GVR Report cover Medical Supply Delivery Service Market Size, Share & Trends Report

Medical Supply Delivery Service Market Size, Share & Trends Analysis Report By Application (Medical Supplies, Lab Specimens & Reports), By Mode Of Service (Courier Delivery, Drone Delivery), By End-user, And Segment Forecasts, 2021 - 2028

  • Report ID: GVR-4-68038-980-7
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2016 - 2019
  • Industry: Healthcare

Report Overview

The global medical supply delivery service market size was valued at USD 48.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2021 to 2028. An increase in the volume of surgical procedures, coupled with the surge in the adoption of medical courier services for delivering medical supplies to healthcare facilities on time, is expected to fuel the market growth. The growing need to ensure quick and secure transportation of samples and specimens for testing, declining cost of logistics, and increasing focus on improving the healthcare system are driving the demand for medical supply delivery services. In addition, the increase in the incidence of road accidents that lead to blood loss and immediate requirement for blood is boosting the market growth.

U.S. medical supply delivery service market size, by application, 2018 - 2028 (USD Billion)

The expansion of healthcare logistics and rising demand for faster and cost-effective delivery of samples and specimens for testing or diagnostic purposes is bolstering the market growth. The introduction of drone delivery services supports healthcare facilities to transport medical items at an unparalleled level of speed and predictability, resulting in increased operational savings and improved patient care. In addition, the introduction of small indoor drones that can deliver medicine to the bedside of a patient directly from the pharmacy while eliminating human interaction leading to more rapid and less error-prone administration of medications further drives the market.

The ongoing COVID-19 pandemic is further driving the market as the situation demands on-time delivery of essential medical supplies and a smooth flow of specialty drugs that need handling with care. Furthermore, the growing geriatric population, increasing incidence of hypertension and diabetes, and rising surgical procedures for organ transplants are likely to further drive the revenue over the forecast period. According to the data published by the Health Resources and Services Administration (HRSA) in 2019, in the U.S., a total of 39,718 organ transplant surgeries were performed, which include 23,401 kidney transplants, 8,896 liver transplants, 3,552 heart transplants, and 2,714 lung transplants.

The growing demand for blood and blood components across various surgical procedures, such as hematology procedures, cardiovascular surgical interventions, general medicine, and bone marrow surgery procedures, is a significant factor anticipated to boost the service demand over the forecast period. Furthermore, the rising adoption of medical drones is creating numerous opportunities to improve healthcare services, majorly in remote and underserved environments, by reducing turnaround times for lab testing, enabling just-in-time medical supplies delivery, and reducing routine prescription care costs.

Furthermore, mergers & acquisitions, partnerships, and collaborative agreements are some of the crucial initiatives undertaken by major market players that are expected to propel the growth of the overall market. In January 2021, TFI International, a Canada-based logistics and transport company, announced its acquisition plans of UPS Freight for USD 800 million. The acquisition is expected to be completed by the second quarter of 2021. Through this acquisition, TFI will strengthen its North American truckload network and enhance its overall truckload business.

Application Insights

In 2020, medical supplies accounted for the largest share of over 30.0%. The increasing number of surgical procedures, coupled with benefits offered by medical device delivery services for faster, cost-effective, and contactless delivery of products, is expected to drive the adoption of medical supply delivery services. In addition, the increasing number of organ transplant procedures is due to various factors. The factors such as growing alcohol consumption, unhealthy eating habits, increasing prevalence of chronic diseases, and a rapid increase in the success rate of organ transplants over recent years are further driving the segment.

The lab specimens and reports application segment is anticipated to register the fastest growth rate during the forecast period. The COVID-19 pandemic increased the demand for these services as providers looked for these services to reduce the chances of contamination by ensuring contactless and on-time delivery of specimens. There has also been a growing need to improve patient care by increasing the accessibility of these services in rural areas, where the scope for road transportation is limited. In addition, the expansion of healthcare logistics, real-time tracking offered by companies, and the growing demand for faster and cost-effective delivery of samples and specimens are boosting the segment growth.

Mode Of Service Insights

In 2020, courier delivery accounted for the largest share of over 95.0% due to the presence of various national and multinational courier companies in the market that provide real-time tracking and a cost-effective way to transport medical supplies to hospitals and medical laboratories. For instance, TVS SCS Rico same-day medical courier services provide urgent courier deliveries around the clock through experienced couriers, ensuring compliance with standard operating procedures while delivering the products to end users. In addition, companies offer effective delivery of samples using trained couriers and route optimization.

Drone delivery is anticipated to register the fastest growth rate during the forecast period. The growing public acceptance of medical drones in developing economies is anticipated to drive their demand, thereby propelling the market growth. Evolving drone regulations are supporting the adoption of drones for increasing efficiency, improving the direct-to-patient supply chain, and boosting cold chain solutions. In September 2019, the government of Maharashtra announced its partnership with Zipline to use the logistics network of autonomous delivery drones for enhancing critical care and emergency medicine deliveries in the state.

