Global Healthcare Supply Chain Management Market by Mode of Delivery (Cloud-based, On-premise), by Product (Software, Hardware, Services) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global healthcare supply chain management market was valued at USD 1.91 billion in 2018. It is expected to grow 8.7% during the forecast period. The target market is growing due to the increasing need to improve operational efficiency, profitability, and reduce operating expenses. This is mainly driven by manufacturers and healthcare providers. Market growth is also supported by the emergence of mobile-based and cloud-based solutions in the healthcare industry. Market growth will also be supported by advances in analytics, machine-learning, social media, and Big Data.

Market growth is expected to be driven by the rapid adoption of GS1 standards for unique device identification (UDI), which will drive the market over the next few years. GS1 standards allow for cross-border compatibility and globally unique identification. Global standards have greatly improved patient safety, supply chain efficiency and effectiveness as well as the effectiveness of the healthcare system. Counterfeit medications can be prevented by implementing global standards such as barcodes. Duplications and unauthorised serial numbers can be caught by traceability, authentication, and serialization. WHO estimates that around 15% of all medicines in the world are counterfeit. This poses a grave risk to patient safety and threatens faith in the pharmaceutical industry. Implementation of GS1 standards allowed stakeholders to verify each product's supply chain history.

The European Commission, U.S. Food and Drug Administration (FDA) and other regulators have made healthcare supply chain a strategic priority by approving legislation to allow UDI for medical device. Counterfeit medical devices are a growing trend. Therefore, UDI for medical devices is crucial. UDI improves inventory management and provides a consistent method of identifying items that are available for distribution.

The healthcare industry is being transformed by cloud-based supply chain management software. Cloud-based software is in high demand because healthcare providers and manufacturers are focusing on improving supplier quality and optimizing inventory. Jump Technologies, for example, has created a cloud-based software called JumpStock which integrates with EMRs, ERPs or scheduling systems. This allows hospitals to lower costs associated with stock-outs, physician preference variances and supply hoarding. By identifying product quality issues early, cloud-based track and traceability solutions can protect manufacturers against variable costs associated with a product recall. These solutions can also be used to improve order management and production planning at all warehouse locations.

Product Insights

Software emerged as one the most promising segments in 2018. The segment is being driven by SaaS software, which provides next-generation cloud computing apps. Software is also being driven by the increasing need to manage organizational workflows within healthcare organizations, and the shift towards value-based care in developed countries. Software applications for healthcare supply chain management are constantly evolving. They focus on improving patient outcomes and sharing real-time patient data.

Over the forecast period, the services segment will grow at an 8.7% annualized rate. Software platforms' advancements have fueled demand for supply chain management services like support, maintenance, education, and training. Segment growth is driven by the development of multiple platforms that can monitor inventory and procure.

It is expected that the hardware segment will experience significant growth in the next few years. In 2018, barcodes made up the largest revenue share. The healthcare industry faces many challenges, including managing large volumes of information. Barcodes are cost-effective for both hospitals and manufacturers. Inventory control, for example, is a complex and time-consuming task that every healthcare organization has to deal with. These inventories can be managed by barcodes that provide the correct information at the right moment.

Mode of Delivery Insights

Cloud-based delivery was the most popular mode of delivery in 2018, accounting for 39.8% of the market's healthcare supply chain management revenue. This segment is expected to grow the fastest over the forecast period. The large market share is due to the growing demand for cost-effective and user-friendly technology, as well as higher acceptance rates. The market is also being boosted by the increasing use of cloud computing by healthcare providers to maintain inventory and purchase information.

Over the forecast period, on-premise deployment will experience a 8.2% CAGR. On-premise supply chain management solutions have faced many challenges from organizations. These include effective implementation, governance, policies, processes, staff recruitment and retention, as well as the need for policies and procedures. This combined with the high initial infrastructure and set-up costs will likely limit growth in this sector.

Due to security breaches in both web-based and on-premise deployments, cloud-based technology is increasingly preferred. Network performance can affect web-based applications. Many healthcare institutions are moving to cloud-based deployments due to the high cost of hosting dedicated servers.

End-use Insights

Healthcare manufacturers were the biggest revenue share in 2018 and will continue to grow rapidly over the forecast period. Major revenue generation has been enabled by the presence of many manufacturing hubs in both developed and emerging countries in the medical device and pharmaceutical industries. SaaS has seen a rise in adoption by manufacturers, which has resulted in lower maintenance and development costs for support systems. This segment is expected to grow.

Over the forecast period, the distributor's segment will grow at a significant pace. This segment is driven by a growing demand for supply chain management solutions, such as software, hardware and tools, which are used to coordinate between manufacturers and healthcare providers. To manage their inventory efficiently, distributors of pharmaceuticals have formed partnerships with supply chain management solutions providers. Distributors are expected to be more interested in healthcare supply chain management solutions.

The logistics sector is being driven by cloud computing. Cloud computing has had many benefits in logistics, including a significant increase in efficiency and clarity in key functionality. Cloud computing has made logistic operations more transparent and efficient. The increasing adoption of RFID and barcodes has helped with various logistics activities, such as the tracking of orders and optimizing distribution routes.

Regional Insights

North America held the largest revenue share of the market in 2018, accounting for over half. The North American supply chain management market is boosted by the mandatory implementation of GS1 standards, Unique Device Identification (UDI), on pharmaceutical drugs, and large manufacturing hubs. Market growth is also being driven by the continuous development of healthcare and IT infrastructure, as well as growing demand for cloud computing. The U.S. was the most lucrative market in North America in 2018, accounting for the largest share of revenue. The market has seen a rise in adoption of RFID and barcode scanning technologies by manufacturers to combat counterfeit drugs.

Asia Pacific is expected to be the most lucrative, with a 9.7% CAGR over the forecast period. This is due to the growing availability of mobile-based solutions for healthcare supply chain management and the increased implementation of technologically advanced solutions across countries like Japan, China, and India. Over the next few years, the Asia Pacific market will be driven by the increasing number of government initiatives that encourage healthcare providers and other healthcare organisations to adopt cloud-based solutions to improve their inventory management systems.

Healthcare Supply Chain Management Market Share insights

The market's major players include Oracle Corporation, SAP; McKesson Corporation, Manhattan Associates; Logi-Tag Systems and Logi-Tag Systems. These key players have strong product portfolios and a global presence. They also place a high emphasis on innovation in healthcare supply chain management solutions. These players have a tendency to increase the supply chain and commercialize services for pharmaceutical and medical supply manufacturers. This is one of their key strategies to be competitive.

Healthcare Supply Chain Management Market Report Scope

The Report Covers Certain Segments

This report provides a forecast of revenue growth at the global, regional and country level and analyzes the most recent industry trends in each sub-segment from 2014 through 2025. Grand View Research, Inc. analyzed the global healthcare supply chain management report by segmenting it based on product, delivery mode, end-user, region, and geography.

• Product Outlook (Revenue USD Million, 2014-2025)

  • Software

  • Hardware

    • Barcodes

    • RFID tags

  • Services

• Mode of Delivery Outlook (Revenue USD Million, 2014-2025)

  • On-premise

  • Cloud-based

  • Web-based

• End-use Outlook (Revenue USD Million, 2014-2025)

  • Healthcare Manufacturers

  • Healthcare Providers

  • Distributors

  • Logistics

• Regional Outlook (Revenue USD Million, 2014-2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Singapore

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

These are the most frequently asked questions about this report

b. Global healthcare supply chain management market was valued at USD 2.0 billion in 2019, and is forecast to grow to USD 2.2 billion by 2020.

b. Global healthcare supply chain management market will grow at 8.7% compound annual growth rate from 2019 to 2025, to reach USD 3.0 billion by 2025.

b. With a 39.3% share in 2019, software dominated the healthcare supply chains management market. This can be attributed to the increasing need for efficient management in healthcare organizations as well as the shift toward value-based care in developed countries.

b. Among the key players in the healthcare supply chain management market are Oracle Corporation, SAP; McKesson Corporation, Manhattan Associates; Logi-Tag Systems and Logi-Tag Systems. Tecsys. Infor Inc.. Global Healthcare Exchange (GHX); Jabil.

b. The market growth is driven by the need to increase operational efficiency and profitability, as well as reduce operating costs. This is mainly due to healthcare providers and manufacturers.

Up Market Research published a new report titled “Healthcare Supply Chain Management Market research report which is segmented by Mode of Delivery (Cloud-based, On-premise), by Product (Software, Hardware, Services), By Players/Companies Oracle Corporation; SAP; McKesson Corporation; Manhattan Associates; Logi-Tag Systems; Tecsys; Infor Inc; Global Healthcare Exchange (GHX); Jabil; and AmerisourceBergen”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Healthcare Supply Chain Management Market Report Segments:

The market is segmented by Mode of Delivery (Cloud-based, On-premise), by Product (Software, Hardware, Services).

Healthcare Supply Chain Management Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Healthcare Supply Chain Management Market

Overview of the regional outlook of the Healthcare Supply Chain Management Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Healthcare Supply Chain Management Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Healthcare Supply Chain Management Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Cloud-based

                2. On-premise

                1. Software

                2. Hardware

                3. Services

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Healthcare Supply Chain Management Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Healthcare Supply Chain Management Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.