Pharmaceutical Cold Chain Logistics Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast 2024-2028

Pharmaceutical Cold Chain Logistics Market Forecast 2024-2028 

The Pharmaceutical Cold Chain Logistics Market size is forecast to increase by USD 12.81 billion, at a CAGR of 9.57% between 2023 and 2028. The market is rapidly expanding due to several key factors. One of the main drivers is the growing global demand for pharmaceuticals, which is fueling the need for reefer containers in the pharmaceutical sector. Additionally, there has been a significant increase in the number of refrigerated warehouses worldwide, further boosting market growth. These trends highlight the growing importance of temperature-controlled storage and transportation in various industries, especially pharmaceuticals, and are expected to drive the market forward in the coming years. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

What will be the Size of the Market During the Forecast Period?

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The market is experiencing significant growth driven by various factors. Innovation in temperature-controlled products and monitoring components is enhancing the efficiency and reliability of the supply chain. Government emphasis on pharmaceutical regulations and GDP regulations is shaping the market landscape, while merger and acquisition activity is fostering market consolidation. Telematics technology is optimizing transportation operations, including sea freight logistics, air freight logistics, and overland logistics. This market caters specifically to the unique needs of the pharmaceutical industry, ensuring the safe and timely delivery of over-the-counter medicines and other pharmaceutical products worldwide.

Market Dynamics and Customer Landscape

The market experiences robust growth driven by the demand for temperature-sensitive goods and novel drugs. With the rise in pharmaceutical exports, advanced technologies like Radio Frequency Identification (RFID) systems ensure efficient tracking and monitoring across the supply chain, from hubs to distributors to last-mile delivery. Hospitals, clinics, and biotechnology companies rely on cold chain logistics for the safe transport and storage of temperature-controlled products, including refrigerated, frozen, and cryogenic goods. Amidst increasing government emphasis on healthcare and innovation, mergers and acquisitions activity further propels the market, ensuring GDP regulation compliance and streamlined logistics across sea, air, and overland transportation segments.

Key Market Driver

Growth in demand for reefer containers from the pharmaceutical industry is notably driving the market. Reefer containers, equipped with automated retrieval and storage systems, ensure a constant supply of uniform air through specific T-shaped decking. These containers are extensively utilized for transporting food, beverages, and pharmaceutical products. Specially designed for temperature-sensitive goods like pharmaceuticals, reefer containers play a crucial role in maintaining the integrity and efficacy of medications during long-distance transit. 

Moreover, automated retrieval and storage systems, emerging countries, small molecule drugs, biosimilars, vaccines, biologic drugs, temperature-sensitive pharmaceuticals, novel drugs, medications, government bodies, healthcare facilities, healthcare setup, temperature guidelines, cold storage packaging, technological developments, radio frequency identification (RFID) system, temperature monitoring, healthcare cold chain logistics product, biopharmaceuticals, and clinical trial materials are pivotal aspects in ensuring the efficacy and safety of pharmaceutical transportation. Hence, such factors are driving the market growth. during the forecast period.

Significant Market Trends

Increased use of IoT and technological solutions in warehouses is an emerging trend in the market. The rising use of technology and the IoT is extending various benefits, including a reduction in operating costs to warehousing service providers. In addition, companies operating in the market offer tools and techniques for automating several warehouse business process areas. Furthermore, they integrate cross-functional business process components and effectively identify, track, quantify, and report on various sustainability drivers.

Moreover, the IoT solution involves the use of sensors and robotic systems in warehouse facilities. Analytics tools are used to process data in the most productive, efficient, convenient, and safe ways. For instance, in September 2022, Air Canada Cargo (Air Canada) used the new live monitored, temperature-controlled certified aircraft containers, the Envirotainer Releye RLP and RAP. Furthermore, the Releye RLP and RAP containers are equipped with 18 integrated sensors that monitor various aspects during shipping, which include location, internal and external temperature, battery level, humidity, door openings, cargo loaded, and GPS so that customers can track their shipments in real-time. Hence, such factors are driving the market growth during the forecast period.

Major Market Challenge

Lack of logistics infrastructure and low adoption of advanced technologies is a major challenge hindering the market. The infrastructure for cold chains in countries including Brazil, China, India, and South Africa is not well developed.  In addition, many factors, such as the scarcity of adequate infrastructure, lack of trained personnel, higher prevalence of old-fashioned technology, and inconsistent power supply, are impeding the growth of the market in these countries.

Moreover, on average, about 20% of temperature-sensitive products are damaged due to broken cold chain logistics supply chains. In addition, this is mostly attributed to the lack of infrastructure and the low adoption of advanced technology adoption by service providers. Hence, such factors are negatively impacting the market. Therefore, it is hindering the market growth during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Market Segmentation

In the market, the product segment is crucial for ensuring the safe and efficient transportation of temperature-sensitive pharmaceutical products, especially novel drugs and biopharmaceuticals. Pharmaceutical companies rely on cold chain logistics to maintain the integrity of their products during transportation, particularly for pharmaceutical exports and clinical trial materials. Advanced technologies such as Radio Frequency Identification (RFID) systems are employed for real-time tracking and monitoring of shipments, ensuring proper handling and temperature control throughout the supply chain. Packaging plays a critical role in preserving the efficacy of temperature-sensitive goods, with specialized solutions designed to maintain specific temperature ranges, including ambient, refrigerated, frozen, and even cryogenic temperatures. Proper labeling is essential for identifying and categorizing pharmaceutical products based on their temperature requirements. The last-mile delivery is a key focus area, ensuring that pharmaceuticals reach their final destination, such as hospitals and clinics, in optimal condition. This involves efficient transportation from distribution hubs to distributors, with stringent temperature controls maintained throughout the journey.

