The pharmaceutical logistics market size was valued at USD 84.2 Billion in 2022 and is projected to grow from USD 92.2 Billion in 2023 to USD 190.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.50% during the forecast period (2023 - 2032). The main market drivers boosting market growth include an increasing demand for biological pharmaceuticals in recent years as well as an increase in the number of businesses choosing to outsource.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Throughout the projection period, the cold chain logistics industry is anticipated to experience significant expansion. The ongoing distribution of COVID-19 vaccinations, which necessitates precise temperature-control logistics services to maintain the product's efficacy, is one example of an ambient product with a growing market that can be attributed to this growth. In addition, the government's strict restrictions for maintaining precise temperatures for pharmaceutical items that are extremely sensitive to temperature are anticipated to spur segment expansion throughout the course of the projection period.
Telematics is being used more frequently in cold chain pharmaceutical logistics, which is assisting businesses in improving the productivity, connectivity, and security of cargoes. A temperature-controlled environment is necessary for the majority of biological and medicinal products during production and delivery, which helps preserve the medications' potency and quality. As a result, pharmaceutical businesses use systems for cold storage and transportation that are temperature-controlled.
Temperature-controlled or temperature-sensitive products can now be transported with ease thanks to the impressive improvements in supply chain management and integration technology. The rise of supply chain businesses has been fueled by the development of cold chain logistics, which has preserved the product's quality while maintaining the safety of the drugs. The cold chain logistics provided by hard chain firms are paving the way for a promising future in the temperature-controlled logistics sector.
Both the growing need for fast track support and the expanding demand for home healthcare items are causing the industry to rise. The worldwide market of Pharmaceutical Logistics is highly fragmented because there are many market participants. High market fragmentation presents challenges for big businesses, preventing them from expanding into other markets or nations. Thus, driving the pharmaceutical logistics market revenue.
March 2023: Experts emphasize that fostering transparency is essential for strengthening the resilience of pharmaceutical supply chains. According to a recent survey, more than 50% of pharmaceutical executives and 41% of health service providers in 2021 prioritize enhancing supply chain transparency. Blockchain technology offers a decentralized, transparent, and immutable system for recording transactions, enabling all relevant supply chain partners to access the database without central ownership.
The Market segments of Pharmaceutical Logistics, based on type includes cold chain logistics and non-cold chain logistics. The non-cold chain logistics segment dominated the market, accounting for 71.8% of market revenue (60.45 Billion). In order to reduce the loss of perishable goods and commodities while also paying farmers fairly, cold chain logistics are essential. In the healthcare cold chain logistics are essential for boosting medicinal efficacy along the supply chain to end users.
The Pharmaceutical Logistics Market segmentation, based on component, includes storage, transportation, and monitoring components. The storage category held the largest share. After manufacturing and delivery to distributors and merchants via various routes, the fast growing demand for pharmaceutical medicines has increased the need for storage facilities to preserve and procure these goods' efficacy.
Figure 1: Pharmaceutical Logistics Market, by Component, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Europe Pharmaceutical Logistics market held a huge growth in market share attributed to the significant expansion of pharmaceutical product commerce among important European nations like Germany, the United Kingdom, France, and others. In addition, it is projected that the demand for pharma logistics will remain strong in the years to come as production and demand for many categories of pharmaceutical products, such as over-the-counter drugs, continue to rise. Further, the German Pharmaceutical Logistics market of held the largest market share, and the U.K. Pharmaceutical Logistics market was the fastest growing market in the European region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PHARMACEUTICAL LOGISTICS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Due to the booming economies of emerging nations like China and India, the Asia-Pacific area is predicted to grow at the quickest rate. A large population's high need for OTC medications is anticipated to fuel the expansion of the Asia Pacific pharmaceutical logistics industry. Additionally, the pharmaceutical sector is moving its production and sales facilities across the globe. Market participants are spotting profitable potential in South America's and Asia's emerging economies, which is projected to fuel market expansion in these areas. Moreover, China’s Pharmaceutical Logistics market held the largest market share, and the Indian Pharmaceutical Logistics market was the fastest growing market in the Asia-Pacific region.
The North America Pharmaceutical Logistics market held the second largest share of the market. The United States has the largest share of medications in the world. In 2020, the U.S. was home to five of the top 10 pharmaceutical businesses. Branded medications made up about 83.9% of expenditures in the U.S.. 8.1% of all drug and medical exports worldwide in 2020 came from North America. Further, the U.S. Pharmaceutical Logistics market held the largest market share, and the Canada Pharmaceutical Logistics market was the fastest growing market in the North America region.
