According to May 2024 research, the size of the US clinical trials supply and logistics market was estimated to be $1.90 billion in 2023 and is expected to increase at a remarkable compound annual growth rate (CAGR) of 7.6% over the next ten years to reach $3.95 billion. According to reports, North America has a 39% market share in 2023.
The primary drivers of market growth are technological advancements in the supply chain, increased research and development spending by the pharmaceutical and biopharmaceutical industries, and the establishment of new clinical trial facilities.
Because more businesses are adopting new technology, there is a constant increase in demand for software related to inventory, supply chain planning, and auxiliary supply chain management.
The desire to reduce R&D expenses also drives the adoption of supply chain management technologies, such as enterprise resource planning, advanced planning management systems, and IVRS (Interactive Voice Response Systems), which help businesses improve operational efficiency, save costs, and make data-driven decisions throughout the supply chain.
Notably, the government program Medicare has a big impact on how much is spent on R&D by businesses. Medicare also encourages the discovery of new drugs by providing subsidized prescription medication purchases. This may increase R&D expenditures and also propel successful medicines and treatments. A surge in demand accelerates the market’s growth.
Clinical trials outsourcing is growing in response to the growing need for efficient supply chain management and logistics, and it is expected that this trend will continue, accelerating the supply of clinical trials and the logistics industry.
The Logistics of Clinical Trials and Their Importance
Ensuring that all the necessary materials for clinical trials reach their intended locations is the responsibility of clinical trial logistics. It all comes down to organizing and controlling the materials, resources, and procedures involved in transporting, storing, and distributing commodities related to the supply chain. The goal is to implement supply chain operations such that all necessary supplies are delivered to the study sites on schedule. All of this contributes to the effective execution of clinical studies.
In terms of clinical trial supply and logistics, the procedure includes closely monitoring the sourcing, packing, labeling, storage, and distribution of medical equipment, investigational medicinal products (IMPs), and other materials required for clinical trials.
Planning must adhere to legal regulations while guaranteeing the integrity of the goods and prompt delivery to all locations worldwide.
Benefits of clinical trial logistics and supplies
- There is a noticeable increase in patient safety.
- The efficiency of clinical trials demonstrates a new degree of improvement.
- Inventory levels are optimized, which lowers waste and, ultimately, results in savings.
- Sponsors proceed to fulfill regulatory requirements.
- Rapid modifications to trial procedures are the result of dynamic supply chain tactics.
- Effective logistics guarantee that research materials and drugs are delivered to patients in a convenient manner.
- Trial material monitoring and thorough documentation are made easier with a robust supply chain.
End-user View of the USClinical Trial Sup ply and Logistics Market
Due to the presence of several contract research organizations, the pharmaceutical industry continued to dominate the end-user market, with a nearly 45% share in 2023. The US seems to be the hub for the main participants in the supply and logistics sector, and the market is expected to develop because of the availability of necessary funding, strong infrastructure, and the ability to adapt to cutting-edge technology.
In addition to soaring expenditure in product development, the biological category is expected to rise at the quickest CAGR of 7.7% until 2033. This is due to the growing demand for biological goods such as vaccines and cell and gene treatments. It seems that these businesses are moving to establish strategic alliances in an effort to expand their consumer base and distribution networks.
From a service perspective, the US clinical trial supply and logistics market
Due to the increased biologics pipeline and the rising usage of medications that are sensitive to temperature, logistics and distribution services had the greatest market share in terms of services in 2023, accounting for about 25% of the total. Over the course of the forecast period, these sectors are expected to develop at the quickest rate. The strong need for material supplies, which raises the demand for high-quality drugs, is expected to fuel the manufacturing segment’s 7.7% compound annual growth rate (CAGR) until 2033. Complex compounds and the strong demand for biologics are expected to restrain the manufacturing sector of the worldwide clinical trials market. Manufacturers, providers of clinical trial supplies, and clinical trial materials must all fully comply with GMP regulations and scale up to meet the demands of different stages of pharmaceutical clinical trials.
Phase Perspective of the US Clinical Trial Supply and Logistics Market
Phase III continued to have a dominant market share of 43.15% in 2023 in terms of phase type. According to reports, Phase III is a crucial stage in the approval process for vaccines. Despite the fact that there have been no or very few cases of COVID-19, manufacturers continue to concentrate on new-generation vaccine manufacturing practices in an effort to prevent the vaccine-related side effects. Between 2024 and 2033, the phase I category is predicted to develop at the fastest CAGR of over 8%. This section typically continues by analyzing the safety of a medication and a device, as well as the tolerability of molecules and pharmacokinetics.
Perspective on the US Clinical Trial Supply and Logistics Market by Therapeutic Area
Cardiovascular illness emerged as the therapeutic category with the largest market share, accounting for around 31% in 2023. It is anticipated to increase at the quickest compound annual growth rate (CAGR) throughout the forecast period. All of this may be linked to the increase in cardiovascular research initiatives as well as businesses that are committed to bringing novel medications to market. Up to 2033, the oncology segment is predicted to develop at a compound annual growth rate (CAGR) of 7.6%. The primary drivers of this growth are the growing prevalence of cancer and the increased need for clinical trials relevant to cancer therapies.
