PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1196976
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1196976
The cold chain logistics segment is expected to witness a significant growth rate from 2022 to 2027. This growth is attributable to the rising demand for ambient products, such as the ongoing distribution of COVID-19 vaccines, which requires accurate temperature-control logistics services to maintain the product's efficacy.
Furthermore, the stringent government regulations to maintain accurate temperatures for highly temperature-sensitive pharmaceutical products are expected to boost segment growth through the forecast period.
The growing adoption of telematics in cold chain pharmaceutical logistics is helping companies to enhance the efficiency, connectivity, and safety of transport cargoes. Most biological and medical products require a temperature-controlled environment during manufacturing and distribution, which helps maintain the effectiveness and quality of the medicines. Thus, pharma companies are using temperature-controlled transportation and cold storage systems.
With the remarkable advancements in supply chain management and integration technologies, it is now possible to easily integrate effective cold-chain logistics and transport temperature-controlled or temperature-sensitive goods. Supply chain businesses' growth has been driven by the development of cold chain logistics and has maintained the product's quality while keeping the pharmaceuticals safe to use. The cold chain logistics provided by hard chain firms are paving the way for a promising future in the temperature-controlled logistics sector.
North America is the largest pharma market, with Unites States contributing USD 555 billion in 2021. However, while mature markets like the US and Europe are saturated with growth dependent on the launch of new products and services while emerging markets such as Latin America, APAC,, still offer a high potential for growth within the existing portfolios.
Despite these promising developments, pharma distribution is still a major challenge, involving diverse region-specific market risks and issues. The United States market faces high pricing of pharmaceuticals due to missing governmental price controls and limited access to lower-priced medicine from abroad.
Due to a stronger emphasis on research and development, the American pharmaceutical industry has advanced significantly during the past few decades. About USD 102 billion were spent on R&D by the pharmaceutical sector in the United States in 2021. Due to the expenses involved in creating safe and effective COVID-19 therapies and vaccinations, it is extremely possible that this number will rise dramatically in the years to come.
The market is highly fragmented, with many companies across the globe. Some of the top names in this industry include DHL, DB Group, and FedEx. To maintain their position in the market, pharmaceutical logistics companies are continuously undertaking strategic initiatives such as mergers and acquisitions. Furthermore, the companies in the market of pharmaceutical logistics are investing in technologies such as telematics, remote sensing and monitoring, and GPS and GIS integration in transporting cargo, thereby providing customers with safe and convenient pharmaceutical logistics services.