Global Healthcare Supply Chain Management Market, by Product Type (Software, Hardware, Barcode, RFID Tags, and Services), End-Use (Healthcare Providers, Healthcare Manufacturers, and Others), and by Mode (Cloud-Based, and On-Premise, and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Market Perspective

The global Healthcare Supply Chain Management Market size was worth around USD 2.56 Billion in 2021 and is predicted to grow to around USD 5.93 Billion by 2030 with a compound annual growth rate of roughly 9.78% between 2022 and 2030. In the pharmaceutical industry, the emergence of cloud-based solutions and the rising demand for preventing large-scale drug counterfeiting are among the factors driving the expansion of the market.

Globally, the increasing pressure on healthcare providers to increase efficiency while reducing costs is driving the adoption of supply chain management solutions. Management of the healthcare supply chain also incorporates efficient supply chain methods for achieving traceability and operational efficiency, while reducing operating costs without sacrificing quality.

The growing adoption of cloud-based software solutions by healthcare professionals is one of the primary market drivers. Significant enhancements to the data security of supply chain management solutions are boosting their adoption. Hospitals, physician offices and clinics, and diagnostic labs are a few of the key end-users of healthcare supply chain management.

Key end-users of this market include distributors, medical device manufacturers and pharmaceutical, logistics firms, and healthcare organizations. People's changing health is a trend that drives supply chain innovation. According to the CDC, fifty percent of American adults have one or more chronic health conditions. This contributes to the creation of an extra patient-centered supply chain that can deliver items when and where patients require them.

Additionally, according to Forbes, the Internet of Things is increasing connectivity and visibility throughout the supply chain. This is made possible by carefully monitoring inventories, which in turn helps to reduce the costs associated with providing medical care.

Due to increasing pressure on healthcare organizations to improve profitability and address rising supply chain costs, there has been an urgent need for effective supply chain management in the healthcare industry. In addition, the efforts of multiple administrations to make their supply chain operations more responsive and resilient have increased demand for supply chain management solutions. In addition, strategic partnerships and acquisitions between key players and hospitals have resulted in an increase in the deployment of SCM solutions.

For example, ProShip, Inc. and JDA Software Inc. teamed up in February 2020 to develop their portfolio of unified shipping and supply chain operations and to work together on some of their most difficult and extensive installations.

In response to these positive market trends, numerous companies engaged in the provision of supply chain management solutions and services and made substantial investments in R&D. These R&D initiatives have resulted in the creation of software and solutions tailored to their client's specific needs. Thus, the introduction of new software and solutions is a major contributor to market growth over the forecast period. Consequently, the increased demand for supply chain management solutions with a broad range of applications is a major contributor to the growth of the market over the forecast period.

Key Insights

• Based on product type segmentation, the software segment held the largest market share in the year 2021
• Based on end-use segmentation, the healthcare manufacturing segment dominated the market share in the year 2021
• Based on mode segmentation, the cloud-based accounted largest market share in the year 2021
• On the basis of region, the North America segment held the largest market share in the year 2021

The advent of Advanced Supply Chain Solutions to Propel Market Growth

Launch of innovative supply chain solutions to meet the increasing demand for the service with the assistance of solutions, cutting-edge technologies, and tools, businesses from all over the world have been able to update their services. Globally, organizations have begun integrating their key business operations end-to-end, making supply chain management increasingly popular.

E-procurement and advanced supply chain planning systems are examples of the software and solutions that have been introduced. These software solutions have multiple applications throughout the healthcare supply chain management system and can be utilized at various stages of supply chain management, including procurement, transportation, production, and storage.

Additionally, a variety of solutions are introduced to increase transparency and improve the efficacy of all business processes. These solutions assist in automating procurement, reducing costs, and improving the effectiveness of supply chain processes, allowing clinicians to focus more on patient care outcomes. Consequently, by improving patient outcomes by streamlining supply chain operations throughout the healthcare system, these new solutions are positively impacting the growth of the healthcare supply chain management market.

Growing Adoption of Radio Frequency Identification (RFID) to Improve Supply Chain Operations, Driving Market

Radio Frequency identification (RFID) technology has existed for a number of years; however, technological advancements may assist businesses in enhancing their supply chain operations. RFID tags can be used to track and manage pharmaceuticals in healthcare settings. The system alerts the user regarding medication's expiration dates and inventory levels.

