Pharmaceutical Logistics Market Growth & Trends
The global pharmaceutical logistics market size is anticipated to reach USD 118.9 billion by 2027, expanding at a CAGR of 7.3% from 2020 to 2027, according to a new report by Grand View Research, Inc. Market development can be attributed to the rising demand for a variety of drugs as a result of increasing cases of chronic and lifestyle-related diseases. The market is expected to witness a high growth rate in cold-chain as well as non-cold chain pharmaceutical logistics owing to the impact of COVID-19 across the globe. During this pandemic situation, the government and officials across countries are primarily focusing on preventive measures and the treatment of patients. The import and export of various medicines to treat coronavirus are increasing across all the countries, including U.S. and China. Along with international trade, the nationwide logistics of drugs is also expected to increase to fulfill the rising demand from all the hospitals and medical establishments. Additionally, after the U.S. Food and Drug Administration (FDA) approved Emergency Use Authorization (EUA) for hydroxychloroquine, its trade is expected to increase in many countries, including U.S. and India. Such increased trade of drugs and medicines across countries is expected to drive the market from 2020 to 2027.
Pharmaceutical logistics is an integral part of the healthcare system, as careful handling and transportation of pharmaceutical products is of utmost importance. Therefore, equipment and staff services involved in the pharma supply chain are highly expensive. Consolidations among the pharma companies, to expand their business and global presence, is the latest trend gaining momentum in the market. Technological advancements, such as cloud-based supply chain functions and blockchain technology, which provide accurate and real-time data of operations, will also have a positive impact on market growth. Additionally, these technologies also offer predictive analytics to identify demand and supply chain optimization and risk management. Identifying risk and preventing them helps companies increase productivity, efficiency, and process optimization of their businesses.
North America accounted for the largest market share in 2019 and is expected to maintain its dominance over the forecast period. The market in Asia Pacific is projected to exhibit the highest CAGR from 2020 to 2027 owing to an increasing financial budget for the healthcare sector in several emerging countries of the region. Some of the key market participants include Agility; Air Canada; CEVA Logistics; DB Schenker; Deutsche Post AG; FedEx; LifeConEx; Marken; United Parcel Service of America, Inc.; and VersaCold Logistics Services.
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Pharmaceutical Logistics Market Report Highlights
Amid the pandemic, governments across the globe are emphasizing on healthcare facilities and ample medicinal supply for the patients. As such, the trade of conventional medicines is increasing from country-to-country
FDA has approved Emergency Use Authorization (EUA) for hydroxychloroquine, which is to be used by licensed health care providers to treat teens and adults hospitalized with COVID-19, who weigh more than 50 kg. As such, the trade of hydroxychloroquine is increasing
Many pharmaceutical companies, such as Amgen Inc.; Adaptive Biotechnologies Corp; and CalciMedica Inc., are actively engaged in the research and development of treatments for the disease. Once such novel medicines are developed and ready to be distributed across the globe, the market is expected to witness exponential growth
Additionally, the companies, including BioNTech SE; Heat Biologics Inc.; and Pfizer Inc., are focusing on the development of the COVID-19 vaccine. The market is expected to grow at a fast pace when the vaccine is successfully developed and deployed worldwide
The sales of cold-chain pharmaceutical products are increasing twice the rate of non-cold chain pharmaceutical products
Outsourcing services are gaining traction in the market. Third-Party Logistics (3PL) operators offer integrating warehousing and transportation services on an outsourced basis. According to the Journal of Commerce, the revenue of the top 50 3PL companies has increased by more than 5.0% from 2014 to 2018
Monitoring components are expected to grow at a significant share over the forecast period. This growth can be attributed to the technological advancements in the devices installed for collecting and reporting real-time shipment information
The growing automation of refrigerated warehouses further enhances the market over the projected period. Warehouse automation includes cloud technology, robots, conveyor belts, truck loading automation, and energy management
Political uncertainty and the rising number of natural disasters are expected to hinder market growth. The trade war between China and U.S., Brexit deal, as well as fires, floods, and hurricanes, are expected to pose as a critical challenge for the market over the next few years
North America is expected to be the largest regional market over the next few years owing to the rising merger and acquisition activity in the region.