ID: MRFR/HC/10178-HCR | 128 Pages | Author: Rahul Gotadki | May 2023
The Healthcare Logistics Market Size was valued at USD 77.3 billion in 2022 and is projected to grow from USD 84.87 Billion in 2023 to USD 179.30 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.80% during the forecast period (2023 - 2032). Increasing pharmaceutical revenue growth in international commerce and globalization are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Healthcare Logistics Market Trends
E-commerce, also known as electronic commerce, is the purchasing and selling products and services over online platforms. In recent years, the widespread use of e-commerce platforms such as Amazon, eBay, and Flipkart has led to a substantial increase in the online purchase and sale of products. This has allowed consumers to purchase and utilize healthcare products according to their needs freely. Such a rapidly growing e-commerce sector is anticipated to boost the market CAGR throughout the forecast period.
Outsourcing operational logistics from warehousing to delivery to a third-party logistics provider includes various supply chain services, including freight forwarding, packaging, inventory forecasting, order fulfillment, selecting and packing, warehousing, and transportation. Third-party logistics offers many advantages because it allows business owners to devote more time to product manufacturing, advertising, and sales. Therefore, the high benefits provided by third-party logistics are the primary factor driving the expansion of the Healthcare Logistics Market.
Globalization is the mutual dependence of the world's economies, communities, and cultures brought about by cross-border commerce. Today, most of the country's economy is heavily dependent on importing and exporting products to and from other nations. Asia-Pacific and North America have been the main players in global trade and have a high volume of trade flow, increasing the demand for logistics service providers to make trade flow more convenient and swift. Thus, it contributes to the global market expansion of the healthcare logistics. Thus, such factors are driving the Healthcare Logistics market revenue.
Healthcare Logistics Market Segment Insights
Healthcare Logistics Service Insights
The Market segments of Healthcare Logistics, based on Service, includes Transportation and Warehousing. The warehousing segment dominated the market, accounting for 45%-55 of the market revenue. Utilizing 3PL services allows the healthcare industry to reduce overhead operating costs and expenditures. Owing to a rise in demand, service providers have added value-added services such as packaging and warehousing to their menus.
Healthcare Logistics Product Insights
The Healthcare Logistics Market segmentation, based on Product, includes Pharmaceutical Products, Medical Devices, and Medical Equipment. The medical devices category generated the most income. The major driving factors are the increasing use of homecare medical devices for the aging population, the increasing emphasis on personalized medicine through health trackers and remote patient monitoring devices, and the increasing supply chain ability to adapt and overcome medical device shortages.
Figure 1: Healthcare Logistics Market, by Product, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Healthcare Logistics Type Insights
The Market segmentation of Healthcare Logistics, based on type, includes Branded Drugs and Generic Drugs. The generic drugs segment dominated the market in 2022. Increased affordability and the availability of products tailored to these populations, the rapid growth of the elderly population, and the prevalence of chronic diseases will likely drive the market. The primary factor contributing to the market's growth is the sharp increase in the elderly population across geographies, particularly in developed and emerging economies. This has increased affordability and the availability of products tailored to these populations.
Healthcare Logistics End Users Insights
Based on End Users, the Healthcare Logistics Market segmentation includes Pharmacies, Healthcare Facilities, and Research and Diagnostic Laboratories. The pharmacies category generated the most income. The expanding global pharmaceutical logistics market is anticipated to drive the market development of the healthcare logistics. As pharmaceutical products or medications must be stored and transported to drug stores, pharmacies, and others, rising sales of pharmaceuticals are expected to increase the demand for transportation or healthcare logistics.
Healthcare Logistics Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Healthcare Logistics Market area will dominate in 2022. This high revenue share is primarily attributable to the region's dominance in pharmaceutical and biologic medications and an increase in biopharmaceutical exports and imports. Due to the region's expensive healthcare costs, new technologies are adopted relatively rapidly. Consequently, healthcare businesses throughout North America increasingly rely on 3PL service providers for optimizing warehousing and transportation, thereby fostering regional growth.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: HEALTHCARE LOGISTICS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s Healthcare Logistics market accounts for the second-largest market share. Technology advancement is a key trend that is acquiring popularity in the healthcare logistics industry. To strengthen their market position, the major market players in the healthcare logistics are concentrating on providing technologically advanced logistics solutions. Further, the German market of Healthcare Logistics held the largest market share, and the UK market of Healthcare Logistics was the fastest-growing market in the European region
The Asia Pacific Healthcare Logistics Market is anticipated to grow at the fastest CAGR from 2023 to 2032. The rising demand for cold storage facilities, the increasing adoption rate of advanced technology facilities, and the increase in merger and acquisition activity by industry participants will boost the market in this region. Further, the China market of Healthcare Logistics held the largest market share, and the India market of Healthcare Logistics was the fastest-growing market in the Asia Pacific region
Healthcare Logistics Key Market Players & Competitive Insights
Leading market players are investing heavily in R&D to expand their product portfolio. Companies are also undertaking strategic activities to expand their global market share, with key market developments including new product launches, partnerships, collaborations, and mergers and acquisitions.
