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THE GLOBAL HEALTHCARE LOGISTICS MARKET WAS VALUED AT USD 185.77 BILLION IN 2023 AND IS EXPECTED TO REACH USD 290.73 BILLION BY 2029, GROWING AT A CAGR OF 7.75% DURING THE FORECAST PERIOD.
The Healthcare Logistics Market Size, Share & Trend Analysis Report By
- Product: Pharmaceuticals and Medical Devices
- Functionality: Transportation (Road, Water, Air), Warehousing, and Others
- End-user: Pharmacies, Healthcare Facilities, Diagnostic Laboratories, and Others
- Geography: North America, Europe, APAC, Latin America, and Middle East & Africa
Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2024–2029.
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GLOBAL HEALTHCARE LOGISTICS MARKET REPORT SCOPE
REPORT ATTRIBUTE | DETAILS |
---|---|
Market Size (2029) | USD 290.73 Billion |
Market Size (2023) | USD 185.77 Billion |
CAGR (2023-2029) | 7.75% |
HISTORIC YEAR | 2020-2022 |
BASE YEAR | 2023 |
FORECAST YEAR | 2024-2029 |
MARKET SEGMENTS BY | Product, Functionality, End-user, and Geography |
GEOGRAPHIC ANALYSIS | North America, Europe, APAC, Latin America, and Middle East & Africa |
KEY PLAYERS | Cencora, CEVA Logistics, Deutsch Post DHL, FedEx Corporation, Kuehne + Nagel, DB Schenker, UPS |
MARKET INSIGHTS
The global healthcare logistics market was valued at USD 185.77 billion in 2023 and is expected to reach USD 290.73 billion by 2029, growing at a CAGR of 7.75% during the forecast period. The market is growing at a steady pace, and this trend is likely to continue during the forecast period due to the growing market for temperature-sensitive drugs and biological and clinical materials, combined with increasing awareness among pharmaceutical and logistics enterprises, is amplifying the potential for temperature-controlled healthcare logistics, thereby benefiting the entire healthcare logistics market.
Healthcare logistics encompasses coordinating and overseeing the movement of various medical necessities, including pharmaceuticals, medical equipment, and supplies, from production facilities to healthcare institutions and finally to individuals in need. Additionally, it involves organizing ancillary healthcare items like laboratory samples, organs, and veterinary medications.
MARKET TRENDS & DRIVERS
Optimizing Healthcare Supply Chain Through Digital Transformation
In recent years, the healthcare industry has increasingly turned to digital transformation to address the challenges and complexities of supply chain management. Healthcare organizations can unlock numerous benefits and efficiencies throughout the supply chain process by integrating advanced technologies into their operations. One key aspect of digital transformation in healthcare supply chains is adopting advanced analytics and artificial intelligence (AI). These technologies enable organizations to analyze vast amounts of real-time data, identify patterns and trends, and make data-driven decisions. For example, AI-powered predictive analytics can help forecast demand for medical supplies, allowing organizations to optimize inventory levels and prevent stockouts or overstocking. Blockchain provides a secure and transparent way to track and trace products throughout the supply chain. The Internet of Things (IoT) plays a significant role in digitalizing healthcare supply chains. IoT devices such as RFID tags and sensors can be attached to medical supplies, equipment, and patients to monitor their location, condition, and usage in real-time.
M&A Strategies Expanding Healthcare into Non-Acute Settings
The shift towards non-acute care settings represents a fundamental transformation in healthcare delivery, driven by the need to improve access, reduce costs, and enhance patient outcomes. Ambulatory surgery centers, community clinics, and home care services offer more convenient and less expensive alternatives to traditional hospital-based care, particularly for routine procedures and chronic disease management. Mergers and acquisitions are significant in this transition as healthcare organizations seek to expand their reach and capabilities by integrating non-acute services into their networks. For example, a health system may acquire a local hospital that operates ambulatory surgery centers or a network of clinics, allowing for better coordination of care and improved patient access across the continuum. The move towards non-acute care settings and preventative care reflects a broader shift towards value-based healthcare models prioritizing patient-centered, holistic wellness approaches. Through strategic M&A activities and targeted initiatives, healthcare organizations aim to create more efficient, equitable, and sustainable healthcare systems that meet the diverse needs of patients and communities.