By Product

The vaccines segment is estimated to witness significant growth during the forecast period. Currently, biotechnology companies have been working on different advanced technologies in the biomedical field to invent new vaccines for various diseases such as viral diseases and others. In addition, these biotechnology companies need cold-chain logistics to deliver vaccines across various parts of the world. Therefore, an increase in R&D in the field of biotechnology will augment the need for cold-chain logistics for pharmaceuticals.

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The vaccines segment was the largest segment and was valued at USD 6.87 billion in 2018. Moreover, the development and approval of vaccines have saved millions of lives globally by providing large-scale protection against serious diseases. In addition, the development and approval of vaccines is the priority due to the development of resistance against existing therapeutics and the unwanted side effects associated with some current drugs used in the treatment of diseases, such as cancer. Furthermore, with the increase in the prevalence of infectious and other life-threatening diseases, the top players in the market are focusing on the development of vaccines to treat various diseases. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is expected to record a high growth rate owing to the development of the healthcare market in Asia.  In addition, the growth of the consumer healthcare market in APAC increased significantly between 2021 and 2022, primarily due to increasing investments from both government and private sectors for the improvement of healthcare infrastructure. Moreover, growing foreign investment and ease of access to healthcare insurance in most Asian economies are also expected to boost the consumer healthcare market in APAC. Furthermore, high growth is expected because of the enhanced healthcare facilities coupled with the increased investments by governments and non-governmental organizations (NGOs) in improving public health standards. Hence, such factors are driving the market growth in APAC during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Agility Public Warehousing Co. K.S.C.P: The company offers cold chain logistic for LCL reefer shipments, as well as to move pharmaceutical products to difficult-to-reach locations, areas prone to power cuts, and for last-mile delivery.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 24 market companies, including:

• Air Canada
• AVINEX
• Burris-Logistics Co.
• Cold Chain Technologies
• Coldman-Logistics Pvt. Ltd.
• Deutsche Post AG
• DPD Deutschland GmbH
• DSV AS
• FedEx Corp.
• Helapet Ltd.
• Kuehne Nagel Management AG
• Lineage-Logistics Holdings LLC
• Nichirei Corp.
• Orient Overseas Container Line Ltd.
• PCI Pharma Services
• SCG Logistics Management Co. Ltd.
• SF Express Co. Ltd.
• Singhania Logistics and Distribution Pvt. Ltd.
• Snowman Logistics Ltd.
• Uber Technologies Inc.
• United Parcel Service Inc.
• VersaCold Logistics Services
• XPO Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is experiencing rapid growth propelled by factors such as the increasing emphasis on temperature-controlled products and the rising demand for pharmaceuticals worldwide. With innovation driving advancements in storage segment, transportation segment, and monitoring components, the market is witnessing significant expansion. Ambient temperature, refrigerated temperature, frozen temperature, and cryogenic temperature play crucial roles in maintaining product integrity throughout the supply chain. Government emphasis on regulatory compliance and merger and acquisition (M&A) activity are shaping market dynamics. Telematics technology is revolutionizing logistics operations, optimizing sea freight logistics, Air freight logistics, and overland logistics. These developments underscore the vital role of cold chain logistics in ensuring the safe and efficient delivery of pharmaceutical products.

The market is witnessing robust growth driven by various factors such as the increasing demand for pharmaceutical exports and over-the-counter (OTC) medicines. With a focus on GDP regulation and adherence to Good Distribution Practices (GDP), the market ensures the safe and efficient transportation of temperature-sensitive pharmaceutical products. Hospitals & clinics, pharmacies, health centers, and retailers rely on cold chain logistics to maintain product integrity from hubs-to-distributor. Monitoring components segment, along with automation instruments and machine learning technologies, play a vital role in enhancing operational efficiency and ensuring compliance with government regulations. Raw material suppliers, packaging suppliers, and storage and logistics service providers are integral parts of the cold chain network, ensuring seamless distribution of pharmaceutical products worldwide.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook 
  • Vaccines
  • Biopharmaceuticals
  • Clinical trial materials
• Service Outlook 
  • Warehousing
  • VAS
  • Transportation
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	175
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 9.57%
Market Growth 2024-2028	USD 12.81 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	8.94
Regional analysis	APAC, North America, Europe, South America, and the Middle East and Africa
Performing market contribution	APAC at 35%
Key countries	US, China, Germany, UK, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Agility Public Warehousing Co. K.S.C.P, Air Canada, AVINEX, Burris Logistics Co., Cold Chain Technologies, Coldman Logistics Pvt. Ltd., Deutsche Post AG, DPD Deutschland GmbH, DSV AS, FedEx Corp., Helapet Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Nichirei Corp., Orient Overseas Container Line Ltd., PCI Pharma Services, SCG Logistics Management Co. Ltd., SF Express Co. Ltd., Singhania Logistics and Distribution Pvt. Ltd., Snowman Logistics Ltd., Uber Technologies Inc., United Parcel Service Inc., VersaCold Logistics Services, and XPO Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market growth trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and the Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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