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The pharmaceutical logistics market size is forecast to increase by USD 11.96 billion at a CAGR of 2.46% between 2023 and 2028. The market is experiencing significant growth due to the increasing global pharmaceutical sales and the high demand for personalized medicine. Wholesalers, clinics, and hospitals are key consumers in this market, necessitating the need for efficient and reliable logistics solutions. However, challenges such as instability in supply chains and the risk of contamination during transportation pose significant threats. To mitigate these risks, advanced technologies like GPS tracking and adherence to Good Distribution Practices (GDP) guidelines are being adopted. Furthermore, sterilization techniques are being employed to ensure the safety and efficacy of pharmaceutical products during transit. Despite these advancements, the high cost associated with pharmaceutical logistics remains a significant barrier to market growth.
The market is experiencing significant growth due to the increasing demand for biological pharmaceuticals and temperature-sensitive medications. Cold chain logistics plays a crucial role in ensuring the safe and efficient transportation and storage of these products. Versacold Logistics Services, a leading provider of temperature-controlled warehousing and logistics solutions, is capitalizing on this trend. The storage segment accounts for a major share of the market, with the need for specialized facilities to maintain the required temperature conditions for biological pharmaceuticals. The transportation segment, including air freight logistics and sea freight logistics, is also witnessing growth due to the global nature of the pharmaceutical industry and the need for emergency use authorizations for the rapid delivery of critical medications.
Further, agility and Delivery Limited are some of the key players focusing on providing agile and efficient logistics solutions for pharmaceutical products. The expansion of e-commerce and the growing popularity of over-the-counter medications are also driving the market. Temperature-sensitive drugs, such as Covishield and Covaxin, require specialized logistics solutions, including telematics and cloud-based systems, to ensure their integrity during transportation and storage. Non-cold chain logistics also play a role in the market, particularly for less sensitive pharmaceutical products.
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 non-cold chain logistics segment is estimated to witness significant growth during the forecast period. Pharmaceutical logistics encompasses the transportation and distribution of various pharmaceutical products, including those that do not require strict temperature control, referred to as non-cold chain logistics. These products, such as over-the-counter (OTC) drugs, vitamins, and supplements, can be transported using standard logistics methods, including air freight, sea freight, and overland transportation. The pharmaceutical industry relies on various packaging materials like blister packs, bottles, labels, and inserts for these products, which are generally not sensitive to temperature.
Further, non-cold chain logistics play a significant role in the efficient distribution of a broad spectrum of pharmaceutical products, including oral medications, topical creams, medical devices, and non-perishable medical supplies. With the expansion of e-commerce and the increasing demand for quick delivery, agility in pharmaceutical logistics has become crucial. The Emergency Use Authorization (EUA) and Biologics License Application (BLA) processes require timely and efficient logistics to ensure the delivery of essential medicines and treatments.
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The Non-cold chain logistics segment accounted for USD 65.10 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 45% 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 in the Asia Pacific (APAC) region is witnessing significant growth due to the increasing population and resulting demand for healthcare services. With countries such as China and India experiencing strong economic expansion, healthcare spending has increased, leading to improved healthcare infrastructure and greater access to pharmaceuticals. This demand for medicines, medical equipment, and related products necessitates efficient pharmaceutical logistics solutions. Air freight, sea freight, and overland logistics are crucial for the timely and secure transportation of pharmaceuticals. The Emergency Use Authorization (EUA) and Biologics License Application (BLA) processes require agile logistics solutions to ensure the swift delivery of essential medicines.
Further, the expansion of e-commerce in the APAC region, particularly in the pharmaceutical sector, has resulted in a swell in demand for last-mile logistics, including home deliveries of medications. Key pharmaceutical innovations, such as the recent approval of delandistrogene moxeparvovec, further highlight the importance of reliable and efficient pharmaceutical logistics.
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.
Growing global pharmaceutical sales is the key driver of the market. The global pharmaceutical market encompasses both prescription and over-the-counter drugs, and is projected to experience significant expansion through 2024, reaching an estimated USD1.4 trillion in sales. Factors fueling this growth include the increasing geriatric population and the continuous introduction of new pharmaceutical products by manufacturers. For instance, the global population aged 65 years and above reached 9.09% in 2019, up from 8.6% in 2017, according to World Bank data. This demographic trend is anticipated to boost the sales of prescription medications. Furthermore, the growing global population and the demand for enhanced healthcare products and services are key factors driving the adoption and access to modern healthcare solutions.
Additionally, in the context of pharmaceutical logistics, the market consists of two primary segments: cold chain logistics and non-cold chain logistics. Cold chain logistics is crucial for transporting and storing temperature-sensitive biological pharmaceuticals, ensuring their efficacy and safety. VersaCold Logistics Services, among others, is a prominent player in this segment. In contrast, non-cold chain logistics deals with the transportation and storage of non-temperature-sensitive pharmaceutical products. Both segments are essential components of the pharmaceutical supply chain, contributing to the overall growth of the market.
