Healthcare Supply Chain Management Market Size & Share, by Mode of Delivery (On-Premise, Cloud-Based); Component (Software, Hardware, Services); End-user (Healthcare Manufacturers, Healthcare Providers, Distributors, Logistics) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4588
  • Published Date: Feb 23, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

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.


Healthcare Supply Chain Management Market
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Healthcare Supply Chain Management Sector: Growth Drivers and Challenges

Growth Drivers

  • Rise in Online Purchases of Healthcare Products- Digitization has led to increased sales of pharmaceutical products through online platforms, which in turn is expected to boost the global healthcare supply chain management market. In the United States, the online sales of pharmaceuticals in 2020 was around USD 80 billion, which was a rise from 31% in 2019 to around 38 percent in that particular year.
  • Growing Usage of Health-Related Mobile Apps- There are an increasing number of supply chain management apps available around the world, that is projected to drive the market’s growth over the forecast period. The apps usage in the medical category surged to approximately 52 % in the second quarter of 2021 in the United States.
  • Integration of Internet of Things (IoT) in Healthcare Supply Chain- By integrating advanced technology, including IoT is likely to enable the global healthcare industry to save up a lot of investment, from USD 250 billion to nearly USD 420 billion by 2030. Moreover, it is expected to benefit inventory management by giving nearly 100% compliant, secure, and reliable management.
  • Strategic Collaboration Among Companies- In 2020, Proship, Inc. joined hands with JDA Software, Inc., through the inclusion of ProShip as a technology partner in JDA's Partner Advantage Program that would aid a portfolio of integrated shipping and supply chain management solutions.
  • Adoption of Blockchain Technology- Oracle launched the blockchain platform, Oracle Intelligent Track and Trace. It is an application developed for businesses using supply chain management.

Challenges

  • Inability of Precise Data Collection and Analysis
  • High Cost of Implementing Supply Chain Management Software
  • Cyber Breach on Supply Chain Data - The healthcare sector has always been a progressive industry, it continually provides life-critical services while seeking to improve treatment and patient care with new technologies, despite criminals and cyber threats always manage to find a way to exploit the vulnerabilities that are linked with these changes.

Healthcare Supply Chain Management Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~11%

Base Year Market Size (2022)

~ USD 2.0 Billion

Forecast Year Market Size (2035)

~ USD 5.0 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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Healthcare Supply Chain Management Segmentation

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:

                By Mode of Delivery

  • On-Premise
  • Cloud-Based

                By Component

  • Software
  • Hardware
  • Services

                 By End User

  • Healthcare Manufacturers
  • Healthcare Providers
  • Distributors
  • Logistics

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Healthcare Supply Chain Management Industry - Regional Synopsis

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.

 

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Healthcare Supply Chain Management Market Size
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Companies Dominating the Healthcare Supply Chain Management Landscape

top-features-companies
    • Tecsys Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Henry Schein, Inc.
    • McKesson Corporation
    • Providence Health & Services
    • Oracle Corporation
    • Syft Technologies Limited
    • Ascension
    • Ochsner Health
    • Advocate Health Care
    • Banner Health 

In the News

  •  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


  • Report ID: 4588
  • Published Date: Feb 23, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Integration of internet of things (IoT) in healthcare supply chain, and growing usage of health-related to mobile apps are estimated to majorly boost the market growth.

The market is anticipated to attain a CAGR of ~11% over the forecast period, i.e., 2023-2035.

High cost of implementing supply chain management software, and cyber breach on supply chain data are estimated to challenge the market growth.

The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are Henry Schein, Inc., McKesson Corporation, Providence Health & Services, Oracle Corporation, Syft Technologies Limited, Ascension, Ochsner Health, Advocate Health Care, Banner Health, Tecsys Inc., and others

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by mode of delivery, component, end user, and by region.

The cloud-based segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Healthcare Supply Chain Management Market Report Scope
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