Global Biopharmaceutical Third Party Logistics Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Supply;
Cold Chain Logistics, and Non-cold chain logistics.By Service;
Transportation(Airfreight, Sea freight, and Overland transportation), Warehousing & Storage, and Others.By Function;
Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution.By Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Biopharmaceutical Third Party Logistics Market (USD Million), 2021 - 2031
In the year 2024, the Global Biopharmaceutical Third Party Logistics Market was valued at USD 11,676.45 million. The size of this market is expected to increase to USD 17,098.51 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 5.6%.
Biopharmaceuticals, including vaccines, biologics, and other complex drugs, require stringent handling and transportation conditions to maintain their efficacy and safety. This has led to a heightened demand for 3PL providers with expertise in temperature-controlled logistics, regulatory compliance, and real-time tracking solutions. These specialized logistics services ensure that biopharmaceutical products are stored, handled, and delivered under optimal conditions, meeting the stringent standards set by regulatory bodies such as the FDA and EMA.
The rise in global pharmaceutical trade, advancements in biologics, and the expansion of biopharmaceutical manufacturing capabilities in emerging markets have further fueled the growth of the biopharmaceutical 3PL market. Companies are increasingly outsourcing their logistics operations to third-party providers to focus on core competencies and reduce operational costs. This outsourcing trend is supported by the scalability, flexibility, and technological innovations offered by 3PL providers, such as automated warehouses, blockchain for supply chain transparency, and IoT-enabled temperature monitoring. As a result, the biopharmaceutical 3PL market is poised for continued expansion, driven by the ongoing evolution of the global pharmaceutical landscape and the critical need for reliable, specialized logistics services.
Global Biopharmaceutical Third Party Logistics Market Recent Developments
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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.
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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 Vlková Partners s.r.o., a Czech logistics provider that provides reverse logistics services to EC business operators.
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In 2017, LeK Pharmaceuticals (subsidiary of Novartis) outsourced its logistics operation in Slovenia by entering into a deal with Kuehne and Nagel.
Segment Analysis
The global biopharmaceutical third-party logistics market is segmented based on supply, services, functions, and geography. In terms of supply, cold chain logistics plays a crucial role in maintaining the integrity and efficacy of temperature-sensitive biopharmaceutical products. The cold chain logistics segment is driven by the increasing demand for biologics, vaccines, and other temperature-sensitive drugs. Non-cold chain logistics, on the other hand, handles products that do not require temperature control, such as some small molecules and generics. The growth of the cold chain segment is fueled by innovations in refrigeration technologies and a rising emphasis on the safe delivery of pharmaceutical products globally.
Service-wise, the market is divided into transportation, warehousing & storage, and other services. Transportation is a significant part of the logistics chain, with airfreight, sea freight, and overland transportation playing distinct roles. Airfreight is particularly vital for the speedy delivery of time-sensitive pharmaceutical products, while sea freight and overland transportation are more cost-effective for large-volume shipments. Warehousing and storage are also critical, as they ensure the safe and secure storage of pharmaceutical goods before distribution. The warehousing segment is expected to grow as biopharma companies demand more specialized storage conditions, including temperature-controlled environments.
The logistics market is further classified by function into domestic transportation management, international transportation management, and value-added warehousing and distribution. Domestic transportation management focuses on the efficient movement of goods within national borders, ensuring timely delivery to healthcare providers. International transportation management, conversely, involves navigating complex regulations and optimizing routes to ensure global distribution. Value-added warehousing and distribution services include packaging, labeling, and order fulfillment, which help streamline the supply chain and reduce operational inefficiencies.
Geographically, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America and Europe dominate the market due to the presence of major pharmaceutical companies and the high demand for biopharmaceutical products. The Asia Pacific region is expected to witness substantial growth due to an expanding biopharma industry, increasing investments in healthcare infrastructure, and a growing middle class. The Middle East & Africa and Latin America are emerging markets, where the demand for logistics services is rising as the biopharmaceutical sector continues to develop and regulatory standards evolve to improve healthcare delivery.
Global Biopharmaceutical Third Party Logistics Segment Analysis
In this report, the Global Biopharmaceutical Third Party Logistics Market has been segmented by Supply, Service, Function and Geography.
Global Biopharmaceutical Third Party Logistics Market, By Supply
The Global Biopharmaceutical Third Party Logistics Market has been segmented by Supply into Cold Chain Logistics and Non-cold chain logistics.
Cold chain logistics refers to the transportation and storage of temperature-sensitive products, ensuring they remain within a specific temperature range throughout the supply chain. This logistics sector is crucial for industries like pharmaceuticals, food and beverages, and biotechnology, where products such as vaccines, biologics, perishable food items, and other temperature-sensitive goods require meticulous temperature control to maintain their efficacy and safety. The cold chain involves a series of specialized processes, including refrigerated storage, temperature-controlled transportation, and real-time monitoring systems to prevent any deviations from the required conditions. Advanced technologies such as IoT-enabled sensors and blockchain are increasingly being utilized to enhance transparency, traceability, and efficiency in cold chain logistics, ensuring that products are handled with the utmost care from production to final delivery.