High demand for personalized medicine is the upcoming trend in the market. The pharmaceutical industry is witnessing a significant shift towards personalized medicine and specialty drugs, leading to an increased demand for specialized logistics services to ensure the secure and timely delivery of individualized treatments. Biological pharmaceuticals, such as gene therapies, immunotherapies, and targeted therapies, often have unique storage and transportation requirements due to their temperature-sensitive nature. This necessitates the use of cold chain logistics services, which maintain specific temperature ranges to preserve the efficacy of these medications. VersaCold Logistics Services and other logistics providers offer specialized solutions for the storage and transportation of temperature-sensitive pharmaceutical products. The storage segment is expected to dominate the market due to the growing need for secure and controlled storage facilities.
However, the transportation segment is also expected to witness significant growth due to the increasing demand for real-time monitoring and tracking capabilities. Effective inventory management and traceability are crucial in the context of personalized medicine, as each treatment is tailored to an individual patient. Logistics providers have the capability to manage and track individualized treatments, ensuring their timely delivery and maintaining the integrity of the cold chain. The increasing adoption of personalized medicine presents both opportunities and challenges for pharmaceutical logistics, requiring providers to adapt to the unique requirements of these treatments while ensuring compliance with regulatory standards. Despite these challenges, The market is expected to grow significantly during the forecast period.
The high cost associated with pharmaceutical logistics is a key challenge affecting the market growth. The market encompasses the transportation and storage of various pharmaceutical products, including biological pharmaceuticals and temperature-sensitive medications. The cold chain logistics segment is a significant part of this market due to the critical nature of maintaining the required temperature conditions for these products. VersaCold Logistics Services and other providers offer specialized services to ensure the uninterrupted flow of goods in temperature-controlled environments. Setting up a cold storage facility or temperature-controlled warehouse involves substantial costs. The cost structure includes the expense of acquiring land for the facility, which significantly impacts the overall cost. Strategically locating a refrigerated warehouse near production facilities, considering factors such as transport connectivity, is essential to ensure an efficient cold chain.
Further, the high infrastructure cost of constructing a new cold storage facility is another significant expense. In contrast, non-cold chain logistics for pharmaceutical products require less specialized infrastructure and are comparatively less expensive. The storage segment and transportation segment collectively drive the growth of the market.
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.
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.
The market is witnessing significant growth due to the increasing demand for biological pharmaceuticals, including temperature-sensitive medications. Cold chain logistics providers, such as Versacold Logistics Services, play a crucial role in ensuring the proper storage and transportation of these sensitive drugs. The storage segment accounts for a major share of the market, with the transportation segment following closely. Air freight logistics, sea freight logistics, and overland logistics are the primary modes of transportation used. The expansion of e-commerce and the emergence of emergency use authorizations have led to an increased focus on agility in pharmaceutical logistics. The market is expected to grow further with the approval of new biologics license applications, such as Delandistrogene Moxeparvovec for Duchenne muscular dystrophy.
Additionally, the market is witnessing significant investment in technology, with cloud-based solutions, telematics, remote monitoring, and RFID technologies becoming increasingly popular. Pharmacy retail chains, wholesalers, clinics, hospitals, and other healthcare facilities are key consumers of pharmaceutical logistics services. The market is also witnessing the emergence of new players, including UPS Healthcare, Geodis, Trans-O-Flex, and DHL Global Forwarding, among others, in the GCC region. The market is expected to grow further due to the increasing demand for complex proteins, hormone treatments, vaccines, and other healthcare products. The market faces challenges such as instability and contamination during transportation and storage.
Further, temperature monitoring and sterilization are essential to mitigate these risks. GPS tracking, GDP guidelines, fast-track assistance, and ethiopian airlines are also important considerations for pharmaceutical logistics providers. The market is expected to continue growing, driven by the increasing demand for healthcare products and drugs, including Hydroxychloroquine, Covishield, Covaxin, and over-the-counter medications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
155 |
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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 2.46% |
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Market growth 2024-2028 |
USD 11.96 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.32 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 45% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abu Dhabi Ports PJSC, AP Moller Maersk AS, AWL India Pvt. Ltd., CJ CheilJedang Corp., CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, FedEx Corp., Gemadept Corp., GEODIS, Kuehne Nagel Management AG, Nippon Yusen Kabushiki Kaisha, Pharma Logistics LLC, SF Express Co. Ltd., Tiong Nam Logistics Holdings Berhad, United Parcel Service Inc., Varuna Group, WHA Corp. PCL, and YCH Group |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
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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