The global biopharmaceutical third-party logistics market size is anticipated to reach USD 209.0 billion by 2030. The market is projected to grow at a CAGR of 6.58% from 2025 to 2030. Increasing demand for temperature-controlled logistic services to transport biologics in various regions and growing distribution networks of biopharmaceutical companies to improve their sales are factors driving the market growth. The rising adoption of automated storage and retrieval systems in emerging countries is an ongoing trend among pharmaceutical logistics companies that has gained significant traction.
Furthermore, the trend of shifting from small-molecule drugs to biopharmaceuticals, mainly vaccines and biologics, is projected to drive the market. Since, these small molecule drugs are temperature-sensitive products, demand for temperature-controlled transportation and storage increases and thus, is responsible for the market growth. Technological advancements are among the main factors drivingmarket growth. Technologies, such as mobile cloud solutions, warehouse robotics, and data mining, have changed the overall 3PL space. With the help of these advanced technologies, 3PL companies can maintain the required temperatures for products during transportation.
This will help in reducing complexities in products and human errors. Most biopharmaceutical products are very temperature-sensitive and hence should be stored at the required temperatures. These products require a tracking device for monitoring until delivery. For instance, in May 2023, Tridentify launched a real-time cold chain monitoring system with an innovative feature for continuously tracking the stability and remaining shelf life of products transported in the cold chain. It offers a thorough view of the stability and remaining shelf-life of pharmaceutical products in real-time, which will revolutionize the way companies monitor their operations and manage their stability budgets.
In addition, environmental concerns and costs have caused a slight shift in the means of transport used for commercial products, moving from airway to seaway shipping and in roadways from truck to intermodal (both rail and truck) transport. Intermodal transport is majorly used by these pharmaceutical companies to reduce their carbon footprint. The ongoing trend shows that pharmaceutical manufacturers have shifted to sea freight to reduce the cost and risk factors. Although for cold chain products, the companies still prefer air freight. However, some of the large pharmaceutical companies are planning to transport 70% of their products via ocean freight including cold chain products.
Furthermore, the trend of shifting from small-molecule drugs to biopharmaceuticals, mainly vaccines and biologics, is projected to drive the market. Since, these small molecule drugs are temperature-sensitive products, demand for temperature-controlled transportation and storage increases and thus, is responsible for the market growth. Technological advancements are among the main factors drivingmarket growth. Technologies, such as mobile cloud solutions, warehouse robotics, and data mining, have changed the overall 3PL space. With the help of these advanced technologies, 3PL companies can maintain the required temperatures for products during transportation.
This will help in reducing complexities in products and human errors. Most biopharmaceutical products are very temperature-sensitive and hence should be stored at the required temperatures. These products require a tracking device for monitoring until delivery. For instance, in May 2023, Tridentify launched a real-time cold chain monitoring system with an innovative feature for continuously tracking the stability and remaining shelf life of products transported in the cold chain. It offers a thorough view of the stability and remaining shelf-life of pharmaceutical products in real-time, which will revolutionize the way companies monitor their operations and manage their stability budgets.
In addition, environmental concerns and costs have caused a slight shift in the means of transport used for commercial products, moving from airway to seaway shipping and in roadways from truck to intermodal (both rail and truck) transport. Intermodal transport is majorly used by these pharmaceutical companies to reduce their carbon footprint. The ongoing trend shows that pharmaceutical manufacturers have shifted to sea freight to reduce the cost and risk factors. Although for cold chain products, the companies still prefer air freight. However, some of the large pharmaceutical companies are planning to transport 70% of their products via ocean freight including cold chain products.
Biopharmaceutical Third-party Logistics Market Report Highlights
- In 2024, the non-cold chain logistics segment held the largest share of 79.7% in terms of revenue owing to the sales of a large number of drugs that do not require any temperature control.
- The cold chain logistics segment is expected to register a CAGR of 9.40% over the forecast period owing to the demand for biologics, such as cellular therapies, vaccines, and test kits.
- The warehousing and storage segment held the largest share of 43.3% in 2024. The transportation segment also held a significant revenue share in 2024 due to the lack of internal capabilities of companies.
- North America held the largest revenue share of over 42.53% in 2024 owing to the rise in imports and exports for biopharmaceutical in the country.
- Asia Pacific is expected to register the fastest CAGR of 7.4% over the forecast period owing to the adoption of medicines from the aging population and the shift of drug sales from brand manufacturers to generic.
- The key players are undertaking several strategic initiatives to strengthen their market presence. For instance, in February 2021, Kuehne+Nagel entered into a partnership with China’s largest non-state-owned pharma distribution company, Jointown, to enhance its footprint in healthcare & pharmaceutical logistics in China.
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- Comprehensive Market Analysis: Gain detailed insights into the global market across major regions and segments.
- Competitive Landscape: Explore the market presence of key players worldwide.
- Future Trends: Discover the pivotal trends and drivers shaping the future of the global market.
- Actionable Recommendations: Utilize insights to uncover new revenue streams and guide strategic business decisions.
This report addresses:
- Market intelligence to enable effective decision-making
- Market estimates and forecasts from 2018 to 2030
- Growth opportunities and trend analyses
- Segment and regional revenue forecasts for market assessment
- Competition strategy and market share analysis
- Product innovation listing for you to stay ahead of the curve
- COVID-19's impact and how to sustain in these fast-evolving markets
Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Biopharmaceutical Third-Party Logistics Market Variables, Trends & Scope
Chapter 4. Biopharmaceutical Third-Party Logistics Market: Supply Chain Estimates & Trend Analysis
Chapter 5. Biopharmaceutical Third-Party Logistics Market: Service Type Estimates & Trend Analysis
Chapter 6. Biopharmaceutical Third-Party Logistics Market: Regional Estimates & Trend Analysis
Chapter 7. Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- DHL International GmbH
- SF Express
- FedEx
- United Parcel Service of America, Inc.
- Cencora, Inc
- DB Schenker
- Kuehne and Nagel
- Kerry Logistics Network Limited
- Agility Public Warehousing Company K.S.C.P.
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 160 |
Published | November 2024 |
Forecast Period | 2024 - 2030 |
Estimated Market Value ( USD | $ 143.4 Billion |
Forecasted Market Value ( USD | $ 209 Billion |
Compound Annual Growth Rate | 6.5% |
Regions Covered | Global |
No. of Companies Mentioned | 9 |