Healthcare Supply Chain Management Market (By Product: Software, Hardware, Services; By Mode Of Delivery; By End-use) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global healthcare supply chain management market was estimated at USD 2.4 billion in 2021 and it is expected to surpass around USD 5.31 billion by 2030, poised to grow at a CAGR of 9.22% from 2022 to 2030.

Report Highlights

• Software held the largest share of over 35.04% in 2021 and is expected to expand at the fastest CAGR during the forecast period. 
• The cloud-based segment emerged as one of the extremely high potential segments with a revenue share of over 40.04% in 2021 and is expected to expand at the highest CAGR during the forecast period. 
• The healthcare manufacturers segment dominated the market with a revenue share of over 35.11% in 2021 and is expected to expand at the fastest CAGR during the forecast period. 
• North America dominated the overall market in 2021 with a share of over 30.02%. 
• Asia Pacific is anticipated to register a lucrative CAGR of 10.54% during the forecast period. 

The major factors contributing to the industry growth are the growing adoption of such platforms by healthcare providers to improve efficiency and enhance operational affordability. There is a growing demand for RFID systems by medical device manufacturers, pharmaceutical and biopharmaceutical companies, hospitals, and other life sciences companies to control inventory costs in developed countries, which further fuels market growth.

Cloud-based warehouse management systems assist supply chain performance by improving order management and production planning across all warehouse locations. These cloud-based warehouse management systems generate data sets over time, which, in turn, show patterns, making it possible to forecast shifts in demand. Furthermore, the adoption of cloud-based warehouse management systems by manufacturers to optimize order management and inventory fulfillment has significantly increased their revenue. Automating pricing and customer approval workflows with a cloud-based application has further reduced order cycle time and helped in improving quality. This has further driven the demand for cloud-based software solutions in the healthcare industry, thus positively impacting market growth.

Key players are also focusing on developing new technologies to help in streamlining the production process. For instance, in March 2019, JDA Software, Inc. and Panasonic Collaboration announced a joint venture. The purpose of the joint venture was to create new solutions for businesses in manufacturing, logistics, and retail fields by combining JDA’s comprehensive SaaS software for supply chain management along with Panasonic sensing technologies.

Other factors such as the adoption of GS1 standards and UDI and mobile-based healthcare management solutions also boost the market growth. However, factors such as data privacy and high cost associated with the implementation and maintenance of healthcare supply chain management solutions are likely to restrain the market growth. COVID-19 positively impacted the market growth. Major organizations are shifting toward digitalized supply chain managing solutions for rebuilding their supply chains and creating transparency and resiliency across their supply chain processes.

Software held the largest share in 2021 and is expected to expand at the fastest CAGR during the forecast period. The market growth can be attributed to the growing adoption rate of next-generation cloud computing applications such as supply chain management enterprise resources. By mode of delivery, the cloud-based segment held the largest share in 2021 and is expected to grow at the highest rate during the forecast period. This growth can be attributed to the rising demand for user-friendly technology, cost-effectiveness, and higher adoption rate. The growing penetration of cloud computing among healthcare providers for maintaining inventory and procurement information is further driving the segment.

By end-use, the healthcare manufacturers segment emerged as one of the extremely high potential segments in 2021 and is expected to grow at the fastest rate during the forecast period due to the rising adoption of healthcare supply chain managing solutions for streamlining their manufacturing process. North America dominated the overall market in 2021 with a revenue share of over 30.0%. Asia Pacific is projected to expand at the fastest CAGR of 10.5% in the forecast period due to the growing adoption of GS1 standards in the region to track the visibility of pharmaceutical products.

Scope of The Report

Product Insights

Software held the largest share of over 35.04% in 2021 and is expected to expand at the fastest CAGR during the forecast period. The growing adoption of software such as SaaS that offers next-generation cloud computing applications such as supply chain management enterprise resource planning are among key factors boosting the market growth. The rising need for efficient management of organizational workflows in healthcare organizations and a shift in the trend toward value-based care in developed economies are boosting segment growth. Furthermore, rising initiatives undertaken by private and public players for supporting healthcare IT infrastructure are driving the segment in healthcare organizations.

The services segment is expected to emerge as the second-fastest growing segment over the forecast period owing to advancements in software platforms and rising demand for services such as support and maintenance, consulting, and education and training. The development of a range of platforms for monitoring, diagnosis, wellness, and prevention of diseases is also a key factor boosting market growth. Furthermore, healthcare IT services such as education and training, consultation, installations, and upgradation of the software are some other factors propelling segment growth. For instance, Manhattan OneSource offers a single point of contact for all supply chain software and hardware requirements. With the help of OneSource, end-users can achieve the lowest cost of service and optimal performance at the same time.

