Global Healthcare Supply Chain Management Market By Product (Software, Hardware, Barcodes, RFID Tags, and Services), By Mode of Delivery (On-premise, Cloud-based, and Web-based) Growth, Future Prospects & Competitive Analysis, 2016 – 2030

Key Highlights of the report

How are the major segments performing in the Healthcare Supply Chain Management Market?

• In 2022, the software product segment accounted for the largest global healthcare supply chain management market share. One of the main factors driving the segment market growth is the expanding use of software like SaaS, which provides next-generation cloud-based applications like supply chain management and enterprise resource planning.
• In 2022, the cloud-based mode of delivery was expected to have a significant global healthcare supply chain management market share. The adoption of cloud-based technology in healthcare systems has increased, attributed to various security breaches on on-premises and web-based deployment. The biggest advantage of having healthcare supply chain management in the cloud is the ease of access.
• In 2022, the healthcare manufacturer end-use segment accounted for most of the global market share. Growing demand for healthcare supply chain management solutions to manage logistics, warehousing, and inventory management activities among manufacturers, as well as rising investments in pharmaceutical manufacturing, is expected to propel revenue growth for this segment.

What is the Market Size of Healthcare Supply Chain Management regarding value?

The global healthcare supply chain management market is anticipated to grow at a substantial CAGR of 8.5% in the upcoming years. The Global Healthcare Supply Chain Management industry was estimated to be worth USD 2.3 billion in 2022 and was expected to be worth USD 4.07 billion by 2028.

Which region dominated the healthcare supply chain management market?

North America was predicted to hold a significant market share in the global healthcare supply chain management market by 2022 due to its developed healthcare system, a large concentration of leading biotech and pharmaceutical firms, government initiatives, rapid technological advancement, and rising demand for medical devices. Medical device exportation and revenue generation help to support supply chain management in the regional healthcare industry. The growing use of scanning technologies to combat counterfeit drugs, such as barcodes and RFID, has facilitated drug tracking. Members of the healthcare sector implemented common product identification to link supply chain operations across the region. Moreover, adopting such scanning technologies by healthcare providers and distributors fuels the regional market growth.

How is US Market Performing in the healthcare supply chain management market?

The North American healthcare supply chain management market is currently led by North America, with the United States capturing the largest revenue share. The emergence of cloud-based and mobile-based healthcare supply chain management platforms and services, the rapid adoption of advanced technologies such as AI, Big Data, and the Internet of Things (IoT) in the healthcare sector, and the presence of state-of-the-art healthcare systems and leading market players in the region, particularly in the United States, are among the key factors driving North America market revenue growth. Other factors driving growth include the increasing patient burden in the United States, the rising prevalence of chronic diseases, regulatory requirements, and the implementation of various strategies to improve healthcare supply chain management in the country.

How is the economy impacting global healthcare supply chain management growth?

The supply chain generally refers to the resources required to provide goods or services to a client. As a result, obtaining resources, controlling supplies, and providing providers and patients with products and services are all part of healthcare supply chain management. Healthcare supply chain management is complex and highly fragmented. Recent supply shortages caused by the COVID-19 pandemic and the economic downturn have exacerbated these issues, making it more difficult for providers to obtain the items required for high-quality care services at a reasonable cost. On the other hand, hospitals and physician practices can create significant cost-cutting opportunities across their organizations by promoting efficiency in the healthcare supply chain. As a result of significant supply chain disruptions, healthcare supply chain leaders are striving to become more cost-effective and resilient.

What is the competitive environment of the healthcare supply chain management market?

The healthcare supply chain management market has diverse competitors, ranging from major to minor players. Oracle, Tecsys Inc, and McKesson Corporation hold a commanding global market share in the current market scenario. The company’s dominance can be attributed to its extensive product offering and increased focus on strategic planning, such as collaborations and acquisitions. For instance, in May 2020, Oracle and KPMG collaborated to introduce new solutions for the healthcare sector, allowing its clients to move their financial services, supply-chain management, and human resources operations to the Oracle cloud. Like other companies, McKesson Corporation has a substantial market share due to its investments in programs that analyze risks. The business operates in over 14 countries, giving it a strong global presence.

Executive Summary

What are the key trends in the Healthcare Supply Chain Management market?

• Expanding adoption of supply chain management solutions in the healthcare sector: The supply chain management software promotes and facilitates transparency among primary, ancillary, and non-acute care providers to efficiently deliver procedures and services. Healthcare supply chain management software can help hospitals and medical facilities follow regulations and deliver value-based care. In emerging economies, the growing acceptance of supply chain management solutions, including software and hardware, is fueling the healthcare supply chain management market.

What are all the technical developments in the healthcare supply chain management market?

The major players are developing several strategic initiatives to broaden their business reach and gain a competitive edge in the market. Software programs for managing the supply chain in the healthcare industry are always changing, focusing on enhancing patient outcomes and sharing patient data in real-time. These software programs increase inventory, transportation, and warehouse management effectiveness and efficiency. Companies are constantly developing innovative technologies to expand the healthcare system’s potential. For instance, Tecsys Inc also collaborated with Microsoft to use Microsoft Power BI in January 2020. Manufacturers and retailers can better understand their customers using the business analytics tool Power BI, which is cloud-based and offers a smart supply chain.

