The Largest Segment In The Global Pharmaceutical Drugs And Biologics Logistics

Posted by praneeth on October 10th, 2018

Pharmaceutical drugs and biologics logistics' covers the physical movement of pharmaceutical and biologic drugs from the manufacturer to the end-user. It includes the transportation, warehousing, inventory management and other logistics functions. The market consists of those pharmaceutical drugs and biologics logistics that are outsourced to logistics companies instead of handled in-house by the pharmaceutical companies.

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The global pharma logistics market grew at a compound annual growth rate (CAGR) of 3.28% in 2017 and is expected to grow at a CAGR of more than 4.5% by 2021. This growth can be attributed to factors such as growing demand for and supply of temperature-sensitive products, global economic growth, timely reliability and reduced warehousing costs, and other such reasons mentioned in the report along with restrains that might affect the market growth in each geography.

North America’s pharmaceutical logistics market is the largest in the world. It currently accounts for almost 40% of the global logistics market. The pharmaceutical logistics market is highly consolidated in North America owing to the presence of international and national logistics firms. Some major competitors in the pharmaceutical logistics market such as UPS and FedEx are headquartered in North America. The market is the largest in the world owing to the largest shares of North America in the pharmaceutical drugs and biologics markets.

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North America’s pharmaceutical drugs and biologics logistics market grew at a compound annual growth rate (CAGR) of 1.77%. The below-global average growth in the historic period can be attributed to pharmaceutical logistics being well-established in countries of this region. The market faces few distribution chain issues in recent times in the region. Also market is expected to grow at a compound annual growth rate (CAGR) of 3.57%. The growth in the forecast period is higher than that of the historic period which can be attributed to the presence of top pharmaceutical companies in this region and the growing demand for biologics, which require temperature-controlled transportation.

The USA emerged as the largest share-holding country in North America for the logistics industry, with a market size of about USD 21 billion in 2017. Air transportationwas the largest segment in the pharmaceutical drugs and biologics logistics market accounting for 77.5% of the market.

Service providers included in the report are Deutsche Post DHL, FedEx Corporation, Panalpina World Transport, UPS, Kuehne + Nagel and DB Schenker.

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