Clinical Trial Supply & Logistics Market Size, Share & Trends Analysis Report By Service (Logistics & Distribution, Storage & Retention), By Phase, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global clinical trials supply & logistics market size was valued at USD 3.5 billion in 2022 and is expected to expand at a CAGR of 7.5% during the forecast period. Major drivers include the rising number of clinical trials and harmonization of regulations, increasing R&D expenditure by pharmaceutical and biotechnology firms, and technological advancements in the supply chain. Also, there is a rise in outsourcing of these services due to a rise in the cost of clinical trials.

Clinical trial market logistical hurdles were brought on by the COVID-19 pandemic, and sponsors faced many difficulties during the pandemic. The quick and broad adoption of the remote trial strategy has resulted in major modifications to the traditional supply chain. The different logistical challenges of distant studies were handled using direct-to-patient strategies. Decentralized trials make it simpler for sponsors to reach a worldwide audience. Although the pandemic has increased the acceptance of such trials, there will still be a considerable need for them long after COVID-19.

Developing digital technologies has led to overcoming the trial challenges that were encountered during the pandemic and will be required to overcome these challenges for future trials. Some of the digital services are cloud-enabled digital core, blockchain-based product tracking, usage of the internet of things, etc., is likely to transform biopharmaceutical companies approach towards clinical supplies management by incorporating valuable insights from multiple sources of data, improve patient experience, enhance clinical trial productivity, and improve the quality of data collected in trials. For instance, in June 2020, Almac Clinical Technologies, a part of the Almac Group, introduced Simplify, a next-generation IRT solution. It is enabled with a standard array of configurable functionality designed to accelerate the study startup process.

Also, there is a rise in R&D investment and expansion in facilities by pharmaceutical and biotechnology firms for approval and launch of new drugs in the market. High investments in R&D and adequate supply and logistical facilities are likely to increase the possibility of successful drug/medicine. For instance, in July 2022, DHL Freight expanded its network in Germany with the purchase of a new terminal in Mettmann, close to Düsseldorf, Germany. This initiative was undertaken after a new facility was recently opened in Erlensee, close to Frankfurt, Germany, and a site was acquired from the logistics firm Leupold in Gochsheim, close to Würzburg, Germany.

However, the complex regulations in the clinical trial process from application to approval of new drugs are acting as major barriers for biopharmaceuticals to invest in the new drug development phase. Biopharmaceutical companies file applications in different countries for the approval of specific drugs including authorization for supply chain, storage, and logistics.

Service Insights

The logistics & distribution segment accounted for the largest share of 25.3% in 2022. The services segment is segmented into logistics & distribution, storage & retention, packaging, labeling, and blinding, manufacturing, comparator sourcing, and others. This is due to the rise in the global biologics pipeline, highly regulated structure of the market, and an increase in the usage of temperature-sensitive drugs are driving the market growth.

Manufacturing is anticipated to expand at a CAGR of 7.6% during the forecast period. This is due to the increasing demand for biologics and complex molecules, expansion in manufacturing facilities, rise in clinical trials has resulted in rise in material supply, and rise in demand for quality manufacturing of drugs. For instance, in May 2020, Catalent acquired a clinical packaging facility in Minakuchi, located in the Shiga prefecture of Japan, from Teva-Takeda Pharmaceuticals. This purchase was expected to help establish a new clinical GMP manufacturing and distribution hub to support clinical studies.

Phase Insights

The phase III segment accounted for the largest share of 43.4% in 2022. Based on phase market is segmented into Phase I, Phase II, Phase III, Phase IV. This is due to the rise in number of patients, high complexity and cost associated with this phase, and a high failure rate in this phase that leads to loss in terms of both financial as well as human life. The major reason for this failure is the non-compliance of the product with the safety and efficacy guidelines.

The phase II segment is expected to expand at a CAGR of 7.1% during the forecast period. This rise is anticipated due to the rise in outsourcing activity in this phase, increasing investments by industry and non-industry sponsors. The increasing number of drugs in phase II is expected to generate higher complexities in logistics and supply chain, which is further expected to boost the demand for effective logistics and supply chain, thereby contributing to the growth of the industry.

Therapeutic Area Insights

Based on therapeutic area, the cardiovascular diseases segment held the largest market share of 29.7% in 2022. The therapeutic area market is segmented into oncology, cardiovascular diseases, respiratory diseases, CNS and mental disorders, and others. The rise in disease burden, a large number of companies focus on bringing novel and innovative medicines to treat heart diseases, and strategies to reduce the prevalence of heart attacks and stroke. According to the Center for Disease Control and Prevention, in the U.S., 697,000 people died due to heart disease in 2020. And 805,000 people encounter heart attacks every year in the U.S.

The oncology segment is expected to expand at a CAGR of 7.6% during the forecast period. This is due to the highly complex clinical techniques, and trials & need for supportive services are always changing. Oncology clinical trials are designed to diagnose, manage, and treat cancer & associated symptoms. Clinical trial supplies in oncology include primary and secondary packaging. The primary objective of packaging is to improve patient compliance.

End-user Insights

Based on end-user segment the pharmaceutical segment held the largest share of 45.1% in 2022. Based on end-user, the market is segmented into pharmaceuticals, biologicals, and medical device. The globalization of clinical trials, increase R&D by the pharmaceutical companies, and a large number of clinical trials studies conducted by them. For instance, ClinicalTrials.gov currently lists 18,289 active studies being performed in 208 countries.

The biologicals segment is projected to expand at the fastest growth rate of 7.7% over the forecast period. The main driver of the market is the rising demand for biologics products such as vaccines, cell and gene therapies, and an increase in investment for product manufacturing and development. Also, there is a rise in demand for global vaccination to prevent the COVID-19 pandemic.

Regional Insights

North America dominated the market with a revenue share of 38.0% in 2022. The regional market accounts for the highest number of clinical trials conducted among all regions, which is a major driver for the growth of the clinical trial supply and logistics market. The significant increase in investments in clinical trials and the rise in the number of players in the clinical trial supply and logistics market are expected to contribute to growth.

Asia-Pacific is expected to expand at a lucrative rate of 8.1% CAGR during the forecast period due to significant growth in clinical research is expected to drive the growth of the clinical trial supplies market in the region, thereby contributing to the growth of the global clinical trial supply and logistics market. The entry of Almac Group, a global clinical research, and manufacturing organization, in Asia Pacific is a clear indication of the growth of clinical trial supply and logistics market in this region.

Key Companies & Market Share Insights

The players are continuously involved in expanding their facilities, collaboration, and engaging in partnership, merger and acquisition of companies. These are key strategic initiatives that are influencing the industry dynamics. For instance, in June 2022, Catalent announced that it would expand its primary packaging abilities by installing an elevated blister packaging line to enhance its already automated bottling line at its clinical supply facility in Shiga, Japan. Some prominent players in the global clinical trials supply & logistics market include:

• Thermo Fisher Scientific (Patheon)

• Catalent, Inc.

• Parexel

• Almac Group

• Marken

• Piramal Pharma Solutions 

• UDG Healthcare

• DHL

• FedEx

• Movianto

• Packaging Coordinators Inc.

Clinical Trials Supply & Logistics Market Report Scope

Global Clinical Trial Supply & Logistics Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the clinical trials supply & logistics market based on services, phase, end-user, therapeutic area, and region:

• Service Outlook (Revenue, USD Million, 2018 - 2030)

  • Logistics & Distribution

  • Storage & Retention

  • Packaging, Labeling, and Blinding

  • Manufacturing

  • Comparator Sourcing

  • Other Services (Solutions, Ancillary Supply)

• Phase Outlook (Revenue, USD Million, 2018 - 2030)

  • Phase I

  • Phase II

  • Phase III

  • Phase IV

• End-user Outlook (Revenue, USD Million, 2018 - 2030)

  • Pharmaceuticals

  • Biologicals

  • Medical Device

• Area Outlook (Revenue, USD Million, 2018 - 2030)

  • Oncology

  • Cardiovascular Diseases

  • Respiratory Diseases

  • CNS and Mental Disorders

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Colombia

    • Chile

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Iran

    • Israel