Global Biopharmaceutical 3PL Market
Global Biopharmaceutical Third-party Logistics (3PL) Market Size Set to Touch USD 149.62 Billion by 2029
Published | 26 July 2023
Global biopharmaceutical Third-party Logistics (3PL) market is flourishing because of an increasing need for specialized handling and storage and growing complexity of the biopharmaceutical supply chain.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated global biopharmaceutical third-party logistics (3PL) market size at USD 100.5 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects global biopharmaceutical third-party logistics (3PL) market size to grow at a significant CAGR of 5.9% reaching a value of USD 149.62 billion by 2029. Major growth drivers for the global biopharmaceutical third-party logistics (3PL) market include an increasing prevalence of logistics outsourcing, the pharmaceutical industry's commitment to enhancing their distribution networks due to impressive sales figures, and a rise in the introduction of biosimilar products. The biopharmaceutical sector has made remarkable strides in developing life-saving drugs to combat chronic illnesses such as cancer, diabetes, respiratory diseases, and cardiovascular diseases. As a result, consumer demand has escalated in tandem with the growing awareness about biopharmaceuticals. Also, the adoption of advanced vehicles equipped with temperature control systems during transportation, coupled with efforts to minimize potential damage and human errors, has emerged as critical factors propelling the growth of the biopharmaceutical 3PL market. These advancements have elevated the safety and dependability of transporting biopharmaceutical products. However, stringent quality control and risk management is anticipated to restrain the overall market growth during the period in analysis.
Global Biopharmaceutical Third-party Logistics (3PL) Market – Overview
The global biopharmaceutical third-party logistics (3PL) market encompasses the outsourcing of logistics and supply chain management services by biopharmaceutical companies to specialized providers. These services involve the transportation, warehousing, inventory management, and distribution of biopharmaceutical products, ensuring their safe and timely delivery to different locations worldwide. The increasing number of elderly individuals, escalating occurrence of chronic illnesses, rising healthcare spending, and the surging demand for biopharmaceutical drugs are among the primary drivers necessitating the secure and punctual transportation of medications to various locations. This exponential demand for third-party logistics (3PL) services is rapidly gaining momentum. In addition to biopharmaceuticals, the global patient population is increasingly embracing biosimilar medications, leading to a substantial surge in demand. The remarkable growth of biosimilar medicines is expected to make a substantial contribution to the expansion of the market during the forecast period.
Impact of COVID-19 on Global Biopharmaceutical Third-party Logistics (3PL) Market
COVID-19 pandemic adversely affected global biopharmaceutical third-party logistics (3PL) market. While the pandemic led to disruptions in global supply chains, the biopharmaceutical industry faced unique challenges in terms of increased demand for essential medical supplies and vaccines. The need for temperature-controlled storage, secure transportation, and timely delivery became even more critical. Logistics providers had to adapt quickly to ensure uninterrupted supply chain operations while adhering to stringent health and safety measures. Additionally, the pandemic accelerated the adoption of digital solutions and advanced technologies to enable remote monitoring, real-time tracking, and efficient inventory management. Despite the challenges, the pandemic highlighted the importance of robust logistics networks, resulting in an increased focus on enhancing the resilience and agility of the biopharmaceutical third-party logistics (3PL) market.
Global Biopharmaceutical Third-party Logistics (3PL) Market – By Services
Based on services, the global biopharmaceutical third-party logistics (3PL) market is split into Transportation and Warehousing & Storage segments. The warehousing & storage segment holds a higher share in the global biopharmaceutical third-party logistics (3PL) market, due to the significant surge in demand for warehousing and storage services within the life sciences and pharmaceutical sectors. These services play a crucial role in reducing overhead costs for life science companies and contribute to improving their profitability. Service providers in this segment are also offering value-added services, such as warehousing and packaging, which further attract pharmaceutical companies. Also, the incorporation of robots and code scanners has effectively reduced turnaround times, thus driving the growth of the warehousing and storage segment.
Major players operating in the global biopharmaceutical third-party logistics (3PL) market include DHL International GmbH, SF Express, United Parcel Service of America, Inc., AmerisourceBergen Corp., DB Schenker, Kuehne and Nagel, Kerry Logistics Network Ltd., Agility, McKesson Corporation, and FedEx. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Global Biopharmaceutical Third-party Logistics (3PL) Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global Biopharmaceutical Third-party Logistics (3PL) Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Biopharmaceutical Third-party Logistics (3PL) Market - Global Size, Share, Trend Analysis, Opportunity and Forecast Report, 2019–2029, Segmented By Supply Chain (Cold Chain, Non-Cold Chain); By Services (Transportation, Warehousing & Storage); By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)
Publish Date: July 2023
Increasing complexity of the biopharmaceutical supply chain and rising need for specialized handling and storage are projected to propel the expansion of the global biopharmaceutical Third-party Logistics (3PL) market during the forecast period between 2023 and 2029
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