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The healthcare logistics market size is forecast to increase by USD 121.4 billion at a CAGR of 13.87% between 2023 and 2028. The healthcare logistics market is experiencing significant expansion driven by escalating global pharmaceutical sales, increasing government initiatives for pharmaceutical cold chain logistics, and the rise in seaborne transportation of pharmaceuticals. However, this market encounters challenges such as intricate supply chain requirements with stringent deadlines and customization demands. Additionally, there is a scarcity of drivers leading to extended lead times. Furthermore, cold chain pharmaceutical logistics pose significant barriers due to the delicate nature of pharmaceutical products and the need for precise temperature control and refrigerated transportation throughout the supply chain.
Market Forecast 2023-2027
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The healthcare logistics market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth of the pharmaceutical products segment will be significant during the forecast period. The market experienced significant growth in 2020, with pharmaceutical products leading the sector. This segment encompasses branded drugs, generic drugs, and vaccines. The US Food and Drug Administration (FDA) played a pivotal role in this expansion, approving 53 new drugs or new molecular entities (NME) in 2020. E-commerce and digital transformation have accelerated the need for efficient healthcare logistics, driving the demand for third-party logistics providers and freight forwarding services.
The segment accounted for USD 43.60 billion in 2018. Inventory forecasting and order fulfillment are crucial aspects of healthcare logistics, ensuring time-bound deliveries of temperature-controlled products such as cold-chain items, platelets, and blood. Warehousing and transportation modes, including trucks, trains, boats, airplanes, temperature-controlled trucks, cars, and even drones, are employed to meet the diverse needs of healthcare product companies. The supply chain for healthcare products involves the transportation of raw materials and finished goods to pharmacies, healthcare facilities, and other critical medical institutions. The mode of transportation varies depending on the nature of the product, its sensitivity, and the urgency of the delivery. For instance, time-sensitive items like platelets and blood require specialized temperature-controlled trucks or airplanes for transportation.
The FDA's approval of new drugs, underscores the importance of healthcare logistics in the prevention, diagnosis, treatment, correction, and infection or injury management sectors. The market's growth is further fueled by the increasing demand for healthcare services and the development of new technologies, such as drones for critical medical item deliveries. In conclusion, the healthcare logistics market is a vital component of the healthcare industry, ensuring the timely and efficient delivery of essential products, including branded drugs, generic drugs, and other critical medical items. The integration of new technologies, digital transformation, and e-commerce platforms is driving healthcare logistics market growth and shaping the future of healthcare logistics.
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APAC is estimated to contribute 38% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The healthcare logistics market encompasses the transportation, storage, and distribution of various healthcare products, including medications, medical equipment, surgical supplies, and healthcare products. This market plays a crucial role in ensuring the accessibility of essential medical resources for clinicians, physicians, and patients in diverse settings, such as hospitals, diagnostic laboratories, research laboratories, and medical device manufacturers. In the Asia Pacific region, the healthcare logistics market is experiencing significant growth, valued at USD 32.57 billion in 2021. This expansion is driven by the increasing demand for modern healthcare products and services, particularly in sectors like optometry, midwifery, nursing, audiology, psychology, occupational therapy, light therapy, and physical therapy. Logistics plays a pivotal role in the collection and distribution of resources for these healthcare professionals. Cold chain logistics, for instance, is essential for the safe delivery of temperature-sensitive medications and human cell-derived therapies.
In addition, the growing prevalence of chronic diseases necessitates the efficient and reliable distribution of essential medications and medical supplies. The pharmaceutical industries in countries like China, India, Malaysia, Singapore, and Thailand are emerging as significant contributors to the global healthcare logistics market. China, with its vast pharmaceutical manufacturing sector, produced approximately 23% of the world's pharmaceuticals in 2018. India, despite temporary setbacks due to demonetization and GST rollout, is expected to grow as a low-cost, high-quality generic medicine manufacturing hub. The role of logistics in making healthcare accessible in rural areas is equally important. Effective logistics solutions ensure the timely delivery of essential medications and medical equipment to these regions, contributing to improved healthcare outcomes. Collaboration between supply chain specialists, physicians, and supply chain partners is essential for the smooth functioning of the healthcare logistics market. The efficient management of the supply chain is crucial for the timely delivery of medications, medical equipment, and other healthcare products, ultimately improving patient care and outcomes.
Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario. In the Asia Pacific region, the healthcare logistics market experienced significant growth, valued at USD 32.57 billion in 2021. This expansion is driven by the increasing demand for modern healthcare products and services, particularly in sectors like optometry equipment, midwifery, nursing, audiology, psychology, occupational therapy, and physical therapy. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The market is a significant segment of the e-commerce industry undergoing digital transformation. New technologies, such as inventory forecasting and order fulfillment systems, are penetrating this sector, enhancing efficiency and accuracy in the supply chain. Third-party logistics plays a crucial role in healthcare logistics, ensuring the timely and secure transportation of raw materials and finished healthcare products. Freight forwarding is another essential aspect of healthcare logistics, employing various modes of transportation, including trucks, trains, boats, and airplanes, to transport goods. Healthcare logistics caters to various sectors, including prevention, diagnosis, treatment, correction, infection, injury, and disease, in the healthcare industry. Healthcare product companies rely on effective healthcare logistics to ensure the timely delivery of their offerings, contributing to better patient care and outcomes. The healthcare transportation sector is responsible for ensuring the safe and efficient movement of goods, adhering to stringent regulations to maintain the integrity of healthcare products.