In addition, it facilitates tracking machines, equipment, and vehicles, which are vital to any organization, by providing their location, and facilitating asset management and maintenance. Real-time tracking of healthcare products offers significant opportunities and assists organizations in enhancing customer service by, for example, increasing the efficiency of hospital processes and decreasing wastes such as expired products, excess inventory, and unnecessary staff movements.

RFID tags are used to tag pharmaceutical products, such as prescription drugs and other medical devices, which has led to an improvement in stock control and a rapid increase in RFID tags' use in the pharmaceutical industry.

Another noteworthy market trend is blockchain technology. This technology is proving to be an indispensable monitoring tool for tracking the entire process of medicine and medical product distribution. Due to the fact that all transactions are recorded in the blockchain, it maintains a record of the transaction, and the seller details, it is simple to instantly verify the origin of the drug, and the distributor.

Segment Analysis

Based on products, the global market is segmented into hardware, software, barcode, RFID Tags, and services. The software segment dominated the market due to the increasing implementation of SaaS-based software, which provides numerous applications of cloud computing is driving market expansion. The increasing demand for efficient workflow management in healthcare organizations and the shift toward value-based care in developed economies are driving segment growth. In addition, the segment in healthcare organizations is driven by the increasing initiatives undertaken by private and public actors to support healthcare IT infrastructure.

Based on mode, the global market is segmented into cloud-based and on-premises. The cloud-based segment dominated the market due to numerous security breaches on web-based and on-premise, and deployment has accelerated the adoption of cloud-based technology. Old-generation systems necessitate ongoing expenditures for software upgrades. Moreover, information sharing with clients and other stakeholders is a key concern due to the increasing demand for IT infrastructure and the evolving nature of business requirements; as a result, a number of players are utilizing this technology.

Based on end-use, the global market is segmented into healthcare providers, healthcare manufacturers, and others. Healthcare Manufacturers dominated the market as the pharmaceutical industry is one of the largest consumers of emerging IT trends and technologies, such as cloud computing. The increasing implementation of SaaS-based software among manufacturers is causing a shift to automated operations from paper-based.

This has further reduced the risk of errors and eliminated significant obstacles such as planning efficiency and visibility into consigned inventory. In addition, the pharmaceutical sector generates exabytes of data per second via various data streams, including CRM and R&D systems. Thus, cloud computing enters the scene by enabling businesses to store vital data in a global network that can be accessed from any location and any device. Therefore, the pharmaceutical industry can operate more efficiently.

Recent Development

October 2022- Tecsys Inc has launched End-to-End Elite software which enables coordinated distribution to efficiently handle commodities at all hospital locations.

January 2022- Bridge Medical GPO debuted the e-Procurement platform at Arab Health 2022. The software platform was created by JAGGAER, a provider of supply management technology. This software enabled healthcare providers in the UAE to adopt procurement and supply chain management best practices.

Regional Landscape

North America dominated the global market. The implementation of Unique Device Identifiers (UDIs) and GS1 standards on pharmaceutical drugs and medical devices are significant contributors to regional growth. The presence of large manufacturing hubs is an additional factor contributing to the region's growth. The increasing patient burden in the United States, the pervasiveness of regulatory requirements, chronic diseases, and the implementation of various strategies to improve healthcare supply chain management in Canada also contribute to the growth.

The increasing use of scanning technologies, such as barcodes and RFID, to combat counterfeit drugs has facilitated drug tracking. U.S. manufacturers have begun employing edible barcodes to combat the counterfeit drug trade. In addition, the adoption of these screening technologies by healthcare providers and wholesalers is driving market expansion in the region.

Competitive Landscape

Jump Technologies, Inc., Tecsys Inc., LogiTag Systems, MCKESSON CORPORATION, Oracle, SAP, Infor, Terso Solutions, Biolog-ID, and Global Healthcare Exchange, LLC, amongst others.

The global healthcare supply chain management market is segmented as follows:

By Product Type

• Software
• Hardware
• Barcode
• RFID Tags
• Services

By End-Use

• Healthcare Providers
• Healthcare Manufacturers
• Others

By Mode

• Cloud-Based
• On-Premise

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America