Biopharmaceutical Third-party Logistics market to Eyewitness Huge Marginal Growth by 2030Posted by Mrudula Anil Karmarkar on May 9th, 2023 The global biopharmaceutical third-party logistics market size is expected to reach USD 198.5 billion by 2030, growing at a CAGR of 5.9% over the forecast period, according to a new report by Grand View Research, Inc. The rising demand for temperature-controlled logistic services to transport biologics in various regions and growing distribution networks of biopharmaceutical companies to improve their sales are factors driving the biopharmaceutical third-party logistics (3PL) market growth. The rising adoption of automated storage and retrieval systems in emerging countries is an ongoing trend in the pharmaceutical logistics companies that have gained significant traction. The key market players played a vital role in the fight against COVID-19 by minimizing supply disruptions and prioritizing critical care drugs. A sudden surge in the demand for cold chain logistics was observed during the pandemic because of the manufacturing and distribution of COVID-19 vaccines. The future also seems good for the global market with the rising demand for domestic logistics coupled with favorable government initiatives and policies. Furthermore, the trend of shifting from small molecule drugs to biopharmaceuticals, mainly vaccines, and biologics, is projected to drive the market. Since these small molecule drugs are temperature-sensitive products, demand for temperature-controlled transportation and storage increases and thus is responsible for the market growth. Moreover, environmental concerns and costs have caused a slight shift in the means of transport used for commercial products, moving from airway to seaway shipping and in roadways from truck to intermodal (both rail and truck). Intermodal transport is majorly used by these pharmaceutical companies to reduce their carbon footprint. The ongoing trend shows that pharmaceutical manufacturers have shifted towards sea freight to reduce the cost and risk factors. Although for cold chain products, the companies still prefer air freight. However, some of the large pharmaceutical companies are planning to transport 70% of their products via ocean freight including cold chain products. The rising trend of outsourcing logistics, the focus of pharmaceutical players on their distribution network owing to its strong sales numbers, and a rise in the number of biosimilar launches are some of the key factors driving the market. In 2020, the coronavirus pandemic disrupted the biopharmaceutical industry’s supply chain. During the development of the COVID-19 vaccine, the pharmaceutical and cold chain sectors were pushed to innovate, creating temperature-controlled packages to meet the needs of new deep-frozen COVID-19 vaccine storage and increased demand for existing supplies. To Request Sample Copy of this report, click the link: The industry responded to the opportunity, collaborating in previously unseen ways to make 2021 a better year. 3PL companies in the biopharmaceutical industry assisted in reducing supply disruptions and prioritizing critical care medications and so played a crucial role in the fight against COVID-19. During the pandemic, they were classified as essential services, allowing them to continue operating and growing income. Such favorable government initiatives and growing demand for domestic logistics will augment the growth of the market over the forecast period. The future seems lucrative for the market with the retraction of government regulations related to transportation & shelter-in-place mandates. A sudden surge in the demand for cold chain logistics was observed during the pandemic. Growth in the manufacture and distribution of the COVID-19 vaccine is expected to boost the biopharmaceutical third-party logistics (3PL) market during the forecasted period. Technological advancements are also one of the key factors driving the adoption of temperature management logistic services. Technologies, such as warehouse robotics, mobile cloud solutions, data mining, and real-time monitoring have changed the overall logistics industry to a great extent. These advanced vehicles are designed to automate and provide temperature control systems during transportation that help in reducing complexities, human error, and damage to products in transit. Biopharmaceutical Third-party Logistics Market Report Highlights
Thus, these monitoring solutions allow visibility that can converse breaches through automatic alerts by providing information to execute contingency plans. Pharmaceutical products are often temperature-sensitive, which require monitoring up to the stage of delivery through a tracking device. For instance, Onset, a supplier of monitoring solutions and data loggers introduced the InTemp CX400 series mobile app for its pharmaceutical cold chain monitoring products. The app allows users to view temperature data from CX400 loggers and set alarms from their mobile devices to get notifications regarding temperature excursions. The company recently announced its availability for Android devices. In addition, companies like DHL have introduced a new Android and iOS app, LifeTrack that allow its users to access the online cold chain tracking platform to provide the healthcare and life science shippers an overview of their shipments. It also provides full-time support to the shipper from the cold chain experts and sends out alerts regarding temperature excursions or any other activities. In the first quarter of 2018, DHL invested in Near Field Communication (NFC)-based IoT devices in vehicles for capturing data using mobile apps. These initiatives by the key players are expected to drive the market over the next few years. The demand for outsourcing transportation services has grown significantly over the last few years. Outsourcing transportation services for distributing pharmaceutical drugs has reduced the overheads of giant pharmaceutical companies. Furthermore, the big biopharma companies are either agreeing or are outsourcing to 3PL service providers to reduce the overall operating cost to promote lean management and application of six sigma in their business operations. This, in turn, is expected to lower the prices of pharmaceutical products, which is a positive welcome for consumers worldwide. This has uplifted the demand for 3PL services among life sciences companies. List of Key Players in Biopharmaceutical Third-party Logistics Market
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