Biopharmaceutical Logistics Market size is projected to grow exponentially from 2022 to 2028 due to the demand for temperature-regulated transportation. Logistics providers have upped investments in temperature monitoring systems to fulfill logistical requirements.
Development in the production rate of hormone medications, complex proteins, vaccines, biologics and temperature-specific byproducts will drive the industry growth. Biopharmaceuticals have become popular as an effective clinical treatment modality for a host of diseases, such as metabolic disorders and cancers. Transportation and storage of these consignments are likely to gain traction across North America, Europe, and the Asia Pacific. The demand for temperature monitoring across healthcare and pharmaceuticals sectors will drive the need for advanced storage solutions.
In terms of supply chain, cold chain logistics will expand during the forecast period 2022-2028 on the back of soaring demand for temperature-controlled biopharmaceutical products and services. Rigorous government regulations to maintain accurate temperature for temperature-sensitive products will boost the business outlook. Moreover, the use of telematics in the cold chain will foster connectivity, efficiency and safety of transport cargos. Additionally, the emergence of biomarker testing and regenerative medicine will encourage leading companies to invest in the landscape.
Based on type, global biopharmaceutical logistics market share from warehouse and storage will expand at a notable CAGR owing to an increased demand for logistical services from the healthcare and pharmaceutical industries. For instance, third-party logistics service has become trendier to minimize overheads and OPEX. Service providers are expected to be sought to reduce turnaround time as they have upped investments in robots and barcode scanners to boost supply chain management.
With respect to region, Asia Pacific biopharmaceutical logistics market outlook will be robust owing to the presence of leading companies and strong demand for medicines. Technologically advanced services and a gradual uptick in imports and exports of biopharmaceuticals will augur well for the regional expansion. Prominently, growth in biosimilars will solidify the position of biopharmaceutical logistics service providers.
The competitiveness of global biopharmaceutical logistics market share is such that leading companies will boost their investments in organic and inorganic strategies. KUEHNE + NAGEL, FedEx, SF Express, DHL International GmbH, Kerry Logistics Network Limited, AmerisourceBergen Corporation, United Parcel Service of America, Inc., DB Schenker and Agility, among others, are some of the major industry participants in the market.
In June 2021, DHL Supply Chain announced the expansion of pharma logistics capacity with the construction of around 32,000 square meter buildings in Florstadt, Germany. The facility is expected to provide additional warehouse space in temperature zones of 2-8°C, -24°C and 15-25°C.
The onslaught of the COVID-19 pandemic has expedited the demand for biopharmaceutical logistics services. With market developing in response to the outbreak, demand will continue to intensify across advanced and emerging economies. Notably, several companies have upped investment in clinical trials of COVID-19 vaccines. The approval of vaccines will further foster the demand for a seamless supply chain, auguring well for the industry outlook. Temperature-sensitive biopharmaceutical products will continue to gain traction globally.
While the COVID-19 pandemic has exposed vulnerabilities in the global supply chain of biopharmaceutical industry, a dramatic surge in the demand for cold chain logistics could bode well for growth. Commercialization of innovative drugs and vaccines and investment in R&D will drive progress globally.
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Market, by Service Type
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