ID: MRFR/HC/5088-CR | November 2021 | Region: Global | 202 pages
The global healthcare cold chain logistics market is expected to cross USD 22,024.66 million by 2027 at a 7.89% CAGR.
A variety of modern pharmaceutical products requires a controlled environment to maintain potency, making the cold chain extremely important. However, being a sophisticated and elaborated process, cold chain penetration is moderate, especially in developing regions. Factors such as lack of proper infrastructure and poor regulatory framework in third-world countries are partly hampering the growth potential of the market. Governments in some of the fast-developing countries are taking corrective measures to improve cold chain logistics services.
The growth of the healthcare cold chain logistics market is attributed to the increasing demand for biopharmaceuticals and vaccines that require cold chains and stricter government regulations for the efficient handling of temperature-sensitive pharma products. In addition, the flourishing pharmaceutical sector to serve the healthcare needs of the growing global population is fueling the demand for healthcare cold chain logistics.
Healthcare cold chain logistics firms, which are involved in the storage, movement, and flow of goods, have been directly influenced by the COVID-19 pandemic. These logistics firms facilitate trade and commerce and help businesses get their products to customers, contributing to a significant amount of money. In addition, daily operations in the cold chain logistics industry have high electricity consumption. Thus, cold chain service providers are finding it difficult to minimize their operational costs due to increased energy costs during the COVID-19 outbreak.
The COVID-19 pandemic impacted the supply chain of the healthcare cold chain industry due to restricted trade during the pandemic, resulting in cold chain manufacturers emphasizing their storage to increase their shelf-life, which is likely to propel the growth of the market for cold chain. The entire existing cold chain capacity is inadequate for existing vaccination programs in many emerging countries such as India. Moreover, to overcome the demand and supply of proper storage and management of vaccines, in October 2020, the Union Health Ministry initiated a cold chain reinforcement plan to address the additional cold chain space required for the vaccine.
Healthcare cold chain logistics companies, such as Amerisource Bergen (UK), FedEx (US), and DHL International GmbH (Germany), are actively engaged in the transportation of vaccines during the current COVID-19 pandemic. For instance, in December 2020, FedEx Express, a subsidiary of FedEx Corp. and the world’s largest express transportation company, announced that operations are in motion to transport Moderna’s COVID-19 vaccines for McKesson Corp. (US) throughout the US. With the Food and Drug Administration’s (FDA) approval of Emergency Use Authorization for the Moderna COVID-19 vaccine, FedEx Express will begin transportation of the vaccine and kits of supplies for the administration of the vaccine, using its FedEx Priority Overnight service supported by FedEx Priority Alert advanced monitoring.
Different pharmaceutical products require the maintenance of different temperature levels to ensure their integrity throughout the transport chain. The cold chain logistics industry has evolved with a set of temperature standards that can accommodate most products. Packaging in cold storage logistics has improved over the years. Currently, it includes insulated boxes with dry ice or gel packs, rolling containers, liquid nitrogen, and reefers having their powered refrigeration unit. Moreover, acquisitions by the market players and improvements in the cold chain logistics industry have led to an increase in the transportation of temperature-sensitive products, thereby contributing to the market's growth.
In most countries, delayed reimbursement acts as a key barrier for the market growth. Reimbursement for healthcare cold chain logistics is a complex process. The complexity in the reimbursement process itself acts as a challenge for the market. The lack of standardized reimbursement policies in different countries also limits the growth of the market. Thus, the lack of reimbursement in developing countries hampers the market growth.
The growing development of advanced technologies for cold chain logistics is expected to provide huge opportunities for market growth. For instance, the Radio Frequency Identification (RFID) system is a promising technology with several benefits in temperature monitoring of temperature-sensitive pharmaceuticals and other healthcare products.
Value Chain Analysis/Technology Analysis/Regulatory Implications
The value chain analysis for the healthcare cold chain logistics industry comprises seven components, which start with the procurement, transportation to the logistic company, packaging, storage in the logistic company’s facility, packaging of the shipment before transportation to the destination city, and ends with the storage in the end-user storage facility. Moreover, the WHO is coming up with new and improved regulatory frameworks covering security and counterfeiting along with managing temperature changes. This will enhance the market growth in the near future.
Global Healthcare Cold Chain Logistics Market Share (%), by Product, 2019
Source: MRFR Analysis
The global healthcare cold chain logistics market has been divided based on product, services, mode of delivery, temperature range, storage techniques range, and end user.
On the basis of the type of product, the healthcare cold chain logistics market is divided into vaccines, biopharmaceuticals, clinical trial materials, and others. The vaccines segment accounts for the largest share and is anticipated to register a CAGR of 8.17% from 2020 to 2027.
By services, the healthcare cold chain logistics market is segmented into transportation, storage, packaging, labeling, and others. The transportation segment accounts for the largest share and is anticipated to register a CAGR of 8.08% from 2020 to 2027.
By Mode of Delivery
On the basis of the mode of delivery, the healthcare cold chain logistics market is segmented into last-mile delivery and hubs-to-distributor. The hubs-to-distributor segment accounts for the larger share and is projected to reach USD 14,048.82 million by the end of 2027, owing to the fact that in the healthcare sector hub to distributor support to remove cost barriers between patients and the vaccines developed by manufacturers and prescribed by providers through the administration of co-pay assistance programs.
By Temperature Range
On the basis of temperature range, the healthcare cold chain logistics market is segmented into ambient, refrigerated, frozen, and cryogenic. The refrigerated segment accounts for the largest share and is projected to reach USD 13,092.34 million by the end of 2027.
