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The cold chain logistics market for pharmaceuticals industry size is forecast to increase by USD 12.81 billion at a CAGR of 9.57% between 2023 and 2028. The cold chain logistics market for the pharmaceuticals industry is experiencing significant growth due to several key drivers. The increasing global demand for pharmaceuticals, driven by an aging population and rising healthcare expenditures, is a major factor fueling market growth. Additionally, consolidation in the global healthcare logistics industry is leading to increased economies of scale and improved efficiency in cold chain logistics. However, functional barriers in cold chain logistics, such as the need for specialized equipment and trained personnel, continue to increase operational costs. Despite these challenges, advancements in technology, including the use of temperature-controlled containers and real-time monitoring systems, are helping to mitigate these costs and improve the overall efficiency and effectiveness of cold chain logistics for the pharmaceuticals industry.
Cold chain logistics plays a crucial role in ensuring the integrity and efficacy of temperature-sensitive pharmaceutical products, including novel drugs, vaccines, biopharmaceuticals, clinical trial materials, and over-the-counter (OTC) medicines. Pharmaceutical exports, a significant contributor to the industry's growth, require stringent cold chain logistics to maintain the required temperature conditions during transportation and storage. The cold chain logistics market for pharmaceuticals involves various stages such as transportation, storage, labeling, last-mile delivery, and hubs-to-distributor. Temperature-controlled environments are essential for these products, which can be categorized into ambient temperature, refrigerated temperature, frozen temperature, and cryogenic temperature. Hospitals & clinics are major consumers of temperature-sensitive pharmaceuticals, making seamless cold chain logistics crucial for their operations.
Furthermore, the cold chain logistics market utilizes various modes of transportation, including sea freight logistics, air freight logistics, and overland logistics, to ensure timely and efficient delivery. Technological advancements, such as telematics, are revolutionizing cold chain logistics by providing real-time temperature monitoring and tracking, enhancing the overall efficiency and reliability of the supply chain. The market is expected to grow significantly due to the increasing demand for temperature-sensitive pharmaceuticals and the need for efficient and cost-effective logistics solutions.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The vaccines segment is estimated to witness significant growth during the forecast period.Cold chain logistics plays a crucial role in the pharmaceutical industry, particularly for the transportation and storage of temperature-sensitive goods such as vaccines, biopharmaceuticals, clinical trial materials, and over-the-counter (OTC) medicines. With the continuous development of novel drugs, especially in the biotechnology sector, the demand for reliable cold chain logistics solutions is increasing. This is due to the need to maintain specific temperature conditions during transportation and storage to ensure the efficacy and safety of these temperature-sensitive goods. Pharmaceutical exports have become a significant contributor to the global economy, with many countries relying on the export of these products to generate revenue.
Moreover, cold chain logistics is essential for ensuring the quality and integrity of these exports, particularly for vaccines and biopharmaceuticals, which require refrigerated, frozen, or even cryogenic temperatures. The supply chain for cold chain logistics in the pharmaceutical industry involves various stakeholders, including hospitals and clinics, raw material suppliers, packaging suppliers, retailers, and distributors. Advanced technologies such as telematics, warehouse execution software, machine learning, and big data are being used to optimize the cold chain logistics process. Sea freight logistics, air freight logistics, and overland logistics are the primary modes of transportation used for cold chain logistics. Hubs-to-distributor and last-mile delivery are critical components of the cold chain logistics supply chain, ensuring that temperature-sensitive goods reach their destination in optimal condition.
Major players in the cold chain logistics market include FedEx, SenseAware, and various pharmaceutical companies. These companies are investing in advanced technologies and automation instruments to enhance their cold chain logistics capabilities and meet the growing demand for temperature-controlled transportation and storage solutions. In conclusion, the pharmaceutical industry's increasing focus on research and development, particularly in the biotechnology sector, is driving the demand for cold chain logistics solutions. The transportation and storage of temperature-sensitive goods, such as vaccines, biopharmaceuticals, and clinical trial materials, require specific temperature conditions to maintain their efficacy and safety. Cold chain logistics plays a vital role in ensuring the quality and integrity of pharmaceutical exports and in delivering these essential goods to hospitals, clinics, pharmacies, health centers, and retailers.
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The Vaccines segment was valued at USD 6.87 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market for pharmaceuticals in Asia Pacific (APAC) is experiencing significant growth due to the expansion of the healthcare sector in the region. The consumer healthcare market in APAC witnessed substantial growth between 2021 and 2022, driven by increased investments from both public and private sectors in enhancing healthcare infrastructure. Furthermore, the region's growing foreign investment and easier access to healthcare insurance are expected to further boost the consumer healthcare market. The high growth rate is attributed to improved healthcare facilities and the substantial investments made by governments and non-governmental organizations (NGOs) in promoting better public health standards.
Furthermore, in this context, advanced technologies such as warehouse management software and blockchain technology are increasingly being adopted to ensure efficient and secure cold chain logistics operations in the pharmaceuticals industry. These technologies enable real-time monitoring, traceability, and temperature control, ensuring the integrity and efficacy of pharmaceutical products throughout the supply chain.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in global demand for pharmaceuticals is the key driver of the market. The global pharmaceutical industry has experienced significant growth due to increased life expectancy and expanding healthcare coverage, particularly in developed markets. With the rise of novel drugs, temperature-sensitive goods such as vaccines, biopharmaceuticals, clinical trial materials, and over-the-counter (OTC) medicines require specialized handling and transportation to maintain their efficacy. Cold chain logistics plays a crucial role in ensuring the integrity of these temperature-controlled products during transportation, storage, and last-mile delivery. Cold chain logistics hubs serve as critical intermediaries between raw material suppliers, packaging suppliers, and end-users, including hospitals, clinics, pharmacies, health centers, and retailers. Advanced technologies, such as telematics, machine learning, and big data, are increasingly being adopted to optimize supply chain operations and enhance visibility and traceability.
