BIO-PHARMA LOGISTICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The bio-pharma logistics market size is expected to reach US$ 173.0 Bn by 2030, from US$ 92.9 Bn in 2023, growing at a CAGR of 9.3% during the forecast period. Bio-pharma logistics refers to the logistics services required for transporting temperature-sensitive pharmaceutical products such as vaccines, drugs, and biological samples. The growth in the biopharmaceutical industry and increasing pharmaceutical sales globally are the key factors driving the bio-pharma logistics market.

The bio-pharma logistics market is segmented into type, service type, application, and region. By type, the market is segmented into cold chain logistics and non-cold chain logistics. Cold chain logistics dominates the market as most bio-pharma products require regulated temperatures for transportation.

Bio-pharma Logistics Market Regional Insights:

• North America is expected to be the largest market for the bio-pharma logistics market during the forecast period, accounting for over 33.5% of the market share in 2023. The growth of the market in North America is due to the presence of major bio-pharma companies and a well-established cold chain network in the region.
• The Europe market is expected to be the second-largest market for bio-pharma logistics, accounting for over 24.3% of the market share in 2023. The growth of the market is due to the increasing research & development (R&D) activities and investments in the bio-pharma sector in the region.
• The Asia Pacific market is expected to be the fastest-growing market for bio-pharma logistics and exhibit a CAGR of over 10.3% during the forecast period. The market growth in the Asia Pacific region is due to the rapidly growing bio-pharmaceutical industry and demand for cold chain logistics in emerging countries like China and India.

Figure 1. Global Bio-pharma Logistics Market Share (%), By Region, 2023

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Bio-pharma Logistics Market Drivers:

• Growing bio-pharmaceutical industry globally: The biopharmaceutical industry has been growing steadily over the past decade which is driven by the development of novel biologic drugs and therapies. The emergence of biologics such as monoclonal antibodies, recombinant proteins, and cell and gene therapies led to strong pipeline growth and new product approvals. This increased the need for temperature-controlled logistics in order to maintain product integrity during transportation and storage. For instance, in November 2022, Sarepta Therapeutics, Inc., a company focusing on precision genetic medicine for rare diseases, announced that the U.S. Food and Drug Administration (FDA) had accepted the company's Biologics License Application (BLA) to seek accelerated approval of SRP-9001 (delandistrogene moxeparvovec) for the treatment of ambulant individuals with Duchenne muscular dystrophy.
• Technological advancements in cold chain logistics solutions: Cold chain logistics is an integral part of bio-pharma product distribution to maintain product stability and efficacy. Advances in cold chain technologies such as temperature-controlled packaging, real-time monitoring systems, GPS trackers, IoT integration, and automation are helping in enhancing supply chain visibility, security, and efficiency. Advanced freezing techniques such as cryogenic freezing offer optimal preservation for biologics. Innovation in packaging solutions such as vacuum insulated panels (VIPs) and phase change materials provide extended thermal protection. The adoption of these technologies enables the transportation of time- and temperature-sensitive bio-pharma shipments across global distances. Technology investments by logistics providers to upgrade cold chain infrastructure are supporting the growth of the bio-pharma logistics market.

• Increased outsourcing of logistics operations by bio-pharma companies: Bio-pharma companies are increasing the outsourcing of supply chain activities to third-party logistics providers in order to optimize costs, enhance reliability, and gain access to specialized expertise. Logistics partners offer end-to-end services ranging from strategic planning to execution. Their expertise in compliant temperature-controlled distribution and trade lane knowledge reduces risks involved in bio-pharma product movement. Outsourcing logistics to established providers is also enabling bio-pharma companies to focus on core areas of drug development and manufacturing. The growing demand for outsourced logistics services is propelling the growth of the bio-pharma logistics market.

• Expanding pharmaceutical and biologic sales globally: Steady growth in pharmaceutical sales worldwide has augmented the transportation and distribution of drugs to various healthcare facilities and pharmacies, requiring efficient logistics networks. According to the World Health Organization (WHO), global expenditure on medicines will reach US$ 1.2 trillion by 2023, indicating significant commerce and trade flows. Moreover, higher drug costs of biologics compared to small molecules also increases logistics expenditure. The rise in pharma product movement across increasingly complex global supply chains is driving the growth of the bio-pharma logistics market.