Non-cold chain logistics pertains to the transportation and storage of goods that do not require stringent temperature control. This segment encompasses a wide range of products including electronics, clothing, machinery, and dry goods. Non-cold chain logistics operations focus on optimizing supply chain efficiency through robust inventory management, efficient transportation networks, and strategic warehousing solutions. Innovations in automation, such as robotic process automation (RPA) and artificial intelligence (AI), are revolutionizing non-cold chain logistics by improving accuracy, reducing costs, and enhancing overall supply chain visibility. Both cold chain and non-cold chain logistics play critical roles in the global supply chain, catering to diverse industry needs and ensuring that products reach consumers in optimal condition.
Global Biopharmaceutical Third Party Logistics Market, By Service
The Global Biopharmaceutical Third Party Logistics Market has been segmented by Service into Transportation, Warehousing and Storage and Others.
Transportation services encompass the critical movement of biopharmaceutical products from manufacturing facilities to distribution centers, healthcare providers, and ultimately to patients. This segment includes a variety of transportation modes such as air, sea, and land freight, each tailored to meet the stringent requirements of temperature control and time sensitivity inherent in biopharmaceutical logistics. Advanced tracking and monitoring systems are integral to transportation services, ensuring the integrity and safety of high-value and sensitive products during transit. Companies offering these services often invest heavily in specialized vehicles and equipment, such as refrigerated trucks and temperature-controlled containers, to maintain product efficacy and compliance with regulatory standards.
Warehousing and Storage services provide secure and regulated environments for the storage of biopharmaceutical products. These facilities are equipped with state-of-the-art climate control systems to maintain precise temperature and humidity levels, crucial for preserving the stability and potency of biopharmaceuticals. In addition to temperature-controlled storage, these services include inventory management, order fulfillment, and sometimes even packaging and labeling. The warehousing segment also focuses on ensuring compliance with stringent regulatory requirements, including Good Distribution Practices (GDP) and Good Storage Practices (GSP), which are essential for maintaining the quality of biopharmaceutical products. The Others category encompasses a range of ancillary services such as customs brokerage, reverse logistics, packaging solutions, and specialized handling of hazardous materials. These additional services provide comprehensive logistical support, ensuring that biopharmaceutical companies can focus on their core competencies while relying on 3PL providers to manage the complexities of the supply chain efficiently.
Global Biopharmaceutical Third Party Logistics Market, By Function
The Global Biopharmaceutical Third Party Logistics Market has been segmented by Function into Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution.
The Global Biopharmaceutical Third Party Logistics (3PL) Market is primarily segmented by function into domestic transportation management, international transportation management, and value-added warehousing and distribution. Domestic transportation management refers to the logistics services that handle the transportation of biopharmaceutical products within a specific country. This function involves coordinating the movement of goods across regions, ensuring that products are delivered efficiently and safely within national boundaries. With the growing demand for biopharmaceuticals, effective domestic transportation management has become crucial for maintaining timely deliveries and ensuring that temperature-sensitive products remain intact.
International transportation management, on the other hand, deals with the cross-border transportation of biopharmaceutical goods. As biopharmaceuticals are often distributed globally, international transportation management plays a key role in navigating complex regulations, customs processes, and ensuring compliance with international standards. The need for advanced tracking systems, coordination with various carriers, and expertise in handling different logistical challenges across regions has driven the growth of this segment in the 3PL market.
Lastly, value-added warehousing and distribution involve a range of services designed to enhance the supply chain process. These services include inventory management, packaging, labeling, and providing temperature-controlled storage for biopharmaceutical products. As biopharmaceuticals often require specialized storage conditions, this function is critical to maintaining product integrity. Companies in the biopharmaceutical industry rely on third-party logistics providers to ensure their products are stored and distributed efficiently, minimizing waste and improving the overall supply chain process. This segment is increasingly important as the biopharmaceutical sector expands globally and faces rising demands for fast and secure product distribution.
Global Biopharmaceutical Third Party Logistics Market, By Geography
In this report, the Global Biopharmaceutical Third Party Logistics Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Biopharmaceutical Third Party Logistics Market Share (%), by Geographical Region, 2024
In North America, the market benefits from a highly developed healthcare system, robust infrastructure, and strong demand for biopharmaceuticals. Europe follows closely, with its advanced healthcare facilities and stringent regulatory standards, ensuring high-quality logistics services. The Asia Pacific region is experiencing rapid growth due to increasing healthcare investments and expanding biopharmaceutical manufacturing capabilities.
