The global healthcare logistics market is expected to grow at a CAGR of 7.78% during the forecast period. As a result, the global revenue is estimated to reach USD 142.93 billion by 2028 from USD 98.27 billion in 2023.
Logistics refers to a process of organizational transport of products and goods. It's the systematic procedure of shipment. Healthcare logistics refers to the specialized branch for the transfer of healthcare requirements. Delivery procedures have become essential in the healthcare industry as it is crucial to receive the equipment and medicine required for patient assistance timely. Any mismatch or delay in delivering healthcare essentials could prove to be threatening to an individual's health. In addition, Healthcare equipment is sensitive to temperatures and often has a particular set of guidelines to be followed during its transport and delivery. For instance, some equipment needs transportation in cold temperatures, and sometimes equipment is transported in parts. Therefore, there are specific healthcare logistics service providers hired by healthcare centers.
YOY rise in need for adequately organized logistics for healthcare systems is one of the major factors propelling the healthcare logistics market.
The growing requirement for healthcare logistics by pharmaceuticals, clinics, and hospitals is expected to support the expansion of the market. In addition, there has been a recent surge in pharmaceutical biosciences research, further pushing the logistics requirement. In addition, they are growing business outsourcing processes to expand their reach and receive third-party logistics services like management and assistance.
The increasing international transport to support the healthcare logistics market expansion
There has been a significant rise in international trade systems in recent years due to the rapid globalization of the world. However, the strict laws of international trade, especially for the healthcare sector, require assistance from proper logistics systems for smooth handling and transfer from one region to a foreign country. For instance, the parts of the same medical equipment are often made in different countries and then sent to another country for assembly. This type of complex route requires the assistance of logistics which uses various travel routes for goods transfer like ships, buses, airplanes, trucks, etc.
The growing advances in medical equipment and the need for utmost care in their handling, along with the strict government regulations regarding the use of healthcare equipment that needs to be cleared by logistics, are further pushing the expansion of the market. Additionally, the growth of the online market sector, especially after the pandemic, is expected to work in favor of the market as many companies are now preferring E-commerce sites.
The rising AI support and remote healthcare advancements with the adoption of IT sector assistance in the healthcare industry are supporting the advancement of the market. In addition, increasing transparency in logistic functions and improved guidelines for better public safety regarding transport are factors for market growth. For instance, it is possible to increase data collecting accuracy and fully automate the procedure using Auto-ID and Data Gathering (AIDC) technology. To avoid excess items with short expiration dates, tracking which patients use which products and providing better product tracking are crucial. Additionally, numerous technological advancements, including wearables and smartphones, incorporate AI. In logistics, AI-based solutions may be used to anticipate shortages and backorders. Healthcare logistics may benefit from the quicker and more precise data collecting, processing, and visualization made possible by IoT technologies.
The growth of the healthcare logistics market is anticipated to be hindered due to the varied prices of healthcare logistics worldwide and the high cost of services. In addition, the market was also hampered due to the restrictions on trade and supply during the pandemic.
Impact of COVID-19 on the global healthcare logistics market:
The pandemic hit the world in early March of 2020 and lasted for almost a year. The spread of the coronavirus, which started in China, spread to the world and led to lockdowns and quarantines. Restrictions were applied on shipments and travels, leading to losses for many businesses. Unemployment and economic crisis amplified as more cases of death were reported. The healthcare sector was majorly impacted due to the rapid influx of patients and the shortage of hospital resources like oxygen cylinders and beds, along with medication and staff personnel.
However, the COVID-19 pandemic positively impacted the global healthcare logistics market.
The shortage of oxygen, PPE kits, sanitization equipment, hospital beds, ventilators, and others, led to an increased demand for these supplies and, therefore, increased demand for healthcare logistics to deliver the products. Additionally, the campaigns for vaccines led to more demand for the healthcare logistics market. Thus, the pandemic has increased the requirement for healthcare logistics services.
Market Size Available
2022 to 2028
2023 to 2028
By supply chain, service type, product, and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges; PESTLE Analysis; Porter's Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities
North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa
The global Healthcare logistics market research report has been segmented and sub-segmented based on the Supply Chain, Service Type, Product, and region.
Global Healthcare Logistics Market - By Supply Chain:
Cold Chain Logistics
The healthcare cold chain logistics segment will dominate the market during the forecast period. This segment dominance is due to the demand for temperature-controlled products like covid vaccines worldwide and the increasingly stringent government rules for storing temperature-based medicine. Furthermore, the increasing demand for biological-based therapy has increased the production of cold-sensitive medicine. In addition, the population's systematic treatment procedure of cold stored medications is much appreciated for further pushing segment growth.
