Biopharmaceutical Third Party Logistics (3PL) Market Analysis 2020, & Forecast 2021-2026 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Biopharmaceutical Third Party Logistics (3PL) Market


The global Biopharmaceutical Third Party Logistics (3PL) market size is projected to reach US$ 126.64 billion by 2026, from US$ 95.04 billion in 2020, at a CAGR of 4.9% during 2021-2026. Rising trend of outsourcing logistics, growth in pharmaceutical distribution network owing to its strong sales numbers, and rise in number of biosimilar launches are some of the key factors driving the market.

Technological advancements is also one of the key factors driving adoption of temperature management logistic services. Technologies, such as warehouse robotics, mobile cloud solutions, data mining, and real-time monitoring has changed the overall logistics industries to a great extent. These advanced vehicles are designed to automate the temperature control systems during transportation that helps in reducing complexities and human error. Thus, these monitoring solutions allow visibility that can converse breaches through automatic alerts by providing information to execute contingency plans.

Pharmaceutical products are often temperature sensitive and thus require monitoring up to the stage of delivery through a tracking device. For instance, Onset, a supplier of monitoring solutions and data logger introduced the InTemp CX400 series mobile app for its pharmaceutical cold chain monitoring products. The app allows users to view temperature data from CX400 loggers and set alarms from their mobile devices to get notifications regarding temperature excursions. The company recently announced its availability for the android devices.

Additionally, companies like DHL have introduced a new Android and iOS app, LifeTrack that allow its users to access the online cold chain tracking platform to provide the healthcare and life science shippers an overview of their shipments. It also provides a full time support to the shipper from the cold chain experts and alerts regarding temperature excursions and many other attributes. In the first quarter of 2018, DHL invested in Near Field Communication (NFC) based IoT devices in vehicles for capturing data using mobile apps. These initiatives taken by the key players are further expected to drive the biopharmaceutical third party logistics (3PL) market over the next few years.

The demand for outsourcing transportation services has grown significantly over the last few years. Outsourcing transportation services for distributing pharmaceutical drugs has reduced the overheads of giant pharmaceutical companies. Furthermore, the big biopharma companies are either entering into an agreement or are outsourcing to 3PL service providers to reduce the overall operating cost, which would result in lower prices of pharmaceutical products. This has uplifted the demand for third party logistics services among life sciences companies.

Market Segmentation, Outlook & Viewpoint: Global Biopharmaceutical Third Party Logistics (3PL) Market

Supply Chain Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Cold Chain
  
Non-cold Chain

Service Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Transportation

  
Air Freight
  
Sea Freight
  
Overland Transportation

Warehousing and Storage

Others

Key Players, Recent Developments & Regional Insights: Global Biopharmaceutical Third Party Logistics (3PL) Market

In 2018, warehousing and storage segment held the largest market share in terms of revenue with USD 37.84 billion. This is attributed to a large demand for 3PL services from pharmaceutical and healthcare industry. To reduce the operating costs and the companys overheads, the life sciences companies are opting for third party logistic services. With surge in demand, the service providers have enhance their offerings with several value added services, such as warehousing and packaging. Moreover, to minimize the hassle and to reduce the turnaround time, the providers have installed barcode scanners and robots for picking and aligning the products from distant locations.

The others segment is projected to expand at a lucrative CAGR of 5.8% over the forecast period. Packaging, custom and duty management, procurement services, and few other value added services are included in this segment. Packaging is one of the crucial element of pharmaceutical logistics, since the transportation of drugs not only depends on the storage facilities but primarily on the packaging of the drug.

Pharmaceutical companies pay a lot of attention to packaging quality in terms of purity, uniformity, shelf life, integrity, and packaging standard of their products. This is thus expected to boost the market over the forecast period. The 3PL service providers are investing a lot in providing value added services is another key market driver. For instance, Expeditors, a service based provider of value added services ranging from simple to complex, offers a range of logistics delivery models that enhance customer services while mitigating transportation and inventory costs.

Regional Insights

North America witnessed the largest revenue of USD 27.78 billion in 2018. This is majorly attributed to the dominance of the region in biologics and pharmaceutical drugs market and increase in exports and imports for biopharmaceuticals. Furthermore, owing to higher disposable income, the adoption of advanced technologies is quite high in the region. Thus, for the improvement of warehousing and transportation, North America based pharmaceutical companies are relying more on 3PL services providers, which is driving the regional growth. Additionally, the presence of major players in these regions is also responsible for its largest market share.

Asia Pacific witnessed the second largest revenue of USD 26.92 billion in 2018 and is also expected to witness the fastest CAGR of 6.2% over the forecast period. Growing demand for medicines among aging population, adoption of technologically advanced services, and growing economic conditions in emerging countries such as China and India are among few factors responsible for its fastest growth rate.

Furthermore, increasing number of patent expirations in the coming years indicates a major shift in drug sales from the original brand manufacturer to generic ones. This factor is anticipated to boost the sales and import and export of pharmaceutical products. Additionally, rising number of diseases is contributing to the rising demand for biologics and pharmaceuticals, which is one of the key regional growth drivers. For instance, the demand of insulin is more in the Asia pacific region since owing to the high number of patients diagnosed with type 2 diabetes.

Biopharmaceutical Third Party Logistics Market Share Insights

Some of the key market players are DHL International GmbH., SF Express, United Parcel Service of America, Inc, AmerisourceBergen Corporation, DB Schenker, Kuehne and Nagel, Kerry logistics network limited and Agility. Furthermore, the market is fragmented with the presence of a large number of players. This fragmentation causes hindrances for big players to enter into a few countries across the globe. Thus, the big players are undergoing consolidation that will help them accept modern technologies from the small or regional players and expand their global presence. For instance, in 2017, LeK pharmaceuticalsthe subsidiary of Novartis, consolidated its logistics operations in Slovenia through a deal with third party logistics, Kuehne and Nagel.

Key Insights Covered: Global Biopharmaceutical Third Party Logistics (3PL) Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Biopharmaceutical Third Party Logistics (3PL) industry.
2. Global major manufacturers" operating situation (sales, revenue, growth rate and gross margin) of Biopharmaceutical Third Party Logistics (3PL) industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Biopharmaceutical Third Party Logistics (3PL) industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Biopharmaceutical Third Party Logistics (3PL) industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Biopharmaceutical Third Party Logistics (3PL) industry.

Research Methodology: Global Biopharmaceutical Third Party Logistics (3PL) Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other