Healthcare Third-Party Logistics Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 255.07 Bn

Forecast Year, 2035

USD 522.87 Bn

CAGR, 2026 - 2035

7.44%

Report Coverage

Global

Healthcare Third-Party Logistics Market Size and Growth 2026 to 2035

The global healthcare third-party logistics market size was estimated at USD 255.07 billion in 2025 and is predicted to increase from USD 274.56 billion in 2026 to approximately USD 522.87 billion by 2035, expanding at a CAGR of 7.44% from 2026 to 2035. The market is growing due to increasing demand for efficient, compliant, and temperature-controlled distribution of pharmaceuticals and medical products.

Healthcare Third-Party Logistics Market Key Takeaways

• In terms of revenue, the global healthcare third-party logistics market was valued at USD 255.07 billion in 2025.
• It is projected to reach USD 522.87 billion by 2035.
• The market is expected to grow at a CAGR of 7.55% from 2026 to 2035.
• North America led the market with the largest revenue share of 43% in 2025.
• Asia Pacific is expected to grow at the fastest CAGR of 9.12% during the forecast period.
• By industry, the biopharmaceutical segment has held a major revenue share of 64% in 2025.
• By industry, the medical devices segment is projected to grow at a solid CAGR of 10.72% during the forecast period.
• By supply chain, the non-cold chain segment has contributed more than 81% of revenue share in 2025.
• By supply chain, the cold chain segment is estimated to grow with the highest CAGR of 10.53% during the forecast period.
• By service type, the warehousing and storage segment has recorded more than 44% of revenue share in 2025.

Market Overview

The third-party logistics market is an important industry in the healthcare domain. This industry deals in the storage and transportation of healthcare products across the globe. The healthcare third-party logistics market is expected to grow significantly with the rise in government initiatives to develop the healthcare sector. This industry mainly deals with delivering products such as biopharmaceutical, pharmaceutical, and medical devices to people across the world. It comprises two supply chains, the cold chains, and the non-cold chains. There are several services associated with healthcare third-party logistics, such as freight services, warehousing & storage, database management, and other custom operations. Logistics companies have also started developing modern warehouses to store healthcare products and boost market growth. This industry is expected to grow exponentially with the growth in the healthcare and logistics sectors.

Healthcare Third-Party Logistics Market Growth Factors

• The technological advancements in the healthcare industry are expected to drive the growth of the healthcare third-party logistics market.
• The rising government initiatives to strengthen the medical sector have driven the market growth.
• The growing developments in the air transport infrastructure across the world foster market growth.
• The rising adoption of online shopping and integration of modern technologies has boosted the market growth.
• The rising investments from public and private sector entities for developing the third-party logistics industries also boost the market growth.
• The growing penetration of the internet, along with the rising use of smartphones across the world, drives the market growth.
• The growing developments in pharmaceutical industries are likely to impact the market positively.
• The rise in the number of warehouses for logistics purposes also propels market growth.
• The growing advancements in freight infrastructure across the world foster healthcare third-party logistics market growth.

How is AI Transforming the Healthcare Third-Party Logistics Market?

Artificial intelligence (AI) is revolutionizing the healthcare third-party logistics industry by introducing automation in end-to-end processes. It can help maintain optimum temperature throughout the transportation and send notifications for any temperature fluctuations. It can optimize supply chain logistics and billing workflows, helping hospitals operate more efficiently and mitigate staff burnout. The advent of AI-based blockchain technology helps companies track every shipment in real time, reducing fraud and ensuring regulatory adherence.

Market Scope

Market Dynamics

Driver

Rising developments in warehouses for storing medicinal products

The growing demand for medicines across the world increases the demand for modern warehouses with superior facilities. Also, the growing proliferation of smartphones has increased the demand for purchasing medicines and other associated products from online platforms, which increases the demand for storage facilities across the world.

The advancements in logistics sectors associated with the storage and distribution of healthcare products are developing rapidly. Moreover, healthcare and logistics companies started establishing new storage facilities to maintain the demand and supply chains of healthcare products across the world.

• In April 2024, Cardinal Health announced the opening of a logistics center in Columbus, Ohio, U.S. This logistics center will be constructed in a huge area of 350,000 square feet for smooth distribution of over-the-counter consumer health products among the people, along with developing its pharma business.

Restraint

Theft-related issues, along with a lack of logistics infrastructure in rural areas

The logistics industry is developing significantly with the growing trend of online shopping across the world. However, there are various problems associated with healthcare logistics. Firstly, there are theft-related issues during the transportation of medical goods and a mismatch of medical products in warehouses. Secondly, the logistics sector in rural areas faces several transportation and storage issues for medicinal products. Thus, the absence of well-established logistics in rural areas, along with theft-related issues in the logistics sector, is expected to restrain the growth of the healthcare third-party logistics market.

Opportunity

Adoption of modern technologies in logistics

The logistics industry has developed rapidly due to the advancements in sciences and modern technologies. The ongoing development of modern technologies such as Big Data Analytics, AI, Blockchain, and others have also contributed significantly to the development of the logistics sector. The integration of technologies in modern warehouses also helps in packaging, manufacturing, database management, enhanced warehouse safety, and some others that help in maintaining logistics operations. Thus, rising developments in technologies in the logistics sector are expected to create ample growth opportunities for the market players in the future.

