Global Healthcare Cold Chain Logistics Market Outlook Report 2023-2028: How 3PL Providers and the Rise of Direct-To-Patient Logistics are Driving Market Expansion
|Update : 5th September, 2023|
The "Healthcare Cold Chain Logistics Market - Global Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The global healthcare cold chain logistics market is expected reach a value of $27.74 billion by 2028 from $20.39 billion in 2022, growing at a CAGR of 5.26% from 2022 to 2028.
The increasing demand for air ambulances is fueled by growing demand for organ transplants and emergency patient transfer. The demand for air ambulances is growing in the U.S. and Europe; however, it is expected to create lucrative opportunities in APAC and Latin America during the forecast period. The leading healthcare cold chain logistics also raises growing funds to support air ambulances. For instance, Deutsche Post DHL Group raised about USD 95,900 in 2021 for local air ambulance service.
Recently, clinical research has become highly globalized, with many of these studies being conducted across the globe and a significant increase in clinical trials in developing countries. The focus of clinical trial researchers is now shifting from developed markets of Japan, Australia, South Korea, and Singapore to emerging economies such as Thailand, China, the Philippines, and Vietnam.
Major companies strive to offer cloud-based supply chain services and secured supply chain functions such as blockchain technology and live tracking platform as they help healthcare companies safeguard the validity of their products. Vendors in the healthcare cold chain logistics market, such as FedEx and Nippon Express, are focused on developing their pioneering IoT technology to monitor and perform the live tracking of their shipments.
These solutions are also expected to prevent the production and distribution of counterfeit drugs. According to DB Schenker, a subsidiary of DB Group, to increase transport density and reliability, the shift to digital rail operations and digitalization of infrastructure and vehicles is essential. In 2019, TrakCel, one of the global leaders in managing clinical supply chain logistics, partnered with Quick Group to provide industry-leading digital supply chain IT solutions for cell and gene therapies.
North America accounted for the highest revenue share of over 37% of the global healthcare cold chain logistics market in 2022. The larger share is contributed by the increasing clinical trial spending, increasing spending on R&D activities to develop new drugs, and the presence of top leading pharmaceutical companies.
About five of the ten leading pharmaceutical companies in 2020 were from the United States. In the U.S., branded drugs accounted for around 83.9% of spending in the US alone. In 2020, about 8.1% of global drug and medicine shipments originated from North America.
Further, North America and Europe accounted for about 80% of monoclonal antibodies. Thus, the demand for biologics, i.e., vaccines and monoclonal antibodies, is increasing investments in R&D. These are major factors driving the healthcare cold chain logistics market.
The global healthcare cold chain logistics market is highly fragmented and concentrated, with many key players in the industry. AmerisourceBergen, DB Group, Deutsche Post DHL Group, CEVA Logistics, United Parcel Service, FedEx, and Kuehne + Nagel are the significant players in the global healthcare cold chain logistics market.
Vendors are increasingly focusing on integrating new advancements in their services to become more competitive and increase their profit margin. These advancements include integrating blockchain technology to ensure safety and authenticity and avoid counterfeiting drug fraud.
Further, several vendors, such as Kuehne+ Nagel, give a fully integrated "live tracking" platform for easy access to data regarding the shipment. In addition, FedEx, a key company, and Nippon Express provide safe and compliant transportation of temperature-sensitive shipments in pharma. Their shipments are enabled with real-time tracking and tracing data.
INSIGHTS BY PRODUCT
The pharmaceuticals product segment dominated the global healthcare cold chain logistics market due to increasing demand for both branded and generic drugs and vaccines. Pharmaceuticals are imported and exported around the world on a massive scale. Aging populations and new drugs to treat rare and specialty diseases fuel this growth.
North America and Europe are the major markets for the largest pharmaceutical segment share. About 97% of marketed drugs are classified as small molecules. Biologics will lead among the top-selling products and new sales generators projected for 2022, whereas small molecules will continue to lead in new drug approvals.
According to the US FDA's Center for Drug Evaluation and Research, of the 50 new molecular entities (NMEs) approved in 2021, 36 (72%) were small molecules, and 14 (28%) were biologics.
INSIGHTS BY FUNCTION
The global healthcare cold chain logistics market by service is segmented into transportation, warehousing, and others.
As transportation is a crucial part of the logistics chain, it accounted for the highest revenue share of the market. Transportation is the most crucial part of cold chain logistics because the products are transported to the end-user. The demand for temperature-controlled transportation is also rising to maintain the quality of products.
Furthermore, road transportation dominates the transportation segment, with a revenue share of over 66% in 2022. The highest share of road transportation can be attributed to its low cost in workforce and operation. In January 2021, over 58% of US-Canada cross-border freight was moved by trucks, followed by rail, with over 16% of cross-border freight.
INSIGHTS BY END-USER
The pharmaceutical/biotech companies' end-user segment accounted for the highest revenue share of the global healthcare cold chain logistics market in 2022.
Pharmaceutical/biotech companies dominate the end-user segment because this segment is the primary manufacturer of healthcare products that are temperature sensitive and need cold chain logistics to ensure efficient and timely delivery of medications to the patients and to receive raw materials such as APIs to develop several pharmaceutical products. In recent years, it has been noticed that there is growing spending in cold chain logistics that is contributing to market growth.
The revenue share of the pharmaceutical/biotech companies' segment is expected to grow faster in APAC during the forecast period as APAC is a potential market for pharma industry growth.
Market Opportunities & Trends
- Logistics Control Through Internet of Medical Things (Iomt)
- Adoption of Blockchain Technology
- Emergence of Direct-To-Patient Logistics Services
Market Growth Enablers
- Rise in Number of Clinical Trials
- Increasing Collaborations Between 3Pl Providers & Healthcare Providers
- Surge in Demand for Generics & Biosimilars
- Increase in Mass Immunization Programs
- Lack of Compliance & Changing Regulations
- Geopolitical Risks & Fluctuating International Trade Regulatory Policies
- Inbound Logistics Services for Manufacturers
Key Company Profiles
- DB Group
- Deutsche Post DHL Group
- CEVA Logistics
- United Parcel Service
- Kuehne + Nagel
Other Prominent Vendors
- AWL India
- A.P. Moller - Maersk
- Azenta Cold Chain Technologies
- COREX Logistics
- Cardinal Health
- GXO Logistics
- Kerry Logistics Network
- Lufthansa Cargo
- Nippon Express
- Noatum Logistics
- Phoenix Group
- Parexel International
- Quick International Courier
- SEKO Logistics
- YUSEN LOGISTICS
For more information about this report visit https://www.researchandmarkets.com/r/7k82i
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