The Middle East and Africa, although still developing, show significant potential with rising healthcare expenditures and improving logistics networks. Latin America, with its growing economies and healthcare sector improvements, also contributes to the market's expansion. The geographic segmentation allows for tailored logistics solutions that cater to the specific needs and conditions of each region, fostering growth and innovation in the global biopharmaceutical logistics market.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Biopharmaceutical Third Party Logistics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Growing biopharmaceutical industry
- Increasing demand for temperature-controlled logistics
- Advancements in logistics technology
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Growth in biologics and personalized medicine - The rise in biologics and personalized medicine is significantly impacting the biopharmaceutical third-party logistics market. Biologics, which include a broad range of products such as vaccines, blood components, gene therapies, and recombinant therapeutic proteins, require specialized storage and transportation conditions due to their sensitivity to temperature and handling. Personalized medicine, which tailors medical treatment to the individual characteristics of each patient, also demands precise and often rapid delivery systems.
As these fields grow, there is an increasing need for logistics providers that can offer reliable, temperature-controlled solutions and ensure compliance with stringent regulatory standards. This demand is driving innovation in cold chain logistics, specialized packaging, and real-time monitoring technologies, positioning third-party logistics providers as critical partners in the supply chain for biologics and personalized medicines.
Restraints:
- Risks of temperature excursions
- Security concerns for high-value shipments
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Dependence on third-party logistics providers - The biopharmaceutical industry’s reliance on third-party logistics (3PL) providers has become a double-edged sword. Outsourcing logistics operations allows biopharmaceutical companies to focus on their core competencies, such as research and development, while leveraging the expertise and infrastructure of specialized logistics providers. This dependence enables more efficient and cost-effective supply chain management, particularly in handling complex logistics needs like temperature-sensitive transportation and regulatory compliance.
This heavy reliance can pose risks, including potential disruptions if a logistics partner fails to meet service standards or faces operational issues. It may limit the biopharmaceutical company's control over the supply chain, potentially impacting product quality and delivery timelines. While 3PL providers play a crucial role in the industry, biopharmaceutical companies must carefully select and manage these partnerships to mitigate associated risks.
Opportunities:
- Adoption of advanced technologies
- Expansion into emerging markets
- Development of green logistics solutions
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Growth in direct-to-patient logistics - The shift towards direct-to-patient (DTP) logistics represents a significant trend in the biopharmaceutical logistics market. This model involves delivering medications directly to patients' homes, bypassing traditional distribution channels like pharmacies and hospitals. The growth in DTP logistics is driven by the increasing prevalence of chronic diseases, the rise of home healthcare, and the need for personalized medicine delivery. This approach not only enhances patient convenience and adherence to treatment regimens but also reduces the time-to-treatment for critical therapies.
DTP logistics requires robust infrastructure to ensure the safe and timely delivery of sensitive biopharmaceutical products, often necessitating advanced tracking systems, cold chain solutions, and reliable last-mile delivery services. As demand for DTP logistics grows, third-party logistics providers are investing in these capabilities to offer tailored solutions that meet the unique needs of biopharmaceutical companies and their patients.
Competitive Landscape Analysis
Key players in Global Biopharmaceutical Third Party Logistics Market include:
- FedEx.
- DHL International GmbH
- SF Express
- United Parcel Service of America, Inc.
- AmerisourceBergen Corporation
- DB Schenker
- Kerry Logistics Network Limited
- Agility
- LeK Pharmaceuticals
- Hitachi Transport System, Ltd.
- XPO Logistics
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Supply
- Market Snapshot, By Service
- Market Snapshot, By Function
- Market Snapshot, By Region
- Global Biopharmaceutical Third Party Logistics Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Growing biopharmaceutical industry
- Increasing demand for temperature-controlled logistics
- Advancements in logistics technology
- Growth in biologics and personalized medicine
- Restraints
- Risks of temperature excursions
- Security concerns for high-value shipments
- Dependence on third-party logistics providers
- Opportunities
- Adoption of advanced technologies
- Expansion into emerging markets
- Development of green logistics solutions
- Growth in direct-to-patient logistics
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Biopharmaceutical Third Party Logistics Market, By Supply, 2021 - 2031 (USD Million)
- Cold Chain Logistics
- Non-cold Chain Logistics
- Global Biopharmaceutical Third Party Logistics Market, By Service, 2021 - 2031 (USD Million)
- Transportation
- Airfreight
- Sea freight
- Overland transportation
- Warehousing & Storage
- Others
- Transportation
- Global Biopharmaceutical Third Party Logistics Market, By Function, 2021 - 2031 (USD Million)
- Domestic Transportation Management
- International Transportation Management
- Value-added Warehousing
- Distribution
- Global Biopharmaceutical Third Party Logistics Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Biopharmaceutical Third Party Logistics Market, By Supply, 2021 - 2031 (USD Million)
- Competitive Landscape Analysis
- Company Profiles
- FedEx.
- DHL International GmbH
- SF Express
- United Parcel Service of America, Inc.
- AmerisourceBergen Corporation
- DB Schenker
- Kerry Logistics Network Limited
- Agility
- LeK Pharmaceuticals
- Hitachi Transport System, Ltd.
- XPO Logistics
- Company Profiles
- Analyst Views
- Future Outlook of the Market