The demand for non-cold logistics is also in steady progress because of the continuous logistic services provided for non-perishable objects and devices which do not need temperature control to regulate their function. In addition, healthcare centers have many standard devices and infrastructure equipment that do not need cold chain logistics and the associated complications.
Global Healthcare Logistics Market - By Service Type:
Warehouse And Storage
The warehouse and storage segment is expected to dominate the market during the forecast period due to the high management level in the warehouses. In addition, the increased demand for pharmaceutical warehousing services like the distribution of bulk, cold storage, medicines storage, equipment storage, etc., is leading to the segment's advancement. Furthermore, the increasing demand for branded and generic pharmacies and the need for storage shows the segment's dominance.
However, the transportation and monitoring segment is also expected to grow during the forecast period due to the resumption of trading and goods exchange after the pandemic. In addition, the shortage of medical supplies caused by the pandemic made the transportation industry even more, busier than usual, causing revenue for the segment.
Global Healthcare Logistics Market - By Product:
The medical devices segment is expected to dominate the healthcare logistics market due to the technological advancements in the healthcare field, the growing geriatric population, and the consumer demands for accessible healthcare systems. In addition, the prevalence of chronic diseases, advanced surgical procedures, and rising R&D in healthcare equipment and medicine are advancing the segment.
However, the pharmaceutical devices segment is also expected to dominate the market during the forecast period due to rising pharmaceutical industries and growing investments in business outsourcing for drug manufacturers. In addition, the rising research and developments in the pharmaceutical industries requiring assays and reagent kits help the segment's growth.
Global Healthcare Logistics Market - By Region:
Middle East and Africa
The market in North America is expected to dominate the revenue during the forecast period due to the desire for better healthcare services, rising incidence of chronic diseases, significant amounts of pharmaceutical items being purchased and sold domestically, commercial advancements, rising infrastructural development, and the prevalence of good logical services in nations like the U.S. and Canada.
The European market is also expected to proliferate due to growing demand for vaccines, increased generic medication supply, increased investment by top pharmaceutical companies, and expanding collections of cutting-edge medical gadgets. In addition, significant players in nations like the U.K., Italy, Germany, etc., are all factors that favor third-party logistics.
The market in Asia-Pacific is also expected to grow due to the population in the region, the healthcare sector expanding, economies growing, the pharmaceutical business growing, disposable incomes rising, and the demand for better healthcare services. In addition, third-party logistics offers a wide range of advantages attracting revenue in the countries like India, China, Japan, etc.
KEY MARKET PLAYERS:
There are several key market players in the global healthcare logistics market. Here are some significant participants, Air Canada, LifeConEx, AmerisourceBergen Corp., Cold Chain Technologies LLC, VersaCold Logistics Services, Continental Cargo OU, Deutsche Post DHL Group, Kuehne + Nagel International AG, FedEx Corporation, and Schenker AG.
RECENT MARKET HAPPENINGS:
In September 2022, the 2022 Business Worldwide Magazine CEO Awards recognized Cedric Picaud of the multinational life science logistics company CRYOPDP. The honors recognize the most esteemed and creative business leaders from various industries. Here, unlike in many other business awards where the emphasis is on businesses, it is on the leaders of those businesses. Giving deserving CEOs and other C Level executives the recognition they deserve the goal and motivating others to experience similar success.
In September 2022, DHL Supply Chain expanded its foothold in Mexico by purchasing NTA, a leader in healthcare logistics. The world's largest logistics provider, DHL Supply Chain, a Deutsche Post DHL Group division, has purchased NTA, or New Transport Applications. This business specializes in offering logistical services to the pharmaceutical and healthcare industries. NTA, a reputable industry player with more than 20 years of experience in the Mexican market, provides more than 80 customers with services such as storing and transporting goods that need to be refrigerated and kept at a specific temperature.
In November 2022, Millstone Medical Outsourcing, the sector's top partner of choice for post-manufacturing and aftermarket services provided to medical manufacturers, will announce the completion of its acquisition of MycoScience. MycoScience joining Millstone expands Millstone's capabilities by providing cutting-edge laboratory and environmental testing services with years of industry and regulatory experience. In addition, after the acquisition, Millstone can offer these complementary services to its clients internally, with improved product testing controls.
In November 2022, it was recently announced that the acquisition of Bomi Group, a premier international provider of healthcare logistics and the subject of an earlier announcement, had closed. Through the acquisition, UPS Healthcare, the company's healthcare division, will expand its temperature-controlled facilities to 14 additional nations and hire 3,000 highly skilled workers across Europe and Latin America.
The Global Healthcare Logistics market size is estimated to grow at a CAGR of 7.78% from 2023 to 2028
The global healthcare logistics market is estimated to reach USD 143.93 billion by 2028
North America Region is expected to dominate the revenue during the forecast period in the Global Healthcare Logistics market.
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