By Storage Techniques Range
On the basis of storage techniques range, the healthcare cold chain logistics market is categorized into electrical refrigeration, dry ice, gel packs, liquid nitrogen, and others. The electrical refrigeration segment held the largest share in 2020. Electrical refrigeration is used mainly for storing blood products and vaccines. Electrical refrigerators for medical use are heavily insulated and include cooling fans and temperature monitoring equipment.
By End User
On the basis of end user, the healthcare cold chain logistics market is divided into hospitals & clinics, pharmaceutical, biopharmaceutical, & biotechnology companies, and others. The pharmaceutical, biopharmaceutical, & biotechnology companies segment accounted for the largest market share in 2019 due to the increasing adoption of cold chain logistics by multinational pharmaceutical, biopharmaceutical, and biotechnology companies are increasing as they have a worldwide distribution network and need cold chain solutions to maintain this network and meet the demand for required products in different countries.
Global Healthcare Cold Chain Logistics Market Share (%), by Region, 2019
Source: MRFR Analysis
The healthcare cold chain logistics market, based on region, has been divided into the Americas, Europe, Asia-Pacific, and the Middle East & Africa.
The Americas is expected to command the largest market share in 2019. It has been segmented into North America and Latin America, with the North America market further divided into the US and Canada. In the region, North America is expected to dominate the market. In the US, cold chain logistics is a well-developed industry owing to growing investments in recent years due to the growing demand for high-quality pharmaceutical products.
The European healthcare cold chain logistics market has been divided into Western Europe and Eastern Europe. The Western Europe Electrotherapy market has further been classified into Germany, France, the UK, Italy, Spain, and the Rest of Western Europe. The region is expected to follow the Americas in terms of value during the forecast period. Due to the increasing demand for shipping pharmaceuticals in Europe, many US-based companies are expanding their services in the region. For instance, in August 2017, Delta Cargo became the first US-based global passenger carrier to achieve the CEIV Pharma certification mark, applied to its headquarters and the largest hub in Atlanta, Georgia. With this, Delta Cargo can connect shipments from Atlanta to the CEIV Pharma-certified entities, namely Amsterdam, Brussels, Milan, Paris, and Rome in Europe.
Asia-Pacific has been segmented into China, India, Japan, South Korea, Australia, and the Rest of Asia-Pacific. The region is expected to witness the highest market growth potential over the forecast period due to the emerging economies of China, India, and South Korea, which are emerging as major destinations for outsourcing clinical trials, drug manufacturing, and pathology testing. Moreover, third-party cold chain logistics companies are expanding their activities in countries such as China, India, and Singapore.
Middle East & Africa:
The Middle East & Africa is segmented into the Middle East and Africa. The market growth in the Middle East is anticipated to dominate owing to the presence of rapidly developing countries such as the UAE and Saudi Arabia. Moreover, in Africa, the lack of infrastructure for cold chain logistics may hamper the market. Frequent power outages coupled with poor cold chain equipment and data monitoring mainly restrict the transportation of vaccines to remote populations in Africa.
The global healthcare cold chain planning market is characterized by the presence of many global, regional, and local vendors catering to consumers' demands. The availability of innovative products is increasing the lucrativeness of the global healthcare cold chain logistics market. The key players have adopted the strategy of signing contracts and agreements for expanded regional reach and optimized operational costs. The market is highly competitive, with players competing and partnering to gain a substantial market share. The global healthcare cold chain logistics market is highly fragmented with rising competition, product launches, collaborative partnerships, and other strategic decisions that are undertaken to achieve operational efficiency. The vendors compete based on cost, quality, timely availability, and reliability of products offered. It is decisive for the players to provide cost-efficient products to survive and succeed in an increasingly competitive and growing market environment.
Sterling Ultracold (US) is likely to be the top player in the global healthcare cold chain logistics market due to its strong product offering and availability of products globally. FedEx (US) is the second major player, followed by Phoenix Group (Germany). Other key players contributing to the market growth include Sonoco (US), Cardinal Health (US), Amerisource Bergen (UK), Envirotainer (Sweden), and Thermoking (US).
List of Key Companies Covered in this Report:
The study covers the existing short-term and long-term market effects, helping decision-makers draft short-term and long-term plans for businesses by region. The report covers major regions of the Americas, Europe, Asia-Pacific, and the Middle East & Africa. The report analyzes market drivers, restraints, opportunities, challenges, Porter's Five Forces, value chain analysis, and impact of COVID-19 on the market.
Scope of the Report & Segmentation
Global Healthcare Cold Chain Logistics Market, by Product
Global Healthcare Cold Chain Logistics Market, by Services
Global Healthcare Cold Chain Logistics Market, by Mode of Delivery
Global Healthcare Cold Chain Logistics Market, by Temperature Range
Global Healthcare Cold Chain Logistics Market, by Storage Techniques
Global Healthcare Cold Chain Logistics Market, by End User
Global Healthcare Cold Chain Logistics Market, by Region
|Market Size||2027: USD 22,024.66 Million|
|Historical Data||2017 & 2018|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Services, Mode of Delivery, Temperature Range, Storage Techniques Range, End User, and Region|
|Geographies Covered||Americas, Europe, Asia-Pacific, and Middle East & Africa|
|Key Vendors||Sterling Ultracold (US) FedEx (US) Phoenix Group (UK) Sonoco Thermosafe (US) B Medical Systems (Luxembourg) Cavalier Logistics (US) Cardinal Health (US) Amerisource Bergen (UK) Envirotainer (Sweden) Thermoking (US)|
|Key Market Opportunities||• Technological advancements in cold chain logistics|
|Key Market Drivers||• Growing transportation of temperature-sensitive pharmaceutical products via cold chain logistics • Growing demand for biopharmaceutical products • Increasing number of clinical trials|