DUBLIN--(BUSINESS WIRE)--The "Pharmaceutical Drugs and Biologics Logistics Global Market Strategies and Opportunities to 2021" report has been added to ResearchAndMarkets.com's offering.
The global pharmaceutical drugs and biologics logistics market grew from $70.2 billion in 2013 to $79.9 billion in 2017 at a compound annual growth rate (CAGR) of 3.3%. It is expected to grow from $79.9 billion in 2017 to $96.1 billion in 2021 at a CAGR of 4.7%.
Growth will result from increasing demand for drugs in general and in particular for temperature-sensitive biopharmaceutical products such as vaccines and blood plasma products.
The pharmaceutical drugs and biologics logistics market has benefitted from rising pharmaceutical sales. Governments across the globe are continuously establishing new healthcare reforms triggering the growth of the pharmaceutical market, and rising income levels and urbanization in emerging economies also fuel its growth.
The advantages to pharmaceutical manufacturers of outsourcing to logistics service providers are another driver. Low cost and greater visibility in the drug distribution chain are the main advantages of outsourcing logistics services and these are becoming an integral part of pharmaceutical companies' business strategy.
Factors that could hinder the growth of this market include poor infrastructure for cold chain logistics, skills shortages in the industry and unstable regulatory environments in emerging countries.
The market may also be negatively affected by increased regulation on temperature-sensitive pharmaceutical products distribution. For example, the Drug Supply Chain Security Act in the US requires drug manufacturers to implement serializations, traceability and data reporting to help secure the drug distribution chain and increase consumer safety. Complying with greater regulation raises logistics costs and may make distribution of some products to some markets uneconomic.
The market has been segmented by type of service, mode of transport, type of pharmaceutical and therapeutic area
By type of service, non-cold-chain logistics segment was the larger segment in 2017, accounting for about 83% of the market. This was mainly due to the fact that a majority of pharmaceutical drugs do not require temperature control and are shipped as general cargo.
By mode of transport, air transportation was the largest segment in in 2017, accounting for about 71% of the market. This was mainly due to the speed, reliability and efficiency in delivering high-value, time-sensitive, temperature-controlled cargo provided by air transportation.
By type of pharmaceutical, the pharmaceutical drugs segment was the largest segment in the pharmaceutical drugs and biologics logistics market in 2017 accounting for about 87% of the market. This was mainly due to the relative affordability pharmaceutical drugs and earlier stage of development of the biologics industry.
By therapeutic area, musculoskeletal was the largest segment in the pharmaceutical drugs and logistics market in 2017 accounting for 13.92% of the market. The fastest-growing segments were cold-chain logistics, sea-transportation, and biologics.
The logistics competitive landscape has two aspects to it. There are a few large companies such as Fedex, UBS, and DHL that have a strong global presence, but the domestic logistics markets within countries that include pick-up and delivery for these large players is very fragmented. The large companies are increasingly acquiring smaller players in order to extend their geographical presence and proprietary knowledge.
Pharmaceutical logistics companies are also increasingly focusing on providing sea-based logistics services to reduce transportation costs for their customers. For example, in 2015, ZIM Integrated Shipping Services Ltd., an Israel-based ocean carrier, successfully conducted a pilot program with Teva Pharmaceuticals, to expand its fleet of refrigerated containers for ocean freight.
- DB Schenker
- Deutsche Post DHL Group
- FedEx Corporation
- Kuehne + Nagel
- Panalpina World Transport (Holding) Ltd
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