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Biopharmaceutical Logistics Market: Future market projections for forthcoming years
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Several leading players are actively investing in constructing new logistics facilities in various emerging nations to consolidate their regional presence. Furthermore, numerous players are providing user-friendly shipping and transportation, visibility tools, and a variety of specialized e-commerce and logistics management services in order to gain a better foothold in the market. The global biopharmaceutical logistics market is expected to expand at a CAGR of 6.2% from 2016 to 2024. The market was valued at US$70.9 bn and is projected to surge to reach US$120.7 bn by the end of the forecast period.
Geographically, the global biopharmaceutical logistics market is led by Europe and North America. The growth of these regional markets is fueled by the large number of exports and imports of biopharmaceutical products and constant technological advancements to improve transportation services and warehousing facilities. Based on mode of transportation, the market can be segmented into sea shipping, air shipping, rail shipping, and road shipping. Of these, air shipping is projected to dominate the biopharmaceutical logistics market, when valued in terms of revenue. However, owing to the limited volumes of transportation possible with air shipping, sea shipping and road shipping are projected to gain traction. These segments are anticipated to occupy the major volume share during the forecast period.
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The soaring demand for temperature-controlled logistics for the transportation of biopharmaceuticals in various regions and the need for safe transportation of these products are the key factors driving the market. A large number of biopharmaceutical companies seek the services of companies who ensure the transportation of their products in conformity with international standards. Furthermore, in-depth understanding of specific custom clearance regulations and operating procedures is imperative for hassle-free transportation of these goods. This is a crucial factor boosting the market. The growing number of global biopharmaceutical players are conducting clinical trials in emerging nations or have to go for shipments in difficult zones. This is a key factor catalyzing the growth of the biopharmaceutical logistics market.
The pressing demand among biopharmaceutical and biotechnology companies to improve their supply chains and minimize temperature excursions has boosted the market. The advent of advanced packaging and refrigeration technology has led many logistics companies to ensure better transportation of goods. The adoption of these technologies enable biopharmaceutical companies to gain a better visibility of their shipments, which helps them minimize or prevent any transportation loss. The substantial production of biological drugs has also increased the transportation of biopharmaceuticals.
Compared to sea transportation, the high cost associated with the transportation of highly temperature sensitive biopharmaceuticals has dissuaded many biotech and pharmaceutical companies to avail these services. This has impeded the growth of the market to an extent. Nevertheless, the bourgeoning production of targeted therapies and drugs in the medical sector is expected to open up numerous exciting opportunities for market players. In addition, the advent of cutting-edge solutions to improve critical supply of clinical trials is also expected to boost the biopharmaceutical logistics market.
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