• In November 2023, Meihua International launched Speed Fox. Speed Fox is an innovative artificial intelligence (AI) enabled warehouse management system that helps in logistics operations for the healthcare sector.

Industry Insights

What Made the Biopharmaceutical Segment Dominate the Healthcare Third-Party Logistics Market?

The biopharmaceutical segment dominated the market in 2025 because biologics, vaccines, specialty drugs, and biosimilars are being produced and distributed more widely worldwide. Specialized logistics services are in high demand because these products need to be stored under strict control, monitored for temperature, transported safely, and comply with regulations. The segmental growth is further reinforced by the rising incidence of chronic illnesses and the growth of pharmaceutical manufacturing operations. Furthermore, there is a growing need for advanced logistics solutions due to increased investments in biopharmaceutical logistics services, which is also aided by the increasing number of clinical trials and personalized medicine initiatives.

The medical device segment is expected to grow at the fastest CAGR during the forecast period, due to the growing need for implantable devices such as surgical instruments, wearable health technologies, and sophisticated diagnostic equipment. To handle inventory, guarantee on-time delivery, and support intricate distribution networks, healthcare providers are depending more on effective logistics partners. Growth in this market is accelerating the quick uptake of cutting-edge medical technology and the development of healthcare infrastructure. Additionally, new distribution opportunities are being created by the growing demand for home healthcare devices.

Supply Chain Insights

Which Supply Chain Segment Dominated the Healthcare Third-Party Logistics Market?

The non-cold chain segment dominated the market in 2025 due to the abundance of healthcare goods that don't need temperature-controlled transportation, such as over-the-counter medications, medical supplies, and conventional pharmaceuticals. Healthcare supply networks frequently use non-collective chain solutions due to their lower operating costs and easier logistics procedures. The segment's dominant position is maintained by the ongoing demand for traditional pharmaceutical products.

The cold chain segment is anticipated to register the fastest growth over the studied period, due to rising demand for biologics, vaccines, cell and gene therapies, and medications that are sensitive to temperature. Healthcare organizations are investing in cutting-edge refrigerated transportation and storage infrastructure due to strict regulations and the need

to maintain product efficacy. The growing production of biopharmaceuticals is accelerating the growth of this segment. Cold chain reliability is increasing thanks to technological developments in temperature monitoring and data logging systems. The need for cold chain logistics solutions is also being driven by expanding international immunization programs and specialty drug distribution.

Service Type Insights

What Made The Warehousing and Storage Segment Dominate The Healthcare Third-Party Logistics Market?

The warehousing and storage segment held the largest market share in 2025, due to the fact that temperature-controlled storage facilities, regulatory compliance, and safe inventory management are necessary. Advanced warehousing solutions are essential for pharmaceutical companies and healthcare providers to preserve product integrity and guarantee continuous supply chains. Demand for biologics and specialty medications is rising, which sustains segment dominance. Operational efficiency is increasing with the integration of robotics, automation, and warehousing services, due to the growing emphasis on product traceability and inventory visibility.

The transportation segment is expected to witness the fastest growth in the coming years, as healthcare goods must be delivered quickly and dependably throughout international markets. Investments in advanced logistics networks are being driven by growing demand for last-mile delivery services, cold chain transportation, and real-time shipment tracking. The segment's growth is also aided by the rise in e-commerce healthcare distribution and the expansion of pharmaceutical exports. Additionally, delivery performance is being enhanced by developments in GPS tracking and route optimization technologies. Adoption of transportation services is also being accelerated by rising demand for same-day and time-sensitive healthcare deliveries.

U.S. Healthcare Third-Party Logistics Market Size and Growth 2026 to 2035

The U.S. healthcare third-party logistics market size was valued at USD 76.78 billion in 2025 and is expected to be worth around USD 161.09 billion by 2035, at a CAGR of 7.69% from 2026 to 2035.

What Made North America Dominate the Healthcare Third-Party Logistics Market?

North America held a major market share in 2025, supported by a robust pharmaceutical manufacturing base, a well-established healthcare infrastructure, and widespread use of cutting-edge supply chain technologies. Stricter regulations and rising demand for specialized logistics services, especially biologics and temperature-sensitive goods, are advantageous to the area. Major pharmaceutical firms and logistics companies are present, which support market expansion even more. The region's operational efficiency is still being improved by rising investments in automation and digital supply chain technologies.

U.S. Market Trends

The U.S. represented the largest share within North America due to its large distribution networks, strong pharmaceutical industry, and high healthcare costs. Growing biologics production, growing demand for specialty drugs, and the existence of top logistics companies all contribute to the nation's market expansion. Logistics performance is being improved by the use of cutting-edge tracking technologies and data-driven supply chain management. Market expansion is also being aided by rising investments in pharmaceutical innovation and healthcare infrastructure.

How is Asia-Pacific Growing in the Healthcare Third-Party Logistics Market?