Adoption of Cloud-based Enterprise Resource Planning (ERP) Systems
Adopting cloud-based enterprise resource planning (ERP) systems in the healthcare supply chain has significantly improved data management practices. These systems serve as centralized hubs for storing and managing vast amounts of data related to inventory, procurement, distribution, and other supply chain activities. One of the key benefits of cloud-based ERP systems is their ability to integrate data from various sources into a single, unified platform. This integration facilitates real-time visibility into inventory levels, demand patterns, and supply chain performance metrics across multiple facilities and locations. With all relevant data accessible from a centralized location, supply chain managers can make informed decisions quickly and efficiently. Furthermore, cloud-based ERP systems enable the deployment of advanced technologies such as artificial intelligence (AI) and machine learning (ML). These technologies leverage the rich data stored in the ERP system to drive predictive analytics and optimization algorithms. For example, AI and ML algorithms can analyze historical demand patterns to forecast future inventory needs more accurately, helping organizations optimize stock levels and reduce the risk of stockouts or excess inventory. Moreover, AI-powered analytics can identify potential disruptions in the supply chain, such as delays in product delivery or fluctuations in demand, allowing supply chain managers to address these issues before they escalate proactively. By leveraging AI-driven insights, healthcare organizations can improve supply chain resilience, minimize risks, and enhance operational efficiency.
INDUSTRY RESTRAINTS
Supply and Equipment Shortages
In the healthcare industry, supply-chain challenges persistently plague providers, hindering their access to essential supplies and equipment. These challenges, initially heightened by the disruptions caused by the COVID-19 pandemic, continue to reverberate, affecting routine and pandemic-related items. Despite concerted efforts to maintain adequate stock levels, healthcare providers struggle to balance product availability, timely delivery, cost-effectiveness, and appropriate measurement units. Surveys conducted in 2023 indicate that supplier shortages remain pervasive, with over 90% of providers grappling with ongoing difficulties in obtaining critical supplies. These shortages have profound implications for healthcare delivery, impacting patient care, operational efficiency, and overall healthcare system resilience. Healthcare providers must navigate an uncertain landscape, seeking alternative sourcing strategies, optimizing inventory management practices, and collaborating closely with suppliers to mitigate supply-chain disruptions.
SEGMENT ANALYSIS
INSIGHT BY PRODUCT TYPE
The global healthcare logistics market by product type is segmented into pharmaceuticals and medical devices. The pharmaceuticals segment dominate with the largest market share in 2023. The growth can be attributed to the increasing healthcare expenditure, a surge in R&D investments, and the emergence of biologics and biosimilars. Pharmaceutical supply chain management involves strategically coordinating the complete value-added process of a product within the pharmaceutical industry, along with its associated logistics. This encompasses collaborative efforts among manufacturers, suppliers, distributors, business partners, and consumers, from procurement to final delivery.
INSIGHT BY FUNCTIONALITY TYPE
The global healthcare logistics market by functionality is categorized into transportation (road, water, air), warehousing, etc. The air transportation segment shows prominent growth, with the fastest-growing CAGR during the forecast period. Air freight has emerged as a vital component of the global economy, enabling swift and efficient transportation of goods worldwide, thus helping segmental growth. While air transport has historically been the pharmaceutical industry's favored choice for international shipping due to its unparalleled speed and adaptability, a notable shift is occurring as more industry leaders turn their attention to ocean freight as a preferable alternative. The economic appeal is substantial, with air freight costing four times more than surface shipping. This shift is particularly compelling considering regulatory pressures from health authorities, which drive suppliers to reduce costs aggressively.
