Pharmaceutical Logistics Market key players insight & growth driver analysis 2022 - 2030.

The global pharmaceutical logistics market size was valued at USD 78.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2022 to 2030. The short-term impact of the COVID-19 pandemic on the market is a crucial factor for the fast-paced growth of pharmaceutical logistics. Amid the pandemic, governments around the world are emphasizing healthcare facilities and ample medicinal supply for the patients. As such, the trade of conventional medicines is increasing from country-to-country.

Additionally, the U.S. Food and Drug Administration (FDA) has approved Emergency Use Authorization for hydroxychloroquine, which is to be used by licensed healthcare providers to treat teens and adults hospitalized with COVID-19 who weigh more than 50 kg. As such, the trade of hydroxychloroquine is increasing in countries, including the U.S. and India.

The emergence of the COVID-19 virus has enabled several key pharmaceutical players or vaccine producers to invest massively in research and trials for launching effective vaccines for the virus. More than 60 companies were doing clinical trials of COVID-19 vaccines across the globe, wherein few of the vaccines such as Sputnik V, Covishield, Covaxin, and mRNA have been approved for emergency use in key countries such as India, Russia, the U.K., and the U.S.

Gather more insights about the market drivers, restrains and growth of the Global Pharmaceutical Logistics Market

With the approval of the aforementioned vaccines for usage, key vaccine producers are actively looking to distribute these vaccines around the globe. It would need a resilient supply chain to make vaccines available across the globe for urgent usage. Therefore, it is estimated to drive the growth of the market at a significant pace during the forecast period. Along with this, the demand for medicines used for curing the novel coronavirus disease is also expected to boost the market growth.

The growth of the market is also attributed to the increasing demand for Over-the-Counter (OTC) medicines such as Vitamins, Minerals, and Supplements (VMS), common cough and cold drugs, gastrointestinal drugs, and dermatology products. The rising importance of fast-track assistance in the healthcare sector is also driving the market for pharmaceutical logistics. Moreover, decreasing the distribution cost by creating a single source distribution channel further increases the demand for pharmaceutical logistics.

Many companies are entering into mergers and acquisitions to expand their geographical presence and proprietary knowledge. They are also focusing on reducing the overall packaging costs of their products. The biotechnology and pharmaceutical supply chains are particularly prone to the risks associated with product adulteration during transport as well as non-compliance with federal regulations, standards, and guidelines. As a result, the players are actively investing in state-of-the-art technologies such as telematics and remote monitoring to provide safety and convenience during transportation operations, which is, in turn, propelling the market growth.

The pharmaceutical manufacturing companies are increasingly outsourcing packaging and labelingactivities from third-party providers. Many pharmaceutical companies are expanding their operations in untapped regions, including Sub-Saharan Africa and South America. The preference for local logistics providers with high expertise in pharmaceuticals is of great importance to drug manufacturers. However, the deteriorating service levels and loss of control are significant threats that are faced in outsourcing operations.

The demand for pharmaceutical logistics is growing in the U.S. due to increasing sales of generic drugs, as well as reforms in the healthcare sector favoring generics. The market for pharmaceutical logistics in North America is significantly fragmented, owing to several regional and international companies. The industry is highly competitive due to the presence of many local and global companies.

Major companies strive to offer cloud-based supply chain solutions and secured supply chain functions as it helps manufacturers ensure the authenticity of the drugs. These solutions prevent the production of counterfeit drugs and medical devices. The increasing demand for sea and air freight pharmaceutical logistics is anticipated to propel industry growth during the forecast period. The transportation of pharma products by sea reduces the transportation cost by up to 80.0% and decreases the staffing requirements.

Additionally, it conserves the packaging and storage needs while reducing the carbon footprint of logistics operations. The increasing use of air freight logistics for long-distance and intercontinental distribution of valuable vaccines and medicines is expected to fuel the market growth further.

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•     Third-party Logistics Market - The global third-party logistics market size was valued at USD 956.80 billion in 2021 and is expected to expand at a CAGR of 8.6% from 2022 to 2030. The development of logistics infrastructure in the Asia and Middle East regions, the rapid growth of the e-commerce sector, and the development of new technologies are expected to significantly contribute to the market growth.
• Cold Chain Monitoring Market - The global cold chain monitoring market size was valued at USD 14,064.4 million in 2018 and is expected to register a CAGR of 18.1% from 2019 to 2025. Stringent regulations regarding the storage and shipment of pharmaceutical products are expected to trigger the demand for cold chain monitoring solutions.

Pharmaceutical Logistics Market Segmentation

Grand View Research has segmented the global pharmaceutical logistics market based on type, component, and region:

• Pharmaceutical Logistics Type Outlook (Revenue, USD Billion, 2017 - 2030)

o   Cold Chain Logistics

o   Non-cold Chain Logistics

• Pharmaceutical Logistics Component Outlook (Revenue, USD Billion, 2017 - 2030)

o   Storage

• Warehouse
• Refrigerated Container

o   Transportation

• Sea Freight Logistics
• Airfreight Logistics
• Overland Logistics

o   Monitoring Components

• Hardware
• Sensors
• RFID Devices
• Telematics
• Networking Devices
• Software
• Pharmaceutical Logistics Regional Outlook (Revenue, USD Million, 2017 - 2030)

o   North America

o   Europe

o   Asia Pacific

o   South America

o   Middle East & Africa

Market Share Insights

May 2020:United Parcel Service of America, Inc. announced the expansion of the company’s healthcare capabilities with the launch of the new UPS Premier.UPS Premier aims to improve service reliability and improved visibility of healthcare packages by leveraging next-generation sensor technology and monitoring.

January 2019: FedEx announced the acquisition of International Express Business from Flying Cargo Group in Israel. The acquisition is aimed at strengthening FedEx’s portfolio and regional presence, providing customers with the benefits of the company’s global network.

Key Companies profiled:

Some prominent players in the global Pharmaceutical Logistics market include

• Agility
• Air Canada
• CEVA Logistics
• DB Schenker
• Deutsche Post AG
• FedEx
• LifeConEx
• Marken
• United Parcel Service of America, Inc.
• VersaCold Logistics Services
• Others

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