Asia-Pacific is expected to witness the fastest growth during the predicted timeframe, due to investments in healthcare supply chains, rising pharmaceutical manufacturing activity, and expanding healthcare infrastructure. The emergence of regional pharmaceutical hubs and rising healthcare costs are generating substantial opportunities for third-party logistics providers. Growing populations and rapid urbanization are driving up demand for healthcare products throughout the regions. The market is expanding due to government initiatives to improve logistics and healthcare access.

India Market Trends

India is emerging as a major player due to its expanding capacity to produce vaccines, growing the pharmaceutical industry, and rising healthcare spending. The development of cold chain infrastructure and government programs promoting healthcare modernization are bolstering market expansion. Due to its status as one of the world's top suppliers of generic medications, there is a significant demand for logistics. The efficiency and visibility of logistics are also improved by the growing use of digital supply chain solutions.

Will Europe Grow in the Healthcare Third-Party Logistics Market?

Europe is expected to grow at a considerable CAGR in the upcoming period, driven by robust pharmaceutical manufacturing, sophisticated healthcare systems, and strict quality requirements. The growing need for cross-border pharmaceutical distribution and temperature-controlled logistics keeps the market growing throughout the region. Investments in cutting-edge logistics technologies are being encouraged by regulatory emphasis on product safety and traceability. Specialized logistics services are in high demand due to the expanding biologics and specialty medicine markets.

Germany Market Trends

Germany is a leading contributor to the European market due to its robust pharmaceutical manufacturing sector, cutting-edge logistics system, and advantageous location for regional distribution. The market is expanding due to rising exports of medical supplies and the rising use of automated logistics systems. Long-term growth is being supported by the nation's emphasis on innovation and supply chain optimization. Market competitiveness is being further improved by growing investments in smart warehousing technologies and cold chain logistics.

What are the Key Trends of the Healthcare Third-Party Logistics Market in Latin America?

Latin America is considered to be a significantly growing area, due to growing healthcare infrastructure, the rising consumption of pharmaceuticals, and improving healthcare access. The region's healthcare supply chain transformation is being supported by investments in cold chain capabilities and modern logistics. The demand for pharmaceutical and associated logistics services is rising due to the rising incidence of chronic illness. The market is developing because of increased public and private investments in healthcare.

Brazil Market Trends

Brazil accounted for the largest share of Latin America because of its sizable pharmaceutical industry, rising healthcare costs, and developing distribution networks. The growing use of outsourced logistics services and the rising demand for healthcare products are driving market expansion. Access to healthcare products is being improved nationwide by improvements in transportation infrastructure. Logistics companies are seeing more opportunities due to the growing pharmaceutical manufacturing operations.

How Will the Middle East and Africa Contribute to the Healthcare Third-Party Logistics Market?

The Middle East and Africa region is expected to grow at a notable CAGR in the foreseeable future, due to growing investments in healthcare, an increase in pharmaceutical imports, and the continuous development of healthcare infrastructure. To increase access to medications and medical supplies, governments throughout the region are concentrating on fortifying healthcare supply chains. As healthcare systems continue to modernize, there is a growing need for advanced logistics services. The growth of regional markets is being further supported by the extension of pharmaceutical distribution networks.

UAE Market Trends

The UAE is a key market within the MEA region, supported by its advantageous location, cutting-edge logistics system, and expanding function as a center for the distribution of pharmaceuticals and healthcare. The nation's position in the market is still being improved by investments in cold chain facilities and smart logistics technologies. The government's emphasis on economic diversification and healthcare innovation is fostering favorable market conditions. The need for third-party logistics services in the healthcare industry is also being driven by an increase in regional distribution operations and pharmaceutical trade.

Competitive Landscape

The healthcare third-party logistics market is highly competitive, with leading companies focusing on expanding cold chain capabilities, enhancing supply chain visibility through digital technologies, and strengthening global distribution networks. To increase operational effectiveness and regulatory compliance, big players are making investments in automation of real-time tracking and strategic alliances. DHL Group, Kuehne + Nagel, DB Schenker, UPS Healthcare, FedEx, and C are important businesses in the industry. Hello, GEODIS, McKesson Corporation, and Robinson. These businesses compete by offering innovative services, expanding geographically, and providing specialized healthcare logistics solutions.

Healthcare Third-Party Logistics Market Companies

• Cardinal Health
• DHL Group
• Agility
• Kinesis Medical B.V.
• United Parcel Service of America, Inc.
• Barrett Distribution
• SF Express
• Amerisource Bergen Corporation
• DB Schenker
• FedEx
• KUEHNE + NAGEL
• Freight Logistics Solutions
• Kerry Logistics Network Ltd.

Segments Covered in the Report

By Industry

• Biopharmaceutical
  • Vaccines
  • Plasma Derived Products
  • Others
• Medical Device
  • Class I
  • Class II
  • Class III
  • Pharmaceutical

By Service Type

• Transportation
• Air Freight
• Sea Freight
• Overland Transportation
• Warehousing and Storage
• Others

By Supply Chain

• Cold Chain
• Non-Cold Chain

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa