Pharmaceutical Logistics offers various advantages such as delivering services on time, tracking the shipment by the use of technology, protecting the pharmaceutical products from external contamination, securing the supply chain from counterfeit drugs, ensuring the safe transportation of healthcare, using proper prevention methods such as padding, boxing and stacking to prevent breakage or jostling, taking measures to ensure correct parties handle and receive goods thus fostering growth in the global Pharmaceuticals Logistics market.
Covid-19 Impact & Market Status
Travel restrictions, quarantines, and aircraft cancellations were brought on by the Covid-19 epidemic. The protracted lockdown hindered logistics operations all across the world and affected the supply chain. Contrary to large companies that were faltering as a result of the pandemic, sectors including pharmaceuticals, e-commerce, and basic necessities saw development. E-commerce and online service expansion complemented the B2B logistics sector. Many medications and pieces of equipment were imported and exported during the epidemic, which supported the market's expansion.
Cold Chain Logistics helps to Increase Revenue
The pharmaceutical logistics market was dominated by the cold chain logistics industry in 2021, with a revenue share of about 28.0%. The increase in demand for products that must be maintained at a specified temperature, such as the ongoing distribution of COVID-19 immunizations, can be ascribed to the expansion. These products require precise temperature control logistics services to ensure their efficacy.
Storage Segment to Promote the Growth of the Market
In 2021, the storage market share exceeded 64.0%, taking the lead. Due to the rapidly growing demand for both generic and branded pharmaceutical products, there is a ened requirement for storage facilities to preserve and procure these products' efficacy following creation and their subsequent distribution through various routes to distributors and retailers.
Europe Region to Dominate the Market
The market share of Europe was over 36.0% in 2021, and it is predicted that from 2022 to 2029, it will grow significantly. The significant growth in the trade of pharmaceutical items among important European nations is the cause of the high market share. The majority of these nations are Germany, the U.K., France, the Nordic nations, and others. Additionally, increasing local production and demand for various pharmaceutical product categories, such as OTC medications, has further assisted the market in gaining a sizable market share.
It aims to maintain the continuous availability of drugs, devices and equipment to different locations from different suppliers and distributors. Other reasons driving the pharmaceutical logistics market include rising generic drug sales, healthcare regulations that favour generics, an increase in demand for over-the-counter (OTC) medications, and the swiftly rising significance of fast-track support in the healthcare industry.
With the adoption of technology and ongoing need changes, logistics have completely transformed the pharmaceutical sector. It safeguards public health, stops counterfeit pharmaceuticals from entering the supply chain, boosts sales efficiency, and lowers fraud and theft rates. The rising need for air and marine freight is a further element driving industrial expansion. Pharmaceutical products are transported by sea at a cost reduction of 80% and with less staffing needed.
Governments all across the world place a strong emphasis on medical facilities and a plentiful supply of patient medications. Trade in traditional medicines is expanding between nations. Large retail drugstore chains, distributors of medical supplies, as well as hospitals and clinics directly, are the main customers of the pharmaceutical industry. The market for biological medical products and drugs that are sensitive to temperature is expanding, and pharmaceutical and logistics companies are becoming more conscious of this trend, which will help the pharmaceutical logistics market grow over the course of the projection period.
The rise in sales and consumption of pharmaceutical products brought on by the rising prevalence of chronic diseases and the swift expansion of the target patient population is predicted to drive growth in the global pharmaceutical logistics market during the prediction period. The need for pharmaceutical logistics is also growing as more pharmaceutical products must be kept in a cold chain and as the cost of distribution is being decreased by creating a single source distribution channel. The size of the global pharmaceutical logistics market is anticipated to develop at a compound annual growth rate (CAGR) of 8.0% from 2022 to 2029, reaching USD 107 billion by 2029.
As safe handling and shipment of pharmaceutical items are of the utmost significance, pharmaceutical logistics is a crucial component of the healthcare system. As a result, the machinery and labour services used in the pharmaceutical supply chain are quite expensive. Consolidation among pharmaceutical businesses to increase their global presence and business is the most recent trend that is gaining traction in the market. Technology improvements that give precise and real-time data on operations, such as blockchain technology and cloud-based supply chain activities, will also positively affect market growth. Furthermore, these technologies provide predictive analytics for demand, supply chain, and risk management. Companies may improve their productivity, efficiency, and process optimization by identifying risks and preventing them.
Many organization engage in mergers and acquisitions to broaden their reach internationally and gain access to confidential information. They are also concentrating on lowering the price of all of the packaging for their products. The dangers of product adulteration during transit and non-compliance with governmental rules, norms, and recommendations are particularly high in the biotechnology and pharmaceutical supply chains. The market is growing as a result of businesses aggressively investing in cutting-edge technology like telematics and remote monitoring to improve safety and convenience during transportation operations.
Functional barriers in cold chain logistics that raise operating costs are a major concern for the pharmaceutical logistics sector of the cold chain logistics market. Purchasing land for warehouses is a strategic choice that the logistics service providers must make as it relates to cold chain logistics. However, the extremely temperature-sensitive pharmaceutical items must adhere to strict government standards, which should accelerate segment expansion over the projection period.
The major companies ranking on top in Pharmaceuticals Logistics Market- Agility, Air Canada, Continental Cargo OÜ,PCI Pharma Services, CEVA Logistics, FedEx, LifeConEx, AGRO Merchants Group, United Parcel Service of America, Inc., KERRY LOGISTICS NETWORK LIMITED, DSV, VersaCold Logistics Services, AmerisourceBergen Corporation, and Kuehne+Nagel are among all the well-established and emerging players.
Latest Innovations in Global Pharmaceuticals Logistics Market: a Snapshot
- In July 2021, the Kuehne+Nagel subsidiary QuickSTAT built a new control tower and conditioning facility in Singapore. The investment is a part of Kuehne+Nagel and QuickSTAT's plan for the pharmaceutical and healthcare industries to increase their logistics capacity to service clients throughout the Asia-Pacific region.
- In March 2022, Lineage Logistics LLC, the world's largest and most creative provider of temperature-controlled industrial REITs and logistics solutions, has announced that it has acquired MTC Logistics, a leading supplier of cold-chain services with four prime locations on or near the ports of Baltimore, Maryland; Wilmington, Delaware; and Mobile, Alabama. MTC Logistics is a premier provider of cold-chain services. The deals' financial details weren't made public.
Pharmaceuticals Logistics Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||USD 107 billion.|
|Growth Rate||CAGR of 8.0 % during 2021-2029|
|Segment Covered||Type, Component, Procedure, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Schneider Electric, Siemens, Honeywell, SmartWatt, General Electric Company, WGL Energy, Bernhard, Centrica, SolarCity|
Key Segments of the Global Pharmaceuticals Logistics Market
Type Overview, 2019-2029 (USD Billion)
- Cold Chain Logistics
- Non Cold Chain Logistics
Component Overview, 2019-2029 (USD Billion)
- Monitoring Components
Procedure Overview, 2019-2029 (USD Billion)
- Retrieval Systems
- Handling Systems
Application Overview, 2019-2029 (USD Billion)
- Chemical Pharma
- Specialized Pharma
Regional Overview, 2019-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
- South Africa