The global Biopharmaceutical Third Party Logistics Market size is expected to reach USD 145.2 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.6% from 2021 to 2028. Rising 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 in pharmaceutical logistics companies that has gained significant traction.
The biopharmaceutical third party logistic players played a vital role in the fight against COVID-19 by minimizing supply disruptions and prioritizing critical care drugs. The future also seems good for the biopharmaceutical 3PL market with rising demand for domestic logistics coupled with favorable government initiatives and policies.
Furthermore, the trend of shifting from small molecule drugs to biopharmaceuticals, mainly vaccines & 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 market growth.
Additionally, environmental concerns and cost have caused a slight shift in the means of transport used for commercial products, moving from airway to seaway shipping, and in roadways from trucks to intermodal (both rail and truck). Intermodal transport is majorly used by these pharmaceutical companies to reduce the carbon footprint. The ongoing trend shows that pharmaceutical manufacturers have shifted towards 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.
Related press Release@ Biopharmaceutical Third Party Logistics Market Report
Biopharmaceutical 3PL Market Report Highlights
- In 2020, non-cold chain logistics held the largest market share of 80.8% 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 the faster CAGR of 8.6% over the forecast period owing to the demand for biologics, such as cellular therapies, vaccines, and test kits
- Warehousing and storage held the largest market of 43.6% share among the types of services in 2020
- Asia Pacific is expected to emerge with the fastest CAGR of 7.2% over the forecast period owing to the adoption of medicines from the aging population and a shift of drug sales from brand manufacturers to generic