Medical Supply Delivery Service Market Size, Share & Trends Report

Medical Supply Delivery Service Market Size, Share & Trends Analysis Report By Application, By Mode Of Service (Courier, Drone), By End User (Hospitals, Clinics, Diagnostic Laboratories), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-980-7
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview               

The global medical supply delivery service market size was valued at USD 54.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2020 to 2027. The growing need for quick transportation and delivery of drugs and medical supplies at the time of emergencies are the key factors driving the growth of the market. Furthermore, increasing focus on improving the healthcare system and reducing supply chain costs are some other factors increasing the demand for delivery services. Expansion of healthcare logistics and increasing demand for faster and cost-effective delivery of samples and specimens for testing purposes is promoting the growth of the market. Pharmaceutical and medical device companies are using third-party delivery services to transport their products to reduce their supply chain costs.

The U.S. medical supply delivery service market size

The adoption of medical drones is providing opportunities to improving healthcare services, especially in remote and underserved environments by enabling just-in-time delivery services, reducing costs for routine prescription care, and decreasing turnaround times for lab testing. Many companies are developing medical drones to provide better patient care at remote locations and emergency cases. This is anticipated to improve medical care capabilities at the time of emergencies. For instance, TU Delft has developed an ambulance drone installed with lifesaving equipment. This drone will be helpful at the time of situations such as heart failure, traumas, and respiratory issues. 

Furthermore, the use of medical drones is significantly increasing in the pharmaceutical sector, owing to the ability to deliver drugs in remote locations at a relatively faster pace. These drones help in transporting drugs during severe circumstances such as disasters or medical emergencies. Many countries have used drone services in the COVID-19 pandemic to deliver drugs and devices in containment zones across the world.

On the other hand, the market for medical supplies delivery services is affected by the lack of proper infrastructure. Many emerging countries lack the infrastructure and logistics necessary for the efficient transportation of medical devices and pharmaceutical products through drones and courier-based services. Healthcare logistics requires heavy investments and developing countries lack such investments. This has negatively impacted the market since the major challenge for healthcare logistics companies is to maintain the integrity of the drugs and devices throughout the transportation, which is difficult with improper infrastructure.

Application Insights

Based on the application, the medical supplies segment dominated the market with a share of 34.9% in 2019. The need for dependable delivery support for the timely delivery of medical supplies to hospitals & clinics and at the time of emergencies is driving the growth of this segment. Many medical devices companies are opting for these services to reduce supply chain costs and provide faster delivery of products, which has influenced the demand for these services. Furthermore, there is a rise in the use of medical drones to deliver essential medical supplies to remote regions at the time of emergencies and pandemics, which is further expected to drive the market for medical supplies delivery services.

The emergency services segment is expected to exhibit the fastest growth during the forecast period. Increasing prevalence of trauma cases due to the growing number of road accidents, injuries, and infectious diseases is anticipated to increase the demand for emergency services. According to the American Association for the Surgery of Trauma, over 150,000 deaths and more than 3.0 million occur due to injuries and non-fatal injuries per year in the U.S., respectively. Furthermore, the increasing number of healthcare logistic companies collaborating with drone companies to provide drone-based delivery services to supply various healthcare products in emergencies and pandemic. For instance, in 2019, Matternet has partnered with UPS and launched a regular drone delivery service in the U.S. to carry and deliver lab specimens to the hospitals.

End-user Insights

Based on end-user, pharmaceutical and medical device companies accounted for the highest revenue share of 24.8% in 2019 owing to the growing demand for transport of vaccines in conjunction with government organizations to remote areas during outbreaks. Increasing adoption of drone delivery systems, enabling pharma companies to leverage real-time data to increase supply chain efficiencies for vital and high-volume medicines are aiding segment growth. Furthermore, the increasing investments, partnerships, collaborations, mergers and acquisitions, and government initiatives are some major factors expanding the adoption and demand for these services in the market.  For instance, in April 2020, Uber announces its partnership with Medlife to support last-mile delivery of prescription and other medicines during the COVID-19 pandemic.

The blood bank segment is anticipated to register the fastest growth rate during the forecast period. Increasing prevalence of hematological diseases, a rise in accidents, and an increasing need for safe and timely delivery of blood supplies are the key factors driving the market for medical supplies delivery services. In addition, the rise in demand for delivering safe blood owing to the high prevalence of transfusion transmissible infections is further boosting segment growth. Moreover, the rise in wastage of donated blood and stringent rules and regulations is anticipated to increase the demand for blood transportation through delivery services, which in turn, is contributing towards market growth.