INSIGHT BY END-USER TYPE
By end-user, the pharmacies segment holds the largest global healthcare logistics market share. The segmental growth is because pharmacies or drugstores are places where the medicines are dispensed or compounded. The pharmacists are responsible for the composition of the dosage forms of drugs, such as sterile solutions for injections, capsules, and tablets. As the pharmaceutical industry grows, pharmacists emerge as trusted professionals, fueled by promising technologies and trends highlighted in recent forecast reports, with a focus on sustainability and development; health system pharmacists play a pivotal role, supported by advancements in communication technology and risk management under supply chain management, all aimed at enhancing patient healthcare systems.
GEOGRAPHICAL ANALYSIS
The North American region dominates with the largest market share of over 34% in the global healthcare logistics market. This dominance is mainly due to the presence of the majority of healthcare suppliers in the region. High acceptance, prevalence of chronic disease, and growing geriatric population are some factors contributing to this region's growth.
The APAC region shows significant global healthcare logistics market growth during the forecast period. The emerging Asian markets have garnered significant attention from the pharmaceutical industry due to their immense potential. The market is heavily influenced by government spending on research and development (R&D) and increasing health awareness, particularly in emerging markets like India and China. Factors such as the proportion of the senior population (aged 65 years and above) and the rising life expectancy have significantly contributed to creating new business opportunities for the pharmaceutical industry across the APAC region.
COMPETITIVE LANDSCAPE
The global healthcare logistics market report consists of exclusive data on 41 vendors. The global healthcare logistics market is highly fragmented and is classified by the presence of a few key vendors holding a majority of the share. The vendors offer logistics services in varied industries such as aerospace, consumer and retail, e-commerce, energy, automotive, healthcare, etc. The market is rapidly evolving in response to demand for faster deliveries by end users and increased visibility into shipments. Cencora, CEVA Logistics, Deutsch Post DHL, FedEx Corporation, Kuehne + Nagel, DB Schenker, and UPS are the key vendors in this market. These companies have a broad geographical footprint, a strong focus on innovation in logistics, and a diversified service portfolio.
Frequently Asked Questions
What are the key trends in the global healthcare logistics market?
Which region dominates the global healthcare logistics market?
How big is the global healthcare logistics market?
Who are the major players in the global healthcare logistics market?
What is the growth rate of the global healthcare logistics market?
The global healthcare logistics market size is expected to grow at a CAGR of approximately 7.75% from 2023 to 2029.
Base Year: 2023
Forecast Year: 2024-2029
The report considers the present scenario of the global healthcare logistics market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the market.
VENDOR LIST
Key Vendors
- Cencora
- Business Overview
- Product Offerings
- CEVA Logistics
- FedEx
- Kuehne + Nagel
- DB Schenker
- Deutsche Post DHL Group
- United Parcel Service (UPS)
Other Prominent Vendors
- AWL
- Business Overview
- Product Offerings
- Alloga
- Bollore Logistics
- Cardinal Health
- C.H. Robinson
- Cold Chain Technologies (CCT)
- DSV
- Farmasoft
- Lufthansa Cargo
- Medline
- Nippon Express Co. Ltd
- Oximio
- SEKO Logistics
- Sinotrans Limited
- XPO Logistics
- ZirconMed
- GXO
- ArcBest
- Associated Couriers
- Carousel Logistics
- Crane Worldwide Logistics
- CRYOPDP
- DACHSER
- Expeditors
- Freight Logistics Solutions
- Global Group
- Kenco
- Kerry Logistics Network
- Kintetsu World Express
- Life Science Logistics
- Mercury
- Nissin International Logistics Provider
- Rhenus Logistics
- Geodis
SEGMENTATION & FORECAST
- By Product Type
- Pharmaceuticals
- Medical Devices
- By Functionality
- Transportation
- Road
- Water
- Air
- Warehousing
- Others
- By End-user
- Pharmacies
- Healthcare Facilities
- Diagnostic Laboratories
- Others
By Geography
- North America
- The U.S.
