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Biopharmaceutical Third Party Logistic Market Worth $120.64 Billion by 2025: Grand View Research, Inc.
SAN FRANCISCO, March 13, 2019 /PRNewswire/ -- The global biopharmaceutical third party logistics market size is expected to reach USD 120.64 billion by 2025, at a CAGR 4.9% over the forecast period, according to a new report by Grand View Research, Inc. The market for biopharmaceutical third party logistics (3PL) is majorly driven by rising demand for temperature controlled logistic services to transport biologics in various regions and growing distribution networks of biopharmaceutical companies to improve their sales. Rising adoption of automated storage and retrieval systems in the emerging countries is an ongoing trend in the pharmaceutical logistics companies that has gained a significant traction.
Key suggestions from the report:
- In 2018, non-cold chain logistics held the largest market share in terms of revenue owing to the sales of a large number of drugs that do not require any temperature control
- Cold chain logistics segment is expected to register the faster CAGR over the forecast period owing to the demand for biologics, such as cellular therapies, vaccines, and test kits
- Warehousing and storage held the largest market share among the types of services in 2018
- Asia pacific expected to emerge with the fastest CAGR over the forecast period owing to adoption of medicines from aging population and shift of drug sales from brand manufacturers to generic
- Key players operating in the biopharmaceutical third party logistics market include DHL International GmbH., SF Express, United Parcel Service of America, Inc, AmerisourceBergen Corporation, DB Schenker, Kuehne and Nagel, Kerry logistics network limited and Agility
Read 96 page research report with TOC on "Biopharmaceutical Third Party Logistics (3PL) Market Size, Share & Trends Analysis Report By Supply Chain (Cold Chain, Non-cold Chain), By Service, By Region, And Segment Forecasts, 2019 - 2025" at: https://www.grandviewresearch.com/industry-analysis/biopharmaceutical-third-party-logistics-3pl-market
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. As of now, the pharmaceutical sales through distributors have grown from USD 304.6 billion in 2013 to USD 440.2 billion in 2016. However, the average number of manufacturers per distributor had declined from 1,474 in 2014 to 1,211 in 2016. This data depicts that there is an increase in quantity of pharmaceutical products being distributed, and thus, is expected to surge the demand for 3PL services.
Additionally, environmental concerns and cost have caused a slight shift in the means of transport used for commercial product, moving from airway to seaway shipping and in roadways from truck to intermodal (both rail and truck). The intermodal transport is majorly used by these pharmaceutical companies to reduce the carbon footprint. The ongoing trend shows that the pharmaceutical manufacturers have shifted towards sea freight to reduce the cost and risk factor. 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.
Grand View Research has segmented the global biopharmaceutical third party logistics market on the basis of service, participant, and region:
- Biopharmaceutical Third Party Logistics Supply Chain Outlook (Revenue, USD Million, 2014 - 2025)
- Cold Chain
- Non-cold Chain
- Biopharmaceutical Third Party Logistics Service Outlook (Revenue, USD Million, 2014 - 2025)
- Air Freight
- Sea Freight
- Warehousing and Storage
- Biopharmaceutical Third Party Logistics Regional Outlook (Revenue, USD Million, 2014 - 2025)
- North America
- Asia Pacific
- New Zealand
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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