USD 124.8 billion
Biopharmaceuticals Third Party Logistics 3pl Market Size, Share, and Growth Analysis
Biopharmaceuticals Third Party Logistics 3pl Market By Supply Chain (Cold Chain Logistics, Non-cold Chain Logistics), By Service Type (Transportation, Warehousing and Storage), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG35C2014 |
Region:
Global |
Published Date: January, 2025
Pages:
255
|Tables:
60
|Figures:
75
Format -
Biopharmaceuticals Third Party Logistics 3pl Market Insights
Global Biopharmaceuticals Third Party Logistics 3pl Market size was valued at USD 124.8 billion in 2023 and is poised to grow from USD 132.41 billion in 2024 to USD 212.64 billion by 2032, growing at a CAGR of 6.1% during the forecast period (2025-2032).
Biopharmaceutical third-party logistics refers to logistics services provided by third-party organisations to pharmaceutical companies (3PL). Receiving small molecule pharmaceuticals into the warehouse, for example, as well as fulfilling orders and managing commodity inventory using a warehouse management system. For example, 3PL assists pharmaceutical and medical institutions in maintaining logistics for the delivery of medical therapies by reducing unnecessary overhead costs, ensuring continuous product supply, optimising transportation, and improving overall organisational efficiency. The pharmaceutical industry's rapid expansion is one of the primary reasons for the market's optimistic outlook. Furthermore, the growing trend of medical organisations outsourcing logistics to improve their distribution network is propelling market growth. Some of the key factors driving the market are the rising trend of outsourcing logistics, pharmaceutical companies' focus on their distribution network due to its strong sales numbers, and an increase in the number of biosimilar launches. The supply chain of the biopharmaceutical industry was disrupted by the coronavirus pandemic in 2019. The pharmaceutical and cold chain sectors were pushed to innovate during the COVID-19 vaccine development process, creating temperature-controlled packages to meet the needs of new deep-frozen COVID-19 vaccine storage and increased demand for existing supplies.
US Biopharmaceuticals Third Party Logistics 3pl Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Non-cold chain
Fastest Growth
Non-cold chain
Growth Rate
6.1% CAGR
Global Biopharmaceuticals Third Party Logistics 3pl Market ($ Bn)
Country Share for North America Region (%)
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Biopharmaceuticals Third Party Logistics 3pl Market Segments Analysis
Global Biopharmaceuticals Third Party Logistics 3pl Market is segmented by Supply Chain, Service Type and region. Based on Supply Chain, the market is segmented into Cold Chain Logistics and Non-cold Chain Logistics. Based on Service Type, the market is segmented into Transportation, Warehousing and Storage and Other Services. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Biopharmaceuticals Third Party Logistics 3pl Market Analysis by Supply Chain
Because of rising pharmaceutical distributor sales, non-cold chain logistics accounted for more than 75% of global revenue in 2021. Another factor driving the growth of the non-cold chain segment is the increased number of SKUs per distributor that, unlike biologics, do not require temperature control transportation.
Over the projection period, the cold chain is expected to have the highest CAGR. This is due to increased demand for biologics, a novel class of medications that has expanded rapidly in recent years. These pharmaceuticals necessitate temperature and time-controlled distribution, but other precision medicine breakthroughs have occurred in the market, such as biomarker testing, cellular therapies, blood products, specific vaccines, and regenerative medicine
Biopharmaceuticals Third Party Logistics 3pl Market Analysis by Service Type
In 2021, the warehouse and storage segment will account for more than 45% of global sales. 3PL services are in high demand in the pharmaceutical and healthcare industries. Life sciences companies use 3PL to reduce operating and overhead costs. Due to increased demand, service providers have expanded their offerings to include warehousing and packaging. To save time and effort, providers use barcode scanners and robots to pick and position merchandise from a distance.
Others will have the highest CAGR during the forecast period. Customs and duty management, procurement, and other value-added services are all included. Packaging is an important aspect of pharmaceutical logistics because the transportation of pharmaceuticals is dependent
Global Biopharmaceuticals Third Party Logistics 3pl Market By Supply Chain
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Biopharmaceuticals Third Party Logistics 3pl Market Regional Insights
North America's market was the most profitable and held the largest share in 2021, accounting for more than 42.0% of total revenue generated worldwide. This is primarily due to the region's dominance in the biologics and pharmaceutical medication markets, as well as an increase in the number of biopharmaceuticals shipped out of and brought into the region. Furthermore, due to the high cost of medical treatment, the region has a relatively high rate of adoption of various cutting-edge technologies.
The Asia-Pacific region's fastest growth is due to a few factors, including an increasing need for pharmaceuticals among an ageing population, the adoption of technologically enhanced services, and the developing economic conditions in emerging countries such as China and India. Furthermore, the fact that an increasing number of patents will expire in the coming years indicates that there will be a significant shift in the market share of medicine sales away from the original brand manufacturer and toward generic ones. This aspect is expected to increase pharmaceutical sales, as well as import and export. The prevalence of a growing number of diseases is driving up demand for pharmaceuticals and biologics. Because of the high prevalence of type 2 diabetes patients in Asia-Pacific, for example, there is a greater need for insulin in those regions.
