Report Overview

Global Biopharmaceutical Logistics Market Forecast and Trends

The global market size of the Biopharmaceutical Logistics Market is anticipated to reach USD 122.2 Billion, with a decent CAGR of 6.7% within the forecast period from 2015 to 2025. In 2015, the global biopharmaceutical logistics market was valued at around USD 72.3 Billion. This situation presents an incremental value of the Biopharmaceutical Logistics market provides a decent opportunity for growth amidst the market players, both regional and global.

The growing upsurge in biologics, hormone medications, vaccines, and complex proteins that require cold chain shipment has also propelled the biopharmaceutical logistic market's growth. The conveyance and transportation of pharmaceutical products that need a specific temperature witnessed a considerable increase in the biopharmaceutical logistics market.

Global Biopharmaceutical Logistics Market: Overview

Logistics is a crucial segment in the biopharmaceutical supply chain. In an organization, logistics management with the procurement, planning, and implementation of process activities in the forward and turns around the transportation of goods from one spot to the next. Biopharmaceutical Logistics is the logistics of biopharmaceutical, surgical and medical supplies and other products needed to support health specialists, nurses, and dental care providers.

The rising number of biosimilar endorsements worldwide, developing trends of outsourcing logistics, and development in the pharmaceutical distribution network due to its sales numbers are factors that are inciting the growth of the biopharmaceutical logistics market. Nations worldwide are tightening their guidelines and regulations to ensure secure and dependable transportation of pharmaceutical shipments. This condition has constrained key players to investigate novel technologies to pace up with international standards and procedures. Such as the European Union (EU) is focusing on strengthening acceptable distribution practices (GDP) guidelines. Given the scenario, companies in the region revamping their technological and regulatory expertise. In line with these developments, biopharmaceutical investments have extensively expanded. They are giving the biopharmaceutical logistic market a critical driving force in the forecasted period.

Growth Drivers

Strong biopharmaceutical sales coupled with the rapidly growing biopharmaceutical industry

The biopharmaceutical industry generates high revenue globally, making up about 20 percent of the pharma market. The efficacy and safety of biopharmaceutical products, combined with their ability to address previously incurable conditions. This condition allows pharma companies to command high sales for innovative drugs in the global market. The strong demand for global export imports of this drug is the main driving factor for the Biopharmaceutical Logistics industry in the entire globe in the current and forecasted duration. 

High investments in the biopharmaceutical innovations and advancements

Pharmaceutical companies invest billions of dollars in research and development (R & D) of new vaccines and medicines in improving patients’ daily lives. Despite the growing scientific and regulatory challenges of the past decade, over 342 new drugs have been introduced since 2002. A large proportion of the global health gains observed over the past century can be attributed to the globally innovative biopharmaceutical product logistic market.

Restraint

The high cost of transportation

Alliance of factors and economic developments lies behind the rising transportation costs. The demand-supply imbalance of freight transport services and oil price is a repercussion of trade growth that has outpaced the availability of transport services to such an extent that it has led to severe congestion and capacity constraints globally biopharmaceutical logistics market. Companies have made significant improvements to manufacturing, service, and maintenance operations through innovative techniques: eliminating waste, variability, and inflexibility in their systems and reducing costs by up to 50% in the process. The functions of companies can save approximately 20-50% in warehousing and up to 40% in transportation.

Global Biopharmaceutical Logistics Market: Logistic Type analysis

Based on type, the global biopharmaceutical logistics market can be bifurcated into cold chain logistics and non-cold chain logistics. With an estimated share of nearly 80%, the non-cold chain logistics segment emerged dominant in the market in 2015. On account of the increasing use of biologics, the demand for Cold chain logistics is expected to witness significant growth over the forecast period. This is attributed to the rising demand for biologics over the past decade that requires temperature-controlled distribution. Moreover, the growing demand for cellular therapies, vaccines, and blood products are further driving the growth of the biopharmaceutical logistics market.

Global Biopharmaceutical Logistics Market: Mode of Transportation

In terms of biopharmaceutical logistics transportation mode, the market has been segmented into sea shipping, air shipping, road shipping, and rail shipping. Air shipping is set to dominate the biopharmaceutical logistics market in terms of revenue share. The air transportation segment's extension is attributed to airship cargo being the fastest way of shipping pharmaceutical products with product deterioration, which is particularly highly desired for transporting temperature-sensitive critical biologic drugs and vaccines. Despite, air shipping has a limitation of volume which can be transferred, and subsequently, road shipping and sea shipping will outpace air shipping in volume enhancement during the forecast period.

Global Biopharmaceutical Logistics Market: Regional Insights

Based on the region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Amidst the geographies, North America is anticipated to enhance the biopharmaceutical logistics market's enhancement over the forecast period, followed by Europe. This segmentation is attributed to a couple of factors, such as many import and export of pharmaceuticals. North America is the first to introduce advanced technologies to advance warehousing and transportation in the supply chain. 

The Asia Pacific is expected to witness the lucrative growth over the forecast period. This growth is attributed to the growing demand for medicines amid the aging population. An increasing number of diseases in the region contribute to the rising demand for pharmaceuticals and biologics are further contributing to the growth of the market. The government's enhancement in introducing more cold storage facilities in India is likely to boost the biopharmaceutical logistic market growth in this region.

Competitive Landscape

The major industry players in the global biopharmaceutical logistics market include prominent names like Deutsche Post DHL, Kuehne + Nagel, DB Schenker, FedEx, AmerisourceBergen, UPS (Marken), XPO Logistics, Panalpina, VersaCold, Agility, DSV, Nippon Express, GEODIS, Sinotrans, Kerry Logistics, SF Express, and other prominent players.

Recent DevelopmentScope of the Report

Ø  March 2020 - DHL and ESL have extended their successful partnership pertaining to ESL One. As part of this cooperation, DHL will continue to be involved in one of the most engaging esports series in the world as a sponsor and logistics partner in 2020.

Ø  February 2020 - DB Schenker has expanded its product portfolio with its new La Conciergerie service. It is now the first logistics provider to offer personalized white-glove treatment for the world’s leading luxury fashion brands. With the launch of La Conciergerie, clients can now rely on DB Schenker to set up a unique customer experience through discrete and customized on-demand deliveries of sensitive and urgent fashion goods to their VIP clientele.

     By Logistic Type

·         Cold Chain Logistics

·         Non-cold Chain Logistics

    By Product Type

·         Generic Drugs

·         Branded Drugs

    By Mode of Transportation

·         Air Shipping

·         Sea Shipping

·         Road Shipping

·         Rail Shipping

    By Retail Format

·         Specialty stores

·         Hyper markets

·         Departmental Stores

·         Other Retailers

    By Region:  

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East & Africa

The objective of the Study:

Ø  To analyze and forecast the global Biopharmaceutical Logistics Market size of the market in terms of value.

Ø  To examine the careful market segmentation and forecast the market size, in terms of value, based on the region by segmenting.

Ø  The Global Biopharmaceutical Logistics Market segmented into five regions: North America, Europe, Asia Pacific, Latin America, Middle East & Africa, and their leading countries.

Ø  To outline, categorized, and forecast the global Biopharmaceutical Logistics Market based on logistic type, Product Type, Mode of transportation, and retail format.

Ø  To examine competitive developments like technological advancement, services, and regulative framework within the global Biopharmaceutical Logistics Market.

Ø  To highlight the impact analysis of the factors affecting market dynamics such as drivers, restraints, opportunities, and challenges.

Ø  To strategically profile the key players and comprehensively analyze their market shares and detail the competitive landscape for market leaders.