Research and Markets recently announced the release of its “Bio-Pharmaceutical Logistics Global Market Report 2016.” The report has a detailed strategic analysis of the bio-pharmaceutical industry on a global level and provides a growth forecast for the markets of North America, Europe and Asia-Pacific from 2012 to 2020.
The scope of the report involves an analysis based on the type of transport used and in the type of product used(/transported?). The Porter’s Five Forces analysis included in the report provides an insight into market dynamics and industry competition.
The Bio-Pharmaceutical Industry Hurdles Obstacles to an Exponential Growth
The major take away from the report is that the global market for bio-pharmaceutical logistics has had major growth over the last few years. In 2014, the industry was valued at $61.1 billion USD and by 2020, it is expected to be at a value of $91.0 billion USD, growing at a CAGR of 6.9% between of 2015 and 2020.
Despite the rapid industry growth however, temperature control, regulatory compliance, security, safety and chain of custody remain the key obstacles for pharmaceutical manufacturers. It is through effective logistics that management pharmaceutical companies are able to have a constant supply of drugs, devices and equipment from various dealers and distributors in different locations.
The report also highlights some other issues that are impacting the bio-pharmaceuticals logistics industry:
- Patent rights for several leading drugs are set to expire, meaning that large portion of sales will shift from original brand manufacturer to generic manufacturers.
- The global pharmaceutical market has more than doubled in the past 10 years and is expected to reach 942 billion by the end of 2016.
- Markets like Asia, Latin America and the Middle East are becoming more attractive to these pharmaceutical companies, however, these markets have the most challenging supply chains.
- The distribution structure in European and American markets are heavily inclined towards national warehouses both regionally and centrally.
Pharmaceuticals See the 3PL Salvation
Developing warehouse structures and outsourcing to logistics service providers is the key focus with some pharmaceutical manufacturers. Low cost and greater visibility in the supply chain are the main advantages of outsourcing logistics services and is becoming an integral part of strategy for the pharmaceutical industry.
A few key findings from the report with regards to pharmaceutical logistics include:
- Geographically, Asia-Pacific dominates the market, which is evident from the presence of key players and lower logistics costs.
- Panalpina, DHL, FedEx and UPS are amongst the leading logistic service providers in the industry.
The report has more value than just a global industry overview. It also contains growth strategies, describes entry barriers to be considered and has competitive profiling of leading players, recent corporate developments in the industry and various business strategies adopted by them.
This makes the report an excellent tool for people looking to enter the industry and those already in the industry seeking to plan and implement their strategies in different market areas such as emerging geographies and new technologies.
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