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Pharmaceutical 3PL Market Size (2024 - 2029)

The pharmaceutical 3PL market is experiencing growth driven by the increasing trend of outsourcing logistics and the emphasis on enhancing distribution networks due to strong sales figures. The market's expansion is further supported by the rise in biosimilar launches and technological advancements in temperature management logistics, such as warehouse robotics and real-time monitoring. The COVID-19 pandemic significantly impacted global logistics, affecting smaller players who lacked contingency plans. Cold chain services are deemed crucial for the future growth of 3PL providers, highlighting their importance in the market's development.

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Market Size of Pharmaceutical 3PL Industry

Global Pharmaceutical 3PL Market Growth
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR > 7.00 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Pharmaceutical 3PL Market Analysis

The biopharmaceutical 3PL market is expected to register a CAGR of more than 7%. The rising trend of outsourcing logistics, the focus of pharmaceutical players on their distribution networks due to their strong sales numbers, and the rise in the number of biosimilar launches are some of the key factors driving the market.

The COVID-19 outbreak also had a major impact on global logistics in part due to reduced air freight capacity and reduced workforce at airports, ports, and warehouses. Small players in the biopharmaceutical third-party logistics market were hit severely as they usually do not have any recovery, backup, or intermittent operation plan.

Technological advancements are also one of the key factors driving the adoption of temperature management logistic services. Technologies such as warehouse robotics, mobile cloud solutions, data mining, and real-time monitoring have changed the overall logistics industry to a great extent. According to a global survey carried out in July 2021, cold chain services are important to third-party logistics providers (3PLs). More than 62% of 3PL service providers believe cold chain services are critically important for the future growth of their business.

Pharmaceutical 3PL Industry Segmentation

Pharmaceutical 3PL refers to the safe and efficient delivery of pharmaceutical drug products to benefit patient health. The pharmaceutical 3PL market is segmented by function (domestic transportation management, international transportation management, and value-added warehousing and distribution), supply chain (cold chain and non-cold chain), and geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Function
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
Supply Chain
Cold Chain
Non-cold Chain
Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Europe
United Kingdom
Germany
France
Russia
Spain
Rest of Europe
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Rest of Middle-East and Africa
Asia-Pacific
India
China
Singapore
Japan
South Korea
Vietnam
Australia
Rest of Asia-Pacific
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Pharmaceutical 3PL Market Size Summary

The biopharmaceutical third-party logistics (3PL) market is experiencing significant growth, driven by the increasing trend of outsourcing logistics and the focus of pharmaceutical companies on enhancing their distribution networks. The rise in biosimilar launches further propels this market expansion. Technological advancements, such as warehouse robotics and real-time monitoring, are transforming the logistics industry, with cold chain services being deemed critically important for future growth. The warehousing and storage segment holds a substantial share of the market, fueled by the demand from the pharmaceutical and healthcare sectors. Companies are increasingly opting for 3PL services to reduce operational costs and overheads, while also investing in value-added services like packaging and product handling technologies to improve efficiency and product integrity.

Regionally, North America leads the market due to its dominance in the biologics and pharmaceutical drugs sector, supported by high healthcare expenditure and the presence of major industry players. The Asia-Pacific region follows, with rapid growth attributed to the aging population, technological adoption, and improving economic conditions in countries like China, Japan, and India. The market is characterized by fragmentation, with numerous players causing challenges for larger companies in expanding globally. This has led to consolidation efforts among big players to integrate modern technologies from smaller regional entities. Notable companies in the market include FedEx, DHL, and DB Schenker, with significant investments being made to expand pharmaceutical and medical device distribution networks.

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Pharmaceutical 3PL Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Technological Trends

    3. 1.3 Government Regulations and Initiatives (Related to Transportation and Storage of Pharmaceutical Products)

    4. 1.4 Impact of COVID-19 on the Market (Including Short-term and Long-term Effects on the Market and the Economy)

    5. 1.5 Pharmaceutical E-commerce Market (Market Trends and their Impact on Logistics/Delivery Market)

    6. 1.6 Spotlight on Packaging of Pharmaceuticals (Global and Regional Trends)

    7. 1.7 Industry Supply Chain/Value Chain Analysis (includes Analysis on Distribution Models and Key Players in each step of the Value Chain)

    8. 1.8 Insights into Reverse/Return Logistics in the Pharma Industry

  2. 2. MARKET SEGMENTATION (Market Size by Value)

    1. 2.1 Function

      1. 2.1.1 Domestic Transportation Management

      2. 2.1.2 International Transportation Management

      3. 2.1.3 Value-added Warehousing and Distribution

    2. 2.2 Supply Chain

      1. 2.2.1 Cold Chain

      2. 2.2.2 Non-cold Chain

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Mexico

      2. 2.3.2 South America

        1. 2.3.2.1 Brazil

        2. 2.3.2.2 Argentina

        3. 2.3.2.3 Rest of South America

      3. 2.3.3 Europe

        1. 2.3.3.1 United Kingdom

        2. 2.3.3.2 Germany

        3. 2.3.3.3 France

        4. 2.3.3.4 Russia

        5. 2.3.3.5 Spain

        6. 2.3.3.6 Rest of Europe

      4. 2.3.4 Middle-East and Africa

        1. 2.3.4.1 Saudi Arabia

        2. 2.3.4.2 United Arab Emirates

        3. 2.3.4.3 Qatar

        4. 2.3.4.4 South Africa

        5. 2.3.4.5 Rest of Middle-East and Africa

      5. 2.3.5 Asia-Pacific

        1. 2.3.5.1 India

        2. 2.3.5.2 China

        3. 2.3.5.3 Singapore

        4. 2.3.5.4 Japan

        5. 2.3.5.5 South Korea

        6. 2.3.5.6 Vietnam

        7. 2.3.5.7 Australia

        8. 2.3.5.8 Rest of Asia-Pacific

Pharmaceutical 3PL Market Size FAQs

The Pharmaceutical 3PL Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

DHL, FedEx, UPS, DB Schenker and Kuehne +Nagel are the major companies operating in the Pharmaceutical 3PL Market.

Pharmaceutical 3PL Report Snapshots

Pharmaceutical 3PL Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)