The market is experiencing significant growth, driven by the digital transformation and new technology penetration in the pharmaceutical industry. E-commerce platforms are increasingly popular for purchasing healthcare products, including branded drugs and generic drugs, from pharmacies and healthcare facilities. Third-party logistics providers and freight forwarding companies play a crucial role in inventory forecasting, order fulfillment, and warehousing for healthcare product companies. The supply chain for healthcare products involves the transportation of raw materials, finished goods, and critical medical items using various modes of transportation such as trucks, trains, boats, airplanes, temperature-controlled trucks, cars, and even drones.
Also, time-bound deliveries are essential for temperature-sensitive products like cold-chain products, platelets, blood, and other healthcare items that require precise handling and storage conditions. The healthcare logistics market caters to the prevention, diagnosis, treatment, correction, infection, injury, and disease sectors, including dentistry. The market's growth is fueled by the increasing demand for improved healthcare products and services due to the aging population and the need for efficient and effective supply chain management. The mode of transportation used for healthcare products can significantly impact their quality and efficacy, making temperature-controlled trucks and specialized refrigerated transportation essential for maintaining the integrity of these products.
The market, particularly in emerging economies such as Brazil, China, India, and South Africa, is undergoing significant transformation. To ensure the safety and efficacy of healthcare products, international regulatory bodies and governments have implemented numerous regulations. These regulations focus on food and drug safety, with an emphasis on cold chain pharmaceutical and healthcare food production and management. E-commerce and digital transformation have accelerated the need for efficient healthcare logistics. Third-party logistics providers and freight forwarders play a crucial role in inventory forecasting, order fulfillment, and warehousing. Temperature-controlled transportation is essential for branded drugs, generic drugs, and critical medical items such as platelets, blood, and other cold-chain products. Warehousing and transportation solutions must adhere to stringent regulations. Healthcare product companies rely on temperature-controlled trucks, cars, trains, boats, and airplanes for time-bound deliveries.
New technologies, such as drones, are being explored for the transportation of critical medical items. Regulations mandate effective quality control practices in drug purchase, storage, transportation, and sales. These practices include good supply practices of pharmaceutical products, as enforced by the China Food and Drug Administration (CFDA). The CFDA's rules focus on temperature control, record keeping, and personnel training. In conclusion, the healthcare logistics market is undergoing digital transformation and new technology penetration. Regulations play a crucial role in ensuring the safety and efficacy of healthcare products. Effective logistics solutions, including warehousing, transportation, and inventory management, are essential for healthcare facilities and pharmacies to provide prevention, diagnosis, treatment, correction, infection, injury, and disease care in a timely and efficient manner.
In the healthcare logistics sector, the integration of e-commerce and digital transformation has significantly impacted the industry. New technology penetration, such as inventory forecasting and order fulfillment systems, has become essential for third-party logistics providers and freight forwarders to meet the demands of healthcare product companies. Warehousing and transportation solutions must cater to the unique requirements of healthcare supplies, including temperature-controlled storage for branded drugs, generic drugs, and cold-chain products like platelets, blood, and other critical medical items. Logistical complexities in healthcare arise from various factors, including topography, technological advances, and region-specific regulations and policies. Healthcare facilities and pharmacies rely on time-bound deliveries to ensure the prevention, diagnosis, treatment, correction, infection, injury, and disease care for their patients.
Further, the mode of transportation for healthcare logistics can vary, from trucks and trains to boats, airplanes, temperature-controlled trucks, cars, and even drones, depending on the urgency and location of the delivery. Healthcare logistics plays a crucial role in the healthcare ecosystem, ensuring the seamless flow of raw materials and finished products from manufacturers to healthcare providers. The use of advanced technologies like temperature-controlled trucks, drones, and real-time tracking systems can help reduce lead times and improve overall efficiency in the supply chain. By addressing the unique challenges of healthcare logistics, logistics service providers can contribute to better patient outcomes and improved healthcare services.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:
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
Technavio market forecast provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The healthcare logistics market is a significant sector that plays a crucial role in ensuring the efficient and effective delivery of healthcare products and services. This market involves the transportation, storage, and distribution of medical supplies, equipment, and pharmaceuticals from manufacturers to healthcare providers. Key players in this market include technology providers, logistics companies, and healthcare organizations. They employ various strategies to enhance their market presence and meet the growing demand for healthcare logistics services. The market is driven by factors such as the increasing aging population, the rise in chronic diseases, and the growing trend towards outsourcing logistics operations.
Additionally, advancements in technology, such as the use of automation and real-time tracking, are transforming the healthcare logistics landscape. Logistics providers must ensure the timely and secure delivery of healthcare products and services to meet the needs of patients and healthcare providers. They must also comply with regulatory requirements and maintain the required temperature and storage conditions for sensitive medical supplies. The healthcare logistics market is expected to grow significantly in the coming years due to the increasing demand for efficient and cost-effective logistics solutions in the healthcare sector. The market is also expected to be influenced by factors such as the increasing adoption of technology and the growing trend toward value-based healthcare.
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Industry Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.87% |
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Market growth 2024-2028 |
USD 121.4 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.91 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our healthcare logistics market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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