Healthcare Third-party Logistics Market Size & Share, By Industry (Biopharmaceutical, Pharmaceutical, Medical Device), Supply Chain, Service Type, Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Healthcare Third-party Logistics Market crossed USD 222.3 Billion in 2023 and is likely to reach USD 433.39 Billion by end of the year 2032, growing at over 7.7% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 222.3 Billion
• CAGR (2024-2032): 7.7%
• Forecast Year Value (2032): USD 433.39 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

The healthcare third-party logistics market is expected to be driven by increasing demand for specialized services, such as cold chain logistics for biopharmaceuticals and medical devices. This growing demand for customized solutions is expected to boost the market growth significantly.

Another major growth driver for the healthcare third-party logistics market is the increasing prevalence of chronic diseases and the aging population. This is expected to fuel the demand for pharmaceuticals and medical devices, thereby driving the need for efficient logistics services to ensure timely and safe delivery to patients.

Rapid advancements in technology, such as the implementation of blockchain and Internet of Things (IoT) in logistics operations, are also expected to drive growth in the healthcare third-party logistics market by improving supply chain visibility and efficiency.

Report Scope

Report Coverage	Details
Segments Covered	Industry, Supply Chain, Service Type
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Cardinal Health, DHL International, Agility, SF Express, Kinesis Medical B.V., United Parcel Service of America,, Barrett Distribution, AmerisourceBergen, DB Schenker, FedEx, KUEHNE + NAGEL, Kerry Logistics Network., Freight Logistics Solutions

Industry Restraints:

Despite the promising growth prospects, the healthcare third-party logistics market faces certain restraints, such as stringent regulatory requirements and complex compliance standards. This can pose challenges for logistics providers in terms of ensuring adherence to various regulations and standards, leading to operational complexities and increased costs.

Another major restraint for the healthcare third-party logistics market is the increasing competition among logistics providers, which can lead to price wars and margin pressures. This can make it difficult for companies to maintain profitability and sustain growth in the highly competitive market.

Regional Forecast:

North America: The healthcare third-party logistics market size in North America, specifically in the U.S. and Canada, is experiencing strong growth due to the increasing demand for efficient and cost-effective supply chain solutions in the healthcare industry. The U.S. dominates the market in this region, driven by factors such as the presence of key players, well-established healthcare infrastructure, and a high adoption rate of third-party logistics services. Canada is also witnessing significant growth in the healthcare third-party logistics market, fueled by the rising need for specialized services to streamline the supply chain and meet the increasing demands of the healthcare sector.

Asia Pacific: In Asia Pacific, countries such as China, Japan, and South Korea are witnessing a surge in demand for healthcare third-party logistics services. China, being one of the largest pharmaceutical markets in the world, is driving the growth of the market in this region. Japan and South Korea are also significant contributors to the healthcare third-party logistics market in Asia Pacific, driven by the rapid expansion of the healthcare industry, increasing focus on quality and efficiency, and growing investments in healthcare infrastructure.

Europe: The healthcare third-party logistics market in Europe, particularly in the United Kingdom, Germany, and France, is experiencing steady growth. The United Kingdom holds a significant share in the market, driven by factors such as the increasing outsourcing of logistics services by healthcare providers, strict regulatory requirements, and the presence of key players in the region. Germany and France are also witnessing a rise in demand for healthcare third-party logistics services, attributed to factors such as the growing healthcare expenditure, increasing adoption of advanced technologies, and the need for efficient supply chain management in the healthcare sector.

Segmentation Analysis:

In terms of segmentation, the global Healthcare Third-party Logistics market is analyzed on the basis of Industry, Supply Chain, Service Type.

Healthcare Third-party Logistics Market by Industry:

Biopharmaceutical:

The biopharmaceutical industry is a major segment in the healthcare third-party logistics market. Biopharmaceutical companies require specialized logistics services to handle the transportation and storage of temperature-sensitive pharmaceutical products. Third-party logistics providers play a crucial role in ensuring that these products reach their destination safely and on time, while maintaining the required temperature control.

Pharmaceutical:

The pharmaceutical industry is another key segment in the healthcare third-party logistics market. Pharmaceutical companies rely on third-party logistics providers to manage the distribution of their products to various healthcare facilities and pharmacies. These providers offer customized solutions to meet the specific needs of pharmaceutical companies, such as temperature-controlled storage and transportation, as well as inventory management.

Medical Device:

The medical device industry is also a significant segment in the healthcare third-party logistics market. Medical device companies must adhere to strict regulations regarding the storage and transportation of their products, which can be complex and time-consuming. Third-party logistics providers offer specialized services to help medical device companies navigate these challenges, ensuring that their products are delivered safely and efficiently to their intended destinations.

Healthcare Third-party Logistics Market by Supply Chain:

The supply chain in the healthcare third-party logistics market plays a critical role in ensuring the smooth and efficient flow of medical products from manufacturers to end-users. Third-party logistics providers help optimize supply chain processes by offering services such as inventory management, warehousing, transportation, and distribution. By partnering with third-party logistics providers, healthcare companies can streamline their supply chain operations and improve overall efficiency.

Healthcare Third-party Logistics Market by Service Type:

The healthcare third-party logistics market offers a wide range of services to meet the diverse needs of healthcare companies. These services include transportation, warehousing, inventory management, order fulfillment, and value-added services such as kitting and labeling. Third-party logistics providers work closely with their healthcare clients to develop customized solutions that address their specific requirements and help them achieve their supply chain goals.

Competitive Landscape:

The competitive landscape in the Healthcare Third-party Logistics Market is characterized by a growing number of players due to the increasing complexity of healthcare supply chains and rising demand for specialized logistics services. Companies in this sector are leveraging advanced technologies and innovative solutions to enhance efficiency, compliance, and visibility in the distribution of pharmaceuticals, medical devices, and other healthcare products. Mergers and acquisitions are prevalent as firms aim to expand their capabilities and geographical reach. Regulatory compliance, temperature control logistics for sensitive products, and the ability to manage real-time data are critical factors that influence competitive dynamics. As the market continues to evolve, players are focusing on strategic partnerships, integrated service offerings, and enhanced customer service to differentiate themselves.

Top Market Players

- DHL Supply Chain

- FedEx Supply Chain

- UPS Healthcare

- XPO Logistics

- Cardinal Health

- McKesson Corporation

- AmerisourceBergen

- Panasonic Healthcare Logistics

- C.H. Robinson

- Kuehne + Nagel