As per a study conducted in May 2024, the US clinical trials supply and logistics market size was placed at $1.90 billion in 2023 and, in another 10 years, will hit $3.95 billion, thereby growing at an impressive CAGR of 7.6% all across the forecast period. Apparently, North America dominated this market share with 39% in 2023.
The expansion of the market is primarily pushed by tech developments in the supply chain, rising expenditure on R&D by both pharma and biopharma businesses, and the setup of new clinical trial facilities.
The demand for software in inventory, supply chain planning, and ancillary supply chain management is consistently rising as it is being adopted by firms seeking new tech.
The aspiration to cut costs in R&D also leads to the adoption of supply chain management tech like advanced planning management systems, IVRS- Interactive Voice Response Systems, and enterprise resource planning, which go on to help firms elevate operational efficiency, decrease costs, and also make some data-driven decisions all across the supply chain.
Notably, Medicare, which is a government program, happens to have a significant effect on the spending on business R&D. Through offering subsidized prescription drug purchases, Medicare goes on to promote new drug development, which can elevate R&D investments and also surge the successful pharmaceuticals and cures. The market expansion is accelerated by a demand spike.
In response to the rising demand pertaining to effective logistics as well as supply chain management, clinical trials outsourcing is developing, and the fact is that this trend is anticipated to continue, thereby speeding-up clinical trials supply along with the logistics sector.
Clinical Trials Logistics and its significance
Clinical trial logistics makes sure that everything that is required for clinical trials gets to where it is required. It is all about managing as well as coordinating the resources, materials, and also the processes that are involved in storing, moving, along with distributing supplies pertaining to the supply chain. The idea is to carry out supply chain functioning in such a way that all the essential materials get delivered within time to the research locations. All this leads to clinical trials being carried out in an efficient way.
The process as far as clinical trial supply and logistics are concerned goes on to include keeping a close eye on packaging, sourcing, labeling, storing, and distributing investigational medicinal products- IMPs, medical devices, and other materials necessary for clinical trials.
The planning has to meet the legal requirements while at the same time ensuring supplies’ integrity and also timely delivery wherever in the world.
Advantages of clinical trial supply plus logistics
- Patient safety gets enhanced to a significant extent.
- The clinical trial efficiency shows a new level of enhancement.
- Inventory levels get optimized, thereby reducing waste and, hence, leading to savings.
- Sponsors go on to meet regulatory benchmarks.
- Dynamic supply chain strategies lead to rapid alterations in trial protocols.
- Efficient logistics make sure patients receive study medications and supplies in a convenient way.
- A strong supply chain helps with complete documentation and monitoring of trial materials.
US Clinical Trial Supply & Logistics Market- End User Perspective
In terms of end-users, pharma went on to dominate the market, having a share of almost 45% in 2023 because of many contract research organizations. The US apparently happens to be the epicenter of major supply and logistics market players, and due to the availability of required funds, robust infra and capacity to adapt to advanced tech fuels growth in the market.
The biological segment is anticipated to see a growth of the fastest CAGR of 7.7% till 2033 due to a rising demand for biological products like cell and gene therapies and vaccines, apart from surging investment in product development. These companies are apparently making a move to form strategic agreements so as to enhance distribution channels and customer reach.
US Clinical Trial Supply & Logistics Market- Service Perspective
In terms of services, logistics and distribution went on to hold the largest market share of almost 25% in 2023 and are all set to grow at the fastest CAGR across the forecast period due to the elevated biologics pipeline and the growing use of temperature-sensitive drugs. The manufacturing segment is all set to grow at a CAGR of 7.7% until 2033 due to high demand for material supplies, which further enhances the quality drug demand. Intricate molecules, along with high demand in terms of biologics, are anticipated to throttle the manufacturing segment pertaining to the global clinical trials market. Manufacturers as well as clinical trial materials and suppliers are required to scale up to supply needs of various phases of pharma clinical trials, and they are also required to be completely GMP-compliant.
US Clinical Trial Supply & Logistics Market- Phase Perspective
In terms of phase type, phase III went on to dominate the market share with 43.15% in 2023. Phase III, apparently, happens to be an essential stage in terms of vaccine approval, and in spite of no or probably lesser incidences pertaining to COVID-19, manufacturers still happen to focus on new-gen vaccine manufacturing practices so as to prevent the serious consequences of any disease shortly after taking it. The phase I segment is anticipated to grow at the fastest CAGR of almost 8% between 2024 to 2033. This segment usually goes on to involve evaluating a device and drug safety while at the same time assessing the tolerability of molecules and pharmacokinetics.
US Clinical Trial Supply & Logistics Market- By Therapeutic Area Perspective
Based upon the therapeutic area, it was cardiovascular disease that went on to hold the biggest market share of around 31% in 2023 and is also projected to grow at a CAGR that is the fastest throughout the forecast period. All this can be attributed to cardiovascular research projects that are on the rise and also to companies that are dedicated to getting new kinds of medicines into the market. The oncology segment is expected to see growth at a CAGR of 7.6% till 2033, with the rise mainly driven by rising incidences of cancer and a higher need for clinical trials conducted pertaining to cancer therapeutics.
