Medical Supply Delivery Service Market Size, Share & Trends Analysis Report By Applications (Medical Supplies, Drug Supplies, Emergency Services, Lab Specimens and Reports), By Mode of Service (Courier Delivery, Drone Delivery), By End-User (Hospitals, Clinics, Laboratories, Pharmacies, Patients, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global medical supply delivery service market size was valued at USD 61.6 billion in 2022. It is estimated to reach USD 115.17 billion by 2031, growing at a CAGR of 7.20% during the forecast period (2022–2031). Drones fulfill the essential needs of patients. It facilitates the transportation of vaccines, antivenin, blood products, and medicines to nearby regions. The growing utilization of drones in healthcare is expected to drive the global market.

Medical supply delivery services are a process of delivering medical supplies from one location to another. This process includes transporting, packaging, and handling medical supplies. Medical supply delivery services have become an important part of the healthcare industry as they help reduce healthcare costs. Medical supply delivery services help provide timely and accurate delivery of medical supplies to patients.

"Medical Supply Delivery Service" is shorthand for the business that transports various types of medical equipment, drugs, and supplies from one place to another. An important part of healthcare delivery, it guarantees the on-time arrival of vital supplies to medical institutions like pharmacies, clinics, and hospitals. Coordination of factors organizations is a big help when handling clinical items, especially those sensitive to temperature, like antibodies and blood products. Medical supply delivery services use transport by land, air, or sea in accordance with the distance and urgency of the delivery.

Market Dynamics

Global Medical Supply Delivery Service Market Drivers

Growing Adoption of Medical Drones

The increasing usage of drones in healthcare is anticipated to propel the market. Drones cater to the crucial requirements of patients. It can help deliver vaccines, antivenin, blood products, and medicines to local areas. Quick delivery supports healthcare professionals in delivering treatment rapidly and could help save the patient's life. Drones can also transport medication to a patient's bedside, reducing the chance of error in medicine administration. Such drone applications are likely to drive the market over the forecast period.

Companies are developing medical drones to provide better patient care at remote locations and during emergencies. Amid the COVID-19 pandemic, drones are being used to supply essential items in multiple countries. In April 2020, South Korea undertook numerous sanitization activities in Daegu City via unmanned aerial vehicles. Similarly, in June 2018, UNICEF conducted a study that integrated drones into the health supply chain in two hard-to-reach districts in Malawi. The study found that the benefits of introducing drones as additional modes of transport included increased equity and access for patients, responsiveness to urgent needs, and potential further use in emergencies and catastrophes.

Moreover, the growing government initiatives on developing innovative unmanned aerial vehicles coupled with an increasing number of mergers and acquisitions, partnerships, and collaborations are likely to propel technological advancements, which, in turn, can further contribute to market growth. For instance, in July 2017, ZipLine signed a contract with the government of Rwanda for the experiment of blood transfusion delivery across the nation. Similarly, in September 2020, Matternet partnered with Japan Airlines to expand Asian operations and deploy its M2 drone delivery system to Tokyo for the government's new drone logistics business project.

Increasing Need for Quick Transportation During Emergencies

The incapability to transport life-saving medicines to needy patients can cause millions of preventable deaths each year globally. The adoption of courier and drone deliveries is increasing daily, owing to the need for rapid delivery during critical situations. These services have the potential to save a patient's life by assisting medical professionals in providing prompt treatment.

Logistics companies actively collaborate with drone operators to supply medical products, expand laboratory logistics, and improve delivery lead times. Therefore, growing investment by logistics companies in medical delivery can further drive the market. For instance, DHL launched the Parcelcopter to transport blood supplies and emergency medicines to a hospital in Ukerewe, Tanzania.

Most nations have taken stringent action to stop the COVID-19 pandemic's spread during its early stages. This, in turn, resulted in the effective implementation of drone-based medical supplies delivery for quick and safer transportation of emergency medicines while avoiding human intervention during the pandemic in various countries.

Global Medical Supply Delivery Service Market Restraint

Lack of Proper Infrastructure in Emerging Economies

Demand for infrastructural development is greater in developing economies. There is no uncertainty that infrastructure is the key component that permits people to access markets with reduced business costs. Trade and market integration on a global scale can be encouraged by improved infrastructure. In many of Africa's developing nations, transportation is a significant barrier to achieving maternal and child health goals. According to WHO, in 2017, Sub-Saharan Africa accounted for around 196,000 maternal deaths. Hence, the lack of proper infrastructure affects the Medical Supply Delivery service market.

Many emerging economies lack the infrastructure and logistics to efficiently transport medical devices and pharmaceutical products through drones and courier-based services. Developing economies need more financial resources to make substantial investments in healthcare logistics. This has negatively impacted the market since the significant challenge for healthcare logistics companies is maintaining the integrity of drugs and devices throughout transportation, which is difficult with improper infrastructure.

Global Medical Supply Delivery Service Market Opportunities

Increasing Demand for Faster and Cost-Effective Delivery of Samples and Specimens

Medical courier gathers samples and delivers them to the lab or clinics. These products are essential and call for rapid delivery. Failure to deliver samples or specimens promptly may lead to their deterioration or an increased likelihood of obtaining inaccurate results. Therefore, it is necessary to ensure the efficient and punctual transportation of samples and equipment. Moreover, operators are focused on reducing logistics costs and providing 24/7 services, which can boost the demand for delivery services.

Medical courier services are becoming increasingly popular due to the world's rapidly rising demand for organ transplants. Donated organs must be delivered to recipients safely and on schedule, given the sharp increase in the success rate of organ transplants. Hence, same-day courier service and careful transportation offered by delivery services can further drive the demand for faster delivery.