Pharmaceutical Logistics Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the market of Pharmaceutical Logistics, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Pharmaceutical Logistics industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Pharmaceutical Logistics industry to benefit clients and increase the market sector. In recent years, the Pharmaceutical Logistics industry has offered some of the most significant advantages to medicine. Major players in the market of Pharmaceutical Logistics, including Agility, Air Canada, CEVA Logistics, DB Schenker, Deutsche Post AG, FedEx, LifeConEx, Marken, United Parcel Service of America, Inc., and VersaCold Logistics Services, are attempting to increase market demand by investing in research and development operations.
A full-service provider of air freight services, Air Canada Cargo offers specialized shipping options for the pharmaceutical sector. Air Canada Cargo provides AC Cool Chain, a set of solutions for active and passive packaging conditions, for temperature-sensitive healthcare cargo requiring temperature control. More than 30 accredited facilities, including those in Japan, Australia, Brazil, Chile, Canada, Israel, the U.S., and all of Europe, provide AC Absolute° and AC Pharmacair. For temperature-sensitive shipments that demand exact conditions, AC Absolute is an active temperature-controlled solution. Through interline relationships, a trucking network, and direct flights to and from 150 cities across five continents, Air Canada Cargo has global coverage in more than 300 cities.
The continual distribution of goods to and from any location in the Air Canada network is made possible by hubs in Toronto, Montreal, Vancouver, London, and Frankfurt, which offer the best international connections. A variety of services and solutions are available from Air Canada Cargo, each tailored to satisfy certain shipping needs depending on the commodity or the urgency of the shipment. The solutions offered are constantly evolving to suit industry laws, market expectations, and customer needs and are managed by a team of industry specialists. To improve its expertise in handling pharmaceutical shipments, Air Canada Cargo joined the Pharma.Aero cross-industry partnership platform in February 2023.
In the field of vaccine, pharmaceutical, diagnostic, and medical device firms, LifeConEx is a leading distribution and logistics partner. LifeConEx is a speciality logistics partner of DHL Global Forwarding that is completely focused on the transportation of temperature-sensitive cargo. With origins and destinations in over 165 countries, the firm approves and maintains more than 2,500 trade routes. Cycle times are shortened, internal administrative and quality control workloads are reduced, and the cost of remanufacturing and duplicate shipment of harmed goods is decreased thanks to its efficient temperature-controlled cold chain. DHL Global Forwarding expanded its solutions for cold chain logistics in May 2020 by adding the ability to carry shipments at frozen or cryogenic temperatures.
Key Companies in the market of Pharmaceutical Logistics include
Pharmaceutical Logistics Industry Developments
November 2022: Bomi Group, a provider of healthcare logistics, is acquired by UPS in order to increase its temperature-controlled space. With this acquisition, the UPS Healthcare network in Europe and Latin America will have access to more than 3,000 highly skilled Bomi Group team members and 14 nations' worth of temperature-controlled facilities.
March 2022: MTC Logistics, a premier provider of cold-chain services, has been acquired by Lineage Logistics LLC, the world's largest and most innovative provider of temperature-controlled industrial REIT and logistics solutions, in four key locations in or near the ports of Baltimore, Maryland; Wilmington, Delaware; and Mobile, Alabama. The addition of these facilities would increase Lineage's present footprint, which now numbers over 400 carefully placed facilities spread over 19 different countries with a total capacity of more than 2 Billion cubic feet.
Pharmaceutical Logistics Market Segmentation
Pharmaceutical Logistics Type Outlook
Pharmaceutical Logistics Component Outlook
Pharmaceutical Logistics Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 84.2 Billion |
| Market Size 2023 | USD 92.2 Billion |
| Market Size 2032 | USD 190.6 Billion |
| Compound Annual Growth Rate (CAGR) | 9.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Component, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Agility, Air Canada, CEVA Logistics, DB Schenker, Deutsche Post AG, FedEx, LifeConEx, Marken, United Parcel Service of America, Inc., and VersaCold Logistics Services |
| Key Market Opportunities | The growth of the market is also attributed to the increasing demand for Over-the-Counter (OTC) medicines such as Vitamins, Minerals, and Supplements (VMS), common cough and cold drugs, gastrointestinal drugs, and dermatology products. |
| Key Market Dynamics | An increasing preference for biological pharmaceuticals in recent years and a growing number of enterprises opting to outsource |
Pharmaceutical Logistics Market Highlights:
Frequently Asked Questions (FAQ) :
The Pharmaceutical Logistics Market size was valued at USD 84.2 Billion in 2022.
The global Pharmaceutical Logistics Market is projected to grow at a CAGR of 9.50% during the forecast period, 2023-2032.
Europe had the largest share in the global market
The key players in the market are Agility, Air Canada, CEVA Logistics, DB Schenker, Deutsche Post AG, FedEx, LifeConEx, Marken, United Parcel Service of America, Inc., and VersaCold Logistics Services.
The Non-cold Chain category dominated the market in 2022.
The storage had the largest share in the global market.
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