Healthcare Third-party Logistics market By Service Type (Transportation Service, Warehousing and Storage Service, Inventory Management Service, Cold Chain Logistics Service) , By End User (Pharmaceutical Companies, Hospitals and Clinics, Medical Device Manufacturing Companies, Biotechnology Companies) By Medium of Transport (Ground Transportation, Air Cargo, Ocean Freight) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Healthcare Third-party Logistics Market
The healthcare third-party logistics market was valued at $212.4 billion in 2023 and is projected to reach $431.3 billion by 2033, growing at a CAGR of 7.4% from 2024 to 2033.
Healthcare third-party logistics involves the outsourcing of healthcare products’ storage, transportation, and distribution operations to specialized logistics providers. The variety of products that are outsourced for logistics ranges from medicines to medical equipment and from surgical supplies to biologics. Outsourcing logistics enables healthcare companies to focus on their core functions and scale their business.
Increase in demand for biological drugs and vaccines from across the globe has compelled businesses to outsource their logistical operations and ensure a seamless, hassle-free delivery of orders. This augments the growth of the market significantly. Furthermore, specialized logistics providers ensure compliance with multiple regulatory standards such as Good Distribution Practices and FDA regulations that acts as a key driver of the healthcare third-party logistics market. A prominent trend acquiring traction in the market is the use of smart technologies such as the Internet of Things-based sensors and radiofrequency identification tags. These advanced technologies provide end-to-end monitoring of the supply chain and maintain transparency in product safety & timely delivery.
However, the threat of product theft or tampering during the transit process deters several healthcare businesses from outsourcing their logistics, which hampers the development of the market. Contrarily, the adoption of blockchain technology for a tamper-proof supply of products is boosting investments in third-party logistics. According to DHL—a German logistics company—the annual investments by pharma companies particularly for cold chain logistics are $17 billion. These investments are further projected to surge in the future, thus opening new avenues for the healthcare third-party logistics market.
Segment ReviewThe healthcare third-party logistics market is segmented into service type, end user, medium of transport, and region. On the basis of service type, the market is divided into transportation service, warehousing & storage service, inventory management service, and cold chain logistics service. Depending on end user, it is classified into pharmaceutical companies, hospitals & clinics, medical device manufacturing companies, and biotechnology companies. According to medium of transport, it is categorized into ground transportation, air cargo, and ocean freight. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of service type, the transportation service segment held a high share of the market in 2023.
Depending on end user, the pharmaceutical companies segment dominated the market in 2023.
According to medium of transport, the ground transportation segment accounted for a high market share in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe major players in the global healthcare third-party logistics market include FedEx Supply Chain, DHL Supply Chain, UPS Healthcare Logistics, Cardinal Health, Amerisource Burgen, XPO logistics, DB Schenker, Kuehne and Nagel, Expeditors International, Nippon Express, CH Robinson Worldwide, Sinotrans, AGILITY, SF Express, Kinesis Medical B.V., United Parcel Service of America, Inc., Barett Distribution, Kerry Logistics Network Limited, and Freight Logistics Solutions. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy Service TypeTransportation Service
Warehousing and Storage Service
Inventory Management Service
Cold Chain Logistics Service
By End UserPharmaceutical Companies
Hospitals and Clinics
Medical Device Manufacturing Companies
Biotechnology Companies
By Medium Of TransportGround Transportation
Air Cargo
Ocean Freight
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market PlayersFedEx Supply Chain
DHL Supply Chain
UPS Healthcare Logistics
Cardinal Health
Amerisource Burgen
XPO logistics
DB Schenker
Kuehne and Nagel
Expeditors International
Nippon Express
CH Robinson Worldwide
Sinotrans
AGILITY
SF Express
Kinesis Medical B.V.
United Parcel Service of America, Inc.
Barett Distribution
Kerry Logistics Network Limited
Freight logistics Solutions