Healthcare Supply Chain Management Market Size, Share & Trends Analysis Report By Product (Software, Hardware, Services), By Mode Of Delivery (On-premise, Cloud-based, Web-based), By End-use, By Region, And Segment Forecast, 2023 - 2030

Report Overview

The global healthcare supply chain management market size was valued at USD 2.6 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 9.10% from 2023 to 2030. Key factors driving the market include increasing pressure faced by healthcare providers to improve operational profitability and efficiency and rising adoption of the GS1 system of standards in various countries. Growing demand for limiting the large-scale counterfeiting of drugs in the pharmaceutical industry and the emergence of cloud-based solutions are among the factors boosting the growth of the market. Growing pressure on healthcare providers to increase efficiency while reducing cost is encouraging the adoption of healthcare supply chain management solutions around the world. Healthcare supply chain management also includes efficient supply chain methods to achieve traceability and operational efficiency while reducing operating costs without compromising quality.

For instance, in August 2022, Kit Check entered into a partnership with Genixus to introduce its RFID technology in Genixus’s new KinetiX Propofol syringes. This collaboration states that RFID-tagged propofol will be provided for Genixus’s KinetiX.

Increasing adoption of cloud-based software solutions by healthcare professionals is one of the key factors driving the market. Significant improvements in supply chain management solutions with respect to data security are boosting their adoption. Some of the key end-users of healthcare supply chain management are hospitals, clinics and physician offices, and diagnostic labs. Pharmaceutical and medical device manufacturers, distributors, logistics, and healthcare organizations are also key end-users of this market. The changing health of the people is a trend driving supply chain innovation. According to the CDC, half of the adult population in the U.S. has one or more chronic health conditions. This further helps in creating a more patient-centered supply chain that can be provided when and where the patients need it. Furthermore, according to Forbes, the Internet of Things is leading to increased connectivity and visibility throughout the supply chain, which is possible by closely monitoring inventories, thereby reducing healthcare costs.

Growing adoption of mobile-based healthcare supply chain management solutions among manufacturers and providers is expected to boost the industry growth over the forecast period. Mobile apps have become an essential part of supply chain management solutions. Supply chain management for logistic companies in developed as well as emerging countries has become to easier owing GPS-enabled mobile applications. These apps use mobile devices and sensors for tracking vehicles, thereby providing better visibility of the entire supply chain management. Furthermore, there are several healthcare supply chain management apps available. For instance, Curvo, a sourcing technology for implants and physician-preference items, is designed to enhance supply chain efficiency.

The adoption of cloud-based software solutions results in the participation of many end-users, which may result in a variety of new potential risks pertaining to data privacy and security. Growing concerns over security and data privacy are among the factors expected to hinder the growth of the market among end-users. According to the U.S. Department of Health and Human Services, in the U.S., every month about 1 million people were affected by data breaches in the healthcare sector in 2020. One of the most prominent cyberattacks was committed by a group backed by the Russian government in 2020. It affected various organizations and the U.S. federal government. The attackers exploited three major firms in the U.S.—SolarWinds, Microsoft, and VMware. A supply chain attack on Microsoft cloud services allowed attackers to breach the data of their users. Furthermore, the high cost of supply chain management solutions may hamper the industry's growth.

The sudden outbreak of COVID-19 highlighted the loopholes in the healthcare supply chain. The failure of the supply chain during the pandemic put patients and healthcare providers at risk, which further forced the economy to shut down. Rising cases of COVID-19 led to a sudden rise in the demand for gloves, medical masks, sanitizers, oxygen cylinders, medicines, ventilators, and others, which led to an imbalance in the industry. However, this compelled the manufacturers and providers to adopt supply chain management solutions to streamline their processes. Implementation of these supply chain management solutions helped healthcare facilities overcome the issues of the supply chain. Many supply chain management providers temporarily allowed healthcare organizations to opt for their solutions for free. For instance, in March 2020, Jump Technologies temporarily opened its inventory management solutions for all healthcare facilities. Such initiatives were focused on helping hospitals maintain their supplies during the pandemic.

Product Insights

Software segment dominated the market with 39.6% share in 2022 and is expected to expand at the fastest CAGR 9.4% during the forecast period. The growing adoption of software such as SaaS that offers next-generation cloud computing applications such as supply chain management enterprise resource planning are among key factors boosting the market growth. The rising need for efficient management of organizational workflows in healthcare organizations and a shift in the trend toward value-based care in developed economies are boosting segment growth. Furthermore, rising initiatives undertaken by private and public players for supporting healthcare IT infrastructure are driving the segment in healthcare organizations.

The services segment is expected to emerge as the second-fastest growing segment over the forecast period owing to advancements in software platforms and rising demand for services such as support and maintenance, consulting, and education and training. The development of a range of platforms for monitoring, diagnosis, wellness, and prevention of diseases is also a key factor boosting market growth. Furthermore, healthcare IT services such as education and training, consultation, installations, and upgradation of the software are some other factors propelling segment growth. For instance, Manhattan OneSource offers a single point of contact for all supply chain software and hardware requirements. With the help of OneSource, end-users can achieve the lowest cost of service and optimal performance at the same time.

