Healthcare Supply Chain Management Market size is estimated to cross USD 5 Billion by the end of 2035, growing at a CAGR of 11% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of healthcare supply chain management was USD 2 Billion. The growth of the market can primarily be ascribed to the increasing IoT (internet of things) adoption in supply chain management. Additionally, the adoption of IOT in supply chain management helps to locate the movement of goods, monitor their storage conditions, and it is anticipated to surge the growth of the market. On integrating IoT with healthcare supply chain management, around 94% of the medical professionals found a progressive correlation between management and finance across the globe.
Besides this, the higher number of people accessing medical helps, such as, guidance, medicines and others is to propel the growth of the global healthcare supply chain management. There are nearly 350,00 mobile health apps present in app stores, and around 4 million individuals in the United States use these apps. Furthermore, blockchain inclusion in medical supply chain management is projected to fuel the market growth in the upcoming years. The leading companies in the pharmaceutical sector, Pfizer Inc. and Biogen, formed an organization, Clinical Supply Blockchain Working Group (CSBWG), it promotes using the blockchain solutions for tracking shipments of medicine packages shipped by pharmaceutical companies.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~11% |
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Base Year Market Size (2022) |
~ USD 2.0 Billion |
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Forecast Year Market Size (2035) |
~ USD 5.0 Billion |
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Regional Scope |
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Growth Drivers
Challenges
Mode of Delivery (On-Premise, Cloud-Based)
The global healthcare supply chain management market is segmented and analyzed for demand and supply by mode of delivery into on-premise and cloud-based. Out of these, the cloud-based segment is projected to witness noteworthy growth over the forecast period. The cloud-based segment is anticipated to hold the largest market size by the end of 2035. The segment’s growth is expected on account of the growing adoption of cloud computing in healthcare supply chain management, backed by their various benefits. Furthermore, cloud-based solutions in supply chain management help to share and integrate healthcare information from different locations, and it is expected to surge the segment’s growth in the market. Out of a total 1,050 supply chain executives across the globe, nearly 21% share of the companies deployed cloud-based solutions in the supply chain. The typical executive credited their use of the cloud with a 26% improvement in demand prediction accuracy, a 16% decrease in supply chain operating expenses, and a 5% improvement in revenue growth and profitability.
End-user (Healthcare Manufacturers, Healthcare Providers, Distributors, Logistics)
The global healthcare supply chain management market is segmented and analyzed for demand and supply by end user into healthcare manufacturers, healthcare providers, distributors, and logistics. Out of these, the healthcare manufacturers segment is expected to hold the largest share over the forecast period, backed by the surging use of cloud-based solutions for the management of inventory, and storing important data. Moreover, there has been rising adoption of SaaS software by the healthcare manufacturers that will help in reducing the risk of errors, and easy shifting from traditional to automated system functioning.
Our in-depth analysis of the global market includes the following segments:
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By Mode of Delivery |
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By Component |
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By End User |
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North American Market Forecast
The North America healthcare supply chain management market is projected to hold the largest market share by the end of 2035. The growth of the market can be ascribed to the higher incidences of chronic diseases and higher consumption of medicines in the region. In the United States, around 66% of the population, that is about 131 million people, are consuming prescribed drugs. Moreover, 86% of the drug supply in U.S. falls into the category of retail drugs. Furthermore, according to the Centers for Disease Control and Prevention, every 6 in 10 adults is suffering with a chronic disease in the United States. Moreover, there are a large number of healthcare manufacturers present in the region, such as U.S and Canada, that is further predicted to increase the growth of the market in the region.
APAC Market Statistics
On the other hand, the market in the Asia Pacific region is expected to register fastest growth over the forecast period. This can be attributed to the rising investment by the government in healthcare infrastructure, and surging adoption of mobile based healthcare solutions such as mobile medical apps. In addition, there has been an increasing demand for medicines and better healthcare facilities, that is further expected to surge the healthcare supply chain management market growth in the region.
Henry Schein, Inc. announced the complete acquisition of Midway Dental Supply, a wholesome dental distributor providing dental offices and dental laboratories across the Midwestern United States.
Oracle Cloud World announces the partnership with NVIDIA. The collaboration aims to tackle customer business issues with accelerate computing and artificial intelligence by providing Oracle Cloud Infrastructure with the whole NVIDIA accelerated computing stack, including GPUs, systems, and software (OCI).
Author Credits: Radhika Gupta, Shivam Bhutani
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