U.S. Healthcare Third-party Logistics Market (By Industry: Biopharmaceutical, Pharmaceutical, Medical Device; By Supply Chain; By Service Type) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The U.S. healthcare third-party logistics market was valued at USD 80.56 billion in 2022 and it is predicted to surpass around USD 191.77 billion by 2032 with a CAGR of 9.06% from 2023 to 2032.

Key Pointers

• The biopharmaceutical segment dominated the overall market with a revenue share of over 61% in 2022
• The non-cold chain logistics segment generated the largest revenue share of over 61% in 2022.
• The warehousing and storage segment dominated with the largest revenue share of over 41% in 2022.

Report Scope of the U.S. Healthcare Third-party Logistics Market

The market has been growing significantly due to the expanding e-commerce sector. Healthcare companies are using online platforms to sell their products because they lack the resources to provide their own logistics services, which has increased the demand for third-party logistics. Increasing technological advancements in the domain is expected to create growth opportunity for the market. The adoption of advanced technologies such as real-time tracking systems, the Internet of Things (IoT), and blockchain is becoming more accepted in healthcare logistics. These technologies support shipment tracking, visibility enhancement, and product integrity, which improve supply chain management and increase customer experience. A complex regulatory environment related to pharmaceutical and medical devices is further expected to provide this market with growth opportunities. Storage, handling, and transportation of drugs and medical devices are all subject to stringent regulations and compliance standards in the healthcare industry. The third-party logistics entities offer expertise in navigating regulatory frameworks that can aid healthcare companies ensure compliance and avoid penalties. Safety measures and quality control requirements are often part of regulatory compliance. Third-party logistic entities help their clients maintain and implement these standards throughout the supply chain.

The COVID-19 pandemic significantly impacted the market. The COVID-19 pandemic resulted in increased demand for medical supplies such as ventilators, personal protective equipment, and other crucial products. As a result, several companies in the market adopted the changing needs of the healthcare business to meet the demand. Moreover, the COVID-19 pandemic contributed to increased partnerships between healthcare entities with third-party logistics companies to operate in a growing and changing demand.

Industry Insights

The biopharmaceutical segment dominated the overall market with a revenue share of over 61% in 2022. This dominance is attributed to an increase in the number of biosimilar introductions and pharmaceutical companies' focus on their distribution network. Technological advances have increased the use of temperature management logistic services. Furthermore, the growing trend of medical companies outsourcing logistics to strengthen their distribution system is also expected to boost the segment’s growth.

The medical device segment is expected to witness the fastest growth over the forecast period. Supply chains in the medical device sector are complex and involve the sourcing of raw materials, manufacturing procedures, quality control, and distribution. 3PL providers offer expertise in enhancing productivity, cutting costs, and streamlining supply chains. They can help with order fulfillment, inventory management, shipping, and warehousing, guaranteeing a smooth supply chain from the point of production to the end-user.

Supply Chain Insights

The non-cold chain logistics segment generated the largest revenue share of over 61% in 2022.This is due to the rising sales of pharmaceuticals through distributors. Scalability, reduced operational costs, higher profits, and fewer risks are all features of logistic services. Due to all these advantages, third-party logistic providers have become an essential component of the pharmaceutical business.

Cold chain logistics is expected to showcase a significant market share in the coming years. There is increasing demand for temperature-sensitive biologics, pharmaceuticals, vaccines, and other healthcare products in the U.S. This demand is driven by factors such as the introduction of advanced therapies, an aging population, and the need for effective disease control. These pharmaceutical products need strict temperature control throughout the supply chain, resulting in raised dependence on cold chain logistics. 

Service Type Insights

The warehousing and storage segment dominated with the largest revenue share of over 41% in 2022.In the healthcare industry, efficient inventory management is essential to ensuring the availability and prompt delivery of drugs and medical supplies. Warehousing and storage entities offer services such as stock rotation, and inventory tracking to simplify the supply chain processes. These services assist healthcare facilities in minimizing stockouts, increasing operational effectiveness, and optimizing inventory levels. Such advantages are expected to boost the segment growth. 

The other services segment is expected to register the fastest CAGR during the forecast period. This segment includes custom & duty management, packaging, procurement services, and a few other value-added services. Procurement services are one of the crucial services of healthcare logistics. To ensure that production costs do not exceed a company's budget objectives, procurement and logistics management must coexist and function together efficiently. 

U.S. Healthcare Third-party Logistics Market Segmentations:

By Industry 

• Biopharmaceutical
• Pharmaceutical
• Medical Device

By Supply Chain 

• Cold Chain
• Non-cold Chain

By Service Type 

• Transportation
• Air Freight
• Sea Freight
• Overland Transportation
• Warehousing And Storage
• Others