- Canada
- Europe
- Germany
- The U.K.
- France
- Italy
- Spain
- APAC
- Japan
- China
- India
- Australia
- South Korea
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- Turkey
- South Africa
- Saudi Arabia
Exhibit 1: Projected Revenues of Healthcare Logistics in Global (2020 – 2029; $ Bn)
Exhibit 2: Market Size & Forecast – Pharmaceuticals (2020 – 2029; $ Bn)
Exhibit 3: Market Size & Forecast – Medical Devices (2020 – 2029; $ Bn)
Exhibit 4: Market Size & Forecast – Transportation (2020 – 2029; $ Bn)
Exhibit 5: Market Size & Forecast – Road (2020 – 2029; $ Bn)
Exhibit 6: Market Size & Forecast – Water (2020 – 2029; $ Bn)
Exhibit 7: Market Size & Forecast – Air (2020 – 2029; $ Bn)
Exhibit 8: Market Size & Forecast – Warehousing (2020 – 2029; $ Bn)
Exhibit 9: Market Size & Forecast – Others (2020 – 2029; $ Bn)
Exhibit 10: Market Size & Forecast – Pharmacies (2020 – 2029; $ Bn)
Exhibit 11: Market Size & Forecast – Healthcare Facilities (2020 – 2029; $ Bn)
Exhibit 12: Market Size & Forecast – Research & Diagnostic Laboratories (2020 – 2029; $ Bn)
Exhibit 13: Market Size & Forecast – Others (2020 – 2029; $ Bn)
Exhibit 14: Projected Revenues of Healthcare Logistics in N. America (2020 – 2029; $ Bn)
Exhibit 15: Projected Revenues of Healthcare Logistics in the US (2020 – 2029; $ Bn)
Exhibit 16: Projected Revenues of Healthcare Logistics in Canada (2020 – 2029; $ Bn)
Exhibit 17: Projected Revenues of Healthcare Logistics in Europe (2020 – 2029; $ Bn)
Exhibit 18: Projected Revenues of Healthcare Logistics in Germany (2020 – 2029; $ Bn)
Exhibit 19: Projected Revenues of Healthcare Logistics in France (2020 – 2029; $ Bn)
Exhibit 20: Projected Revenues of Healthcare Logistics in UK (2020 – 2029; $ Bn)
Exhibit 21: Projected Revenues of Healthcare Logistics in Italy (2020 – 2029; $ Bn)
Exhibit 22: Projected Revenues of Healthcare Logistics in Spain (2020 – 2029; $ Bn)
Exhibit 23: Projected Revenues of Healthcare Logistics in APAC (2020 – 2029; $ Bn)
Exhibit 24: Projected Revenues of Healthcare Logistics in Japan (2020 – 2029; $ Bn)
Exhibit 25: Projected Revenues of Healthcare Logistics in China (2020 – 2029; $ Bn)
Exhibit 26: Projected Revenues of Healthcare Logistics in India (2020 – 2029; $ Bn)
Exhibit 27: Projected Revenues of Healthcare Logistics in South Korea (2020 – 2029; $ Bn)
Exhibit 28: Projected Revenues of Healthcare Logistics in Australia (2020 – 2029; $ Bn)
Exhibit 29: Projected Revenues of Healthcare Logistics in L. America (2020 – 2029; $ Bn)
Exhibit 30: Projected Revenues of Healthcare Logistics in Brazil (2020 – 2029; $ Bn)
Exhibit 31: Projected Revenues of Healthcare Logistics in Mexico (2020 – 2029; $ Bn)
Exhibit 32: Projected Revenues of Healthcare Logistics in Argentina (2020 – 2029; $ Bn)
Exhibit 33: Projected Revenues of Healthcare Logistics in MEA (2020 – 2029; $ Bn)
Exhibit 34: Projected Revenues of Healthcare Logistics in Turkey (2020 – 2029; $ Bn)
Exhibit 35: Projected Revenues of Healthcare Logistics in S. Africa (2020 – 2029; $ Bn)
Exhibit 36: Projected Revenues of Healthcare Logistics in S. Arabia (2020 – 2029; $ Bn)
Tables
Table 1: Key Market Trends in Healthcare Logistics Market
Table 2: Key Market Enablers in Healthcare Logistics Market
Table 3: Key Market Constraints in Healthcare Logistics Market