End-user Insights

In 2020, pharmacies accounted for the largest share of over 20.0% due to the increasing benefits offered by these services to fulfill unmet needs of consumers by doorstep delivery of medical supplies that benefits them to avoid long pharmacy lines, COVID-19 disease spread, and human intervention. Increasing investments, collaborations, partnerships, mergers & acquisitions, and government initiatives are boosting the adoption of these services. In April 2020, Uber announced its partnership with Medlife intending to support last-mile delivery of prescription and other over-the-counter medicines in five cities in India that include Kolkata, Jaipur, Hyderabad, Lucknow, and Pune during the COVID-19 pandemic.

Global medical supply delivery service market share, by end-user, 2020 (%)

The patients segment is anticipated to register the fastest growth rate during the forecast period owing to the adoption of medical delivery services enabling vulnerable patients to receive medicines at their doorstep to avoid interaction with COVID-19 patients. The pandemic boosted courier and mail-order-based drug deliveries as people avoided in-person trips to the pharmacy. For instance, in March 2021, Uber announced its partnership with ScriptDrop for prescription delivery services for patients in 37 states. In August 2020, NimbleRx announced its partnership with Uber Health to offer safe and contactless prescription delivery from pharmacies in Seattle and Dallas with plans to expand to other parts of the U.S.

Regional Insights

Asia Pacific accounted for the largest share of over 40.0% in 2020 due to factors such as improving healthcare infrastructure, growing geriatric population, rising prevalence of chronic diseases, technological advancements, improving medical tourism industry, infrastructure investments, higher labor costs amid workforce shortages, evolving care models, and the expansion of healthcare systems in developing economies. Moreover, the adoption and implementation of aerial drone technology are increasing in developing economies, creating new markets in countries such as China and India, in partnership with private operators, humanitarian organizations, and governments.

Europe is expected to register the fastest growth rate during the forecast period. Increasing healthcare expenditures, the adoption of advanced technologies, and the presence of global players are propelling the market growth. In addition, growth in the e-commerce space has created a surge in the number of parcel delivery and logistics service providers in the region. Moreover, companies are devising entry strategies and mergers & acquisitions to cater to the European healthcare logistics and delivery services market. In April 2019, Marken, a business unit of UPS, expanded its logistics footprint in Italy by acquiring HRTL. Marken expanded its European presence by acquiring Austria-based HETO and Hungary-based Der Kurier. This, in turn, is anticipated to drive the market in the forthcoming years.

Key Companies & Market Share Insights

The companies are focusing on expanding their geographical reach and introducing newer, innovative solutions through various strategies, including partnerships, product launches, and collaborations, to support the endusers in faster delivery of medical supplies, deliver value-based care, combat the COVID-19 pandemic, and maintain a competitive edge in the market. For instance, in February 2021, DHL Express and SmartLynx Malta partnered to focus on DHL’s European air fleet expansion plans by including two new Airbus A321-200 cargo planes belonging to SmartLynx Malta. This partnership is expected to streamline DHL’s CO2 emission reduction goals. Some prominent players in the global medical supply delivery service market include:

  • DHL International GmbH

  •  United Parcel Service of America, Inc.

  •  Agility

  • ModivCare Solutions, LLC

  •  FedEx

  • CEVA Logistics

  • wingslogistics

  •  International SOS

  • Matternet

  • Zipline

  • Flirtey

  • Swoop Aero

Medical Supply Delivery Service Market Report Scope

Report Attribute


Market size value in 2021

USD 54.4 billion

Revenue forecast in 2028

USD 101.3 billion

Growth rate

CAGR of 9.3% from 2021 to 2028

Base year for estimation


Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Application, mode of service, end-user, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

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

Key companies profiled

DHL International GmbH; United Parcel Service of America, Inc.; Agility; ModivCare Solutions, LLC; FedEx; CEVA Logistics; wingslogistics; International SOS; Matternet; Zipline; Flirtey; Swoop Aero

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

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 2028. 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 - 2028)

    • Medical Supplies

    • Drug Supplies

    • Emergency Services

    • Lab Specimens & Reports

  • Mode of Service Outlook (Revenue, USD Million, 2016 - 2028)

    • Courier Delivery

    • Drone Delivery

  • End-user Outlook (Revenue, USD Million, 2016 - 2028)

    • Hospitals

    • Clinics

    • Laboratories

    • Pharmacies

    • Patients

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Spain

      • Russia

    • Asia Pacific

      • Japan

      • China

      • India

      • Australia

      • Singapore

      • South Korea

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

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