Pharmaceutical Logistics Market Size, Share & Trends Analysis Report By Type (Cold Chain, Non-Cold Chain Logistics), By Service (Logistics, Procedures), By Application (Chemical Pharma, Bio-Pharma), And Segment Forecasts, 2019 - 2025

Industry Insights

The global pharmaceutical logistics market size was valued at USD 76.4 billion in 2018 and is expected to register a CAGR of 3.5% from 2019 to 2025. The market growth is attributed to the increasing demand for the household healthcare products and rising importance of fast track assistance. Furthermore, need for maintaining cold chain integrity for pharma products and decreasing the distribution cost by creating a single source distribution channel is further boosting the demand of pharmaceutical logistics.

A large number of companies are entering into merger and acquisition to expand their geographical presence and proprietary knowledge. They are also focusing on reducing the overall packaging costs of their products. In addition, economic reforms have led to the growth of the global market.

The demand for pharmaceutical logistics is growing in U.S. on account of the increasing sales of generic drugs, as well as reforms in the healthcare sector favoring generics. The market in the North America region is significantly fragmented owing to the presence of a large number of regional and international companies.

The industry is highly competitive. Major companies in the market strive to offer cloud-based supply chain solutions and secured supply chain functions as it helps manufacturers in verifying the authenticity of the drugs, in avoiding the production of counterfeit drugs and medical devices, among others.

Type Insights

Based on type, the market is segmented into cold chain and non-cold chain logistics. The cold chain segment dominated the overall market in 2018 and is expected to continue its dominance over the forecast period. Major factor driving the segment growth includes the rising demand for temperature-controlled products.

Most of the biological and medical products require a temperature-controlled environment during the stage of manufacturing and distribution, which helps in maintaining the effectiveness and quality of the medicines. Thus, pharma companies are using temperature-controlled transportation and cold storage systems. The non-cold chain segment is expected to have a considerable market share over the forecast period owing to the increasing demand for the non-cold chain products.

Service Insights

Based on service, the market has been segmented into logistics and procedures. The logistics segment is further segregated into sea freight, airfreight, overland, and integrated logistics. The sea freight logistics segment accounted for the largest share of the market in 2018. Increasing adoption of the sea-based pharmaceutical logistics is driving the market as the sea freight logistics services are capable of handling sensitive large molecule biologics, as well as personalized medicines. The transportation of pharma products by the sea reduces the transportation cost up to 80% and brings down staffing requirements and carbon footprint of supply chain operations, as well as packaging and storage needs.

Followed by the sea freight segment, the air freight segment is estimated to register a considerable CAGR over the forecast period owing to increasing use of the air freight logistics for long distance and intercontinental distribution of valuable vaccines and medicines. The International Air Transport Association (IATA) formed the Center of Excellence in pharmaceutical logistics for independent validators, which supports the organization and air cargo supply chain to achieve excellence in the process of handling pharmaceuticals. The procedures segment is further segregated into picking, storage, retrieval systems, and handling systems.

Application Insights

Based on application, the market has been bifurcated into chemical pharma and bio-pharma. The chemical pharma segment led the industry in 2018 and is anticipated to retain its dominance over the forecast period. Industry experts and professionals have launched the Pharma Logistics Network (PLN) to meet the rising global demand for pharma logistics. PLN provides infrastructure and resources to the logistics providers. Increasing demand from the biopharmaceutical companies to improve their supply chain and services is also one of the major factor driving the market.

Regional Insights

Based on the region, the market is segmented into Asia Pacific, North America, Europe, South America, and Middle East & Africa. The North American regional market led the global market, in terms of revenue, in 2018. The market is significantly fragmented in the North America region owing to the presence of a large number of major industry participants. Moreover, increasing number of mergers and acquisitions among pharma companies is likely to drive the regional marker further. Asia Pacific is projected to be the fastest-growing regional market owing to rapid economic growth in emerging countries, such as China and India. High demand for medicines due to growing geriatric population will also augment the market in Asia Pacific.

Pharmaceutical Logistics Market Share Insights

Some of the major industry participants include FedEx Corp.; DB Schenker; Deutsche Post DHL; United Parcel Service of America, Inc.; CEVA Logistics; Continental Air Cargo; Biotec Services International Ltd.; and Air Canada Cargo. To maintain the position the global market, the pharma companies continuously undertake strategic initiatives, such as mergers and acquisitions.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global pharmaceutical logistics market report on the basis of type, service, application, and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Cold Chain

  • Non-Cold Chain

• Service Outlook (Revenue, USD Million, 2014 - 2025)

  • Logistics

    • Sea freight

    • Airfreight

    • Overland

    • Integrated

  • Procedures

    • Picking

    • Storage

    • Retrieval Systems

    • Handling Systems

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Chemical Pharma

  • Bio-Pharma

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • Middle East & Africa