Vaccine Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Vaccine Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Due to the ongoing COVID-19 pandemic, the demand for vaccine logistics is expected to increase exponentially during the forecast period. The wide variety of new vaccines and immunization schedules and service delivery strategies, the expanding target population, the increased cold-chain infrastructure requirements, and the insufficient funding are some of the new realities that may further impact the vaccine transportation market.

The existing systems are struggling to keep pace with the changing landscape of national and international immunization programs, especially after the development of the COVID-19 vaccine, resulting in stock-outs, avoidable wastage, and inadequate cold-chain capacity. All the aforementioned factors have considerable coverage, performance, and cost implications.

Many cold-chain logistics companies and other companies are focusing on developing and deploying advanced technologies to aid the transportation of the COVID-19 vaccines, ensuring their reach to challenging places around the world, making the vaccine available to all without any loss during the transportation.

Key Market TrendsGrowth in the Pharmaceutical Sector

With government initiatives to improve the pharmaceutical industry's growth worldwide and fuel competition within the market, the demand for pharma logistics may increase globally. As strong growth continues across the global pharmaceuticals industry, the sub-category of temperature-controlled products is also surging. Pharmaceutical manufacturers around the world are increasingly focusing on product quality and sensitivity. The development of complex biological-based medicines and the shipment of hormone treatments, vaccines, and complex proteins, which require cold chain refinements, result in a need for temperature-controlled transportation and warehousing.

Temperature-controlled logistics for pharmaceutical products and medical devices is a significantly growing segment of the healthcare logistics industry. Moreover, the increase in the need for effective cold chain logistics services to maintain the quality of goods is fueling the growth of the market.

The rising importance of fast-track assistance in the healthcare sector is also driving the market for pharmaceutical logistics. Moreover, decreasing the distribution cost by creating a single-source distribution channel is boosting the demand for pharmaceutical logistics.

Development in Cold Chain Logistics

Thermal stability is not a property of most vaccines, including those used against diphtheria, tetanus, pertussis (DTP), and measles, mumps, and rubella (MMR). Typically, vaccines that are not heat-stable and not properly refrigerated spoil over a short period, because these vaccines contain biological matter that degrades when not stored between 2°C and 8°C. As a result, most vaccines rely on refrigerated or cold-chain distribution, which consists of several stages.

The refrigerated trucks that can hold goods in multiple segments at different temperatures are being developed further and gaining popularity. Cold chain service providers are also installing radio-frequency identification (RFID) and Industrial Internet of Things (IIoT) to help to address cold chain inefficiencies by providing increased insights into the location, properties, and condition of sensitive products.

Companies are also developing high-tech containers with a closed temperature-controlled system to seamlessly deliver temperature-sensitive goods between cargo warehouses and aircraft. These containers are specially designed to serve the pharmaceutical industry. The new equipment developed by Dnata (a pharmaceutical logistics provider), as reported in October 2020, allows the company to transport temperature-sensitive cargo at the highest international standards. Providing temperature-controlled storage from -18°C to +25°C, these cool dollies mitigate the risk of temperature deviations and contamination.

Competitive Landscape

The vaccine logistics market is fragmented and is dominated by international companies, such as Yamato, Deutsche Post DHL Group, and Nippon Express. These international companies are focusing on expansion strategies through acquisitions. Their strong presence helps them expand in the market with much more ease than the smaller players.

With the COVID-19 pandemic, the market is expected to experience an increased demand for refrigerated warehouses, fast and controlled delivery services, and the bulk transportation of vaccines, backed by the increasing government investment providing opportunities to the players in the market to expand their reach and efficiency in the long run.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
DHL Global Forwarding
AllCargo Logistics
American Airlines
DB Schenker
FedEx Corporation
Kuehne Nagel
Nippon Express
Yamato Logistics
Americold Logistics
Cavalier Logistics

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