In recent years, the Healthcare Logistics industry has noted heavy investments for further development of warehousing and transportation of healthcare products. Major players in the market of Healthcare Logistics include Air Canada, AmerisourceBergen Corp, CEVA Logistics AG, Cold Chain Technologies LLC, Deutsche Post DHL Group, FedEx Corp, Kuehne + Nagel International AG, Schenker AG, United Parcel Service Inc., Owens & Minor, Lufthansa Cargo, Alloga, PHEONIX Group, C.H. Robinson, DSV, and Farmasoft.
Air Canada is a scheduled passenger service supplier. It provides accommodations, meals, in-flight entertainment, preferred seating, and Wi-Fi. The company provides major freight forwarding companies and businesses with direct cargo services. In addition, it provides vacation travel packages that include hotels, flights, cruises, day tours, vehicle rentals, and excursions. Boeing 777-300ER, Boeing 777-200LR, Boeing 787-8, Boeing 787-9, Airbus A330-300, Airbus A321, Boeing 767-300ER, Boeing 737- MAX 8, Airbus A320, and Airbus A319 comprise the company's operating aircraft fleet. The company's brands include Air Canada, Air Canada Express, and Air Canada Rouge. Air Canada's headquarters are located in Montreal, Quebec.
AmerisourceBergen Corp (AmerisourceBergen) provides pharmaceutical products, business solutions, and value-driving services that enhance access to care. The company distributes a comprehensive selection of brand-name, specialty, over-the-counter (OTC), generic pharmaceuticals, equipment, outsourced compounded sterile preparations, home healthcare supplies, and related services. It serves numerous healthcare providers in the United States and certain international markets, including independent and chain retail pharmacies, medical clinics, acute care hospitals and health systems, physician practices, long-term care mail-order pharmacies, medical and dialysis clinics, alternate site pharmacies, veterinarians, and other clients. The US headquarters of AmerisourceBergen is located in Conshohocken, Pennsylvania.
Key Companies in the market of Healthcare Logistics include
Healthcare Logistics Industry Developments
April 2022 As part of its aggressive global development strategy, UPS Healthcare made significant investments in Hungary to provide clients with faster shipment times and greater flexibility as they seek to expand in existing and new countries. One of these investments is the addition of 13,000 m2 of modern warehouse space to its facility near Budapest. This expansion brings UPS Healthcare's campus in the United States to a total of 37,000m2 of dedicated healthcare space, hosting a variety of validated temperature-controlled environments for temperature-sensitive medicines and biologics.
March 2022 The Emergency & Relief Logistics team of Kuehne+Nagel in Copenhagen (Denmark) joined forces with large humanitarian aid organizations in March 2022 to quickly set up critical aid missions funded by donations after Kuehne+Nagel pledged to provide logistics services as emergency aid to Ukraine. The world's largest charter flight took off from Sharjah (United Arab Emirates). A Ukrainian Antonov An-124, one of the largest cargo aircraft in the world, transported 111 tons of aid from UNICEF's Dubai warehouse to Poland the same day.
June 2021 AmerisourceBergen, a drug wholesaler based in the United States, acquired Alliance Healthcare Businesses for $6.275 billion in cash, subject to adjustment for working capital, net debt, and a total of 2 million shares of AmerisourceBergen common stock. AmerisourceBergen expands its pharmaceutical distribution solutions and global manufacturer services with this acquisition. Alliance Healthcare is a provider of pharmaceutical wholesaling, logistics, clinical trial support, and other innovative healthcare services based in the United Kingdom.
Healthcare Logistics Market Segmentation
Healthcare Logistics Service Outlook
Healthcare Logistics Product Outlook
Healthcare Logistics Regional Outlook
Rest of the World
|Market Size 2022||USD 77.3 billion|
|Market Size 2023||USD 84.87 billion|
|Market Size 2032||USD 179.30 billion|
|Compound Annual Growth Rate (CAGR)||9.80% (2023-2032)|
|Market Forecast Period||2023-2032|
|Historical Data||2018- 2022|
|Market Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Service, Product, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and the Rest of the World|
|Countries Covered||The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Air Canada, AmerisourceBergen Corp, CEVA Logistics AG, Cold Chain Technologies LLC, Deutsche Post DHL Group, FedEx Corp, Kuehne + Nagel International AG, Schenker AG, United Parcel Service Inc., Owens & Minor, Lufthansa Cargo, Alloga, PHEONIX Group, C.H. Robinson, DSV, and Farmasoft.|
|Key Market Opportunities||Growing drug manufacturing|
|Key Market Dynamics||Rising import and export of medicines & medical devices Technological advancements Rising investments for the development of warehousing|
The Healthcare Logistics Market size was valued at USD 77.3 Billion in 2022.
The global market is projected to grow at a CAGR of 9.80% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are Air Canada, AmerisourceBergen Corp, CEVA Logistics AG, Cold Chain Technologies LLC, Deutsche Post DHL Group, FedEx Corp, Kuehne + Nagel International AG, Schenker AG, United Parcel Service Inc., Owens & Minor, Lufthansa Cargo, Alloga, PHEONIX Group, C.H. Robinson, DSV, and Farmasoft.
The Warehousing category dominated the market in 2022.
Medical Devices had the largest share in the global market.
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