Healthcare Supply Chain Management Market - Industry Analysis, Market Size, Share, Trends, Growth and Forecast 2021 - 2026

Report Code: HCR 0492 Report Format: PDF + Excel

Healthcare Supply Chain Management Market Overview

The Healthcare Supply Chain Management market size is estimated to reach $3.8 billion by 2026, growing at a CAGR of 8.3% during the forecast period 2021-2026. Healthcare Supply Chain Management is the process of regulating the flow of medical goods and services from the producer to the patient in an efficient and cost-effective manner. Healthcare supply chain management also allows for the implementation of strategic sourcing by manufacturers, distributors, and pharmacies by increasing data collection and analysis. Furthermore, increasing the efficiency of medical logistics also results in enhanced warehouse management via strategies such as just-in-time delivery. Rising demand for reduction of healthcare expenditure by medical facilities is contributing to the market growth during the forecast period. However, concerns regarding data security act as a major challenge for the Healthcare Supply Chain Management industry.

Healthcare Supply Chain Management Market Report Coverage

The report: “Healthcare Supply Chain Management Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Healthcare Supply Chain Management Market.

By Component: Hardware and Software.
By Delivery Mode: On-Premise, Web-Based, and Cloud Based.
By End User: Healthcare Providers, Suppliers, Distributors, and Others.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (the Middle East and Africa). 

Key Takeaways

  • Geographically, the North American Healthcare Supply Chain Management market accounted for the largest share in 2020 owing to the presence of well-developed healthcare infrastructure.
  • An increase in the use of cloud computing in the healthcare industry is anticipated to drive the market during the forecast period. However, high initial investment costs necessary for the hardware and software components are projected to challenge demand growth.
  • Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Healthcare Supply Chain Management Market Report. 

Healthcare Supply Chain Management Market Share, By Geography, 2020(%)

For More Details on This Report - Request for Sample

Healthcare Supply Chain Management Market Segment Analysis-By Component

Based on Components, the Healthcare Supply Chain Management Market is segmented into Hardware and Software. The software segment is anticipated to have the largest share of the market in 2020 and is poised to dominate the market during the forecast period 2021-2026. This segment is further segmented into Transportation Software, Procurement Software, Warehouse Management Software, and Others. The growth of this segment is attributed to their ability to increase the level of automation in supply chain management which increases efficiency, reduces cost, and prevents stockouts of essential drugs and medical equipment. It also helps the major stakeholders such as distributors, suppliers, and hospitals streamline the processing of ordering medical supplies. The Hardware segment is also projected to grow at a rapid CAGR of 8.7% during the forecast period owing to rising global expenditure on healthcare services.

Healthcare Supply Chain Management Market Segment Analysis-By Delivery Mode

The Healthcare Supply Chain Management Market based on Delivery Mode can be further segmented into On-Premise, Web-Based, and Cloud Based. The Cloud-based delivery model segment accounted for the largest share of the market in 2020 owing to their significantly lower costs. On-Premise solution requires in-house server hardware, software licenses, integration capabilities, and IT employees in order to function properly. However, in Cloud-based, a third-party host will provide the services, thereby making them much cheaper. However, the On-Premise mode of delivery is also anticipated to witness significant growth at a CAGR of 8.9% during the forecast period. On-Premise software requires the client to have a license of the software. As this licensed copy stays within the facility, it can provide much higher data protection than Cloud-based delivery. This is crucial owing to the rise in the number of cybersecurity threats faced by the healthcare industry in recent years.

Healthcare Supply Chain Management Market Segment Analysis-By Geography

The Healthcare Supply Chain Management Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The European segment is projected to dominate the Healthcare Supply Chain Management market during the forecast period 2021-2026 with a market share of 35% owing to the presence of highly developed healthcare infrastructure, high healthcare expenditure, presence of large data centers, and high adoption of cloud computing in the region’s healthcare sector. Moreover, the presence of key industry players such as McKesson Corporation, Oracle Corporation, TECSYS, Global Healthcare Exchange, Cardinal Health, and Epicor in the region ensures lower costs, higher innovation, and more options for the end-user industries. The Asia Pacific region is predicted to register the fastest growth owing to the increase in public healthcare funding in major emerging economies like China and India.

Healthcare Supply Chain Management Market Drivers

Rising Healthcare Expenditure is Projected to Drive Market Growth

An increase in the healthcare expenditure of developed and major developing countries is driving the demand for Healthcare Supply Chain Management systems as the rising expenditure increases the purchasing power of healthcare facilities, which promotes the adoption of these systems. For instance, the annual healthcare expenditure in the US is projected to grow at a rate of 5.4% between 2019 and 2028. The healthcare expenditure was around $4 trillion in 2020 and is poised to reach $6.19 trillion by 2028. India only spent around 1.2% of its GDP on healthcare in 2021. However, this is projected to reach 3% by 2022. Furthermore, the Indian government is planning to introduce a credit incentive program worth $6.8 billion to boost the country’s healthcare infrastructure. 

Rise in Inflow of Patients into Hospitals is Anticipated to Boost Demand

The increase in chronic lifestyle diseases and the growing geriatric population across the globe are leading to a rise in the influx of hospital admissions. The patient inflow further surged owing to the COVID-19 Pandemic. For instance, more than 100,000 patients were in hospitals owing to COVID-19 in the US during August 2021. This is driving the demand for Healthcare Supply Chain Management as the risk of drug stockouts, supply delays and equipment shortages have increased. For instance, more than 682 people died in hospitals across India owing to the shortage of medical oxygen. Moreover, the increase in adoption of Artificial Intelligence (AI) software for medical logistics management is further generating demand for Healthcare Supply Chain Management systems.

Healthcare Supply Chain Management Market Challenges

The Low Awareness of Healthcare Supply Chain Management Systems is Anticipated to Hamper Market Growth

The low awareness regarding the benefits of supply chain management in healthcare in low and middle-income countries acts as a major threat for demand generation. This is attributed to the low public and private healthcare expenditure, which is leading to the lower purchasing capacity of the majority of small-scale public and private healthcare providers and suppliers in these regions. For Instance, according to the World Health Organization (WHO) database, the annual per capita healthcare expenditure in South Africa and Bangladesh was only $525.9 and $41.9 respectively. This is extremely low compared to developed countries such as the US who spent around $10623.8 per capita. This prevents the facilities from acquiring the capital necessary for investing in supply chain hardware and software systems.

Risk of Data Breaches is Projected to Limit Growth Opportunities

The growing concern regarding breach of confidential data from healthcare facilities and medical suppliers owing to cyber-attacks is a major challenge that can hamper the adoption of supply chain management software. For instance, more than 600 US healthcare organizations were affected in 2020 by ransomware attacks. Furthermore, the US healthcare industry lost around $21 billion owing to these attacks. 1 out of every 3 health care organizations globally reported being hit by ransomware. Such breaches can halt the supply chain system of healthcare providers owing to the overdependence on IT. This disruption can cause shortages of essential supplies of medical equipment, leading to the endangerment of patient lives.

Healthcare Supply Chain Management Market Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Healthcare Supply Chain Management Market. The top 10 companies of the industry include:

1. SAP SE
2. Oracle Corporation
3.  Infor
4.  McKesson Corporation
5. TECSYS
6. Global Healthcare Exchange
7. Cardinal Health
8.  Determine
9.  Epicor
10. LLamasoft

Partnerships/Product Launches:

  • In February 2020, ProShip Inc announced its partnership with the AI-based supply chain management platform, JDA Software. The partnership will help develop, expand and accelerate joint opportunities and equip ProShip with the tools and education required to work in this market.
  • In January 2020, Infor announced that it has entered into an agreement to acquire Intelligent InSites Inc, a leading provider of healthcare software and services. Intelligent InSites provides an enterprise scalable, dynamic, and intuitive location platform to clients in the US and Australia. 

Relevant Links:

Supply Chain Risk Management Software Market – Forecast (2021 - 2026)

Report Code: ITR 0275

Healthcare IT Market – Forecast (2021 - 2026)

Report Code: HCR 40559

For more Lifesciences and Healthcare Market reports, please click here

1. Healthcare Supply Chain Management Market - Overview
    1.1 Definitions and Scope
2. Healthcare Supply Chain Management Market - Executive Summary
    2.1 Market Revenue and Key Trends by Company
    2.2 Key trends by Component 
    2.3 Key trends by End User
    2.4 Key trends by Geography
3. Healthcare Supply Chain Management Market – Comparative Analysis
    3.1 Company Benchmarking – Key Companies
    3.2 Financial Analysis – Key Companies
    3.3 Market Value Split by Key Companies
    3.4 Patent Analysis
    3.5 Pricing Analysis – Average Selling Price
4. Healthcare Supply Chain Management Market - Startup Companies Scenario Premium
    4.1 Key Startup Company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Venture Capital and Funding Scenario
5. Healthcare Supply Chain Management Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of Successful Ventures
6. Healthcare Supply Chain Management Market - Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Healthcare Supply Chain Management Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Healthcare Supply Chain Management Market – By Component (Market Size –$Million/$Billion)
    8.1 Hardware
        8.1.1 Barcode
        8.1.2 RFID
        8.1.3 GPS
        8.1.4 Others
    8.2 Software
        8.2.1 Transportation Software
        8.2.2 Procurement Software
        8.2.3 Warehouse Management Software
        8.2.4 Others
9. Healthcare Supply Chain Management Market – By Delivery Mode (Market Size –$Million/$Billion)
    9.1 On-Premise
    9.2 Web-Based
    9.3 Cloud Based
10. Healthcare Supply Chain Management Market - By End User (Market Size –$Million/$Billion)
    10.1 Healthcare Providers
    10.2 Suppliers
    10.3 Distributors
    10.4 Others
11. Healthcare Supply Chain Management Market - By Geography (Market Size –$Million/$Billion)
    11.1 North America
        11.1.1 U.S.
        11.1.2 Mexico
        11.1.3 Canada
    11.2 Europe
        11.2.1 U.K.
        11.2.2 France
        11.2.3 Germany
        11.2.4 Italy
        11.2.5 Spain
        11.2.6 Russia
        11.2.7 Rest of Europe
    11.3 Asia Pacific
        11.3.1 China
        11.3.2 India
        11.3.3 Japan
        11.3.4 South Korea
        11.3.5 Australia & New Zealand
        11.3.6 Rest of Asia Pacific
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
        11.5.2 Africa
12. Healthcare Supply Chain Management Market - Entropy
13. Healthcare Supply Chain Management Market – Industry/Segment Competition Landscape Premium
    13.1 Market Share Analysis
        13.1.1 Global Market Share – Key Companies
        13.1.2 Market Share by Region – Key companies
        13.1.3 Market Share by Countries – Key Companies
        13.1.4 Competition Matrix
        13.1.5 Best Practices for Companies
14. Healthcare Supply Chain Management Market – Key Company List by Country Premium Premium
15. Healthcare Supply Chain Management Market Company Analysis
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10
"*Financials for private companies would be provided on a best-efforts basis”.