Healthcare Third party Logistics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Industry (Biopharmaceutical, Medical Device, Pharmaceutical), By Service Type (Transportation, Warehousing and Storage, Others), By Supply Chain (Cold Chain, Non-Cold Chain), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 266.34 Million
CAGR (2026-2031)	7.32%
Fastest Growing Segment	Pharmaceutical
Largest Market	North America
Market Size (2031)	USD 406.93 Million

Market Overview

The Global Healthcare Third party Logistics Market will grow from USD 266.34 Million in 2025 to USD 406.93 Million by 2031 at a 7.32% CAGR. Global Healthcare Third-party Logistics (3PL) is defined as the strategic outsourcing of pharmaceutical and medical device supply chain management functions, including transportation, warehousing, and inventory control, to specialized external providers. The market’s growth is primarily supported by the increasing globalization of pharmaceutical trade, the rising complexity of distributing temperature-sensitive biologics, and the imperative for manufacturers to optimize operational costs by leveraging external expertise.

According to the European Federation of Pharmaceutical Industries and Associations, in 2024, North America accounted for 54.8% of estimated world pharmaceutical sales. This substantial market volume highlights the critical reliance on robust logistical networks to manage the flow of medical products across vast and diverse regions. However, a significant challenge impeding market expansion is the intricate and fragmented regulatory landscape, which enforces rigorous compliance standards that vary by jurisdiction, thereby increasing the operational complexity and liability for logistics providers.

Key Market Drivers

Surging demand for temperature-controlled cold chain logistics is fundamentally reshaping the Global Healthcare Third party Logistics Market, driven by the rapid growth of biologics, vaccines, and cell therapies that require strict thermal stability. This reliance on cold chain infrastructure compels manufacturers to partner with specialized logistics providers capable of maintaining precise temperature ranges to prevent product spoilage during transit. According to Maersk, April 2024, in the 'The evolving cold chain needs of the pharmaceutical industry' article, global expenditure on biopharma cold chain logistics was projected to reach $21.3 billion in 2024. The expansion of this segment is intrinsically linked to the broader vitality of global trade networks, which facilitate the rapid movement of time-sensitive medical products across borders. According to the International Air Transport Association, in 2025, global air cargo demand increased by 11.3% in 2024, highlighting the robust volume of international shipments essential for maintaining healthcare supply chains.

Increasing outsourcing of non-core logistics operations acts as a second primary driver, as pharmaceutical companies prioritize research and development while delegating complex supply chain functions to external experts. This strategic shift allows manufacturers to optimize operational costs and navigate fragmented regulatory landscapes without the burden of maintaining extensive in-house fleets or warehousing facilities. Logistics providers are responding to this outsourcing trend by aggressively scaling their dedicated healthcare infrastructure to accommodate sophisticated client needs. According to DHL Supply Chain, February 2024, the company committed an investment of $200 million to expand its life sciences and healthcare capabilities in the United States, aiming to meet the sector's rising demand for specialized warehousing and distribution solutions.

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Key Market Challenges

The intricate and fragmented regulatory landscape presents a formidable barrier to the expansion of the Global Healthcare Third-party Logistics Market. Logistics providers must navigate a complex web of compliance standards, such as Good Distribution Practices (GDP) and serialization mandates, which vary significantly across different jurisdictions. This lack of harmonization compels companies to maintain redundant compliance systems and specialized quality assurance teams, driving up operational overhead and exposing providers to heightened liability risks. Consequently, these heavy regulatory burdens divert critical resources away from infrastructure development and market expansion efforts.

The economic impact of these stringent requirements is evident in the diminishing profitability of the sector, which restricts the capital available for growth. According to the Healthcare Distribution Alliance, in 2024, the net profit margins for pharmaceutical distributors declined to a mere 0.2 percent. Such constricted margins, resulting from the high costs of adhering to rigorous compliance and operational standards, severely limit the financial capacity of logistics providers to invest in necessary technology upgrades or enter new, complex markets, thereby directly hampering the overall sector's advancement.

Key Market Trends

The Integration of AI-Driven Predictive Analytics for Demand Forecasting is transforming the market by enabling providers to anticipate disruptions rather than merely reacting to them. Logistics companies are deploying machine learning algorithms to analyze vast datasets, allowing for precise demand forecasting and real-time route optimization that accounts for weather or geopolitical risks. This shift toward proactive supply chain management is critical for high-value pharmaceuticals where delay equates to spoilage. According to Supply & Demand Chain Executive, November 2025, in the 'AI Adoption in Pharmaceutical Supply Chains on the Rise' report, 53% of pharmaceutical supply chain leaders are currently evaluating AI and machine learning specifically for predictive risk alerts to enhance operational resilience.

