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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.
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The market is propelled by automated retrieval and storage systems, meeting the demands of emerging countries for small molecule drugs, biosimilars, and vaccines. The market thrives on transporting biologic drugs and temperature-sensitive pharmaceuticals, including novel drugs and medications. Regulatory adherence, aided by government bodies, and the requisite infrastructure in healthcare facilities and setup, ensures compliance with temperature guidelines. Challenges include addressing evolving cold storage packaging demands, adapting to technological developments like the radio frequency identification (RFID) system, and maintaining the integrity of biopharmaceuticals and clinical trial materials in the healthcare cold chain logistics product segment. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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.
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.
Lack of logistics infrastructure and low adoption of advanced technologies is a major challenge hindering the market. The logistics 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 cold chain logistics infrastructure and the low adoption of advanced technology adoption by service providers. Hence, such factors are negatively impacting the cold chain logistics market for the pharmaceutical industry. Therefore, it is hindering the market growth during the forecast period.
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
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:
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.
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.
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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.
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.
The healthcare cold chain logistics market for the pharmaceutical industry is crucial for maintaining the efficacy and safety of temperature-sensitive products like vaccines, biologic drugs, and clinical trial materials. With the rising need for healthcare cold chain logistics, the industry is witnessing technological developments such as automated retrieval and storage systems and the use of radio frequency identification (RFID) for temperature monitoring. The market serves various end users, including hospitals & clinics, biotechnology companies, and pharmaceutical industry players, who rely on temperature-controlled packaging and cold storage to ensure the quality and shelf life of medicines. This market operates under strict regulatory frameworks to meet standards and accreditations for the storage, transportation, and distribution of pharmaceuticals. The demand for vaccines and novel drugs is driving the need for cold warehouse space and efficient last-mile delivery services, making adaptability and quality critical in the cold chain industry.
Moreover, the market is crucial for the Healthcare and Pharmaceutical Industries, ensuring the safe and efficient transport of temperature-sensitive products. Healthcare Cold Chain Logistics Services encompass various aspects such as labeling, ensuring products are properly identified and handled. The mode of delivery includes Hubs-to-Distributor routes. Temperature range is critical, with options like Ambient, Frozen, and Cryogenic storage. End users benefit from improved Drug Efficiency and streamlined Operations, especially in Clinical Trials. The market is driven by the need for Refrigeration during Pharmaceutical Exports and the rise in demand for vaccines due to Mass Immunization Programs.
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 |
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