Pharmaceutical Drugs and Biologics Logistics Global Market Opportunities And Strategies To 2021
- July 2018 •
- 300 pages •
- Report ID: 5482363 •
- Format: PDF
Pharmaceutical Drugs And Biologics Logistics Global Market Opportunities And Strategies By Type Of Service: Cold-Chain Logistics And Non-Cold Chain Logistics; By Mode Of Transport: Air Transportation, Ocean Transportation, Land Transportation; By Product Type: Pharmaceutical Drugs And Logistics; By Therapeutic Area: Musculoskeletal, Cardiovascular, Oncology, Anti-Infective, Metabolic Disorders, Central Nervous System, Genito-Urinary, Respiratory, Gastro-Intestinal, Hematology, Dermatology, Ophthalmology; With Forecast Until 2021
Pharmaceutical drugs and biologics logistics’ covers the physical movement of pharmaceutical and biologic drugs from the manufacturer to the end-user.It includes the transportation, warehousing, inventory management and other logistics functions.
The market consists of those pharmaceutical drugs and biologics logistics that are outsourced to logistics companies instead of handled in-house by the pharmaceutical companies.
Logistics deals with the procurement, planning, and implementation of process activities in the transportation of goods from one place to another.The pharmaceutical industry utilizes logistics services to supply medicinal products to different end users.
Pharmaceutical companies sometimes outsource their logistics services to third-party logistics service providers in order to focus on their core business activities such as marketing, production and research and development, to benefit from the cost savings achieved by the logistics companies that combine loads and to avoid the high investment needed in logistics facilities.
Pharmaceutical drugs and biologics logistics’ covers the physical movement of pharmaceutical and biologic drugs from the manufacturer to the end-user. It includes the transportation, warehousing, inventory management and other logistics functions. The market consists of those pharmaceutical drugs and biologics logistics that are outsourced to logistics companies instead of handled in-house by the pharmaceutical companies.
Logistics deals with the procurement, planning, and implementation of process activities in the transportation of goods from one place to another. The pharmaceutical industry utilizes logistics services to supply medicinal products to different end users. Pharmaceutical companies sometimes outsource their logistics services to third-party logistics service providers in order to focus on their core business activities such as marketing, production and research and development, to benefit from the cost savings achieved by the logistics companies that combine loads and to avoid the high investment needed in logistics facilities. The pharmaceutical and biologics logistics industry is increasingly adopting sea-based logistics owing to rising air freight rates while providing a clinically-maintained environment to preserve the pharmaceutical and biologic products, and distribution chain cost-cutting measures to improve the earnings and performance of the companies.
The global pharmaceutical drugs and biologics logistics market grew from $70.2 billion in 2013 to $79.9 billion in 2017 at a compound annual growth rate (CAGR) of 3.3%. It is expected to grow from $79.9 billion in 2017 to $96.1 billion in 2021 at a CAGR of 4.7%.
Growth will result from increasing demand for drugs in general and in particular for temperature-sensitive biopharmaceutical products such as vaccines and blood plasma products. The pharmaceutical drugs and biologics logistics market has benefitted from rising pharmaceutical sales. Governments across the globe are continuously establishing new healthcare reforms triggering the growth of the pharmaceutical market, and rising income levels and urbanization in emerging economies also fuel its growth. The advantages to pharmaceutical manufacturers of outsourcing to logistics service providers are another driver. Low cost and greater visibility in the drug distribution chain are the main advantages of outsourcing logistics services and these are becoming an integral part of pharmaceutical companies’ business strategy.
Factors that could hinder the growth of this market include poor infrastructure for cold chain logistics, skills shortages in the industry and unstable regulatory environments in emerging countries. The market may also be negatively affected by increased regulation on temperature-sensitive pharmaceutical products distribution. For example, the Drug Supply Chain Security Act in the US requires drug manufacturers to implement serializations, traceability and data reporting to help secure the drug distribution chain and increase consumer safety. Complying with greater regulation raises logistics costs and may make distribution of some products to some markets uneconomic.
