Healthcare Third-party Logistics Market Research, 2033
The global Healthcare Third-party Logistics Market Size was valued at $212.4 billion in 2023, and is projected to reach $431.3 billion by 2033, growing at a CAGR of 7.4% from 2024 to 2033.
Market Introduction and Definition
The healthcare third-party logistics market refers to the segment of the logistics industry that specializes in providing contracted logistics services to companies in the healthcare sector. These services include transportation, warehousing, distribution, and supply chain management of healthcare products such as pharmaceuticals, medical devices, and other related goods.
Transportation services, warehousing services, distribution services, inventory management, regulatory compliance and technology integration are important components of the healthcare third-party logistics market. The management of the transportation of medical supplies from producers to distribution hubs, hospitals, pharmacies, and other healthcare institutions is aided by healthcare third-party logistics. This covers transportation by land, air, and water. Healthcare third-party logistics provides storage solutions that comply to the tight legal norms for healthcare products, including temperature-controlled spaces for fragile products such as vaccines and biologics. Distribution centers ensure that healthcare products are delivered to the end users such as hospitals, clinics, and pharmacies in a timely and efficient manner.
Healthcare third-party logistics services maintain compliance with industry standards and laws by managing sensitive and strictly controlled healthcare products using particular expertise and knowledge. By applying the benefit of the size and effectiveness of healthcare third-party logistics providers, outsourcing logistics permits medical centers to preserve expenditures related to distribution, warehousing, and transportation.
Key Takeaways
The Healthcare Third-party Logistics Market Size study covers 20 countries. The research includes a segment analysis of each country in terms of value ($Billion) for the projected period 2024-2033.
More than 1,500 product literatures, industry releases, annual reports, and other such documents of major healthcare third-party logistics industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious Healthcare Third-party Logistics Market Growth objectives.
Key Strategies and Developments
A new third-party logistics solution for the healthcare industry was launched by XPO Logistics in July 2021. This unique innovation aims at enhancing supply chain efficiency for healthcare providers. To guarantee the safe and effective delivery of healthcare supplies, this inventive structure aims to offer extensive logistics services, such as temperature-controlled transportation and storage, real-time tracking, and regulatory compliance.
DHL Supply Chain started a number of programs and facilities in June 2023 to enhance their third-party logistics (3PL) services for medical supplies. Vizient and DHL Supply Chain inked a contract. Members of Vizient, such as different hospital systems and healthcare suppliers, are able to use DHL's cutting-edge logistics solutions. These services include distribution, warehousing, transportation management, and specialized supply chain solutions designed to improve operations and enhance patient outcomes.
In May 2020, UPS Healthcare launched significant enhancements to its logistics services with the aim of improving the transportation and management of medical supplies. UPS premier delivers improved tracking, organizing, and recovery options for shipments which are sensitive to temperature and time, and it is separated into three tiers such as silver, gold, and platinum. This service guarantees that shipments are monitored and handled throughout their journey via next-generation sensor technology to offer immediate control and visibility.
In April 2024, Cardinal Health announced the construction of a new 350, 000 square-foot Consumer Health Logistics Center in Columbus, Ohio. This facility is scheduled to be completely operational by summer 2025 and will serve as a centralized hub for distributing over-the-counter consumer health products. This center is expected to improve supply chain resiliency and enhance the speed, convenience, and reliability of product distribution.
In April 2024, Barrett Distribution launched a new product in the healthcare third-party logistics (3PL) sector. Barrett Distribution provides customized solutions for various industries, including health and beauty, apparel, consumer electronics, and healthcare. Barrett Distribution partnered with Horseware, an Irish heritage equestrian product manufacturer. Horseware is significantly expanding its U.S. operations by transitioning from self-operated fulfillment to an exclusive 3PL partnership with Barrett. This supply chain transition will enhance Horseware's overall fulfillment capabilities, allowing them to focus on product innovation, scalability and customer satisfaction. Barrett’s Managed Transportation solution will also be a key component in Horseware’s ongoing success, delivering parcel savings and continued optimization.
In November 2023, Kerry Logistics Network Limited (KLN) entered into a strategic cooperation agreement with EC Healthcare to provide a comprehensive suite of integrated medical logistics management services. This partnership aims to streamline EC Healthcare’s supply chain by consolidating inventory management into a centralized warehouse and offering customized logistics solutions such as IT system integration and point-to-point delivery.
Key Market Dynamics
The global healthcare third-party logistics (3PL) market is rapidly evolving, driven by key dynamics such as technological advancements, increasing demand for cold chain logistics, and stringent regulatory requirements. The integration of automation, IoT, and blockchain technologies is enhancing supply chain transparency and efficiency, while the rise of e-commerce and home healthcare services is boosting the need for specialized last-mile delivery solutions. Sustainability is becoming a critical focus, with third-party logistics providers adopting green logistics practices to reduce environmental impact. The growing globalization of healthcare necessitates sophisticated, resilient, and compliant logistics solutions, necessitating strategic partnerships and advanced data analytics for effective supply chain management.
