Bio-Pharma Logistics Market Size (2024 - 2029)

The Bio-Pharma Logistics Market is experiencing significant growth, driven by the increasing demand for cellular therapies, vaccines, and blood products within the biopharmaceutical sector. The expansion of cold chain logistics, particularly through air transportation, is crucial for the safe and efficient delivery of temperature-sensitive biologic drugs and vaccines. Enhanced real-time visibility and advanced monitoring technologies are essential for maintaining low costs and high reliability during the transportation of biopharmaceuticals. The market's expansion is further supported by the strategic mapping of trade lanes and the scaling of production for materials like dry ice, which are vital for vaccine distribution.

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Market Size of Bio-Pharma Logistics Industry

Bio-Pharma Logistics Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 7.50 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

Bio-Pharma Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

Bio-Pharma Logistics Market Analysis

The size of the Bio-Pharma Logistics Market is USD 82.3 billion in the current year and is anticipated to register a CAGR of over 7.5% during the forecast period.

  • With the COVID-19 pandemic, the conventional and over-the-counter (OTC) drug trade increased globally. The expansion in demand for cellular therapies, vaccines, and blood products in the biopharmaceutical industry is driving the growth of the biopharmaceutical logistics market worldwide. Extending cold chain logistics via air transportation is the fastest shipping of pharmaceutical products with negligible product damage. It is highly desired for transporting temperature-sensitive biologic drugs and vaccines.
  • With overall revenue growth of roughly 16% in the first quarter of 2022, the biopharma industry continued its thorough recovery from the pandemic. Twelve of the industry's top 23 companies achieved double-digit growth, with the top five all fueled by huge sales of COVID-19 products, each exceeding a 50% revenue increase compared with the first quarter of 2021.
  • Improved real-time visibility during all handling, transportation, and delivery segments keeps costs low and reliability high while helping time- and temperature-sensitive biopharmaceuticals to go the distance without incident. Many specialized third-party logistics (3PL) providers in the pharma cold chain can track and transmit data using next-generation solutions, smart-label technology, and other monitoring advances. The data is related to temperature and time, exposure to light, pressure, vibration, humidity, tilt, and the number and duration of every open-door event, and transmit the data via cloud-based platforms. Today, such monitoring systems can be applied to cargo containers, individual pallets, and even individual product packages whenever necessary. Modeling based on real-time and historical data is helping companies to both map out more effective delivery routes and to pivot rapidly when disruptions do arise.
  • To meet the demand, UPS Healthcare mapped roughly 500 new trade lanes worldwide in 2021 and scaled dry ice production, using more than 3 million pounds to help safely move the vaccines in 2021.

Bio-Pharma Logistics Industry Segmentation

Biopharmaceuticals are complex medicines made from living cells or organisms, often produced using cutting-edge biotechnological methods. Bio-pharma logistics refers to the transportation and storage of these consignments. The report covers a complete assessment of the Bio-Pharma Logistics Market. It includes an assessment of the economy market overview, market size estimation for key segments, and emerging trends in the market segments. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Bio-Pharma Logistics Market is depicted through the profiles of active key players. The report also covers the impact of COVID-19 on the market and future projections.

The Bio-Pharma Logistics Market is segmented by service (transportation, warehousing and distribution, and value-added services), type of operation (cold chain and non-cold chain), and geography (North America, Europe, Asia Pacific, South America, and Middle-East and Africa). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

By Service
Transportation
Warehousing and Distribution
Value Added Services
By Type of Operation
Cold Chain
Non-cold Chain
By Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Bio-Pharma Logistics Market Size Summary

The bio-pharma logistics market is experiencing significant growth, driven by the increasing demand for cellular therapies, vaccines, and blood products within the biopharmaceutical industry. The market is characterized by the need for advanced cold chain logistics solutions, particularly air transportation, to ensure the safe and efficient delivery of temperature-sensitive biologic drugs and vaccines. The industry has seen a robust recovery post-COVID-19, with major companies reporting substantial revenue increases, largely attributed to the sales of COVID-19 related products. The adoption of next-generation tracking and monitoring technologies by specialized third-party logistics providers has enhanced real-time visibility and reliability, reducing costs and ensuring the integrity of biopharmaceuticals during transit. This technological advancement is crucial for optimizing delivery routes and managing disruptions effectively.

The global bio-pharma logistics market is poised for continued expansion, supported by rising investments and government backing in the biopharmaceutical sector. The demand for temperature-sensitive pharmaceuticals is driving increased spending on cold chain logistics, with companies like UPS Healthcare and Tower Cold Chain expanding their global networks to meet this need. The market is highly competitive, with major players such as Deutsche Post DHL, Kuehne + Nagel, and FedEx offering innovative supply chain solutions. The industry's growth is further bolstered by the burgeoning biotech sector, particularly in regions like Asia-Pacific, where countries like India are emerging as key players with substantial pharmaceutical and biotech capabilities. Despite challenges such as declining demand for COVID-19 vaccines, the market is expected to grow, driven by the ongoing need for advanced logistics solutions and the strategic consolidation of industry players.

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Bio-Pharma Logistics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Spotlight on the Bio-pharmaceutical Industry

    7. 1.7 Insights into Logistics and Distribution Costs

    8. 1.8 Insights into Refrigerated Warehouses

    9. 1.9 Brief on the Cold Chain Packaging Market

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Transportation

      2. 2.1.2 Warehousing and Distribution

      3. 2.1.3 Value Added Services

    2. 2.2 By Type of Operation

      1. 2.2.1 Cold Chain

      2. 2.2.2 Non-cold Chain

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 South America

      5. 2.3.5 Middle-East and Africa

Bio-Pharma Logistics Market Size FAQs

The Bio-Pharma Logistics Market is projected to register a CAGR of greater than 7.5% during the forecast period (2024-2029)

Deutsche Post DHL Group, Kuehne + Nagel, UPS (Marken), FedEx and DB Schenker are the major companies operating in the Bio-Pharma Logistics Market.

Biopharmaceutical Logistics Market Report Snapshots

Bio Pharma Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)