Mode Of Service Insights

In 2019, the courier delivery segment accounted for the highest revenue share of 99.2% in the medical supply delivery service market. This is owing to the rise in the demand for medical courier services to transport sensitive and confidential health care-items which includes paperwork, infusion medicine, prescription medications, medical specimens, lab work, equipment, and supplies. Furthermore, the increasing adoption of medical courier services for delivering donated organs to the recipient safely on time owing to the growing demand for organ transplant surgeries is anticipated to drive the market for medical supplies delivery services over the forecast period. According to the Finnish Kidney and Liver Association, in 2019, 453 organ transplants, which include 293 liver transplants, 64 liver transplants, 27 lung transplants, and 39 pancreatic transplants were carried out in the country.

Global medical supply delivery service market share

The drone delivery segment is anticipated to register the fastest growth during the forecast period. The growing demand for medical drones to deliver essential medical supplies at the time of emergencies in remote locations is anticipated to drive segment growth. Furthermore, favorable government initiatives to support the adoption of medical drones for implementing timely delivery of drugs, blood, vaccines, and test samples are anticipated to propel segment growth in the forthcoming years.  For instance, in 2018, the government of Tanzania announced its partnership with DHL to launch medical drone delivery program. In addition, in September 2019, the government of Maharashtra partnered with Zipline to use their autonomous delivery drones for transforming and revolutionizing critical care, and emergency medicine in the state.

Regional Insights

In 2019, North America dominated the market for medical supplies delivery services and accounted for the largest revenue share of 38.1%. The largest share is attributable to various factors, such as the rise in the adoption of new technologies coupled with an increasing focus on providing cost-competitive supplies throughout the region. Increasing demand for blood and blood components across various surgical procedures are major factors expected to drive the market over the forecast period. Furthermore, the increasing number of companies collaborating with transport service providers for the faster delivery of various medical supplies at the time of emergency is further driving the market in the region.

In Asia Pacific, the market for medical supplies delivery services is anticipated to grow fast during the forecast period owing to factors such as improvement in healthcare infrastructure and growing awareness about the advantages of drones at the time of calamities and emergencies. In addition, increasing the use of drones to provide better medical supplies deliveries in remote locations is driving the market in the region. Moreover, the adoption and implementation of aerial drone technology are increasing in developing countries, creating new markets in countries like China, Africa, and India, in partnership with private operators, humanitarian organizations, and governments.

Key Companies & Market Share Insights

Competition among existing players is intense due to the rising demand for faster and secure transport services in the healthcare industry. The growing demand in the market is anticipated to favor the entry of new players in the future, fueled by rising awareness about the benefits of these services. Furthermore, increasing investments, collaborations, and partnerships between various nation's governments, drone-based service providers, and third-party service providers for the transport of healthcare supplies at the time of outbreaks and emergencies is driving the market. For instance, in April 2020, the government of Canada signed an agreement with Amazon Canada to manage the distribution of healthcare equipment such as masks, gloves, and ventilators to help the country fight against the coronavirus outbreak. Some of the prominent players in the medical supply delivery service market include:

  •  DHL

  • UPS

  • Agility

  • LogistiCare Solutions, LLC

  • FedEx Corporation

  • CEVA Logistics

  • The Wing

  • International SOS

  • Matternet

  • Zipline

  • Flirtey

  • Swoop Aero

Medical Supply Delivery Service Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 61.9 billion

Revenue forecast in 2027

USD 96.6 billion

Growth Rate

CAGR of 6.5% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, mode of service, end-user, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

The U.S.; Canada; The U.K.; Germany; France; Italy; Spain; Russia; China; India; Japan; South Korea; Singapore; Australia; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE

Key companies profiled

DHL; UPS; Agility; LogistiCare Solutions, LLC; FedEx Corporation; CEVA Logistics; The Wing, International SOS; Matternet; Zipline; Flirtey; Swoop Aero

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research, Inc. has segmented the global medical supply delivery service market report on the basis of application, mode of service, end-user, and region.

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Medical Supplies

    • Drugs Supplies

    • Emergency Services (Blood & Organ Transfer, Ambulance Drones)

    • Lab Specimens & Reports

  • Mode Of Service Outlook (Revenue, USD Million, 2016 - 2027)

    • Courier Delivery

    • Drone Delivery

  • End-user Outlook (Revenue, USD Million, 2016 - 2027)

    • Hospitals

    • Clinics

    • Diagnostic Laboratories

    • Pharmaceutical and Medical Device Companies

    • Blood Banks

    • Public Health Departments

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

      • Spain

      • France

      • Italy

      • Russia

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Singapore

      • Australia

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

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