Global Healthcare Supply Chain Management Market Grows Steadily at a CAGR of 8.12%

Introduction

Supply chain management (SCM) is a fundamental aspect of the healthcare sector that necessitates strategic material management and distribution systems to reduce costs and improve the efficacy of patient care. In the healthcare industry, supply chain systems guarantee the prompt delivery of medications, surgical equipment, and medical devices to specific locations.

The distribution of medical products results in high-quality patient care in a well-managed value chain. Rising healthcare costs have prompted healthcare providers and manufacturers to make medical services accessible. However, the inherent costs of healthcare supply chains are increasing due to disconnected manual processes, drug counterfeiting, a lack of supply chain visibility, and hidden costs.

Market Dynamics

Emergence of Cloud-based Solutions Drives the Global Market

The adoption of cloud-based applications has become the new standard across all industries. Many healthcare organizations are currently employing cloud-based supply chain management solutions. Pharmaniaga, Malaysia's largest integrated pharmaceutical group, adopted Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) in January 2021 in preparation for COVID-19 vaccine distribution in Malaysia. The company required a cloud-based logistics platform to automate manual processes and improve the security and traceability of its cold chain services. Adopting cloud-based information systems in hospital supply chains allows for managing and acquiring data from supply chain partners via the Internet and globally. These factors are predicted to stimulate market growth over the forecast period.

Development of Clinically Integrated Supply Chain Creates Tremendous Opportunities

Several factors, including the planning and management of the supply chain for clinical trial materials, contribute to the success of a clinical trial. A clinically integrated supply chain is distinguished by higher quality, less waste, lower costs, and fewer silos, all of which contribute to better patient outcomes. Utilizing clinical evidence permits clinicians and supply chain stakeholders to determine the most cost-effective products that provide the best care.

For instance, the HIMSS Clinically Integrated Supply Outcomes Model (CISOM) assesses the supply chain maturity of global health systems. CISOM is a sophisticated and automated supply chain infrastructure for the health system at the point of service. It can proactively identify adverse event risk factors to enhance patient safety and care quality. Hospitals and health systems can standardize specific products and vendors with this data, allowing for improved contract pricing. These factors are anticipated to generate market expansion opportunities during the forecast period.

Regional Analysis

North America is the most significant global healthcare supply chain management market shareholder and is estimated to grow at a CAGR of 7.86% over the forecast period. This is mainly due to the quick adoption of new technologies entering the market and the participation of the nation's main players. The United States is the primary market for healthcare technologies, as numerous companies offer healthcare technology services, and the country's healthcare system has the largest market share studied. According to a 2017 WTO report, the US is the second-largest exporter of medical products globally, with reported exports of USD 116 billion. As a result of North America's high acceptance and open-mindedness, healthcare facilities are employing and developing a variety of new innovative supply chain technologies. For instance, FedEx was the first major shipping company to implement blockchain technology into its supply chain administration in 2018. All of these factors stimulate regional market expansion.

Europe is anticipated to exhibit a CAGR of 8.02% over the forecast period. The healthcare sector has witnessed a steady proliferation of supply chain management hardware and software due to the region's comparatively high rate of technological adoption. The aggregate expenditures of the United Kingdom, Spain, France, and Germany on healthcare information technology (HCIT) exceed USD 6 billion, and regional adoption is nearly 80%. In addition, the region invests heavily in cloud-based supply chain management software. For example, Jump Technologies has developed a cloud-based software solution called JumpStock that integrates with EMR, ERP, or scheduling systems, allowing hospitals to reduce costs associated with medication stockpiling, physician preference variations, and stock-outs. These solutions boost order management and production planning at every warehouse location. Thus, the increasing adoption of technology, the increased investments in the healthcare supply chain, and the rising supply of medical products are driving the market's growth.

Key Highlights

• The global healthcare supply chain management market size was valued at USD 45 billion in 2022. It is estimated to reach USD 4.94 billion by 2031, growing at a CAGR of 8.12% during the forecast period (2023–2031).
• Based on components, the global healthcare supply chain management market is segmented into software and services and hardware. The software and services segment is the highest contributor to the market and is projected to exhibit a CAGR of 8.70% over the forecast period.
• Based on deployment, the global healthcare supply chain management market is divided into on-premise and cloud-based deployments. The on-premise segment is the largest contributor to the market and is projected to exhibit a CAGR of 6.74% over the forecast period.
• Based on end-users, the global healthcare supply chain management market is bifurcated into healthcare manufacturers, healthcare providers, distributors and retailers, and logistics companies. The healthcare manufacturers segment dominates the global market and is predicted to exhibit a CAGR of 8.38% during the forecast period.
• North America is the most significant global healthcare supply chain management market shareholder and is estimated to grow at a CAGR of 7.86% over the forecast period.

Competitive Players

Competitive Players

The key players in the global healthcare supply chain management market are Oracle Corporation, Cardinal Health, LogiTag Systems, Arvato Supply Chain Solutions, BlueBin, Blue Yonder Group Inc., Curvolabs, Tecsys Inc, Epicor Software Corporation, Global Healthcare Exchange, Harris Affinity, Hybrent, SAP, and others.

Recent Developments

Market News

• In March 2023, Advantus Health Partners, a healthcare solutions business delivering more effective and efficient supply chain models to healthcare organizations, and GE HealthCare (Nasdaq: GEHC), one of the world's largest providers of medical equipment maintenance services, announced an agreement to provide GE HealthCare's Healthcare Technology Management (HTM) services to Advantus Health Partners' clients for up to USD 760 million over ten years.
• In August 2023, Terso Solutions announced a collaboration with PAR Excellence Systems, Inc. (PAR). This partnership exemplifies both companies' commitment to delivering innovative inventory management solutions to the healthcare industry.

Segmentation

Global Healthcare Supply Chain Management Market: Segmentation

By Component

• Software and Services
• Hardware

By Deployment

• On-Premises
• Cloud-Based

By End-User

• Healthcare Manufactures
• Healthcare Providers
• Distributors and Retailers
• Logistic Companies

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa