Biopharmaceutical Third Party Logistics Market Size To Hold USD 159.86 Bn By 2030

Published Date : 30 Nov 2022

The global biopharmaceutical third party logistics market size was exhibited at USD 105.53 billion in 2022 and is expected to hold around USD 159.86 billion by 2030 and growing at a CAGR of 5.3% from 2022 to 2030.

The burgeoning demand for biopharmaceutical drugs across developed and developing nations is a prominent factor that boosts the growth of the global biopharmaceutical third-party logistics market. The rising investments in the expansion of the biopharmaceutical industry and the government support to the industry is fueling the demand for third-party logistic services across the globe. Third-party logistics offers biopharma companies to focus on their core competence and resolves the complexities associated with the logistics and distribution of medicines. This significantly reduces the overheads of the pharma companies and increases the chances of growing profitability. Moreover, the third-party logistic service providers are equipped with technologically advanced vehicles, temperature management technologies, automatic robots, and real-time trackers that increase the safety and efficiency of logistics operations.

Biopharmaceutical Third Party Logistics Market Report Scope

Report Coverage Details
Market Size In 2022 USD 105.53 Billion
Market Size By 2030 USD 159.86 Billion
Growth Rate from 2022 to 2030 CAGR of 5.3%
Base Year 2021
Forecast Period 2022 to 2030
Segments Covered
  • By Service Type
  • By Supply Chain
Regions Covered
  • North America 
  • Europe
  • Asia-Pacific 
  • Latin America 
  • Middle East and Africa

Report Highlights

Based on the service type, the warehousing & storage segment dominated the market. The presence of advanced systems like real-time tracking, warehouse robots, and temperature-controlled storage systems in warehouses has fueled the growth of this segment. Moreover, value-added services such as warehouse and packaging, procurement services, customs, and duty management is being offered by the service providers that attract the pharma companies to adopt the third-party logistic services. 

Based on the supply chain, the cold chain is expected to be the fastest-growing segment. Several medicines are temperature sensitive and need special attention during transportation. Moreover, the development of mobile applications that can notify temperature excursions and allow to monitor the temperature in real-time is fueling the growth of this segment.

Regional Snapshot

North America dominated the global biopharmaceutical third-party logistics market, garnering a market share of around 42% in 2020. The increased prevalence of various chronic diseases, presence of a huge geriatric population, high healthcare expenditure, and increased demand for biopharmaceutical drugs are the major factors that influence the growth of the third-party logistics market in North America. The rapid growth of the biopharmaceutical industry in US and the huge presence of top biopharma companies in the region has significantly driven the demand for logistic services. The rising need for the safe and quick distribution of medicines has boosted the demand for the biopharmaceutical third party logistics market.

On the other hand, Asia Pacific is estimated to be the most opportunistic market during the forecast period. The growing government initiatives and favorable policies to attract FDIs is encouraging biopharmaceutical manufacturers to expand their production facilities in Asia Pacific region. Moreover, the rising prevalence of various chronic diseases, growing healthcare expenditure, and rapidly growing geriatric population is boosting the demand for biopharmaceutical drugs. Therefore, the growing demand for biopharmaceutical medicines across Asia Pacific is expected to drive the growth of the biopharmaceutical third party logistics market in the region.

Market Dynamics

Driver: Growing demand for the biopharmaceutical drugs

The development of various life-saving drugs to treat chronic diseases like diabetes, cardiovascular diseases, cancer, and respiratory diseases in biopharmaceuticals has boosted the growth of the biopharmaceutical industry. The rising awareness regarding biologics coupled with the surging prevalence of various non-communicable diseases among the global population is expected to drive the demand for biopharmaceutical third party logistic services during the forecast period.

Restraint: Low penetration of biopharmaceuticals in the underdeveloped countries

There is a lack of basic healthcare infrastructure in underdeveloped markets, where most of the patients remains untreated and undiagnosed. This results in the low demand for biopharmaceutical drugs and this indirectly hampers the growth of the market. Moreover, the lack of awareness regarding biologics amongst the rural population is a major reason behind the lower penetration of biopharmaceuticals.

Opportunity: Introduction of latest technologies

The proliferation of digital technologies has encouraged the adoption of various new technologies such as internet of things, warehouse robots, cloud systems, real-time monitoring, and location tracking. These technologies enhance the logistic operations and reduce the risks associated with human errors. These latest technologies are projected to offer numerous growth opportunities to the market players in the forthcoming future.

Challenge: High capital investments

The biopharmaceutical third party logistic service providers have to invest a huge amount of capital for the acquisition of advanced vehicles, warehouses, temperature management systems, and various other associated costs in order to ensure the safety of the medicines during the transportation. The huge initial and operational costs associated with the logistics may restrict the market growth.

Key Players in the Report:

  • Agility Logistics
  • AmerisourceBergen Corporation
  • DB Schenker
  • DHL International GmbH
  • FedEx Corporation
  • Kerry Logistics Network Limited
  • Kuehne + Nagel International AG
  • McKesson Corporation
  • SF Express Co. Ltd.
  • United Parcel Service of America, Inc.

Market Segmentation

By Service Type

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

By Supply Chain

  • Cold Chain
  • Non-Cold Chain

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