Pharmaceutical Logistics Market To Hit Value 8.9 Billion By 2028

Posted by Mrudula Anil Karmarkar on March 10th, 2022

The global pharmaceutical logistics market size is estimated to reach USD 138.9 billion by 2028, registering a CAGR of 8.5% over the forecast period, according to a new study by Grand View Research, Inc. The market growth is attributed to the rising demand for a variety of drugs as a result of increasing cases of chronic and lifestyle-related diseases. The market is expected to witness a high growth rate in cold-chain as well as non-cold chain pharmaceutical logistics owing to the impact of COVID-19 across the globe. During this pandemic situation, the government and officials across countries are primarily focusing on preventive measures and the treatment of patients.

The import and export of various medicines to treat coronavirus are increasing across countries, including the U.S. and China. Along with international trade, the nationwide logistics of drugs is also expected to fulfill the rising demand from all the hospitals and medical establishments. Additionally, the U.S. Food and Drug Administration (FDA) and other healthcare agencies across various countries such as India, China, and the U.K. have approved the emergency use of COVID-19 vaccines. This, in turn, is expected to increase the global trades of vaccines in many countries, including the U.S. and India. Such increased trade of drugs and medicines across countries is expected to drive the market from 2021 to 2028.

Pharmaceutical logistics is an integral part of the healthcare system, as careful handling and transportation of pharmaceutical products are of utmost importance. Therefore, equipment and staff services involved in the pharma supply chain are highly expensive. Consolidations among the pharma companies, to expand their business and global presence, is the latest trend gaining momentum in the market. Technological advancements, such as cloud-based supply chain functions and blockchain technology, which provide accurate and real-time data of operations, will also have a positive impact on market growth. Additionally, these technologies also offer predictive analytics to identify demand, supply chain optimization, and risk management. Identifying risks and preventing them helps companies increase productivity, efficiency, and process optimization of their businesses.

In the U.S., the market accounted for the largest revenue share in 2020 and is expected to maintain its dominance over the forecast period. In Asia Pacific, the market is projected to exhibit the highest CAGR from 2021 to 2028 owing to an increasing financial budget for the healthcare sector in several emerging countries of the region. Additionally, the soaring consumer spending on Over-The-Counter (OTC) pharmaceutical products is further expected to boost the regional market growth over the forecast period.

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Pharmaceutical Logistics Market Report Highlights

• Amid the pandemic, governments across the globe are emphasizing healthcare facilities and ample medicinal supply for the patients. As such, the trade of conventional medicines is increasing from country-to-country
• Many pharmaceutical companies, such as Moderna; Serum Institute; and Pfizer Inc., have developed and completed the three-phase trials of COVID-19 vaccines successfully. Hence, these vaccines have been approved for emergency usage across several countries, globally. This would require a resilient supply chain and logistic services to deliver these vaccines with maximum efficacy and thereby, estimated to boost the market growth
• The demand for cold-chain pharmaceutical logistics services is expected to increase at a rapid rate over the forecast period owing to the rising adoption of temperature-sensitive pharmaceutical products around the globe
• Outsourcing services are gaining traction in the market. Third-Party Logistics (3PL) operators offer integrating warehousing and transportation services on an outsourced basis. According to the Journal of Commerce, the revenue of the top 50 3PL companies has increased by more than 5.0% from 2016 to 2021
• Monitoring components are expected to grow at a notable rate over the forecast period. This growth is attributed to the technological advancements in the devices installed for collecting and reporting real-time shipment information
• The growing automation of refrigerated warehouses is expected to drive the market over the projected period. Warehouse automation includes cloud technology, robots, conveyor belts, truck loading automation, and energy management
• Several prominent players are strategically concentrating on merger and acquisition activities to expand their overall regional presence

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 the 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. With the approval of the aforementioned vaccines\' usage, key vaccine producers are actively looking to distribute these vaccines around the globe. It would need a resilient supply chain in order to make available the vaccines across the globe for urgent usage. Therefore, it is estimated to see the market grow at a significant rate over 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.