Biopharmaceutical Third-party Logistics Market Key Driving Factors Analysis Report By 2030

Posted on 2023-05-29 by researchinsights in Internet & Online // 0 Comments

Biopharmaceutical Third-party Logistics Industry Overview

The global biopharmaceutical third-party logistics market size was estimated at USD 119.8 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 5.9% over the forecast period.

The rising trend of outsourcing logistics, the focus of pharmaceutical players on their distribution network owing to its strong sales numbers, and a rise in the number of biosimilar launches are some of the key factors driving the market. In 2020, the coronavirus pandemic disrupted the biopharmaceutical industry’s supply chain. During the development of the COVID-19 vaccine, the pharmaceutical and cold chain sectors were pushed to innovate, creating temperature-controlled packages to meet the needs of new deep-frozen COVID-19 vaccine storage and increased demand for existing supplies.

Gather more insights about the market drivers, restrains and growth of the Global Biopharmaceutical Third-party Logistics Market

The industry responded to the opportunity, collaborating in previously unseen ways to make 2021 a better year. 3PL companies in the biopharmaceutical industry assisted in reducing supply disruptions and prioritizing critical care medications and so played a crucial role in the fight against COVID-19. During the pandemic, they were classified as essential services, allowing them to continue operating and growing income. Such favorable government initiatives and growing demand for domestic logistics will augment the growth of the market over the forecast period. The future seems lucrative for the market with the retraction of government regulations related to transportation & shelter-in-place mandates.

A sudden surge in the demand for cold chain logistics was observed during the pandemic. Growth in the manufacture and distribution of the COVID-19 vaccine is expected to boost the biopharmaceutical third-party logistics (3PL) market during the forecasted period. 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. These advanced vehicles are designed to automate and provide temperature control systems during transportation that help in reducing complexities, human error, and damage to products in transit.

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, which require monitoring up to the stage of delivery through a tracking device. For instance, Onset, a supplier of monitoring solutions and data loggers 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 Android devices. In addition, 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 full-time support to the shipper from the cold chain experts and sends out alerts regarding temperature excursions or any other activities. 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 by the key players are expected to drive the 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 agreeing or are outsourcing to 3PL service providers to reduce the overall operating cost to promote lean management and application of six sigma in their business operations. This, in turn, is expected to lower the prices of pharmaceutical products, which is a positive welcome for consumers worldwide. This has uplifted the demand for 3PL services among life sciences companies.

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