Global Healthcare Supply Chain Management Market Overview
The key driver impacting the healthcare supply chain management market is the rising implementation of the UDI initiative by the FDA and the adoption of the GS1 system of standard in the healthcare industry. As GS1 standards, services and solutions are intended to enhance the safety, efficiency, and visibility of supply chains across digital and physical channels in an extensive variety of sectors. For instance, The Indian government passed a law, and it came into effect in July 2011. It mandates the usage of track-and-trace barcodes on all drugs which are intended for export. The following reports that Chinese counterfeiters were selling forged medicines labeled ‘Made in India’ in numerous African countries. According to World Health Organisation, about 15% of the drugs worldwide are counterfeit. This has further pretense a stern risk to the safety of patients with losing faith in the pharmaceutical industry. Moreover, the growing adoption of mobile-based healthcare supply chain management solutions contributes to the development of the healthcare supply chain management market in the coming years.
According to Value Market Research, the global healthcare supply chain management market size was valued at about USD 2.2 billion in 2020 and is estimated to grow at a CAGR of around 8.5% during the forecast period 2021 to 2027.
The emergence of cloud-based solutions in healthcare supply chain solutions is likely to augment the market demand in the forecast period. The cloud-based healthcare supply chain management tools had the fastest implementation rates, utmost client satisfaction scores, and scalable total costs. However, the lack of data privacy may hamper the market in the long run. Also, the high cost associated with the implementation and maintenance of healthcare supply chain management solutions negatively impacts market development. On the other hand, the current industry trends, such as the growing implementation of AI and analytics in the healthcare supply chain and the emergence of blockchain in healthcare supply chain management, are expected to offer several beneficial market opportunities to the key players.
The healthcare supply chain management market is vast, with the existence of several local and global players. The key player such as McKesson Corporation, Oracle Corporation, SAP, Manhattan Associates, Logi-Tag Systems, Tecsys, Infor Inc., Global Healthcare Exchange (GHX), Jabil, and Amerisource Bergen are adopting numerous strategies to gain an aggressive edge over the market globally. The key players majorly focus on intensifying the supply chain and the commercialization of services for pharmaceutical and medical supply manufacturers.
In this research report, the Healthcare supply chain management market is segmented by product, mode of delivery, end-users, and region.
Analysis by Product:
By Product, the report is categorized into software and hardware. The software segment dominates the product segment with over 35% share in 2020. It is due to the Growing adoption of software such as SaaS, which offers next-generation cloud computing applications, and the constant development of advanced healthcare supply chain management software applications. Moreover, the rising number of online purchases, enhanced business intelligence, and increasing demand for eco-friendly logistics contribute to the healthcare supply chain management software segment growth in the forecast period.
Analysis by Mode of Delivery:
By mode of delivery, the report is categorized into on-premise, cloud-based, and web-based. The cloud-based segment dominates the mode of the delivery segment with over 40% share in 2020. It is due to the increasing demand for cost-effective, user-friendly technologies and higher acceptance rates. Moreover, various security breaches in web-based and on-premise deployment, creating a high preference towards cloud-based solutions, contribute to the growth of the cloud-based segment in the forecast period.
Analysis by End-Users
By End-use, the report is categorized into healthcare manufacturers, healthcare providers, distributors, and logistics. The healthcare manufacturers segment dominates the end-user segment with the highest revenue share in 2020. It is due to the massive adoption of HDD for secondary storage, owing to the ability to provide high storage capacity at reduced prices. Moreover, the existence of many manufacturing hubs in the medical device and pharmaceutical industry is contributing to the growth of the healthcare manufacturers segment in the forecast period.
Analysis by Region:
In the regional outlook of the global healthcare supply chain management market, the North America region dominates globally with the highest market share in the forecast period. It is due to the mandatory implementation of GS1 standards and Unique Device Identification (UDI) on pharmaceutical drugs and medical devices in the region. Also, the demand for cloud-based healthcare supply chain management software adds to the regional growth. Moreover, it has several established healthcare supply chain management key players and continually evolving healthcare and IT infrastructure, and growing demand for cloud computing, which is contributing to the incredible market growth across North America.
Market Segmentation covered in the Report:
By Mode of Delivery
- RFID Tags
- Healthcare Manufacturers
- Healthcare Providers
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.