Healthcare logistics is one of the effective ways to reduce operational costs and improving product accessibility for pharmaceutical and medical device organizations. Improved international trade policies by emerging and developed economies are the key factors for the rising focus of the companies on pharmaceutical logistics.
Healthcare logistics companies are constantly evolving with novel technological tools to meet the rapidly rising demand for faster and better patient services. This is expected to boost the growth of the healthcare logistics market during the forecast period. According to the International Journal of Environmental Research and Public Health, the pharmaceuticals market is growing with an annual growth rate of 5.8% since 2017, which is anticipated to reflect a growth trajectory on logistics services in the coming years.
Rising Investment in Improving the Supply Chain Network by Healthcare Companies to Propel the Market Growth
- Increasing focus of manufacturers to improve the turnaround time of their products to contribute to the healthcare logistics market share.
- Emphasis on improving the accessibility of products in the international markets to cater to the rising demand for life-saving drugs and devices
- Smooth international trade procedures and adoption of friendly trade policies by the government in medical supplies and drugs
Efficient Services Provided by Logistic Companies to Boost the Healthcare Logistics Market Growth
- The healthcare logistics companies provide fast and efficient services such as cold storage management, transportation & warehousing, etc.
- Cost reduction of manufacturers by outsourcing the logistic services is boosting the biopharmaceutical logistics market
- Collaboration of manufacturers and logistic service providers leads to cost-saving and efficient management of goods due to the services being provided, such as tracking and insurance of goods.
Introduction Of Novel Medical Devices and Their Rising Adoption Across the Globe to Fuel the Medical Devices Segment
Based on product type, the healthcare logistics market is categorized into medical devices and pharmaceutical products. Approval by the US FDA for various life-saving medical devices is expected to propel the transportation of medical devices globally. This is expected to improve international trade policies for medical devices in some emerging countries and increase the import and export of devices due to rising healthcare expenditure. The impact of the COVID-19 pandemic, which is propelling the demand for vital medical equipment such as pulse oximeters and ventilators, is the key factor that is expected to boost the market during the forecast period. However, increasing R&D on pharmaceuticals to cater to the rising demand for effective and potent drugs for chronic diseases across the globe is likely to augment the growth of the pharmaceutical product in coming years with a relatively higher CAGR.
Increasing Focus on Fast Logistics of Pharmaceutical Products to Boost the Transportation Segment
Based on function, the healthcare logistics market is segmented into transportation (air, land, and ocean), warehousing, and others. The transportation segment is anticipated to acquire the largest pharmaceutical logistics market share in terms of value throughout the forecast period, attributable to the emergence of the technologically advanced tracking system, the rising cost of fuel, and the emphasis of manufacturers on timely delivery to the distributors and retailers. However, the increasing demand for efficient inventory management and cold storage systems for drug classes such as vaccines and other injectables, warehousing, and other segments are likely to reflect relatively significant CAGR during the forecast period.
Improved Infrastructure in Healthcare Sectors in Emerging Economies to Augment the Market Revenue of The Healthcare Facilities Segment
Based on end-user, the healthcare logistics market is segmented into pharmacy, healthcare facilities, homecare, academic & research institutes, diagnostic laboratories, and others. Rising hospitalization of the patients due to the COVID-19 pandemic propelled the demand for ventilators and pulse oximeters in healthcare facilities. Moreover, the efficient services provided by logistics companies to store and transport the pharmaceutical products to the hospital & retail pharmacies fuelled the revenue generated by pharmacy and healthcare facilities segments in 2020.
Emergence Of Local and Regional Logistic Service Providers to Boost the Healthcare Logistics Market Size
The healthcare logistics market is segmented into North America, Europe, APAC, Latin America, and the Middle East & Africa. North America captured the highest market share in 2020 and is expected to remain dominant in terms of revenue during the forecast period. The strategic presence of key pharmaceutical and medical devices companies in the US and the high expenditure of the public on healthcare are projected to boost the growth of North America. Europe accounted for the second-largest market share in 2020, attributed to the significant medical devices and pharmacy supplies to the healthcare facilities and homecare settings in countries such as Italy, Spain, and the UK due to the COVID-19 pandemic. However, rising investments by public and private organizations in Asian countries aiming at improving their healthcare infrastructure and growing consumption of pharmaceutical products by academic institutes and research laboratories are expected to boost the growth of the APAC healthcare logistics industry with relatively higher CAGR during the forecast period. Improved international trade for medical products and the emergence of local players in Middle East countries are likely to augment the revenue from Latin America and the Middle East & Africa in the coming years.
The healthcare logistics market is fragmented, with various small, mid-size, and big companies offering a wide range of logistic services to the healthcare industry. Companies are focusing on introducing multiple technologically advanced tracking tools and doorstep delivery services. Moreover, they collaborate with the essential pharmaceutical and medical device companies to ensure consistency in their business growth. Key players operating in the market include AmerisourceBergen, Ceva Logistics, Kuehne+Nagel, DB Schenker, FedEx, and DHL. Some of the other prominent players are CH Robinson, DSV, Farmasoft, Cold Chain Technologies, United Parcel Services, Inc., etc.
Who Would Be Interested in This Research:
- Pharmacies & Pharmaceutical Companies
- Medical Devices Manufacturers
- Healthcare Facilities
- Academic Institutes
- Research & Laboratories Diagnostic Laboratories
- Government Organizations
- Wholesalers & Distributors
- Freight Forwarders
- Regulatory Agencies
- Group purchasing Organisations (GPOs)
- Warehouse Administrators
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