Clinical Logistics Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Clinical Logistics Category Overview

The clinical logistics category is expected to grow at a CAGR of 7.5% from 2023 to 2030. The North American region accounts for the largest category share. The surge in the number of clinical trials, increase in research and development practices of advanced health care infrastructure, the existence of biotech organizations, and worldwide drug discovery are driving the market growth. Asia Pacific region is expected to grow at a lucrative rate of 8.1% CAGR in the forecasted period. Factors such as medical transportation, distribution, warehousing, inventory control, increasing R&D, and technological advancements such as Big data, AI, Blockchain, and IoT are driving the growth of the category. One of the key trends is the increasing number of medical care suppliers and contract research organizations in the category.

Developed digital technologies such as IoT, blockchain, barcoding, and RFID have emerged a lot after covid-19 pandemic which has allowed biopharmaceutical companies to shift their approach towards remote clinical trial techniques and to improvise the efficiency and visibility of the supply chain. Adhering to remote trials, blockchain helped organizations to keep their data safe and secure over a decentralized platform to prevent unauthorized access. RFID in integration with IoT helps in tracking the products, medical supplies, and patient locations in real-time. The US-based healthcare company, BJC uses RFID to efficiently manage and track their inventory and help their suppliers know real-time data updates. Drone technology has allowed organizations to quickly deliver vaccines, medications, and other supplies which are necessary such as blood samples, blood at desired locations. In 2022, Aster DM Healthcare and Skye Air Mobility came forward to join hands for drone delivery.

Outsourcing of clinical trials is increasing due to the growing demand for efficient logistics and supply chain management, which includes temperature control management as well as cold chain management. There is an increase in the trend for Biopharmaceutical companies to spend on cold-chain logistics and this trend is anticipated to fuel the category by a significant amount. For instance, in 2022, Catalent announced plans to construct its Waigaoqiao Free Trade Zone (FTZ) plant in Shanghai, China to increase capacity for the distribution and storage of clinical supplies under a temperature control environment. The USA-based Amerisource Bergen Corporation’s World Courier is one of the biggest and largest cold chain logistics in healthcare services in the world offering various services with specialties in drug storage and distribution, and biopharmaceutical clinical trials logistics.

Warehousing, transportation, inventory carrying, and administrative costs are the major cost components of clinical logistics services. This category's logistics cost is around 20 - 30% more than the cost of other categories. Logistics cost itself accounts for more than 50% of its share and is the largest cost component above all. Cold storage continues to be the most crucial and important component of the whole supply chain in healthcare logistics, among all the other elements. India holds a capacity of 37 million metric tonnes of cold storage. In 2023, the Indian government pledged a net investment of INR 35,000 crore for the expansion of healthcare logistics.  India supplies over 50% of the world's demand for different vaccinations, 40% of the demand for generic medications in the USA, and 25% of all medicines in the UK. With the surge in demand all over the world and concern over short supply due to supply chain disruption, the logistics cost rose by around 30% in some cases with an adverse effect of a 15% hike in warehousing of India’s clinical logistics.

Clinical logistics are primarily used by organizations to conduct clinical trials off-site or on-site. Category uses a fleet of logistics of their own or outsources logistics for protecting temperature-controlled products such as cold reefers, and refrigerated trucks. Various organizations such as Parexel, Biocair, and IQVIA are some trusted clinical research organizations that help biopharmaceutical companies to conduct trials from the initial stage to the ultimate disposal of the drug. Category players outsource logistics operations to third-party vendors without capital investments. INDICOLD, an Indian company provides temperature-controlled logistics operations for pharmaceutical companies. 

Clinical Logistics Procurement Intelligence Report Scope