Market Segmentation
The healthcare third-party logistics market is segmented into service type, end user, medium of transport, and region. By service type, the market is categorized into transportation service, warehousing and storage service, inventory management service, and cold chain logistics service. By end-user, the market is categorized into pharmaceutical companies, hospitals and clinics, medical device manufacturing companies and biotechnology companies. By medium of transport, the market is categorized into ground transportation, air cargo and ocean freight. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Regional/ Country Market Outlook
As per the article published by Today’s Medical Developments on November 28, 2022, one of the top third-party logistics (3PL) companies in North America, Kenco Group, established a Life Sciences Division to establish itself as a significant player in the healthcare industry's supply chain logistics. Kenco's present offerings, which include distribution, transportation, material handling, and supply chain solutions, are further expanded by this new business. To improve patient outcomes, Kenco's Life Sciences Division will keep helping makers of pharmaceuticals, medical devices, and eye care products to make their supply chains more transparent and efficient.
As per the information published by Cencora World Courier on March 27, 2023, World Courier Japan's newly granted domestic airfreight license was a notable change for healthcare logistics. Before this development, operators could only provide air freight services in Japan for shipments originating from international locations and destined for domestic delivery within the country. At present, World Courier can offer air shipping for packages between domestic locations via airlines, thereby unlocking multiple benefits for its customers and patients.
Competitive Analysis
The major players operating in the global healthcare third-party logistics market include FedEx Supply Chain, DHL Supply Chain, UPS Healthcare Logistics, Cardinal Health, Amerisource Burgen, XPO logistics, DB Schenker, Kuehne and Nagel, Expeditors International, Nippon Express, CH Robinson Worldwide, and Sinotrans.
The following players adopted product launch, joint venture, agreement and collaboration strategies to increase their Healthcare Third-party Logistics Market Share in the global healthcare third-party logistics industry.
The other players in the industry include Agility, SF Express, Kinesis Medical B.V., United Parcel Service of America, Inc., Barett Distribution, Kerry Logistics Network Limited, and Freight logistics Solutions.
Industry Trends
The National Standards for the Licensure of Wholesale Drug Distributors and Third-Party Logistics Providers under the Drug Supply Chain Security Act (DSCSA) proposed rule was made available by the Food and Drug Administration (FDA) on February 4, 2022. The proposed rule significantly strengthens the supply chain and provide?more certainty to the healthcare third-party logistics provider?that they completed sufficient due diligence and are qualified to dispense prescription drugs.
Latest technologies such as automation technology, robotics technology, internet of things (IoT) technology and blockchain technology are being used today in the healthcare third-party logistics market.
The demand for cold chain logistics is growing in the healthcare third-party logistics market due to the increasing requirement for temperature-sensitive pharmaceuticals, such as biologics, vaccines, and specialty drugs.
Key Sources Referred
U.S. Food and Drug Administration
Cold chain 3PL
Ceva Logistics
Todays Medical Developments
Nippon Express
Cencora
J&T Express Middle East (PRNewswire)
Greenwich, Conn
DHL Press Release
UPS Healthcare
Cardinal Health Press Release
Kerry Logistics Network Limited Press Release
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the healthcare third-party logistics market analysis from 2024 to 2033 to identify the prevailingHealthcare Third-party Logistics Market Opportunity.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the healthcare third-party logistics market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global healthcare third-party logistics market trends, key players, market segments, application areas, and market growth strategies and Healthcare Third-party Logistics Market Forecast.
Healthcare Third-party Logistics Market Report Highlights
| Aspects | Details |
 Market Size By 2033 | USD 431.3 Billion |
 Growth Rate | CAGR of 7.4% |
 Forecast period | 2024 - 2033 |
 Report Pages | 278 |
 By Service Type |
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 By End User |
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 By Medium Of Transport |
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 By Region |
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 Key Market Players | Sinotrans, Cardinal Health, XPO logistics, United Parcel Service of America, Inc., Expeditors International, Amerisource Burgen, UPS Healthcare Logistics, Kinesis Medical B.V., CH Robinson Worldwide, FedEx Supply Chain, Kuehne and Nagel, DHL Supply Chain, Nippon Express, DB Schenker, Freight logistics Solutions, SF Express, Barett Distribution, Kerry Logistics Network Limited, AGILITY |
The increasing demand for biologics, vaccines, and temperature-sensitive pharmaceuticals is driving the need for advanced cold chain logistics solutions. In addition, the rise of e-commerce in the healthcare sector, particularly in the distribution of over-the-counter (OTC) drugs, medical devices, and wellness products, is fueling the demand for third-party logistics services.
the transportation service segment is the leading application of Healthcare Third-party Logistics. The segment is driven by the critical need to efficiently move pharmaceuticals, medical devices, and other healthcare products across various locations, ensuring timely and safe deliveries.
North America is the largest regional market for Healthcare Third-party Logistics. This is due to its advanced healthcare infrastructure, stringent regulatory standards, and high adoption of outsourcing practices in logistics. The region benefits from a well-established network of third-party logistics providers offering specialized services tailored to the healthcare sector's needs, including pharmaceuticals, medical devices, and biotechnology products.
$431.3 billion is the estimated industry size of Healthcare Third-party Logistics.
XPO Logistics, DHL Supply Chain, UPS Healthcare, Cardinal Health, Barrett Distribution, and Kerry Logistics Network Limited (KLN) are the top companies to hold the market share in Healthcare Third-party Logistics.
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