The Implementation of Sustainable and Green Logistics Initiatives is rapidly emerging as a decisive factor in vendor selection, driven by pharmaceutical manufacturers' commitments to reduce Scope 3 emissions. Logistics providers are aggressively decarbonizing their fleets through the adoption of electric vehicles for last-mile delivery and sustainable aviation fuels (SAF) for long-haul air freight. This green transition is no longer optional but a strategic imperative to comply with tightening global environmental regulations and client sustainability mandates. According to Carbon Credits, December 2025, in the 'DHL Signs Major SAF Deal with Neste' article, DHL Express confirmed a binding contract to procure 50 million liters of Sustainable Aviation Fuel for its air cargo operations to meet the sector's rising demand for low-carbon transport solutions.

Segmental Insights

The pharmaceutical sector stands as the fastest-growing segment in the global healthcare third-party logistics market, driven by the increasing need for temperature-controlled transportation of biologics and vaccines. Manufacturers are expanding outsourcing activities to manage complex global supply chains while adhering to stringent Good Distribution Practice standards mandated by regulatory bodies like the European Medicines Agency and the U.S. Food and Drug Administration. Third-party providers offer the necessary infrastructure to maintain product stability and ensure regulatory compliance during transit, enabling pharmaceutical companies to focus resources on drug discovery and production.

Regional Insights

North America currently holds the largest share of the Global Healthcare Third-party Logistics Market, driven by established healthcare infrastructure and high pharmaceutical consumption. The region’s dominance is reinforced by the presence of major pharmaceutical manufacturers and strict distribution standards set by the U.S. Food and Drug Administration. These regulatory mandates require specialized handling for sensitive medical products, compelling companies to partner with compliant external logistics providers. Furthermore, the increasing complexity of supply chains for biologics and vaccines ensures sustained demand for professional logistics services throughout the region.

Recent Developments

• In March 2025, DHL Supply Chain entered into a strategic partnership with a global supply chain company specializing in life sciences to enhance its service offerings for the healthcare sector. This collaboration was established to strengthen the company’s capabilities in clinical trial logistics, biopharmaceuticals, and cell and gene therapies. Alongside this partnership, the company agreed to acquire a specialty courier focused on these critical areas, aiming to integrate advanced temperature-controlled solutions into its global network. The move was part of a broader multi-billion investment strategy designed to expand the logistics provider’s footprint in the life sciences market.
• In November 2024, Federal Express Corporation expanded its Life Science Center in Gimpo, South Korea, to address the growing demand for specialized healthcare transportation in the Asia-Pacific region. The enhanced facility nearly tripled its previous size and was equipped with five distinct temperature-controlled zones ranging from -150°C to +25°C. This expansion allowed the company to better support pharmaceutical and clinical trial customers by ensuring continuous compliance with cold chain regulations. The center was certified under local Good Supply Practice standards, reinforcing its capability to handle critical shipments such as investigational medicinal products and biological samples.
• In September 2024, UPS Healthcare announced an agreement to acquire two Germany-based logistics providers, Frigo-Trans and BPL, to augment its end-to-end cold chain network across Europe. This acquisition was intended to provide customers with enhanced access to temperature-controlled warehousing and time-critical transportation solutions for temperature-sensitive pharmaceutical products. The deal included a network of cold storage facilities covering multiple temperature zones, from cryopreservation to ambient conditions. By integrating these capabilities, the company aimed to accelerate its growth as a leading complex healthcare logistics provider and meet the fast-paced innovation needs of the pharmaceutical industry.
• In May 2024, Kuehne+Nagel launched a specialized road logistics service tailored for the medical technology industry across Europe. This new offering was designed to accommodate the specific transport needs of high-value medical devices and diagnostic equipment that require elevated safety and quality standards but do not mandate full Good Practice (GxP) compliance. The service provided customers with options for less-than-truckload and full-truckload shipments, utilizing a network of competence centers staffed by trained experts. The launch addressed the increasing demand for flexible and secure logistics solutions in the growing medical technology market.

Key Market Players

• Cardinal Health
• DHL Group
• SF Express
• Kinesis Medical B.V.
• United Parcel Service of America, Inc.
• Barrett Distribution
• AmerisourceBergen Corporation
• KUEHNE + NAGEL
• Kerry Logistics Network Ltd.
• Freight Logistics Solutions

By Industry	By Service Type	By Supply Chain	By Region
Biopharmaceutical Medical Device Pharmaceutical	Transportation Warehousing and Storage Others	Cold Chain Non-Cold Chain	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Healthcare Third party Logistics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Healthcare Third party Logistics Market , By Industry:

• Biopharmaceutical
• Medical Device
• Pharmaceutical

• Healthcare Third party Logistics Market , By Service Type:

• Transportation
• Warehousing and Storage
• Others

• Healthcare Third party Logistics Market , By Supply Chain:

• Cold Chain
• Non-Cold Chain

• Healthcare Third party Logistics Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE