NEW YORK, June 7, 2024 /PRNewswire/ — The global healthcare logistics market size is estimated to grow by USD 121.4 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 13.87% during the forecast period. Growing global pharmaceutical sales is driving market growth, with a trend towards growing number of initiatives to promote cold chain logistics. However, increased complexities due to time-bound deliveries and customization of the supply chain poses a challenge. Key market players include Agility Public Warehousing Co. K.S.C.P, AGRO Merchants Group, Air Canada, AmerisourceBergen Corp., CEVA Logistics, Cold Chain Technologies, Continental Cargo OU, DB Schenker, Deutsche Post AG, DSV AS, Farmasoft, FedEx Corp., Kuehne Nagel Management AG, McKesson Corp., Oximio, SF Express Co. Ltd., Swisslog Holding AG, United Parcel Service Inc., and VersaCold Logistics Services.
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| Forecast period | 2024-2028 |
| Base Year | 2023 |
| Historic Data | 2018 – 2022 |
| Segment Covered | Product (Pharmaceutical products and Medical devices), Service (Transportation and Warehousing), and Geography (APAC, North America, Europe, Middle East and Africa, and South America) |
| Region Covered | APAC, North America, Europe, Middle East and Africa, and South America |
| Key companies profiled | Agility Public Warehousing Co. K.S.C.P, AGRO Merchants Group, Air Canada, AmerisourceBergen Corp., CEVA Logistics, Cold Chain Technologies, Continental Cargo OU, DB Schenker, Deutsche Post AG, DSV AS, Farmasoft, FedEx Corp., Kuehne Nagel Management AG, McKesson Corp., Oximio, SF Express Co. Ltd., Swisslog Holding AG, United Parcel Service Inc., and VersaCold Logistics Services |
Key Market Trends Fueling Growth
The emerging cold chain markets in Brazil, China, India, and South Africa are being promoted through various regulations focusing on food and drug safety. Notable regulations include CFDA’s rules for good pharmaceutical supply practices, the European Commission’s guideline on medicinal product distribution, and IATA’s CEIV Pharma certification. In 2019, a trading platform was launched for China-Singapore international cold chain products to facilitate trade and logistics between China and Southeast Asia.
The healthcare logistics market is experiencing significant growth, driven by the increasing need for efficient and effective supply chain management in the healthcare sector. Occupational therapy, physical therapy, and chronic disease care are key areas of focus. The use of technology, such as cold chain solutions and delivery tracking systems, is crucial for ensuring the safe and timely delivery of medical supplies and pharmaceuticals.
Digital transformation is also a trend, with many companies implementing electronic data interchange and other automation solutions to streamline processes and improve accuracy. Additionally, the rise of telehealth and remote patient monitoring is increasing the demand for logistics services that can support these new care delivery models. Overall, the healthcare logistics market is expected to continue growing as healthcare providers seek to optimize their supply chains and improve patient outcomes.
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Market Challenges
• The healthcare logistics market faces complexity due to the need for shorter lead times for customers and cost reduction for logistics companies. Healthcare supplies require special handling and customized supply chains to maintain product properties. Information sharing is essential for designing effective models, but confidential data concerns may hinder this.
• Urban and rural infrastructure differences also pose challenges. Manufacturers must consider order size for profitability and customize supply chains based on freight rate, volume, and delivery urgency. These factors make designing a healthcare logistics model a complex task.
• The healthcare logistics market faces several challenges in ensuring the timely and efficient delivery of medical supplies and equipment. These include the need for temperature-controlled transportation for certain products, the requirement for secure and compliant handling of pharmaceuticals, and the importance of on-time delivery to maintain the continuity of patient care.
• Additionally, the increasing complexity of supply chains, driven by factors such as globalization and the rise of e-commerce, adds to the challenges. The use of technology, such as real-time tracking and automation, can help mitigate some of these challenges, but also presents its own set of implementation and cost considerations.
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Segment Overview
- Product
- 1.1 Pharmaceutical products
- 1.2 Medical devices
- Service
- 2.1 Transportation
- 2.2 Warehousing
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 Middle East and Africa
- 3.5 South America
1.1 Pharmaceutical products- The pharmaceutical segment dominated the global healthcare logistics market in 2023, driven by the approval and launch of new drugs. The US FDA approved 55 novel drugs, primarily small molecule drugs and biologics, leading to increased demand for pharmaceutical logistics. Notable approvals include Kisqali from Novartis AG, Ocrevus from F. Hoffmann-La Roche Ltd., and Veklury from Gilead Science Ltd. This trend is expected to continue, enabling logistics players to adapt their facilities to meet pharmaceutical manufacturers’ needs.
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Research Analysis
The healthcare logistics market is experiencing significant digital transformation, with the adoption of new technologies such as inventory forecasting and order fulfillment systems. Third-party logistics providers play a crucial role in this sector, offering freight forwarding services to ensure the timely delivery of healthcare products. Warehousing is an essential aspect of healthcare logistics, with facilities required to maintain specific temperatures for sensitive healthcare products.
The mode of transportation used in healthcare logistics includes trucks, trains, boats, and airplanes, ensuring the safe and efficient movement of raw materials and finished goods. Healthcare logistics is critical in the prevention, diagnosis, treatment, correction, and transportation of various healthcare-related issues, including infections, injuries, diseases, and dental needs. The healthcare industry relies heavily on logistics to ensure the timely and efficient delivery of essential supplies and products, making it a vital component of the overall healthcare supply chain.
Market Research Overview
The Healthcare Logistics Market encompasses the transportation, storage, and distribution of healthcare products and supplies. This critical sector ensures the timely delivery of essential medicines, medical devices, and lab samples to healthcare facilities and patients. Technologies like RFID and IoT are revolutionizing healthcare logistics, enabling real-time tracking and monitoring of shipments.
The market is driven by factors such as increasing healthcare expenditures, growing demand for specialized medical equipment, and the need for efficient supply chain management. Challenges include regulatory compliance, ensuring temperature-controlled transportation, and managing complex supply chains. Sustainability and digitalization are key trends shaping the future of healthcare logistics.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
- Pharmaceutical Products
- Medical Devices
- Service
- Transportation
- Warehousing
- Geography
- APAC
- North America
- Europe
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
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SOURCE Technavio