Biopharmaceutical Third-party Logistics Market To Reach $33.8 Billion by 2033

The report “Biopharmaceutical Third-party Logistics Market By Type (Cold Chain Logistics, Non-cold Chain Logistics), By Application (Transportation (Air Freight, Sea Freight, Overland), Warehousing and Storage, Other Services)” is expected to reach USD 9.85 billion by 2033, registering a CAGR of 13.10% from 2026 to 2033, according to a new report by Transpire Insight.

The third-party logistics market for biopharma products is growing at a steady state as a result of an increasing trend of pharmaceutical and biotech companies outsourcing their complex supply chain functions to third-party logistics service providers. Third-party logistics service companies handle transportation, storage, biofridge, and regulatory requirements related to biologics, vaccines, biosimilars, and high-tech medicines. The increasing complexity in medicines and higher standards of their quality have increased their dependence on third-party logistics. Increasing demand in the market is fueled by the growth in the production of temperature-sensitive biologics, the expansion of clinical trials on a global perspective, and the demand for a smooth distribution network over borders. Pharmaceutical companies are now focusing on the logistics provider who can preserve the quality of the item and meet the criteria of GCP. Moreover, the development of personalized therapies, cell and gene therapies, and specialty pharmaceuticals has led to a rising need for precision logistics solutions. These products need a validated storage environment, a continuously monitored environment, and a managed transportation environment; therefore, there is a growing need for advanced cold chain infrastructure solutions. In terms of geography, the developed as well as the emerging countries are enhancing healthcare logistics capabiilty in order to ensure better accessibility to medicines. Innovation in terms of packaging, tracking, as well as logistics solutions, would help ensure that the market continues to grow over the coming years. This would establish third-party logistics service providers as an important part of the biopharmaceutical industry chain.

The Cold Chain Logistics segment is projected to witness the highest CAGR in the Biopharmaceutical Third-party Logistics market during the forecast period.

According to Transpire Insight, Cold chain logistics comes up as the major segment in the biopharmaceutical third-party logistics industry driven by the growing prominence of biologics in the pharmaceutical pipelines across the world. Biologics are highly sensitive drugs, which require strict temperature controls. As such, pharmaceutical companies are increasingly turning to 3PL companies for end-to-end cold chain logistics solutions in an bid to ensure the efficacy of drugs.

The growth in immunization initiatives, biologic license approvals, and trials has subsequently heightened the need for cold chain services. Sophisticated cold storage facilities, climate-controlled transport, and technology tracking capabilities have become prerequisites, and this has motivated logistics companies to increase investments in compliance-solutions, thereby reemphasizing that cold chain logistics remains the most important service category. In terms of operations, it can be said that cold chain logistics supports reliable supply chain management with less loss and risk of compliance. It allows a boost in efficiency of drug distribution, quicker time-to-market, and improved quality control as a benefit to drug manufacturers. These considerations make cold chain logistics a major source of revenue as well as a growth catalyst in the biopharmaceutical 3PL market.

The Transportation segment is projected to witness the highest CAGR in the Biopharmaceutical Third-party Logistics market during the forecast period.

Transportation services are one of the key pillars in the biopharmaceutical third-party logistics market, and they contribute to the distribution of pharmaceuticals in the market. This is mainly because the world is seeing high levels of globalization in the production and distribution of pharmaceuticals, and thus there is high reliance on third-party logistics services, which are providing these services through modal transportation services such as air, land, and sea transport. Air freight remains dominant in high value, time sensitive shipments, especially for biologics, vaccines, and clinical trials. At the same time, sea and overland transport modes are experiencing growth in cost-optimized transport for bulk drugs and regional delivery services. Such a balanced transport strategy helps logistics companies addresses various demands from their customers and optimize cost effectiveness and delivery speed at the same time.

Transport service providers have continued to benefit from the development of digital tracking, route, and risk management platforms. Visibility into the status of shipments, as well as contingency planning, have become imperative in the ability to mitigate any disruptions. With pharmaceutical companies enhancing their focus on velocity, compliance, and trustworthiness, the transport service sector is an important driver in the development of the market.

The North America region is projected to witness the highest CAGR in the Biopharmaceutical Third-party Logistics market during the forecast period.

North America is the major market for the third-party logistics industry of biopharmaceutical products. This is due to the well-developed pharmaceutical industry infrastructure of the region. The United States is the major growth driver within the North American market because of the presence of the major biopharmaceutical companies within the region. The region has favorable regulatory environments and good implementation of Good Distribution Practices, thus creating the need to work with logistics companies that adhere to the best practices. Third-party logistics in North America has made significant investments in cold chain storage, automation, and tracking systems to enable high-value pharmaceutical product distribution. In this way, the region has set the best practices in biopharmaceutical logistics. Moreover, the growing trend among drug manufacturers of outsourcing their logistics processes is further accentuating the importance of 3PL partners within North America as a whole. Canada and Mexico also contribute their part towards developing the supply chain within the region by integrating their manufacturing processes at a macro level. Such factors are further helping North America maintain its dominance within the biopharmaceutical logistics market across the globe.

Key Players

The top 15 players in the Biopharmaceutical Third-party Logistics market include DHL International GmbH, FedEx Corporation, United Parcel Service (UPS), Kuehne + Nagel International AG, DB Schenker Logistics, AmerisourceBergen Corporation, Cencora, Inc., McKesson Corporation, Cardinal Health, CEVA Logistics AG, Agility Public Warehousing Co. K.S.C.P., Kerry Logistics Network Limited, SF Express, XPO Logistics, Inc., and Nippon Express Co., Ltd.

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