Global Biopharmaceuticals Third Party Logistics 3pl Market By Region
- Largest
- Fastest
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Biopharmaceuticals Third Party Logistics 3pl Market Dynamics
Biopharmaceuticals Third Party Logistics 3pl Market Drivers
Rise of Automation to Bolster Market Growth
- The growing demand for efficient logistics solutions that can safely transport temperature-sensitive medications is expected to drive the growth of the biopharmaceutical third-party logistics (3PL) market. The introduction of a wide range of biologics and biosimilars, all of which require temperature-controlled logistics service to be distributed, is expected to be the driving force behind the growth of the biopharmaceutical third-party logistics market. The increased adoption of automation in manufacturing facilities in an effort to reduce operational costs is driving demand for third-party logistics services. Furthermore, the rising prevalence of chronic diseases is driving up demand for biologics, which is fuelling the growth of the biopharmaceutical third-party logistics (3PL) market.
- One of the most important drivers of the proliferation of temperature management logistic services is technological advancement. The introduction of new technologies such as warehouse robotics, mobile cloud solutions, data mining, and real-time monitoring has had a significant impact on the logistics industry as a whole. According to a survey conducted globally in July 2021, third-party logistics providers place a high value on cold chain services (3PLs). More than 60% of third-party logistics (3PL) service providers believe that cold chain services will be critical to their company's growth in the coming years.
Biopharmaceuticals Third Party Logistics 3pl Market Restraints
Lack of Skilled Workers to Hinder Market Growth During Forecast Period
- Logistics service development in developing countries continues to lag behind that in developed countries. This increase in service demand is due to a shortage of skilled workers in the biopharmaceutical third-party logistics sector. The shortage of qualified personnel also makes it difficult to expand the biopharmaceutical third-party logistics industry. As a result, the global market for pharmaceutical third-party logistics has been hampered.
- The competency of a biopharmaceutical third-party logistics service is also important to the shipper or manufacturer of pharmaceuticals and medications that use it. The shipper must work with an outside logistics agency due to a lack of direct management. Producers are jeopardising the quality of their products due to a lack of oversight. The global biopharmaceutical third-party logistics market is stifled due to shippers' lack of control over logistics services.
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Biopharmaceuticals Third Party Logistics 3pl Market Competitive Landscape
The market is highly fragmented, with a large number of players. This fragmentation makes it difficult for major players to enter a few countries around the world. As a result, the big players are consolidating, which will allow them to accept modern technologies from small or regional players and expand their global presence.
Top Players in Biopharmaceuticals Third Party Logistics 3pl Market
- DHL (Germany)
- FedEx (USA)
- United Parcel Service (UPS) (USA)
- Kuehne+Nagel (Switzerland)
- DB Schenker (Germany)
- Agility (Kuwait)
- AmerisourceBergen Corporation (USA)
- McKesson Corporation (USA)
- Cardinal Health (USA)
- Thermo Fisher Scientific (USA)
- Cencora, Inc. (USA)
- EVERSANA (USA)
- Kerry Logistics Network Limited (Hong Kong)
- SF Express (China)
- XPO Logistics (USA)
- CEVA Logistics (Switzerland)
- Almac Group (UK)
- Cryoport, Inc. (USA)
Biopharmaceuticals Third Party Logistics 3pl Market Recent Developments
- In March 2022, By acquiring the intermodal branch of XPO Logistics, one of the biggest providers of container transportation services in North America, STG Logistics has declared that it has strengthened its position as the industry leader in containerized logistics.
- In May 2022, To acquire the business from VP, Hitachi Transport System, Ltd. said that its group company, ESA s.r.o., had established an arrangement with Volkova Partners s.r.o., a Czech logistics provider that provides reverse logistics services to EC business operators.
Biopharmaceuticals Third Party Logistics 3pl Key Market Trends
- Companies are investing more money in R&D to develop efficient value-added services in order to meet the growing demand for advanced logistic services in the biopharmaceutical industry. Smart sensor technology refers to the technology that measures the ambient conditions inside the vehicle. DHL is able to improve its distribution network in part because of the implementation of technologically advanced devices.
- As a result of increased globalisation, many different trade-related activities have expanded. As a result, wholesalers and manufacturers struggle to keep accurate and timely records of these operations. Businesses help manufacturers in this regard by assisting them in keeping accurate records of their control over these activities. Furthermore, the expansion of the global market is a significant factor propelling the biopharmaceutical third-party logistics industry forward. As a result, rising globalisation and commercial exchange activities are bolstering the expansion and growth of the global biopharmaceutical third-party logistics market.
Biopharmaceuticals Third Party Logistics 3pl Market SkyQuest Analysis
SkyQuest's ABIRAWA (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global Biopharmaceuticals third party logistics 3pl market analysis, The transportation of pharmaceutical products from one location to another using advanced vehicles is known as biopharmaceutical third party logistics. Pharmaceutical products are temperature sensitive and require constant monitoring, so they are transported in technologically advanced vehicles. Pharmaceutical companies prefer this mode of transportation for effective distribution and efficacy maintenance. The market is driven by a number of factors, including an increase in demand for advanced logistics services in the industry, increased investment in R&D for the development of advanced services, and technological advancements that aid in the management of temperature and other facilities in logistics services. Furthermore, the development of advanced transportation vehicles with effective facilities, as well as a growing trend in logistics outsourcing, are expected to accelerate.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 124.8 billion |
| Market size value in 2032 | USD 212.64 billion |
| Growth Rate | 6.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Biopharmaceuticals Third Party Logistics 3pl Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Biopharmaceuticals Third Party Logistics 3pl Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Biopharmaceuticals Third Party Logistics 3pl Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biopharmaceuticals Third Party Logistics 3pl Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biopharmaceuticals Third Party Logistics 3pl Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Biopharmaceuticals Third Party Logistics 3pl Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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