The market can be segmented by type of service, mode of transport, type of pharmaceutical and therapeutic area. By type of service, non cold chain logistics segment was the larger segment in 2017, accounting for about 83% of the market. This was mainly due to the fact that a majority of pharmaceutical drugs do not require temperature control and are shipped as general cargo. By mode of transport, air transportation was the largest segment in in 2017, accounting for about 71% of the market. This was mainly due to the speed, reliability and efficiency in delivering high-value, time-sensitive, temperature-controlled cargo provided by air transportation. By type of pharmaceutical, the pharmaceutical drugs segment was the largest segment in the pharmaceutical drugs and biologics logistics market in 2017 accounting for about 87% of the market. This was mainly due to the relative affordability pharmaceutical drugs and earlier stage of development of the biologics industry. By therapeutic area, musculoskeletal was the largest segment in the pharmaceutical drugs and logistics market in 2017 accounting for 13.92% of the market. The fastest-growing segments were cold-chain logistics, sea-transportation, and biologics.
The pharmaceutical drugs and biologics logistics market in North America was the largest in the world in 2017, accounting for about 37.8% of the total. This was mainly owing to the predominance of North America in the pharmaceutical drugs and biologics markets and the fact that the region has the least issues related to transportation of pharmaceutical products. The pharmaceutical drugs and biologics logistics market in Western Europe was the second largest in the world in 2017, accounting for 21% of the total.
The logistics competitive landscape has two aspects to it. There are a few large companies such as Fedex, UBS, and DHL that have a strong global presence, but the domestic logistics markets within countries that include pick-up and delivery for these large players is very fragmented. The large companies are increasingly acquiring smaller players in order to extend their geographical presence and proprietary knowledge.
Pharmaceutical logistics companies are also increasingly focusing on providing sea-based logistics services to reduce transportation costs for their customers. For example, in 2015, ZIM Integrated Shipping Services Ltd., an Israel-based ocean carrier, successfully conducted a pilot program with Teva Pharmaceuticals, to expand its fleet of refrigerated containers for ocean freight.
Where is the largest and fastest growing market for pharmaceutical drugs and biologics logistics? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The pharmaceutical drugs and biologics logistics global market report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, pestle analysis, porters five force model, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market and forecasting the future. Drivers and restraints cover the external factors supporting and controlling the growth of the market.
• PESTLE Analysis covers the political, economic, social, technological, legal and environmental factors affecting the pharmaceutical drugs and biologics logistics.
• Porters five force model covers the threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers and industry competition for the pharmaceutical drugs and biologics logistics market.
• Market segmentation by service breaks down the market into sub markets. By type of service, the market is segmented into cold-chain logistics and non-cold chain logistics. By mode of transport, the market is segmented into air transportation, ocean transportation and land transportation. Market segmentation is also done by pharmaceutical type, which includes pharmaceutical drugs and biologics. The historic and forecast growth rates for these segments are also covered in this report. The report also covers segmentation by therapeutic area which includes, musculoskeletal, cardiovascular, oncology, anti-infective, metabolic disorders, central nervous system, genito-urinary, respiratory, gastro-intestinal, hematology, dermatology and ophthalmology
• The regional and country breakdown section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers all the regions, key developed countries and major emerging markets.
• The competitive landscape section gives a description of the competitive nature of the market, market shares, and a description of the leading companies in terms of their offerings, growth strategy and financial performance.
• The trends and strategies section highlights the likely future developments in the market and suggests approaches companies can take to exploit this.
Markets covered: 1) By Type of Service - cold-chain logistics and non-cold chain logistics 2) By Mode of Transport – air transportation, ocean transportation and land transportation 3) By Product Type – pharmaceutical drugs and logistics 4) By Therapeutic Area - musculoskeletal, cardiovascular, oncology, anti-infective, metabolic disorders, central nervous system, genito-urinary, respiratory, gastro-intestinal, hematology, dermatology, ophthalmology
Companies mentioned: Deutsche Post DHL Group, FedEx Corporation, Panalpina World Transport (Holding) Ltd, Kuehne + Nagel, DB Schenker
Countries: USA, UK, Germany, France, Italy, Spain, Russia, Brazil, Australia, China, India, Japan
Regions: Asia-Pacific, North America, South America, Western Europe, Eastern Europe, Middle East & Africa.
Time series: Five years historic and forecast.
Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Why this report?
Timely and Critical:
- Blockchain And IoT In Pharmaceutical Logistics
- Automated Storage And Retrieval Systems
- Phase Change Materials In Pharmaceutical Cold Chain
- IATA Certification For Pharmaceutical Shipments
-Technology Adoption In Cold Chain Logistics
- Shift Towards Ocean Shipments
- Implementation Of Mobile Technology In Logistics
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