supply chain disruptions

The risk of supply chain disruptions in 3PL arises from factors like natural disasters, geopolitical instability, labor shortages, transportation bottlenecks, and regulatory changes. These disruptions can lead to delays in drug delivery, stockouts, and spoilage of temperature-sensitive products. For biopharmaceuticals, where product integrity is critical, such interruptions can have serious consequences. These risks hinder market growth by increasing costs, impacting service reliability, and reducing customer trust.

Opportunity:

Globalization of the biopharmaceutical industry

With the rising global footprint of biopharmaceutical companies, the demand for reliable, compliant, and timely delivery of products rises. 3PL providers play a crucial role in managing complex supply chains, ensuring regulatory adherence, and handling temperature-sensitive drugs. Furthermore, with the rise in cross-border trade of biologics, vaccines, and clinical trial materials, 3PL providers are essential for overcoming logistical challenges and meeting the growing global demand for biopharmaceutical products, fostering market growth.

Threat:

Security and safety concerns

Security and safety concerns in 3PL arise from the high value and sensitivity of biopharmaceutical products, which are vulnerable to theft, counterfeiting, and damage during transit. Temperature-sensitive drugs require precise handling to maintain efficacy, and any deviation can compromise product quality. Additionally, global transportation can face risks from fraud, cargo theft, or tampering. These concerns hamper market growth by increasing operational costs for security measures, regulatory compliance and insurance.

Covid-19 Impact

The covid-19 pandemic significantly impacted the biopharmaceutical third-party logistics market by increasing demand for temperature-sensitive drug distribution, especially vaccines. The surge in global healthcare needs strained supply chains, highlighting the importance of robust logistics solutions. While disruptions in transportation, labor shortages, and border restrictions posed challenges, the pandemic also accelerated the adoption of digital technologies for tracking and managing shipments. Overall, COVID-19 emphasized the need for resilient, efficient, and compliant 3PL services in the biopharmaceutical industry.

The warehousing segment is expected to be the largest during the forecast period

The warehousing segment is predicted to secure the largest market share throughout the forecast period. Warehousing in biopharmaceutical third-party logistics involves the storage of pharmaceutical products, including temperature-sensitive drugs, biologics, and vaccines. Warehousing services are critical for maintaining the quality, safety, and efficacy of biopharmaceuticals. The growth of biologics and global distribution has expanded the demand for secure, compliant, and efficient warehousing solutions.

The clinical trials & samples segment is expected to have the highest CAGR during the forecast period

The clinical trials & samples segment is anticipated to witness the highest CAGR during the forecast period. 3PL providers ensure compliance with good distribution practice and temperature control requirements, crucial for maintaining the integrity and efficacy of trial materials. These services include secure packaging, cold chain logistics, and timely delivery to trial sites worldwide. As clinical trials expand globally, 3PL plays a vital role in efficient, compliant, and cost-effective management of clinical materials.

Region with largest share:

Asia Pacific is expected to register the largest market share during the forecast period driven by growing demand for biopharmaceuticals, especially vaccines and biologics, along with increasing investments in healthcare infrastructure. Key players in this market include DHL Supply Chain, Kuehne + Nagel, DB Schenker, and XPO Logistics. The region's rapid urbanization and regulatory advancements further support market growth. As demand for cold chain logistics rises, the Asia-Pacific 3PL market is expected to grow significantly, offering new opportunities for logistics providers.

Region with highest CAGR:

North America is expected to witness the highest CAGR over the forecast period fuelled by its strong emphasis on regulatory compliance. The region's well-established healthcare infrastructure and the growth of biologics and biosimilars further propel the market. Key players in the region include FedEx, UPS, XPO Logistics, and Kuehne + Nagel. With an expanding focus on cold chain logistics, North America's 3PL market is expected to experience steady growth, driven by the need for efficient and compliant biopharmaceutical distribution solutions.

Key players in the market

Some of the key players profiled in the Biopharmaceutical Third-party Logistics Market include DHL Supply Chain, Kuehne + Nagel, UPS Supply Chain Solutions, FedEx Supply Chain, XPO Logistics, C.H. Robinson Worldwide, DB Schenker, Expeditors International, Hellmann Worldwide Logistics, Sinotrans Limited, DSV A/S, Agility Logistics, Seino Transportation, Ceva Logistics and Alcami Corporation.

Key Developments:

In January 2024, Alcami Corporation opened a new 65,000 ft2 pharmaceutical storage and services facility in Garner, North Carolina, strategically located near the Research Triangle Park (RTP), a major biotech and pharmaceutical hub. This state-of-the-art facility is part of Alcami's plan to enhance its contract development and manufacturing services, providing specialized storage solutions for biotech and pharmaceutical clients.

In August 2023, CEVA Logistics expanded its operations in India by acquiring 96% of Stellar Value Chain Solutions, a Mumbai-based provider of contract logistics and omni-channel fulfilment services. This strategic acquisition enhances CEVA's presence in India, adding over 60 locations across 35 cities. The deal also boosts CEVA's capabilities in sectors like e-commerce, automotive, consumer products, and pharmaceuticals.

Service Types Covered:

• Transportation Management
• Warehousing
• Inventory Management
• Packaging
• Order Fulfillment
• Customs Clearance
• Returns Management
• Other Service Types

Temperature Types Covered:

• Ambient
• Cold Chain
• Frozen
• Other Temperature Types

Mode of Transports Covered:

• Road Transport
• Rail Transport
• Air Transport
• Sea Transport

Applications Covered:

• Cold Chain Logistics
• Non-Cold Chain Logistics
• Clinical Trials & Samples
• Finished Goods
• Other Applications

End Users Covered:

• Pharmaceutical Manufacturers
• Biotech Companies
• Contract Research Organizations (CROs)
• Contract Manufacturing Organizations (CMOs)
• Healthcare Providers
• Other End Users

Regions Covered:

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

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances