Clinical Trial Supply and Logistics Market Size, Trends [2031]

Report Description

Clinical Trial Supply and Logistics Market 2031

The global clinical trial supply and logistics market size was USD 3.4 Billion in 2022 and is likely to reach USD 6.46 Billion by 2031, expanding at a CAGR of 7.4% during 2023–2031. The market growth is attributed to the increasing number of clinical trials.

Increasing clinical trials are expected to boost the demand for clinical trial supply and logistics. Clinical trials are conducted to test ways to diagnose a disease and learn if a new treatment is more effective than existing treatments. Supply and logistics are important components in clinical trials, as they ensure that the necessary materials are available when needed. Therefore, the rising number of clinical trials is propelling the market. For instance,

• According to a report published by the National Library of Medicine, 38,030 clinical trials were performed in 2022.

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Clinical trials need logistics and supply chain networks to conduct different types of clinical trials, ranging from complex global clinical trials to small regional trials. Supply chain and logistics play a crucial role in fulfilling the specific requirements of a clinical trial protocol with precision, compliance, and real-time visibility. 

The COVID-19 pandemic propelled the demand for clinical trial supply and logistics. The abrupt rise in COVID-19 infection highlighted the need for drug development to fight coronavirus, which significantly boosted the demand for clinical trial supply and logistics, as logistics and supply chain services are required to ensure the availability of clinical trial supplies, services and equipment to meet regulatory requirements and achieve the best possible patient outcomes. For instance,

• According to a report published by the US National Library of Medicine, 36,722 clinical trials were performed in 2020 as compared to 32,514 in 2021.

Impact of Artificial Intelligence (AI) on Clinical Trial Supply and Logistics

Introduction of artificial intelligence in healthcare is creating opportunities in the market. AI in clinical trials helps researchers and scientists by optimizing patient recruitment, predicting treatment efficacy, automating data analysis, and enhancing safety monitoring. AI's integration into clinical trial supply and logistics improves efficiency, decreases waste, and responds to the changing demands of the modern market, as it continues to develop.

AI also enables clinical researchers to identify volunteers for clinical trials by closely watching their unique characteristics and medical needs. Moreover, the introduction of AI tools for clinical trial research by key players in the market creates a lucrative opportunity in the market. For instance,

• On April 25, 2023, myTomorrows, an active healthcare company, launched TrialSearch AI, an AI tool for pre-screening in clinical trial search. It allows physicians to identify potentially eligible clinical trials or expanded access programs (EAPs) for their patients by leveraging AI technology.

Clinical Trial Supply and Logistics Market Dynamics

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Major drivers

Growing healthcare industry is expected to boost the demand for clinical trial supply and logistics. Clinical trial is utilized in healthcare to test medical interventions, including drugs, cells, and other biological products, radiological procedures, and surgical procedures.  Clinical trial supply and logistics are needed in clinical trials to ensure the availability of supplies, services, and equipment to achieve the best possible patient outcomes. Thus, the growing healthcare sector is propelling the market. For instance,

• As per a report, the healthcare industry is expanding rapidly and is likely to reach USD 85.95 billion by 2027, expanding at a CAGR of 10.40%.

Increasing need for drug development is projected to drive the market. Drug makers need an efficient supply chain infrastructure to meet their clinical trial goals such as a timely supply of drugs to patient sites, at optimum cost while ensuring compliance with regulations. Therefore, rising need for drug development is enhancing the market.

Existing Restraints

Limited number of patients or volunteers available for clinical trials is expected to restrict the demand for clinical trial supply and logistics. Moreover, the failure linked with clinical trials is hampering the market, as 90% of clinical trials fail to advance or get approvals from health organizations, due to the complexities involved, such as lack of efficacy, issues with trial design, costs, technology, regulations, and access to patients.

Emerging Opportunities

Increasing investment in R&D activities by key players in the market to build and launch supplies and logistics depots to aid local and international biopharmaceutical companies in conducting clinical trials efficiently creates opportunities in the market. For instance,

• On September 27, 2022, Parexel International Corporation, a US-based provider of biopharmaceutical services, announced the opening of a clinical trial supplies and logistics depot in Suzhou, China to support clinical trials. This depot aims to ensure that the needed supplies and treatments reach investigators and patients safely and quickly.

Scope of The Clinical Trial Supply and Logistics Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Clinical Trial Supply and Logistics Market Segment Insights

Service Segment Analysis

Based on service, the clinical trial supply and logistics market is categorized into logistics & distribution, storage & retention, packaging, labeling, blinding, manufacturing, comparator sourcing, and other services. The logistics & distribution segment held a large share of the market in 2022, due to its ability to help businesses grow by enabling the movement of goods and services from producers to consumers.

Logistics & distribution in clinical trials ensures that the right investigational drug and supplies are delivered to the right patient at the scheduled time, which enhances its demand. The manufacturing segment is projected to grow at a quick pace during the forecast period, owing to the rising prevalence of chronic diseases, technological advancements, and increasing healthcare expenditure.

Manufacturing in clinical trials focuses on creating drugs that are used for clinical research. Moreover, key companies in the market are performing mergers and acquisitions to establish a clinical GMP manufacturing and distribution hub to support clinical studies, which is estimated to propel the market. For instance,

• On July 1, 2020, Catalent Inc. a global leader in drug manufacturing, biologics, and gene therapies, acquired the packaging facility of Teva-Takeda Pharmaceuticals in Minakuchi to help pharmaceutical companies establish a clinical GMP manufacturing and distribution hub to support clinical studies.

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Phase Segment Analysis

In terms of phase, the global market is segregated into phase I, phase II, phase III, and phase IV. The phase III segment accounted for a major share of the market in 2022, due to the rising number of patients. Phase III trials compare the safety and effectiveness of the new treatment against the current standard treatment and last for several years.

The demonstrates whether or not a product offers a treatment benefit to a specific population. It provides information and knowledge about the treatment options, which enhances its adoption in clinical trials. For instance,

• As per a report, 1562 phase III clinical drug trials were started in 2021 as compared to 1334 in 2020.

The phase I segment is anticipated to grow at a robust pace during the forecast period, owing to rising outsourcing activity by medical companies and increasing number of pharmaceutical companies. Pharmaceutical companies perform phase 1 clinical trials for the development of novel therapeutics for rare diseases, such as sickle-cell anemia, thalassemia, and hemophilia, which encourages its demand in clinical trials. For instance, 2,784 phase I clinical drug trials were started in 2021 as compared to 2,306 in 2020.

End-user Segment Analysis

Based on end-user, the clinical trial supply and logistics market is bifurcated into pharmaceuticals and biologicals. The pharmaceuticals segment dominated the market in 2022 and is expected to continue its dominance throughout the projected period, owing to rising globalization of clinical trials and increasing R&D by the pharmaceutical companies. Pharmaceutical companies perform clinical trials to test the safety, effectiveness, and side effects of drugs.

Moreover, major pharmaceutical companies are launching and conducting clinical trials in emerging nations, which is propelling the demand for clinical trial supply and logistics. For instance,

• On October 17, 2023, Roche, a multinational healthcare company, announced the launch of its Clinical Trial Excellence project in India to strengthen the capabilities of public health institutions to do clinical trials and drug research in the country.

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Therapeutic Area Segment Analysis

In terms of therapeutic area, the global market is divided into oncology, cardiovascular diseases, respiratory diseases, CNS and mental disorders, and others. The cardiovascular diseases segment held a large share of the market in 2022, due to increasing prevalence of obesity and growing physical inactivity among people.

Clinical trials are performed for cardiovascular diseases to determine if specific drugs or medical devices are safe to be used on humans or not. Clinical trials also diagnose cardiovascular disease early, sometimes before the symptoms occur, which enhances its adoption.

The oncology segment is expected to grow at a rapid pace during the projected period, owing to the increasing incidence of cancer. Clinical trials in oncology provide drug options for people with cancer and allow physicians to improve ways to diagnose, prevent, and treat cancer. It also reduces the incidence of cancer by developing treatments, which encourages governments and health institutes to adopt clinical trials for diagnosing cancer.

Regional Outlook

Based on region, the clinical trial supply and logistics market is categorized into Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. North America held a large share of the market in 2022, due to growing healthcare industry and the presence of established market players, such as Thermo Fisher Scientific Inc., Catalent, Inc., Parexel International (MA) Corporation, and ICON plc, in the region.

Moreover, healthcare institutes in the region are continuously introducing and conducting clinical trials, which propel the demand for clinical trial supply and logistics, as the supply chain improves clinical trial efficiency and reduces costs. For instance,

• On July 31, 2023, the National Institutes of Health launched enrollment for phase 2 clinical trials in the US to evaluate at least four potential treatments for long-term COVID-19.

The market in Asia Pacific is projected to expand at a high CAGR in the coming years, owing to increasing medical tourism and growing patient population. Moreover, easy and cheap availability of volunteers in the region for clinical trials is encouraging researchers to conduct research studies across a wide range of demographics and medical conditions. Additionally, rising spending by governments for health research and drug development in the region is boosting the demand for clinical trial supply and logistics. For instance,

• On February 1, 2023, the government of India allocated ₹2,980 for the Department of Health Research, 3.43% higher than the previous year.

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