Mode of Delivery Insights

The cloud-based segment emerged as one of the extremely high potential segments with a revenue share of over 40.04% in 2021 and is expected to expand at the highest CAGR during the forecast period. The adoption of cloud-based technology has increased owing to various security breaches on web-based and on-premise deployment. The old-generation systems require regular investments for the upgradation of the software. Moreover, with the growing IT infrastructure needs and changing business requirements, information sharing with clients and other stakeholders is a key concern, and therefore, several players are using this technology. The benefits associated with cloud technology include the use of external web servers, remote access and authorization, information sharing across different stages of the value chain, and immediate detection of security threats and lapses. Furthermore, it reduces the need for physical infrastructure; therefore, it has a much lower financial investment as cloud-based services are designed as a pay-as-you-go model. Thus, the demand for cloud-based delivery as compared to others has increased significantly and is expected to witness the fastest growth in the coming years.

On-premise held the second-largest share in 2021. Deployment of on-premise is commonly adopted by several medium- and small-scale enterprises through in-house data centers and security infrastructure. Previously, the majority of healthcare centers were dependent on on-premise deployment; however, with the advent of cloud-based technology, several organizations are opting for cloud-based deployment.

End-use Insights

The healthcare manufacturers segment dominated the market with a revenue share of over 35.11% in 2021 and is expected to expand at the fastest CAGR during the forecast period. Pharmaceutical companies are among the major beneficiaries of emerging IT trends and technologies including cloud computing. The growing adoption of SaaS software among healthcare manufacturers is changing the trend by shifting from paper-based functioning to an automated system. This has further reduced the risk of errors and also overcome significant challenges such as efficient planning and visibility into consigned inventory. Furthermore, the pharmaceutical industry generates petabytes of data every second through multiple data streams such as R&D and CRM systems. Hence, cloud computing comes into the picture by allowing companies to store important data in a global network that can be accessed from anywhere in the world and from any device. This, in turn, allows the pharmaceutical industry to function more efficiently.

Healthcare providers held the second-largest share in 2021. The rising adoption of cloud-based software solutions in hospitals is one of the key factors fueling industry growth. Growing demand for automated services and the rising need for the integration of health-related data of individuals for efficient care delivery are some other factors expected to fuel industry growth. Furthermore, an increase in the adoption of cloud computing in hospitals for improving clinical, financial, inventory, procurement, and administrative efficiency is responsible for growth.

Regional Insights

North America dominated the overall market in 2021 with a share of over 30.02%. Some of the key factors responsible for the regional growth are the mandatory implementation of GS1 standards and Unique Device Identifiers (UDIs) on pharmaceutical drugs and medical devices. The presence of large manufacturing hubs is another factor contributing to the growth in the region. Other factors that contribute to the growth are the rising patient burden in the U.S., the increasing prevalence of chronic diseases, regulatory requirements, and the implementation of various strategies to enhance healthcare supply chain management in Canada. The growing adoption of scanning technologies, such as barcodes and RFID, to curb counterfeited drugs has aided in tracking the drugs. Manufacturers in the U.S. have started using edible barcodes in combating the counterfeit drug trade. Furthermore, the adoption of these scanning technologies among healthcare providers and distributors is boosting the market growth in the region.

Asia Pacific is anticipated to register a lucrative CAGR of 10.54% during the forecast period. A constantly developing healthcare IT infrastructure and growing demand for cloud computing are some of the factors accelerating growth. The growing adoption of GS1 standards in the region to track the visibility of pharmaceutical products is expected to further boost market growth in the region. According to the WHO, Asia Pacific holds the largest share of the trade in counterfeit medicines. The pharmaceutical industry has adopted scanning technologies, such as RFID and barcodes, to track products and gain information about products for curbing the counterfeiting of drugs.

Key Players

• Jump Technologies, Inc.
• Tecsys
• LogiTag Systems
• Mckesson Corporation
• Oracle
• SAP
• Infor
• Terso Solutions
• CenTrak (HALMA plc)
• Biolog-ID

Market Segmentation

• By Product Outlook
• Software
• Hardware

• Barcodes
• RFID Tags
• Services
• By Mode of Delivery Outlook
• On-premise
• Cloud-based
• Web-based
• By End-use Outlook
• Healthcare Manufacturers
• Healthcare Providers
• Distributors
• Logistics
• By Regional Outlook
• North America
• U.S.
• Canada
• Europe
• Germany
• U.K.
• France
• Italy
• Spain
• Russia
• Asia Pacific
• Japan
• China
• India
• Australia
• Singapore
• South Korea
• Latin America
• Mexico
• Brazil
• Argentina
• MEA
• South Africa
• Saudi Arabia
• UAE