Enjoy complimentary customisation on priority with our Enterprise License!
North America Healthcare Logistics Market size is forecast to increase by USD 19.72 billion at a CAGR of 9.38% between 2023 and 2028. Market growth analysis indicates a surge in demand for healthcare products, spurring investments in manufacturing facilities and production facility. Electronic commerce facilitates online purchases, driving sales of medical equipment and raw materials. Medical facilities and healthcare transportation networks benefit from streamlined logistics, ensuring the timely delivery of essential supplies. Market research and forecasting highlight the upward trajectory of healthcare product companies and medical equipment manufacturers. Market forecast projections underscore the pivotal role of e-commerce in driving sales and optimizing supply chain efficiency. As the healthcare sector continues to evolve, market research and growth strategies play critical roles in anticipating and capitalizing on emerging opportunities.
For More Highlights About this Report, Download Free Sample in a Minute
The pharmaceuticals segment is estimated to witness significant growth during the forecast period. Pharmaceutical products include branded drugs, generic drugs, and vaccines. The Food and Drug Administration (FDA) Center for Drug Evaluation and Research (CDER) approved 46 new drugs or new molecular entities (NME) in 2021. The major proportion of approved entities were small molecule drugs, and the rest were biologics (large complex drugs).
Get a glance at the market contribution of various segments Download the PDF Sample
The pharmaceuticals segment was the largest and was valued at USD 18.63 billion in 2018. The demand for biologics for more effective treatment of diseases is growing, as synthetic drugs have limitations in treating many health disorders. Therefore, the development of new biologics for the treatment of existing disorders and rare diseases is expected to fuel the growth of the pharmaceutical products segment and simultaneously boost the demand for healthcare logistics. The increase in new drug approvals in North America is expected to lead to a rise in the demand for pharmaceutical logistics in North America. Logistics players are, therefore, converting existing or setting up new logistics or warehouse units for new products based on the requirements of pharmaceutical manufacturers. Therefore, the pharmaceutical products segment of the market in North America is expected to grow during the forecast period.
Legislative and regulatory changes significantly drive market growth and forecasting in the pharmaceutical industry. Stringent regulations pose major hurdles for new entrants and introducing new drugs in North America's market. Canada's single-payer healthcare system, funded through taxation, impacts the sale of products and boosts the pharmaceutical industry. Additionally, Canadian regulations to lower pharmaceutical prices fuel sales and demand for healthcare logistics. Emerging trends like drone usage in healthcare logistics, driven by logistics companies, reshape Market forecasting, and enhancing supply chain efficiency. However, the high cost of branded drugs remains a challenge, affecting market forecasting and hindering industry growth..
Legislative and regulatory changes supporting the growth of the pharmaceutical industry are notably driving the market growth. Stringent regulations in the medical and pharmaceutical industries are the major hurdles to the entry of new players and the introduction of new drugs into the market. Further, North American countries such as Canada have a single-payer healthcare system that is funded by federal, provincial, and territorial taxation. Such regulations directly impact the number of people opting for medical care and treatment and serve as an impetus for the growth of the pharmaceutical industry.
Additionally, the Government of Canada has enforced regulations to reduce the prices of pharmaceutical drugs. The regulation is said to form the final amendments to the Patented Medicines Regulations in the country. Such regulations lead to lower costs of drugs and make them more accessible to the public, thereby driving the sales of drugs, which, in turn, is driving the growth of the market. Thus, these factors will enhance the growth of the market during the forecast period.
The emergence of drones in healthcare logistics is an emerging trend shaping the market growth. Drones are unmanned aerial vehicles (UAVs) that are controlled via remote operation by a drone pilot. The applications of drones are growing beyond military uses to include the logistics sector, particularly in delivery operations in remote or rural areas. Key participants in the pharmaceuticals and healthcare supply chain are focusing on using UAVs for last-mile deliveries.
In addition, the use of drones will also help logistics companies in the market customize their supply chain model effectively based on real-time information received from the UAV. Thus, the increased use of drones for the delivery of healthcare supplies in North America is expected to drive the growth of the market during the forecast period.
The high cost of branded drugs is a significant challenge hindering the market growth. A key factor restraining the growth of the pharmaceutical industry, particularly in the US, is the high cost of medication. For instance, Harvoni (ledipasvir+sofosbuvir) is a combination drug indicated for the hepatitis C virus. The sophisticated machinery that is used to produce pharmaceutical drugs, particularly biopharmaceuticals, is expensive to install and operate.
Moreover, the cost of manufacturing, analytical development, and validation rose by 30%-50% in 2020-2021. In the US, speciality drugs for the long-term treatment of conditions such as rheumatoid arthritis, multiple sclerosis, and cancer can cost between USD 100 and USD 1,000 thousand annually, with prices rising further each year. Such factors are expected to restrict the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
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.
Air Canada - The company offers healthcare logistics such as AC Pharmacair Simple and AC Pharmacair Plus.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
You may also interested in below market reports:
Healthcare Logistics Market: Healthcare Logistics Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
Rural Clinical and Healthcare Logistics Market; Rural Clinical and Healthcare Logistics Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, India, US, Germany, Mexico - Size and Forecast
Pharmaceutical Cold Chain Logistics Market: Pharmaceutical Cold Chain Logistics Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast
The market is undergoing a transformative phase driven by advancements in digital technology and globalization. With the rise of e-commerce and the increasing demand for healthcare items, efficient third-party logistics and freight forwarding are essential for the timely delivery of biological pharmaceuticals and temperature-sensitive drugs. Packaging innovations and inventory forecasting play critical roles in order fulfillment and picking and packing processes, ensuring the integrity of medical products during transit. Moreover, digital transformation has revolutionized transportation industry operations, enhancing efficiency, speed, and timing.
Moreover, as traffic volumes and congestion pose challenges, optimization of supply chains becomes imperative, especially for truck-dependent businesses. The Asia-Pacific region emerges as a significant hub due to its burgeoning healthcare infrastructure and population. To capitalize on emerging opportunities, companies invest in production analysis and technological innovations, focusing on advanced medical technology and quality healthcare. The market potential is augmented through strategic product launches and international commerce, leveraging online platforms and value-added services.
Furthermore, as changes in market regulations influence product approvals and application dominance, collaboration with third-party logistics providers becomes pivotal for outsourcing operational logistics and navigating cross-border commerce complexities. Ultimately, the convergence of health awareness and technological advancements fosters a mutually dependent ecosystem benefiting consumers, communities, and the world's economies.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.38% |
Market Growth 2024-2028 |
USD 19.72 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.22 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Canada, AmerisourceBergen Corp., AP Moller Maersk AS, Bollore SE, C H Robinson Worldwide Inc., CMA CGM SA Group, Cold Chain Technologies, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Nippon Yusen Kabushiki Kaisha, Noatum Holdings SLU, Owens and Minor Inc., SEKO Logistics, UniGroup CA, and United Parcel Service Inc. |
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, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.