The global pharmaceutical logistics market size value at US$ 133 Bn in 2027 and is expected to expand at a compound annual growth rate (CAGR) of 9.0% from 2020 to 2027.
Pharmaceutical logistics involves transporting pharmaceutical products by road, sea & air, and distributing the right quantity of products to right customer and end users at right time with right quality. It requires specific equipment, storage facilities, harmonized handling procedures, strong cooperation among the cold chain operators.
Logistics has a vital role in handling and transportation of pharmaceutical products that meets the requirements of manufacturers, importers and distributors.
Some basic components that are used for safe pharmaceutical transportation are proper hygiene packing, security/safety, temperature, storage and recordkeeping.
The rapid shift in the inclination towards pharmaceutical products is amongst the significant factor expected to fuel the growth and demand of pharmaceutical logistics market. The increase in sales and consumption of pharmaceutical products which has been caused by high prevalence of chronic diseases like diabetes, cardiovascular diseases & genetic problems and high growth in the target patient population are factors also anticipated to push the growth in the global pharmaceutical logistics market.
Expansion in pharmaceutical digital businesses, upgrading to developments in E-commerce, Evolving technology transportation changes according to pharmaceutical products and medical equipment requirements would have a positive impact on pharmaceutical logistics.
Frequent Fluctuations in sea and air freight rates, warehouse charges, less container requirements for few customers depends on goods and customized transportation requirements for special pharmaceutical products is the main restraining factor.
In ability to adopt evolving technology in transportation, Stringent Government Trade and regulation policies in Import & Export and rules from drug controller departments may lead to restraints.
Covid19 Impact on Pharmaceutical Logistics:
Rise in consumption of medicine and usage of medical devices is triggering factor in increase of sales due to pandemic. Rapid discovery and development of vaccines (Covaxin/Covishiled/Sputnik V/Sinovac) for covid19 and distributing it to entire world would require logistic services in order make availability of vaccine across the globe.
Rapid approval of many emergency drugs to treat patients may lead to import of many pharmaceutical products without any registration. Countries like CIS regions Government has lifted ban on import of crucial drugs to control the emergency pandemic situation.
The growth of the market for pharmaceutical logistics is also attributed to the increasing demand for sanitizers, PPE kits, surgical masks, and Over-The-Counter (OTC) medicines such as Vitamins, Minerals, and Supplements, common cough & cold drugs and other immunity boosting products.
Segment Analysis by Region
The major contributors of economies are Germany, France, Belgium and Switzerland in Europe and these have the more number of patented molecule companies in major therapeutic segments. The companies exporting bulk amount of drugs to ROW markets. On other hand USA has large number of patented molecules which too contributes major economies.
India and china are the major contributors of economy in APAC. India is well known for generic market of formulations whereas China is the major exporter of APIs.
China is the major producer of Insulin and Paracetamol in the world, Easy availing of voyage and aviation from India and China to many countries is a driving factor.
Pharmaceutical Logistics market is highly competitive due to large number of players, in developing countries the market is occupied by the local logistic services. The global player operated in the market are XPO Logistics, Agility, UPS Supply chain logistics, DHL supply chain, JB hunt transport services, Ryder Supply chain solutions, Expeditors international Washington, C.H Robinson Worldwide, Penske Logistics, NFI Logistics, Kuehne + Nagel Americas, Nippon Express, Americold, FedEx supply chain, GEODIS North America (OHL), Lineage Logistics, Kenco Logistic Services LLC
Pharmaceutical Logistics Market Segment Analysis, 2021
The Pharmaceutical logistics market is segmented into type, application, component, procedure. The type segment is divided into cold chain logistics and Non-cold chain logistics. Cold chain logistic service is most used one and has the major revenue share due to additional protection, fragile protection, protection from sunlight, and temperature control system depends on regions. The application segment is again divided into pharma, Bio-pharma, chemical, and specialized pharma which is the major segment in pharmaceutical logistics market. The component segment is divided into transportation, storage, and monitoring components. Among components, transportation occupies the major revenue share. on the basis of procedure, the pharmaceutical logistics market is segmented into picking, storage, retrieval systems, and handling systems.
Cold Chain Logistics
Non-Cold chain Logistics
Specialised Pharma Products
The global market is expected to reach US$ 133 Bn in 2027
The global market is expected to register CAGR of 9.0% from 2020-2027
The increase in the sales and consumption of pharmaceutical products which has been caused by high prevalence of chronic diseases like diabetes, cardiovascular diseases & genetic problems and high growth in the target patient population are also anticipated to push the growth in the global pharmaceutical logistics market
In component the transportation segment is growing at faster pace.
In the global market the Europe and American region are expected to grow faster.
Some of the players considered in the report scope are Agility, FedEx corp, DHL supply chain, XPO logistics.
The North America is expected to account for major revenue share in the global market.