Furthermore, sea freight, air freight, and overland logistics are the primary modes of transportation for temperature-controlled pharmaceuticals. Warehouse execution software and automation instruments are used to manage inventory, labeling, and temperature monitoring in warehouses. The market is expected to grow steadily through the forecast period as the demand for temperature-controlled pharmaceutical logistics continues to increase.
Growing consolidation in global healthcare logistics industry is the upcoming trend in the market. The pharmaceutical industry's cold chain logistics market is a significant and intricate sector, characterized by the transportation and storage of temperature-sensitive goods, including novel drugs, vaccines, biopharmaceuticals, clinical trial materials, and over-the-counter (OTC) medicines. This market caters to various stakeholders, including hospitals & clinics, pharmacies, health centers, raw material suppliers, packaging suppliers, retailers, and distributors. Cold chain logistics plays a crucial role in the pharmaceutical exports sector, ensuring the integrity of temperature-controlled products during transportation and storage. The cold chain logistics market encompasses various temperature ranges, such as ambient, refrigerated, frozen, and cryogenic temperatures, necessitating advanced technologies like telematics, warehouse execution software, and automation instruments.
Furthermore, major players in the cold chain logistics market, such as United Parcel Service Inc., Deutsche Post AG, and FedEx Corp., are employing market consolidation as a strategic tool for business expansion into new geographies. This approach enables these companies to adopt local or regional technologies, expand their market presence, and achieve profitability in the competitive landscape. The cold chain logistics market for pharmaceuticals involves multiple modes of transportation, including sea freight logistics, air freight logistics, and overland logistics. The use of advanced technologies like machine learning and big data analytics is on the rise to optimize the supply chain and ensure the timely delivery of temperature-sensitive goods.
Functional barriers in cold chain logistics increase operational costs is a key challenge affecting the market growth. Cold chain logistics plays a pivotal role in the pharmaceutical industry, particularly for the transportation and storage of novel drugs, temperature-sensitive goods such as vaccines and biopharmaceuticals, and clinical trial materials. Pharmaceutical exports rely heavily on cold chain logistics to ensure the integrity and efficacy of these goods during transportation and storage. The pharmaceutical supply chain encompasses various stakeholders, including hospitals & clinics, raw material suppliers, packaging suppliers, retailers, and over-the-counter (OTC) medicines sellers like Walmart, Anthem, and others. Advanced technologies, such as telematics, machine learning, and big data, are increasingly being used to optimize cold chain logistics. These technologies enable real-time monitoring of temperature conditions, ensuring that goods remain within the required temperature range during transportation.
Moreover, hubs-to-distributor transportation methods, including sea freight logistics, air freight logistics, and overland logistics, are utilized to ensure the timely and efficient delivery of temperature-sensitive goods. The cold chain logistics market for pharmaceuticals involves various temperature requirements, including ambient temperature, refrigerated temperature, frozen temperature, and cryogenic temperature. Warehouse execution software and automation instruments are essential in managing the complexities of cold chain logistics. The establishment of cold storage facilities in proximity to production sites is a strategic decision for logistics service providers (LSPs), as real estate costs in countries such as China, India, and the US continue to rise. Despite these challenges, the cold chain logistics market for pharmaceuticals is expected to grow, driven by the increasing demand for temperature-sensitive goods and the need for efficient and effective supply chain management.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agility Public Warehousing Co. K.S.C.P - The company offers cold chain logistic for LCL reefer shipments, as well as to move pharmaceutical products to difficult-to-reach locations, areas prone to power cuts, and for last-mile delivery.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Cold chain logistics plays a crucial role in ensuring the efficacy and safety of temperature-sensitive pharmaceutical products, including novel drugs, vaccines, biopharmaceuticals, and clinical trial materials. Pharmaceutical exports rely heavily on cold chain logistics to maintain the required temperature conditions during transportation and storage. The pharmaceutical industry handles a vast array of temperature-sensitive goods, from ambient temperature to frozen and cryogenic temperatures. Cold chain logistics involves various stages such as transportation, storage, labeling, last-mile delivery, and hubs-to-distributor. Hospitals & clinics, pharmacies, health centers, raw material suppliers, packaging suppliers, retailers, and OTC medicines retailers are significant stakeholders in this supply chain.
Furthermore, advanced technologies like telematics, sea freight logistics, air freight logistics, overland logistics, warehouse execution software, machine learning, and big data are transforming cold chain logistics. The collaboration between pharmaceutical companies, logistics providers, and technology companies is essential to ensure the seamless flow of temperature-sensitive goods from manufacturers to end-users.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.57% |
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Market growth 2024-2028 |
USD 12.81 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.94 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Air Canada, AVINEX, Burris Logistics Co., Cold Chain Technologies, Coldman Logistics Pvt. Ltd., Deutsche Post AG, DPD Deutschland GmbH, DSV AS, FedEx Corp., Helapet Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Nichirei Corp., Orient Overseas Container Line Ltd., PCI Pharma Services, SCG Logistics Management Co. Ltd., SF Express Co. Ltd., Singhania Logistics and Distribution Pvt. Ltd., Snowman Logistics Ltd., Uber Technologies Inc., United Parcel Service Inc., VersaCold Logistics Services, and XPO Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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