Bio-pharma Logistics Market Opportunities:

• Expansion in emerging markets: Emerging pharmaceutical markets in developing countries provide significant expansion opportunities for bio-pharma logistics market players. Markets such as China, India, Brazil, Mexico, and Indonesia, with their large populations, rising incomes, and increasing healthcare expenditure, offers great potential. Investments by bio-pharma companies in these markets to serve the growing demand and favorable policy reforms are attracting logistics infrastructure development. Local partnerships, distribution infrastructure, and value-added services aligned with specific market needs will be the key success factors. Logistics players can leverage global expertise to expand in fast-growing emerging pharma markets.
• Surge in cell and gene therapies: Cell and gene therapies (CGTs) are emerging as a potentially disruptive drug class owing to their ability to treat root causes of diseases. The CGT pipeline expanded rapidly with over 1,000 candidates in development. While promising, CGTs pose significant distribution challenges owing to their extreme sensitivity. CGT logistics requires stringent temperature control, security, real-time monitoring, and rapid turnarounds. This necessitates investments in innovative cold chain and value-added solutions, presenting an opportunity for logistics firms.

Bio-pharma Logistics Market Trends:

• Sustainable cold chain initiatives: In efforts to reduce the environmental impact of temperature-controlled bio-pharma supply chains, logistics providers are taking initiatives to deploy renewable energy in operations. Solar, wind or fuel cell powered facilities; energy efficient warehouses, green reefer trucks, and use of bio-based insulation are among the measures which are being adopted for sustainable cold chains. Carbon-neutral solutions are also being offered to customers. Emphasis on sustainability is prompting investments in eco-friendly supply chains, presenting an opportunity.

Bio-pharma Logistics Market Restraints:

• High costs associated with logistics services: The costs associated with specialized handling, infrastructure and value-added services for temperature-controlled bio-pharma distribution are substantial. Complex global operations, multi-modal transportation, regulatory compliance requirements, and focus on minimizing product loss further add to logistics costs. The limited transport connectivity in some regions and seasonal demand fluctuations also impact costs. The high logistics expenses can impact the affordability and access of biopharmaceuticals, thus restraining the market For instance, transporting biologics in controlled temperature environments of 2-8°C using thermal shippers and refrigerants increases transportation costs by up to 30% compared to normal packaging and shipping at ambient temperatures.
• Global supply chain risks: Bio-pharma supply chains are prone to external risks such as geo-political uncertainties, trade wars, natural disasters, or black swan events like the COVID pandemic. These vulnerabilities can disrupt product flow leading to shortages. Operational risks like capacity crunches, inventory mismanagement, or distribution delays also impact supply assurance.

Recent Developments:

New product launches:

• In January 2023, UPS Healthcare, a healthcare logistics company; launched UPS Premier service for transporting high-value biopharma shipments. It offers proactive monitoring and faster delivery with dedicated specialists.
• In September 2020, FedEx, an American multinational conglomerate holding company focused on transportation, e-commerce and business services; launched SenseAware ID, a lightweight sensor-based logistics device for tracking high-value specialty shipments such as biologics. It provides real-time visibility and monitoring for temperature-sensitive biopharma products.

Acquisition and partnerships:

• In January 2022, Ember Technologies, Inc., it specializes in IT Solutions and Software Development for Banks and Finance Companies and Cardinal Health, an American multinational health care services company; announced a partnership to offer the world's first self-refrigerated, cloud-based shipping box–the Ember Cube. Ember Technologies, Inc. and Cardinal Health collaborated to deliver a cold chain solution that ensured product integrity and security throughout the supply chain, while significantly reducing shipping waste in the transport of temperature-sensitive medicines
• In November 2020, UPS, a healthcare logistics company; partnered with Stirling Ultracold, is a developer and manufacturer of a new generation of energy-saving, environmentally-friendly ultra-low temperature (ULT) freezers; to provide advanced ultra-low temperature freezer boxes for transporting biologics. It expands cold chain capabilities.

Figure 2. Global Bio-pharma Logistics Market Share (%), By Type, 2023

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Top companies in Bio-pharma Logistics Market:

• DHL
• FedEx
• UPS
• DB Schenker
• Kuehne + Nagel
• SF Express
• Kerry Logistics
• Agility Logistics
• VersaCold Logistics Services
• Marken
• Air Canada Cargo
• CEVA Logistics
• Sofrigam
• Nordic Cold Storage
• Biocair
• United Parcel Service
• Cavalier Logistics
• LifeConEx
• AirBridgeCargo Airlines
• World Courier

*Definition: Bio-pharma logistics refers to the logistics and transportation of temperature-sensitive pharmaceutical products such as vaccines, drugs, plasma, biologics, and clinical trial materials. It requires specialized solutions like cold chain storage and transportations in order to maintain product integrity during the supply chain. The biopharma industry relies on logistics for safe and timely delivery of lifesaving drugs and therapies. Advanced cold chain technologies, real-time monitoring solutions, infrastructure modernization, and specialized value-added services are driving innovations in bio-pharma logistics.

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