The healthcare logistics market in Europe is estimated to grow at a CAGR of 6.95% from 2022 to 2027. The market size is expected to grow from USD 27.44 billion in 2022 to USD 38.39 billion by 2027.
Healthcare logistics involves managing and coordinating the various resources, processes, and services required to deliver healthcare, which includes everything from the transportation of patients and medical supplies to the distribution of medications and the scheduling of healthcare appointments. The goal of healthcare logistics is to ensure that the right resources are available in the right place at the right time to provide the best possible care to patients.
Increasing developments in the healthcare infrastructure across the European region are one of the major factors driving the European healthcare logistics market. Healthcare infrastructure refers to the physical facilities, equipment, and systems needed to provide healthcare services. This can include hospitals, clinics, medical offices, laboratories, and other facilities, as well as the technology and equipment used in these facilities, such as medical imaging machines, diagnostic equipment, and medical supplies. There is an increasing need among companies to transport medical goods for long distances using various transportation routes such as roadways, railways, seaways, and air freight.
Rising awareness among logistics players regarding the importance of transporting temperature-controlled drugs and medical supplies is anticipated to favor the European healthcare logistics market’s growth rate. In addition, European countries such as Sweden and the UK do several medical equipment activities yearly. Increasing adoption of online pharmacies to buy several healthcare materials from the European region is anticipated to promote the healthcare logistics market growth in this region. In Europe, e-commerce has grown rapidly in recent years, with many businesses now offering online shopping options to their customers. This has made it easier for consumers to shop for various products and services and has helped boost the economy by providing new business opportunities. However, despite this growth, there are still challenges to overcome in the European e-commerce market, such as differences in consumer behavior across different countries and the need for effective cross-border payment systems.
Advantages associated with the 3PL in healthcare are further estimated to accelerate the market’s growth rate. Third-party logistics (3PL) in healthcare refers to the use of external companies to manage and coordinate certain aspects of the healthcare supply chain. This can include transportation and distribution of hospital supplies, storage of medications and other products, and inventory management. The goal of 3PL in healthcare is to improve efficiency and reduce costs by allowing healthcare organizations to outsource non-core functions to specialized companies with the expertise and resources to handle them effectively. Using 3PL, healthcare organizations can focus on their core competencies, such as patient care and treatment, and leave the logistics to the experts.
However, costs associated with reverse logistics are high, one of the major factors hampering the growth of the European healthcare logistics market. Reverse logistics refers to managing the movement of products or materials from their destination back to their point of origin. This can include activities such as the return of defective or unwanted products, the recycling of materials, and the disposal of waste. Reverse logistics is an integral part of the overall supply chain and can help to reduce costs, improve customer satisfaction, and minimize the environmental impact of products. In the healthcare industry, reverse logistics can manage the return and disposal of medical supplies, medications, and other products that are no longer needed or have reached their expiration date. In addition, issues associated with inventory management and insufficient labor resources to handle returns further inhibit market growth.
The European healthcare logistics market research report has been segmented and sub-segmented into the following categories.
By Supply Chain:
Based on the supply chain, the cold chain logistics segment is anticipated to hold a major share of the European healthcare logistics market during the forecast period.
By Service Type:
Based on service type, the warehouse and storage dominated the healthcare logistics market in the European region in the recent past and is also expected to showcase a healthy CAGR in the coming years.
By Product:
The medical devices segment leads the market during the forecast period based on product.
By Country:
Europe held a substantial share of the global market in 2021 and is expected to register a healthy CAGR during the forecast period.
The UK dominated the European region in 2021. The healthcare system in the UK is complex and involves many different organizations, including the National Health Service (NHS), local authorities, and private providers. Logistics plays a vital role in the UK healthcare system, as it is responsible for the movement and coordination of people, materials, and information. This can include tasks such as the transportation of patients and medical supplies, the distribution of medications, and the scheduling of appointments. In recent years, there has been a focus on improving the efficiency and effectiveness of healthcare logistics in the UK, using technology and data analytics, as well as integrating services across different organizations.
On the other hand, Germany is anticipated to play a vital role in the growth of the European region. The healthcare system in Germany is a mixture of public and private providers, with most of the funding coming from statutory health insurance. Furthermore, due to the growing adoption of technological advancements in the logistics industry of Germany, the market is anticipated to register a healthy CAGR during the forecast period.
KEY MARKET PLAYERS:
FedEx, ADAllen Pharma., CRYOPDP, SF Express, Alloga, DB Schenker, Deutsche Post DHL Group, Biosensors International Group, Ltd, and Entero Healthcare are a few of the notable companies in the European healthcare logistics market.
Frequently Asked Questions
Regionally, the UK held the major share of the European healthcare logistics market in 2021.
During the forecast period, the German market is estimated to grow the fastest in the European market.
Companies playing a leading role in the European healthcare logistics market are FedEx, ADAllen Pharma., CRYOPDP, SF Express, Alloga, DB Schenker, Deutsche Post DHL Group, Biosensors International Group, Ltd, and Entero Healthcare.
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