Table 4: Strategic Recommendations in Healthcare Logistics Market
CHAPTER 1: Healthcare Logistics Market Overview
- Executive Summary
- Key Findings
CHAPTER 2: Healthcare Logistics Market
- GLOBAL: Projected Revenue of Healthcare Logistics Market (2020-2029; $Billions)
CHAPTER 3: Healthcare Logistics Market Segmentation Data
- GLOBAL: Projected Revenue by Product Type (2020-2029; $Billions)
- Pharmaceuticals
- Medical Devices
- GLOBAL: Projected Revenue by Functionality (2020-2029; $Billions)
- Transportation
- Road
- Water
- Air
- Warehousing
- Others
- GLOBAL: Projected Revenue by End-user (2020-2029; $Billions)
- Pharmacies
- Healthcare Facilities
- Diagnostic Laboratories
- Others
CHAPTER 4: Key Regions Overview
- North America: Projected Revenue of Healthcare Logistics Market (2020-2029; $Billions)
- Projected Revenue of the Healthcare Logistics Market in the US
- Projected Revenue of the Healthcare Logistics Market in Canada
- Europe: Projected Revenue of Healthcare Logistics Market (2020-2029; $Billions)
- Projected Revenue of Healthcare Logistics Market in Germany
- Projected Revenue of Healthcare Logistics Market in France
- Projected Revenue of Healthcare Logistics Market in UK
- Projected Revenue of Healthcare Logistics Market in Italy
- Projected Revenue of Healthcare Logistics Market in Spain
- APAC: Projected Revenue of Healthcare Logistics Market (2020-2029; $Billions)
- Projected Revenue of Healthcare Logistics Market in Japan
- Projected Revenue of Healthcare Logistics Market in China
- Projected Revenue of Healthcare Logistics Market in India
- Projected Revenue of Healthcare Logistics Market in South Korea
- Projected Revenue of Healthcare Logistics Market in Australia
- Latin America: Projected Revenue of Healthcare Logistics Market (2020-2029; $Billions)
- Projected Revenue of Healthcare Logistics Market in Brazil
- Projected Revenue of Healthcare Logistics Market in Mexico
- Projected Revenue of Healthcare Logistics Market in Argentina
- Middle East & Africa: Projected Revenue of Healthcare Logistics Market (2020-2029; $Billions)
- Projected Revenue of Healthcare Logistics Market in Turkey
- Projected Revenue of Healthcare Logistics Market in South Africa
- Projected Revenue of Healthcare Logistics Market in Saudi Arabia
CHAPTER 5: Healthcare Logistics Market Prospects & Opportunities
- Healthcare Logistics Market Opportunities & Trends
- Healthcare Logistics Market Drivers
- Healthcare Logistics Market Constraints
CHAPTER 6: Healthcare Logistics Industry Overview
- Healthcare Logistics Market - Competitive Landscape
- Healthcare Logistics Market – Key Vendor Profiles
- Healthcare Logistics Market – Other Prominent Vendors
- Healthcare Logistics Market - Key Strategic Recommendations
CHAPTER 7: Appendix
- Research Methodology
- Abbreviations
- About Arizton
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Frequently Asked Questions
What are the key trends in the global healthcare logistics market?
Which region dominates the global healthcare logistics market?
How big is the global healthcare logistics market?
Who are the major players in the global healthcare logistics market?
What is the growth rate of the global healthcare logistics market?