Which are the key investments by the healthcare supply chain management market players?

There has been a pressing need for efficient supply chain management in the healthcare industry due to mounting pressure on healthcare organizations to boost their profitability and address rising supply chain costs. In addition, the demand for supply chain management solutions has grown due to efforts made by numerous organizations to make their supply chain operations more agile and resilient. The higher deployment of supply chain management solutions has also resulted from strategic alliances and purchases between important players and hospitals. For example, ProShip Inc partnered with JDA Software Inc in February 2020 to expand its incorporated shipments and supply chain operations investments and collaborate on some of their most complex and large installs.

Some major players in the healthcare supply chain management market are Jump Technologies Inc, Tecsys, LogiTag Systems, Mckesson Corporation, Oracle, SAP, Infor, Terso Solutions, Halma Plc, and Biolog-ID LLC.

What are the Major Driving Factors for the Healthcare Supply Chain Management Market?

Increasing globalization, business expansion, a quick product life cycle, growing healthcare industry fragmentation, high economic growth of scale, and other factors are the main drivers of supply chain management in the healthcare sector. Other market drivers include rising customer demand, increasing customization, expanding technological capabilities, and others. The growing need for healthcare providers and manufacturers to improve operational efficiency and profitability while lowering operating costs propels the target market forward. The proliferation of cloud-based and mobile-based solutions in the healthcare industry promotes market expansion. Furthermore, advancements in analytics, machine learning, and the introduction of social media and Big Data are expected to propel the healthcare supply chain management market significantly.

What are the Major Risks for the Healthcare Supply Chain Management Market?

However, data privacy and the high cost of deploying and maintaining healthcare supply chain management solutions will likely limit the market growth. It is anticipated that higher input costs for supply chain management’s advanced technologies and the requirement for a specialist to implement market advancements will constrain the global market during the forecast period. In addition, a lack of awareness in many hospitals is expected to impede market growth in the forecast period. Developed nations are successfully adopting modern supply chain management systems like the United States, but the costs of supply chain management software continue to be a barrier for developing markets.

Which is the key product in the healthcare supply chain management market?

The software segment is expected to lead the global healthcare supply chain management market in the coming years due to the launch of new applications to make supply chain management operations more efficient. One of the main factors influencing this segment’s revenue growth is the quick uptake of sophisticated healthcare supply chain management software, such as warehouse management, order management, transportation management, procurement management, and strategic sourcing software. Given the advancements in business intelligence and growing preference for environmentally friendly logistics, software healthcare systems are much more acceptable than hardware systems. Moreover, the growing use of technologically advanced software for workflow management in healthcare organizations drives segment expansion.

How is the healthcare supply chain management market performing in regions?

The Asia Pacific region is expected to grow the fastest in the global healthcare supply chain management market in the forecast period. Some factors accelerating growth include an expanding demand for cloud computing and a continually expanding healthcare IT infrastructure. The region’s market growth is anticipated to be further boosted by the region’s growing GS1 standard adoption for tracking the visibility of pharmaceutical products. The WHO states that Asia Pacific accounts for most fake medications trade. The pharmaceutical sector has embraced scanning technologies like RFID and barcodes to track products and gather information to reduce drug counterfeiting.

What is the regulatory landscape for the healthcare supply chain management market?

Software for managing the healthcare supply chain can aid in delivering value-based care and helping hospitals and clinics comply with regulations. Regulating bodies like the Federal Drug Administration and healthcare payers like Medicare and private health insurance companies are involved in the healthcare supply chain management process. Government regulators and payers decide whether a medical resource is safe for consumers and whether vendors will be compensated for utilizing it with specific patients. Regulatory bodies such as the European Commission and the United States Food and Drug Administration (FDA) have made medical device UDI legislation a global strategic priority for healthcare supply chains.

What are the major players planning for the future of the healthcare supply chain management market?

Several businesses engaged in offering supply chain management solutions and services and made significant investments in R&D activities in response to these favorable market trends. These R&D plans have resulted in the development of products and services that cater to the specific needs of their clients. Thus, introducing new applications and solutions contributes significantly to the market’s expansion throughout the projected period. As a result, increased demand for supply chain management solutions with diverse applications drives market growth over the coming years. For instance, Tecsys Inc announced the introduction of Elite Healthcare Receiving in October 2022 as an addition to its execution platform for the entire Elite Healthcare Supply Chain.

Segmentation of Global Healthcare Supply Chain Management Market-

Global Healthcare Supply Chain Management Market – By Product

• Software
• Hardware
• Barcodes
• RFID Tags
• Services

Global Healthcare Supply Chain Management Market – By Mode of Delivery

• On-premise
• Cloud-based
• Web-based

Global Healthcare Supply Chain Management Market – By End-Use

• Healthcare Manufacturers
• Healthcare Providers
• Distributors
• Logistics

Global Healthcare Supply Chain Management Market – By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-east Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of the Middle East and Africa