Medical Device Third-party Logistics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service (Transportation, Warehousing and Storage), By Type (Cold Chain Logistics, Non-cold Chain Logistics), By Device Type (Diagnostic Devices, Therapeutic Devices), By End Use (Medical Device Companies, Hospitals & Clinics, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 30.03 Billion
CAGR (2026-2031)	9.66%
Fastest Growing Segment	Medical Device Companies
Largest Market	North America
Market Size (2031)	USD 52.22 Billion

Market Overview

The Global Medical Device Third-party Logistics Market is projected to grow from USD 30.03 Billion in 2025 to USD 52.22 Billion by 2031 at a 9.66% CAGR. Medical device third-party logistics involves the strategic outsourcing of supply chain management functions, including warehousing, transportation, and inventory control, to specialized external providers capable of handling sensitive healthcare products. The primary drivers supporting market growth include the increasing necessity for manufacturers to reduce operational costs and concentrate on core research and development competencies. Furthermore, the globalization of medical manufacturing requires partners who can navigate complex international regulatory frameworks and ensure the secure handling of high-value medical inventory across borders.

However, a significant challenge impeding market expansion is the vulnerability of global transport infrastructure to geopolitical and economic disruptions, which can compromise the timely delivery of critical healthcare supplies. This dependence on stable freight networks is underscored by recent industry activity. According to the International Air Transport Association, in 2025, global air cargo demand increased by 4.1 percent year-on-year in October, reflecting the intensifying pressure on logistics networks to maintain capacity for time-sensitive shipments such as medical technologies.

Key Market Drivers

The rising demand for temperature-controlled cold chain solutions is a primary force shaping the market, necessitated by the growing portfolio of biologics and sensitive diagnostics. Manufacturers are increasingly dependent on third-party logistics partners to provide specialized infrastructure that guarantees strict environmental stability during transit. This reliance on outsourced cold chain capabilities is directly impacting the financial performance of major logistics providers. According to STAT Times, March 2025, in an article covering DHL Group's annual results, the Supply Chain division reported revenue of EUR 17.7 billion for the fiscal year, with the Life Sciences and Healthcare sector cited as a key structural growth driver due to these specialized handling requirements.

Additionally, the integration of advanced technologies for real-time visibility is reshaping market dynamics, enabling stakeholders to mitigate risks and ensure regulatory compliance through granular tracking. Logistics providers are monetizing these digital capabilities by offering enhanced monitoring suites that provide end-to-end transparency. According to Supply Chain Dive, March 2025, in the article 'FedEx bringing on nearly $400M in new healthcare business', executives revealed that three-quarters of the company's new annualized healthcare revenue was tied to customers utilizing the FedEx Surround visibility platform. This technological adoption underscores the broader trajectory of the sector; according to Medical Buyer, January 2025, in the 'Global medical devices and equipment logistics market' report, the total market valuation reached USD 66.8 billion in 2024, reflecting the scale of investment in these secure distribution networks.

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Key Market Challenges

The vulnerability of global transport infrastructure to geopolitical and economic disruptions presents a substantial barrier to the expansion of the medical device third-party logistics market. These disruptions create unpredictability in freight schedules and capacity availability, which is particularly detrimental for time-sensitive medical inventory such as temperature-controlled biologics and surgical equipment. When logistics providers cannot guarantee precise delivery windows due to volatile network conditions, manufacturers may hesitate to outsource critical supply chain functions, thereby stifling market adoption.

This instability is further exacerbated by capacity constraints that fail to keep pace with global shipping needs, resulting in logistical bottlenecks. According to the International Air Transport Association, in 2024, global air cargo demand increased by 11.3 percent, significantly outpacing the 7.4 percent growth in available capacity. This widening gap between demand and infrastructure capability leads to elevated freight costs and service delays, directly impacting the margins and reliability of third-party logistics providers. Consequently, the inability to secure stable, cost-effective transport options limits the sector's ability to scale operations efficiently in response to healthcare industry demands.

Key Market Trends

The Shift Toward Regionalization and Nearshoring of Distribution Hubs is fundamentally restructuring the market as companies seek to insulate supply chains from geopolitical instability and transport bottlenecks. By decentralizing inventory and positioning fulfillment centers closer to end-users, logistics providers can minimize transit times and ensure the continuity of critical medical device deliveries. This strategic pivoting of infrastructure is evident in recent network expansions by major industry players. According to Supply Chain Magazine, April 2025, in the article 'DHL: Investing €2bn to Upgrade Global Healthcare Logistics', the company committed €2 billion to its Strategy 2030, with 50 percent of the funds allocated to the Americas to reinforce regional supply chain resilience.

Concurrently, the Deployment of Warehouse Automation and Collaborative Robotics (Cobots) has emerged as a critical response to labor shortages and the requirement for zero-error handling of complex medical kits. Logistics providers are increasingly integrating autonomous mobile robots and automated storage systems to enhance picking accuracy and operational throughput within their facilities. This technological scaling is transforming the operational capabilities of third-party providers. According to Kuehne+Nagel, January 2025, in the 'Annual Report 2024', the company integrated over 700 robots at its new Mantova distribution center to optimize the fulfillment processes for its healthcare and contract logistics clients.

Segmental Insights

The Medical Device Companies segment is recognized as the fastest growing category within the Global Medical Device Third-party Logistics Market. This accelerated expansion is primarily driven by manufacturers increasingly outsourcing logistics functions to specialized providers, enabling them to redirect resources toward core research and development. Additionally, the rising complexity of devices necessitates strict adherence to distribution standards mandated by regulatory bodies like the U.S. Food and Drug Administration. Third-party logistics firms offer the essential infrastructure to ensure compliance and maintain product integrity, thereby fueling the rapid adoption of these services by medical device manufacturers.

Regional Insights

North America dominates the Global Medical Device Third-party Logistics Market, driven primarily by its advanced healthcare infrastructure and significant sector expenditure. The region hosts a dense concentration of major device manufacturers that increasingly rely on specialized distribution networks to optimize supply chain efficiency. Furthermore, stringent compliance standards enforced by the U.S. Food and Drug Administration, such as Unique Device Identification protocols, necessitate the use of expert logistics partners. These third-party providers are essential for ensuring strict traceability and adherence to safety regulations, thereby reinforcing North America’s leading market position.

Recent Developments

• In August 2025, DHL Supply Chain announced the opening of a new distribution center in Seoul, South Korea, dedicated to serving Medtronic, a global leader in medical technology. The new facility was established to strengthen the medical device company’s distribution capabilities and ensure the efficient delivery of its products to hospitals and patients nationwide. This site featured specialized temperature-controlled zones and advanced cold chain infrastructure tailored to meet the strict quality and safety standards required for handling sensitive medical devices.
• In September 2024, UPS entered into an agreement to acquire Frigo-Trans and its sister company BPL to enhance its end-to-end capabilities for the healthcare sector across Europe. This acquisition was designed to bolster the company's network of temperature-sensitive and time-critical logistics services, specifically addressing the growing demand for integrated cold and frozen supply chains in the pharmaceutical and medical device industries. The transaction included a network of temperature-controlled warehousing and a pan-European cold chain transportation solution, allowing the logistics provider to better support customers with complex healthcare logistics needs.
• In August 2024, Cardinal Health unveiled plans to construct a new distribution center in Walton Hills, Ohio, to support its U.S. Medical Products and Distribution business. The nearly 249,000-square-foot facility was designed to modernize the company's operations and increase warehouse capacity for medical products in the region. This expansion aimed to integrate new technology solutions and deliver operational efficiencies, replacing an older location to better serve the healthcare supply chain. The center was scheduled to become fully operational by the spring of 2025.
• In May 2024, Kuehne+Nagel launched a new road freight transport service in Europe specifically designed for medical technology devices. The service was introduced to address the increasing demand for logistics solutions that meet the high safety and quality standards of the MedTech industry without requiring full Good Practice (GxP) compliance. Available in countries such as Germany, France, and the UK, the offering provided specialized handling by trained experts, end-to-end visibility, and value-added options like white-glove deliveries for high-value medical and diagnostic equipment.

Key Market Players

• Cardinal Health, Inc.
• Deutsche Post AG
• FedEx Supply Chain Inc.
• Kuehne + Nagel International AG
• United Parcel Service, Inc.
• SF Holding Limited
• Cencora, Inc.
• C.H. Robinson Worldwide, Inc.
• Plexus Corp.
• GXO Logistics, Inc.

By Service	By Type	By Device Type	By End Use	By Region
Transportation Warehousing Storage	Cold Chain Logistics Non-cold Chain Logistics	Diagnostic Devices Therapeutic Devices	Medical Device Companies Hospitals & Clinics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Medical Device Third-party Logistics Market, By Service:

• Transportation
• Warehousing
• Storage

• Medical Device Third-party Logistics Market, By Type:

• Cold Chain Logistics
• Non-cold Chain Logistics

• Medical Device Third-party Logistics Market, By Device Type:

• Diagnostic Devices
• Therapeutic Devices

• Medical Device Third-party Logistics Market, By End Use:

• Medical Device Companies
• Hospitals & Clinics
• Others

• Medical Device 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