April 2021 | Report Format: Electronic (PDF)
Healthcare Supply Chain Management Market Growth & Trends
The global healthcare supply chain management market size is expected to reach USD 3.4 billion by 2025, according to a new report by Grand View Research, Inc., registering an 8.7% CAGR during the forecast period. Growing adoption of GS1 standards and Unique Device Identification (UDI), emergence of cloud-based solutions for the healthcare industry, and increasing adoption of mobile-based supply chain management solutions are key factors contributing to market growth. Growing requirement for reduction in operating costs among healthcare organizations is another major factor positively impacting the market.
Increasing pressure encountered by healthcare providers to improve operational profitability and efficiency plays a vital role in increasing revenue growth. Growing demand to limit large-scale counterfeiting of drugs in the pharmaceutical industry is also boosting the growth of the market. Significant improvements in supply chain management solutions with respect to data security is fueled by changing health patterns of the population. According to CDC, half of the adult population in the U.S. has one or more chronic health conditions. This further helps in creating a more patient-centered supply chain that can be provided when and where patients need it.
Mobile apps have become an essential part of supply chain management solutions and logistic companies in developed as well as developing countries have begun relying on GPS-enabled mobile applications.There are several supply chain management apps available today. For instance, Curvo Labs designed a platform to upsurge supply chain efficiency by automating and modernizing supply chains in hospitals and healthcare organizations.
Market players such Oracle Corporation; SAP; Logi-Tag Systems; McKesson Corporation; Manhattan Associates; Tecsys; Infor Inc.; Global Healthcare Exchange (GHX); Jabil; and AmerisourceBergen are focused on increasing collaborations with other industry players to gain a competitive edge. Mergers and acquisitions and service differentiation are some of the other key strategies adopted by these companies to strengthen their market presence. For instance, in March 2019, Jump Technologies collaborated with X3 Consulting Group to streamline supply chain processes and mitigate risks for hospitals by implementing the Jump Stock software solution.
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Healthcare Supply Chain Management Market Report
Healthcare Supply Chain Management Market Report Highlights
- By product, software emerged as the largest segment in 2018 with a revenue share of 39.2%
- Based on mode of delivery, the cloud-based segment accounted for the dominant revenue share in 2018. The segment is also expected to exhibit the fastest CAGR over the forecast period
- On the basis of end use, healthcare manufacturers emerged as the leading segment. However, distributors are expected to register significant growth rate through 2025
- North America accounted for the largest share due to rising patient burden in the U.S., implementation of various strategies to enhance healthcare supply chain management, and growing adoption of scanning technologies such as barcodes and RFID in the region
- Asia Pacific is anticipated to exhibit a lucrative CAGR of 9.7% over the forecast period owing to increased implementation of technologically advanced solutions in countries such as, China, India, and Japan
- Oracle Corporation; SAP; Tecsys; Infor Inc.; Manhattan Associates; Global Healthcare Exchange (GHX); Logi-Tag Systems; AmerisourceBergen; and Jabil are some of the leading players in the market.