Biopharmaceutical Third Party Logistics Market: Current Analysis and Forecast (2021-2027)

Biopharmaceutical Third Party Logistics Market: Current Analysis and Forecast (2021-2027)

Global biopharmaceutical third party Logistics market is expected to witness a CAGR of around 5.6% during the forecast period. Biopharmaceutical third party logistics is the rising trend of outsourcing logistics, the focus of pharmaceutical players on their distribution network owing to its strong sales numbers, and a rise in the number of biosimilar launches are some of the key factors driving the market. The rising prevalence of various diseases coupled with the COVID-19 pandemic is expected to drive the market for biopharmaceutical third-party logistics. Furthermore, the surging investments in research and development of targeted drugs, specific drugs, and pharmacogenetic drugs are also expected to support market growth. . For instance, in August 2020, United Parcel Service of America, Inc. announced that it is developing two massive freezer farms competent for super-cooling lakhs of doses of COVID-19 vaccine in preparation for the day when the medicine will need to be delivered at high speed around the world. The development and deployment of such technologies ensure the safety of the medicines and boosts the demand for third-party logistics services across the pharmaceutical industry.

• Based on service type, the market is bifurcated into warehousing & storage, transportation, and others. In the forecast period, the warehousing & storage segment is expected to witness significant growth. This is mainly due to the rising demand for warehousing and storage services among the life sciences and pharmaceutical companies have favored the growth of this segment. The warehousing & storage services help the life science companies to reduce their overheads and contribute to increasing their profitability.
• Based on the supply chain, the market is categorized into the cold chain and non-cold chain. Among these, non-cold chain logistics held a dominant share of the market in 2020. This is attributed to the improved sales of the pharmaceuticals through the suppliers. The logistic services offer scalability, reduction of operational cost, higher returns, and lower risks. All these advantages offered by third party logistic providers have made it an integral part of the biopharmaceutical industry. For instance, Onset’s InTemp CX400 mobile application is a pharmaceutical cold chain monitoring app that allows the user to monitor the temperature and it sends notifications to the user regarding the excursions of temperature.
• Based on drug type, the biopharmaceutical third-party logistics market has been bifurcated into generic biopharmaceutical third-party logistics and innovative biopharmaceutical third-party logistics. Amongst them, the market for innovative biopharmaceutical third-party logistics is expected to grow at a significant rate during the forecast period. The rising prevalence of novel diseases and increasing demand for more targeted and effective drugs for the treatment of various chronic diseases is expected to drive the market.
• For a better understanding of the market adoption of the biopharmaceutical third-party Logistics Industry, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and the Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of APAC), and Rest of World. During the forecast period, North America held a significant market share in 2020. In addition, the higher rapidly growing biopharmaceutical industry in North America offers immense opportunities for market players to develop the biopharmaceutical industry. Furthermore, increased adoption of advanced technologies and rising healthcare expenditure in the region are some other major factors driving the biopharmaceutical third-party logistics market.
• Some of the major players operating in the market include Agility, AmerisourceBergen Corporation, DB Schenker, Deutsche Post AG, FedEx, Kerry Logistics Network Limited, Kuehne + Nagel, McKesson Corporation, SF Express Co. Ltd., United Parcel Service of America, Inc.