Manual processes take more time, which increases labor costs and allows for human error to occur more frequently. Moreover, traditional delivery services lack reliability in final-mile delivery, adding to the overall cost. These factors mentioned above demand the shift to medical courier services, which is likely to drive the market.

Regional Analysis

Region-wise, the global medical supply delivery service market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global medical supply delivery service market shareholder and is predicted to exhibit a CAGR of 8.81% during the forecast period. The North American healthcare market is witnessing a growth in demand for quick transportation, and drug and medical supplies delivery are the key driving factors for market growth. Moreover, the increasing focus on improving the healthcare system and reducing supply chain costs are other factors driving growth. Healthcare logistics are expanding due to increased demand for faster and cost-effective delivery of lab specimens, promoting market growth.

North American pharmaceutical and medical device companies rely on third-party delivery services to facilitate trade. The presence of advanced healthcare infrastructure, increased healthcare expenditure by public and private payors, and increased patient disposable incomes with an existing regularized reimbursement framework are key drivers boosting the market growth. Moreover, innovations in the delivery and logistics sector have impeded the growth and adoption of drone delivery services. This rapid adoption is attributable to the improved regulation and demand from medical device companies for a more organized distribution environment.

Furthermore, an aging society with increasing demand for better healthcare accessibility and rapid technological advancements supports market development. North America dominates the medical supply delivery market with extensive accessibility to healthcare products and services. The largest market share is attributable to the rise in the adoption of new technologies to provide cost-efficient supplies throughout the region, fostering market growth. Moreover, the increasing number of companies collaborating with transport and logistics service providers for efficient medical supply delivery services is further driving this region's market growth.

Europe is expected to grow at a CAGR of 8.9% during the forecast period. The European medical supplies delivery services market is supported by improving economic conditions and is an emerging lucrative market. The market for the distribution of medical supplies is expanding due to rising healthcare costs, the use of cutting-edge technology, and the presence of international players. Moreover, the region's parcel delivery and logistics service providers have multiplied in tandem with the e-commerce industry's growth. Most European regions possess favorable distribution channels due to their geographic locations, providing enhanced accessibility to domestic and international markets. For instance, Spain possesses two circulating European corridors, boosting its logistics sector.

Furthermore, the increasing geriatric population is becoming highly susceptible to various diseases. Changing lifestyles and demographics have increased the demand for high-quality healthcare services and facilities. The market is further propelled by the progress made in regional warehousing facilities. Advancements in the drone delivery services sector are enhancing the market growth. Drone deliveries act as alternatives to traditional road-based transportation systems, offering improved efficiency and cost-effectiveness. Drone delivery services are becoming increasingly popular in various European regions due to their advantages.

Segmental Analysis

The global medical supply delivery service market is segmented based on mode of service, application,and end-user.

Based on application, the global medical supply delivery service market is classified into medical supplies, drug supplies, emergency services, lab specimens, and reports. 

The medical supplies segment dominates the global market and is expected to exhibit a CAGR of 7.9% during the forecast period. The growing prevalence of surgical procedures, combined with the advantages provided by medical device delivery services in terms of expedited, cost-efficient, and non-contact delivery of products, is anticipated to stimulate the acceptance of medical supply delivery services. Moreover, the rising prevalence of organ transplant surgeries, driven by factors such as increased alcohol consumption, unhealthy dietary habits, growing incidence of chronic illnesses, and the notable improvement in the success rate of organ transplants in recent years, is additionally enhancing this sector. This trend results in decreased mortality rates and improved treatment outcomes.

Based on the mode of service, the global medical supply delivery service market is bifurcated into courier delivery and drone delivery. 

The courier delivery segment owns the highest market share and is estimated to grow at a CAGR of 8.7% during the forecast period. Benefits offered by courier deliveries, such as convenience, cost-effectiveness, time-efficiency, real-time tracking, minimum paperwork, enhanced security, smoother supply chain management, ease of warehouse management, effective fleet management, better inventory management, and improved customer experience, are boosting the segment. Medical couriers provide a cost-effective way to transport medical supplies to hospitals and laboratories. They can also provide effective sample delivery using trained couriers and route optimization.

Furthermore, the market for courier delivery is increasing, primarily due to the presence of various national and multinational courier companies operating in the market that provide quality 24/7 services to their customers. For instance, the same-day medical courier services offered by TVS SCS Rico are available 24/7. They are staffed by skilled couriers who adhere to all applicable standard operating procedures when delivering products to customers. FedEx offers specialized packaging, real-time intervention, proactive monitoring, and customer-specific shipping solutions to deliver vital goods at the right place and time.

Based on end-users, the global medical supply delivery service market is bifurcated into hospitals, clinics, laboratories, pharmacies, and patients. 

The hospital segment dominates the market and is estimated to exhibit a CAGR of 8.6% during the forecast period. There is a rapid surge in the adoption of medical device delivery services among hospitals to facilitate quick and safe transportation of testing samples to laboratories, on-time delivery of medical and drug supplies, and delivery of blood, tissue, and organs to the recipient safely, securely, and on time. This is explained by both the rise in the number of traffic accidents and the need for organ transplant procedures.

Moreover, the COVID-19 pandemic has bolstered the adoption of drone delivery services among hospitals for on-time delivery of time- and temperature-sensitive medical supplies, PPE, and lab samples and tests while avoiding significant human interaction to combat the virus spread. For instance, in August 2020, Wake Forest Baptist Health launched a drone delivery service in partnership with United Parcel Service and its subsidiary, UPS Flight Forward, to transport medicines and personal protective equipment between its health system locations.

Recent Developments

• December 2023- Meghalaya unveiled its first drone station designed to provide healthcare services. The Primary Health Center in Pedaldoba, without transportation or telecom connectivity until the previous year, is set to receive the first drone medication delivery.