Biopharmaceutical Third-Party Logistics Market size is evaluated at USD 123.9 billion in 2024 and is expected to reach USD 246.5 billion by the end of 2037, growing at around 5.9% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of biopharmaceutical third-party logistics is estimated at USD 131.2 billion.
The market growth is fostered due to emerging biopharmaceutical industries with advanced technologies offering immense growth opportunities. The high demand for effective logistics, increasing prevalence of chronic diseases, and rising approval for a wide range of biologics and biosimilars are some key factors boosting global biopharmaceutical third-party logistics market growth. Moreover, the rising manufacturing of biopharmaceuticals has encouraged third-party providers to develop advanced temperature-controlled storage and transportation solutions and services.
The market growth has been surged by the expansion into the biopharmaceuticals sector by logistics companies such as DHL and UPS, and growing adoptions of advanced technologies such as IoT sensors and blockchain, further enhancing supply chain visibility and security. For instance, McKesson Third Party Logistics (3PL) pledges to render comprehensive support to biopharma companies of all sizes, ranging from licensing needs to business planning to monitoring programming. Companies follow stringent norms and complex procedures for the pricing and manufacturing of biological products and biopharmaceuticals as these are derived from living cells and are sensitive as compared to traditional pharmaceutical drugs. According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) of biological products and drug manufacturing reached 254.0 in July 2024.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.9% |
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Base Year Market Size (2024) |
USD 123.9 billion |
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Forecast Year Market Size (2037) |
USD 246.5 billion |
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Regional Scope |
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Service (Transportation, Warehousing, and Storage)
Warehousing and storage segment is set to capture around 43.2% biopharmaceutical third-party logistics market share by the end of 2037, primarily driven by increasing demand for biologics and biosimilars and the need for advanced storage solutions, ensuring the integrity and efficacy of temperature-sensitive biologics. The warehousing and storage segment is expected to continue dominating this sector, as logistics companies are investing heavily in expanding their capacity to accommodate the new patterns and trends being followed by ensuring its safe and efficient storage and distribution.
Supply (Cold Chain, Non-cold Chain)
The non-cold chain segment is anticipated to register robust growth during the forecast period owing to the growing demand for ambient and room temperature-stable biologics such as tablets, capsules, or powders. Higher concern towards supply chain flexibility and agility will further push the demand for non-cold chain solutions, as it provides better flexibility in dynamic market conditions. Innovations in the process of packaging and shipping technologies are assisting in transporting non-cold chain biopharmaceuticals more safely and efficiently.
Our in-depth analysis of the market includes the following segments
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Services |
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Supply |
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North America Market Statistics
North America biopharmaceutical third-party logistics market is expected to hold revenue share of more than 42.3% by 2037 owing to several driving forces as the region has a vast and rapidly evolving biopharmaceutical industry, characterized by a strong presence of biotech companies, research institutions, and manufacturing facilities that have created strong demand for specialized logistics services. The region has well-structured and established transport infrastructure such as airports, seaports, and highways which ensures efficient and safe transportation of biopharmaceutical products.
North America is governed by a strict regulatory environment heavily dominated by authorized which has led to logistics providers making the necessary investment in compliant and secure solutions hence supporting the growth of the market. The strong economic growth in this region, coupled with the growing investments in the research and development of biopharmaceuticals, and the trend of outsourcing logistics operations by third-party specialized providers is further boosting this market.
The U.S. is the largest revenue-generating country for biopharmaceutical third-party logistics in North America. This growth is attributed to factors such as increasing demand for biopharmaceuticals, the presence of advanced healthcare systems, and the growing adoption of cutting-edge technologies such as real-time monitoring and temperature-controlled logistics. In June 2024, Alcami Corporation announced the expansion of its warehousing and storage of pharma products with the launch of a new 65,000 ft2 state-of-the-art pharma storage facility in Garner.
Asia Pacific Market Analysis
Asia Pacific is expected to be the fastest-growing region in the biopharmaceutical third-party logistics market owing to rising demand for biosimilars and biopharmaceuticals to cater to the rising cases of chronic illnesses and the growing need for advanced storage and logistics solutions. Additionally, growing expenditure on healthcare and the high adoption of innovative therapies are all contributing to this market growth.
The local government strives to formulate policies that aim at developing biopharmaceuticals through several infrastructure investments, tax incentives, and streamlined regulatory procedures. Thus, the Asia Pacific continues to grow in leaps and bounds as logistics providers continue to invest in building sound infrastructure and meeting the changing needs of biopharmaceutical companies.
In India, the market is expected to witness rapid revenue growth owing to rising demand for advanced healthcare solutions, expanding pharmaceutical production, and the need for robust infrastructure for cold-chain transitions and warehousing to store specialty drugs and vaccines.
Companies play a vital role in fostering the growth of the market, by introducing innovations and developments. In the biopharmaceutical third-party logistics market companies have revolutionized storage and transportation services by ensuring regulatory compliance and product safety. The market consists of several global and regional key players focused on adopting several strategies such as mergers and acquisitions, product launches, partnerships, and joint ventures to retain their market position and enhance their product base.
The eminent contributors in the industry include:
Author Credits: Radhika Pawar
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