Mode of Delivery Insights

The cloud-based segment emerged as one of the extremely high potential segments with a revenue share of over 40.3% in 2022 and is expected to expand at the highest CAGR 9.4% during the forecast period. The adoption of cloud-based technology has increased owing to various security breaches on web-based and on-premise deployment. The old-generation systems require regular investments for the upgradation of the software. Moreover, with the growing IT infrastructure needs and changing business requirements, information sharing with clients and other stakeholders is a key concern, and therefore, several players are using this technology. The benefits associated with cloud technology include the use of external web servers, remote access and authorization, information sharing across different stages of the value chain, and immediate detection of security threats and lapses. Furthermore, it reduces the need for physical infrastructure; therefore, it has a much lower financial investment as cloud-based services are designed as a pay-as-you-go model. Thus, the demand for cloud-based delivery as compared to others has increased significantly and is expected to witness the fastest growth in the coming years.

On-premise held the second-largest share in 2021. Deployment of on-premise is commonly adopted by several medium- and small-scale enterprises through in-house data centers and security infrastructure. Previously, the majority of healthcare centers were dependent on on-premise deployment; however, with the advent of cloud-based technology, several organizations are opting for cloud-based deployment.

End-use Insights

The healthcare manufacturers segment dominated the market with a revenue share of over 35.4% in 2022 and is expected to expand at the fastest CAGR 9.4% during the forecast period. Pharmaceutical companies are among the major beneficiaries of emerging IT trends and technologies including cloud computing. The growing adoption of SaaS software among healthcare manufacturers is changing the trend by shifting from paper-based functioning to an automated system. This has further reduced the risk of errors and also overcome significant challenges such as efficient planning and visibility into consigned inventory. Furthermore, the pharmaceutical industry generates petabytes of data every second through multiple data streams such as R&D and CRM systems. Hence, cloud computing comes into the picture by allowing companies to store important data in a global network that can be accessed from anywhere in the world and from any device. This, in turn, allows the pharmaceutical industry to function more efficiently.

Healthcare providers held the second-largest share in 2021. The rising adoption of cloud-based software solutions in hospitals is one of the key factors fueling industry growth. Growing demand for automated services and the rising need for the integration of health-related data of individuals for efficient care delivery are some other factors expected to fuel industry growth. Furthermore, an increase in the adoption of cloud computing in hospitals for improving clinical, financial, inventory, procurement, and administrative efficiency is responsible for growth.

Regional Insights

North America dominated the overall market in 2021 with a share of over 30.0%. Some of the key factors responsible for the regional growth are the mandatory implementation of GS1 standards and Unique Device Identifiers (UDIs) on pharmaceutical drugs and medical devices. The presence of large manufacturing hubs is another factor contributing to the growth in the region. Other factors that contribute to the growth are the rising patient burden in the U.S., the increasing prevalence of chronic diseases, regulatory requirements, and the implementation of various strategies to enhance healthcare supply chain management in Canada. The growing adoption of scanning technologies, such as barcodes and RFID, to curb counterfeited drugs has aided in tracking the drugs. Manufacturers in the U.S. have started using edible barcodes in combating the counterfeit drug trade. Furthermore, the adoption of these scanning technologies among healthcare providers and distributors is boosting the market growth in the region.

Asia Pacific is anticipated to register a lucrative CAGR of 10.5% during the forecast period. A constantly developing healthcare IT infrastructure and growing demand for cloud computing are some of the factors accelerating growth. The growing adoption of GS1 standards in the region to track the visibility of pharmaceutical products is expected to further boost market growth in the region. According to the WHO, Asia Pacific holds the largest share of the trade in counterfeit medicines. The pharmaceutical industry has adopted scanning technologies, such as RFID and barcodes, to track products and gain information about products for curbing the counterfeiting of drugs.

Key Companies & Market Share Insights

The key participants are devising various strategic initiatives to expand their business footprint and gain a competitive edge in the market. Healthcare supply chain management software applications are constantly evolving, focusing on the improvement of patient outcomes and real-time sharing of a patient’s data. These software applications are known to improve the efficiency and effectiveness of warehouse, transportation, and inventory management. Companies are continuously involved in developing innovative technologies to create more opportunities in the healthcare sector. Furthermore, in January 2020, Tecsys, Inc. entered into a partnership with Microsoft for using Microsoft Power BI. Cloud-based Power BI is a business analytics tool that allows manufacturers and retailers to gain better insights into their customers by providing an intelligent supply chain. Some prominent players in the global healthcare supply chain management market include:

• Jump Technologies, Inc.

• Tecsys

• LogiTag Systems

• Mckesson Corporation

• Oracle

• SAP

• Infor

• Terso Solutions

• CenTrak (HALMA plc)

• Biolog-ID

Healthcare Supply Chain Management Market Report Scope

Global Healthcare Supply Chain Management Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare supply chain management market report on the basis of product, mode of delivery, end-use, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2030)

  • Software

  • Hardware

    • Barcodes

    • RFID Tags

  • Services

• Mode of Delivery Outlook (Revenue, USD Million, 2016 - 2030)

  • On-premise

  • Cloud-based

  • Web-based

• End-use Outlook (Revenue, USD Million, 2016 - 2030)

  • Healthcare Manufacturers

  • Healthcare Providers

  • Distributors

  • Logistics

• Regional Outlook (Revenue, USD Million, 2016 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Singapore

    • South Korea

  • Latin America

    • Mexico

    • Brazil

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE