Healthcare Supply Chain Management Market Size & Share Analysis - Industry Research Report

Healthcare supply chain management refers to the systems and processes involved in optimizing back-end operations in the healthcare ecosystem. Their goal is to ensure that medical resources are obtained and delivered to different locations in an efficient and timely manner. Supply chain management is a process that includes planning, designing, executing, controlling and monitoring the flow of various goods and services to create a competitive logistics infrastructure, increases net worth, and synchronize the demand and supply of goods to measure performance.

The global healthcare supply chain management market is estimated to be US$ 2,080.6 Million in 2021 and is expected to reach US$ 3,883.4 million by 2028, at a CAGR of 9.3% during the forecast period (2021 –2028).

Figure 1. Global Healthcare Supply Chain Management Market Value (US$ Mn) & Y-o-Y Growth (%)

HEALTHCARE SUPPLY CHAIN MANAGEMENT MARKET

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The rising prevalence of chronic diseases is expected to drive the market growth over the forecast period.

The rising prevalence of chronic diseases is expected to drive the growth of healthcare supply chain management market during the forecast period. For instance, according to the World Health Organization (WHO), by 2020, almost 75% of deaths around the world were caused by chronic diseases. Diabetes, a major chronic disease, will affect close to 228 million people by 2025, as per the WHO. This signals good news for the global healthcare supply chain management market as a rapidly expanding patient pool will broaden the market base.

Healthcare Supply Chain Management Market Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 2,080.6 Mn
Historical Data for:	2017 to 2020	Forecast Period:	2021 to 2028
Forecast Period 2020 to 2027 CAGR:	9.3%	2027 Value Projection:	US$ 3,883.4 Mn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Models: Make-To-Stock, Build-To-Order, Continuous Replenishment, Chain Assembly, Others By Functions: Forecasting and Planning, Inventory Management and Procurement, Internal Logistics and Operations, Warehousing and Distribution, Reverse and Extended Logistics, Others By Component: Software, Hardware, Services By Delivery Mode: On-premise, Web-based, Cloud-based By End User: Healthcare Manufacturers, Healthcare Providers, Distributors, Logistics
Companies covered:	Oracle, SAP SE, Infor., McKesson Corporation, Tecsys Inc., Global Healthcare Exchange, LLC., Cardinal Health, Epicor Software Corporation, LLamasoft Inc., Manhattan Associates, Jump Technologies, Inc., Blue Yonder Group, Inc., Cerner Corporation, Logi-Tag Systems, Picis Clinical Solutions, Inc., Premier, HYBRENT, INC, and Arvato Supply Chain Solutions SE
Growth Drivers:	Adoption of GS1 system Emergence of cloud-based solutions Growing number of unique device identification (UDI)
Restraints & Challenges:	Inadequate value analysis and data collection Lack of awareness regarding healthcare supply chain management system High cost of maintenance and installation of supply chain management software

Figure 2. Global Healthcare Supply Chain Management Market Share, By Component, 2020

HEALTHCARE SUPPLY CHAIN MANAGEMENT MARKET

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Global Healthcare Supply Chain Management Market – Regional Analysis

It is expected that during the forecast period, North America will have a considerable market share. This is due to the increasing proportion of the aging population, strong medical infrastructure, growing concerns about medical costs, and increasing investment in medical supply chain technology. Europe holds the second position in the market due to the increasing awareness of suppliers of the demand for healthcare supply chain management solutions. The increasing prevalence of chronic diseases and rapid population growth will enable the Asia-Pacific region, the Middle East and Africa to provide profitable opportunities for the global healthcare supply chain management market.

Global Healthcare Supply Chain Management Market– Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe and the World Health Organization declared it as a public health emergency in 2020. According to the Coronavirus Disease (COVID-19) Weekly Epidemiological Update by the World Health Organization, the number of COVID-19 cases reported globally as of July 21, 2021, are approximately 191,148,056 confirmed cases with around 4,109,303 deaths. The Coronavirus or COVID-19 outbreak started from Wuhan, China and has spread across continents, affecting various industries globally. Since the past few months, the number of patient visits to hospitals has reduced significantly despite the emergency. Patients are avoiding healthcare institutions to prevent contact with COVID-19 patients and healthcare professionals. The market is expected to be negatively impacted as the COVID-19 pandemic continues to spread, it has exposed vulnerabilities of supply chains and logistics. It has disrupted health supply chains, affecting active pharmaceutical ingredients, shipping, procurements, finished healthcare products, and more.

Global Healthcare Supply Chain Management Market: Restraint

Inadequate value analysis and data collection, lack of awareness, are the major factors that can hinder the growth of the global healthcare supply chain management market. A study paper published by researchers at IIM-Lucknow showed that hospital managers in developing countries such as China, India, Brazil and others have low awareness regarding supply chain management methods and technologies. Moreover, installation of supply chain systems is a costly affair, taking up almost 40% of a hospital’s operating budget. This factor could hinder the global healthcare supply chain management market growth.

Key Players

Major players operating in the global healthcare supply chain management market include Oracle, SAP SE, Infor., McKesson Corporation, Tecsys Inc., Global Healthcare Exchange, LLC., Cardinal Health, Epicor Software Corporation, LLamasoft Inc., Manhattan Associates, Jump Technologies, Inc., Blue Yonder Group, Inc., Cerner Corporation, Logi-Tag Systems, Picis Clinical Solutions, Inc., Premier, HYBRENT, INC, and Arvato Supply Chain Solutions SE.

Frequently Asked Questions

The global healthcare supply chain management market size is estimated to be valued at US$ 2080.6 Million in 2021 and is expected to exhibit a CAGR of 9.3% between 2021 and 2028.

Adoption of GS1 system, emergence of cloud-based solutions, growing number of unique device identification (UDI) are fueling the growth of market.

The software segment is the leading component segment in the market.

Inadequate value analysis and data collection, lack of awareness are the major factors restraining growth of the market.

Major players operating in the market include Oracle, SAP SE, Infor., McKesson Corporation, Tecsys Inc., Global Healthcare Exchange, LLC., Cardinal Health, Epicor Software Corporation, LLamasoft Inc., Manhattan Associates, Jump Technologies, Inc., Blue Yonder Group, Inc., Cerner Corporation, Logi-Tag Systems, Picis Clinical Solutions, Inc., Premier, HYBRENT, INC, and Arvato Supply Chain Solutions SE.