Enjoy complimentary customisation on priority with our Enterprise License!
The cold chain logistics market is estimated to grow at a CAGR of 9.51% and the size of the market is forecast to increase by USD 11.6 billion between 2022 and 2027. The growth of the market depends on several factors, including the Increase in global demand for pharmaceuticals, the growth in demand for reefer containers from the pharmaceutical industry, and the rising initiatives to promote the cold chain.
This report extensively covers market segmentation by service (warehousing and VAS and transportation), product (vaccines, biopharmaceuticals, and clinical trial materials), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Request Free Sample
The increase in the global demand for pharmaceuticals is notably driving the cold chain market for pharmaceutical industry growth, although factors such as functional barriers in cold chain logistics that increase operational costs may impede the market growth. Our researchers analyzed the data with 2022 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.
The increase in the global demand for pharmaceuticals is a key factor driving the global pharmaceutical cold chain logistics market growth. The Affordable Care Act, a health insurance scheme introduced by the US Federal government, has contributed to the high growth in pharmaceutical sales. The ACA allowed more than 20 million uninsured people to avail of health insurance. In addition, the launch of the National Health Protection Scheme (NHPS) in India in 2018, with the objective of extending healthcare insurance to 100 million families, will drive the demand for pharmaceutical products in India. Therefore, for the efficient transportation, warehousing, and distribution of pharmaceuticals in large volumes, end-user companies require specialized cold-chain healthcare logistics services.
In October 2021, UPS expanded its global network to support the increased demand for its clinical drug supply chain services, particularly for cell and gene-related pharmaceutical clinical trials. Expansion plans included new locations, expanded cold chain services, and packaging solutions. To cater to the rising demand in the pharmaceutical trade, end-user industries are availing of cold chain logistics, which will foster the growth of the cold chain logistics for the pharmaceuticals market in focus.
Growing consolidation in the global healthcare logistics market will fuel the global pharmaceutical cold chain logistics market for pharmaceutical industry growth. The global cold chain logistics market for the pharmaceutical industry is highly fragmented, with the presence of many players. High market fragmentation poses challenges for big players and restricts them from expanding into new geographic regions or countries. This leaves them with the choice of building a network from scratch in a new region, which is cumbersome.
To break the entry barrier into new geographies, established logistics vendors such as United Parcel Service, Deutsche Post AG, and FedEx Corp. are using market consolidation as a strategic tool for business expansion. This market consolidation strategy helps key players in adopting local or regional technologies from regional players and expanding their market presence and attaining profitability in the competitive market. The above factors will increase the cold chain logistics for pharmaceuticals market growth during the forecast period
The functional barriers in cold chain logistics that increase operational costs are the major challenge to the global pharmaceutical cold chain logistics market for pharmaceutical Industry growth. The procurement of land for warehouses, which are a crucial part of cold chain logistics, is a strategic decision for LSPs. The cold chain is a critical service, and establishing cold storage in proximity to the production facility is vital. Real estate costs in countries such as China, India, and the US are on the higher side, owing to the increase in interbank exchange rates.
Industrial spaces include factories or offices, warehouses, and light manufacturing buildings. The low vacancy rate in the US has increased industrial rents. The rise in industrial rents is affecting the profitability of cold chain logistics players. An increase in land cost will further incur additional capital spending for cold chain service providers. This will put pressure on the profit margins of vendors. Furthermore, warehouse rents are also expected to rise during the forecast period due to the growing supply-demand gap in terms of industrial spaces. Such factors will hinder the cold chain logistics for the pharmaceuticals market growth during the forecast period.
Our analysis of the Life Cycle of the Global pharmaceutical cold chain logistics market from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the global cold chain logistics for the pharmaceuticals market, focusing on the adoption rates in major regions such as the US, Canada, China, Germany, and the UK. Our researchers have included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies for 2022-2027.
Global Cold Chain Logistics Market for Pharmaceuticals Industry Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the pharmaceutical cold chain logistics market.
Microsoft - The company offers cloud data warehouse solutions such as Enterprise BI in Azure with Azure Synapse Analytics.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, such as
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The pharmaceutical cold chain logistics market share growth by the warehouse and VAS segment will be significant during the forecast period. Warehousing refers to the storage of finished and semi-finished goods in a storehouse or at a distribution center. The warehousing activity is capital-intensive and critical in the supply chain. As a result, it plays a vital role in cold chain logistics for the pharmaceutical industry. The growth of the global refrigerated market is expected to drive the use of refrigerated warehouses for storing medicines, vaccines, and biopharmaceutical products in tropical climates. This, in turn, will drive the growth of the global cold chain logistics market for the pharmaceuticals industry during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
To facilitate the storage of pharmaceuticals, temperature-controlled warehouses need to operate in the temperature range from -13 degrees F to 41 degrees F (-25 degrees C to 5 degrees C). The increase in the number of refrigerated pharmaceutical products will provide a boost to the warehousing and VAS segment. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the Cold Chain Logistics Market for Pharmaceuticals Industry by residential consumers, which is driven by the increase in the global demand for pharmaceuticals.
For insights on the market share of various regions Request PDF Sample now!
APAC is projected to contribute 34% by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is the fastest-growing region in the global cold chain logistics for the pharmaceuticals market compared to other regions. The pharmaceutical cold chain logistics market in APAC is expected to record a high growth rate due to the development of the healthcare market in Asia. The growth of the consumer healthcare market in APAC increased significantly between 2020 and 2021, primarily due to increasing investments from both government and private sectors for the improvement of healthcare infrastructure. The high growth is expected because of the enhanced healthcare facilities coupled with the increased investments by governments and non-governmental organizations (NGOs) to improve public health standards.
In 2021, the COVID-19 pandemic propelled market growth in North America. With work from home becoming the new normal, there has been an increase in the adoption of cloud services and digitization, leading to the emergence of a new business environment. This has increased the demand for automation services and solutions in the region. Moreover, the key vendors in the market are expanding their businesses in the region. For instance, in February 2020, Google LLC announced its plan to invest more than USD10 billion in offices and data centers across the US. Such initiatives by key market players will substantially drive the growth of the regional cloud data warehouse market during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2028. We have segmented the market based on type, product, distribution channel, and region.
|
Cold Chain Logistics Market For Pharmaceuticals Industry Scope |
|
|
Report Coverage |
Details |
|
Page number |
169 |
|
Base year |
2022 |
|
Historical year |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 9.51% |
|
Market growth 2023-2027 |
USD 11.6 billion |
|
Market structure |
Fragmented |
|
YoY growth (%) |
9.23 |
|
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
|
Performing market contribution |
APAC at 34% |
|
Key consumer countries |
US, Canada, China, Germany, and UK |
|
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
|
Key companies profiled |
AGRO Merchants Group, Air Canada, Burris Logistics, Cold Chain Technologies LLC, Coldman Logistics Pvt.Ltd., Deutsche Post AG, DSV Panalpina AS, FedEx Corp., Helapet ltd., JWD InfoLogistics Public Co. Ltd., Kerry Logistics Network Ltd., Kuehne + Nagel Management AG, Lineage Logistics Holdings LLC, Nichirei Corp., PCI Pharma Services, SCG Logistics Management Co. Ltd., Singhania Logistics and Distribution Pvt. Ltd., Snowman Logistics Ltd., United Parcel Service Inc., VersaCold Logistics Services, and XPO Logistics 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
