Healthcare Supply Chain Management Market Size (2024 - 2029)

The healthcare supply chain management market is projected to experience significant growth over the forecast period, driven by the increasing demand for efficient inventory management systems and the need for seamless tracking of pharmaceutical items, a demand heightened by the COVID-19 pandemic. The market's expansion is further supported by the development of innovative supply chain solutions and strategic partnerships among key players. Additionally, the growing adoption of these solutions by government bodies underscores their importance in enhancing healthcare delivery. Despite the potential for growth, the high cost of implementing such systems may pose a challenge to market expansion.

Market Size of Healthcare Supply Chain Management Industry

Healthcare Supply Chain Management Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 3.21 Billion
Market Size (2029) USD 5.41 Billion
CAGR (2024 - 2029) 11.02 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Healthcare Supply Chain Management Market Analysis

The Healthcare Supply Chain Management Market size is estimated at USD 3.21 billion in 2024, and is expected to reach USD 5.41 billion by 2029, growing at a CAGR of 11.02% during the forecast period (2024-2029).

COVID-19 significantly impacted healthcare supply chain management as several countries worldwide reported that active pharmaceutical ingredients were in short supply of drugs and surgical equipment during the early phase of the pandemic. However, the COVID-19 pandemic created a need for the seamless tracking and tracing of pharmaceutical items, which boosted the market growth in the later phase of the pandemic. 

For instance, according to an article published in Elsevier Public Health Emergency Collection in March 2022, the COVID-19 pandemic has impacted global supply chains at an unprecedented speed and scale. As per the article, gaps between supply and demand increased post-pandemic. Various companies are currently developing innovative supply chain management solutions in the healthcare segment for tracking pharmaceuticals, due to which the studied market is expected to grow during the forecast period.

The major factors driving the market growth are increasing efforts of healthcare providers to reduce cost and improve the quality of the supply chain and rising demand for the quality inventory management system.

The advantages offered by various healthcare supply chain management software applications are leading to their rising demand, which is expected to boost market growth. For instance, according to an article published in Saudi Pharmaceutical Journal in November 2022, in order to deliver better patient care, inventory and supply chain management primarily focuses on increasing productivity, reducing costs, and receiving and distributing the required supplies on time. 

Workflow organization and tracking of inventory, purchases, orders, and payments depend on effective supply chain management. The use of supply chain management in healthcare settings has increased recently. Healthcare institutions are responsible for planning, purchasing, managing, handling, tracking, and transporting stock such as medications, medical equipment, and supplies. Therefore, inventory management is crucial and is expected to propel the supply chain management market growth during the forecast period.

Furthermore, the rising launches and partnerships among the market players to expand the healthcare supply chain management solutions are expected to propel the market growth during the forecast period. For instance, in February 2022, Avery Dennison Smartrac launched its AD Minidose U9 RAIN RFID inlay for pharmaceutical applications, unlocking critical RFID value for healthcare, pharmacies, and laboratory asset management. Also, in August 2021, Tageos, a French-headquartered company, launched its EOS-202 U9 RAIN RFID inlay for healthcare and pharmaceutical applications.

Additionally, the growing adoption of supply chain management solutions by various government bodies has been reported in recent times, which is also expected to significantly contribute to the market growth during the forecast period. For instance, in January 2022, the United Arab Emirates' Ministry of Health launched AR-powered drug packs with a QR code for paperless access to drug-related information. It will help patients to read drug information by simply scanning a QR code on the medicine box.

Therefore, owing to the advantages of inventory management solutions, rising launches by market players, and increasing adoption of supply chain management by government organizations, the studied market is anticipated to witness growth over the analysis period. However, the high cost of implementation of supply chain management software is expected to restrain market growth.

Healthcare Supply Chain Management Industry Segmentation

As per the scope of the report, healthcare supply chain management refers to the process of procuring and managing all of the products required for a healthcare organization's proper operation and the provision of the necessary treatment to patients. The healthcare supply chain management market is segmented by component (software application and hardware type), delivery mode (on-premise and cloud-based), end-user (healthcare providers, healthcare manufacturers, and other end users), and geography (North America, Europe, Asia-Pacific, Middle East and Africa, South America). The market report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD) for the above segments.

By Component
Software Application
Supplier Management Software
Inventory Management Software
Other Software Applications
Hardware Type
Barcode Scanners
RFID
Other Hardware Types
By Delivery Mode
On-premise
Cloud based
By End User
Healthcare Providers
Healthcare Manufacturers
Others
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
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Healthcare Supply Chain Management Market Size Summary

The healthcare supply chain management market is poised for significant growth, driven by the increasing need for efficient tracking and tracing of pharmaceutical items, a demand that was amplified by the COVID-19 pandemic. The pandemic exposed vulnerabilities in global supply chains, highlighting the necessity for robust supply chain management solutions to address shortages in drugs and surgical equipment. This has led to a surge in innovation within the sector, as companies strive to develop advanced systems for inventory management and supply chain optimization. The market is further bolstered by healthcare providers' efforts to reduce costs and enhance the quality of supply chains, alongside the rising demand for sophisticated inventory management systems. The adoption of cloud-based solutions, which offer flexibility and scalability, is also contributing to market expansion, as healthcare organizations increasingly leverage these technologies to streamline operations and improve compliance.

North America is expected to dominate the market, supported by stringent regulatory frameworks and the presence of major manufacturing hubs. The region's focus on combating substandard and falsified drugs, along with the implementation of guidelines like GS1 and Unique Device Identification, is driving demand for supply chain management solutions. The market is characterized by moderate competition, with key players such as SAP AG Group, Oracle Corporation, and McKesson Corporation leading the charge. These companies are actively engaging in strategic partnerships, product launches, and technological advancements to enhance their offerings. The introduction of advanced cloud-based software solutions and the expansion of partnerships are anticipated to further propel market growth, as healthcare organizations continue to prioritize efficient supply chain management to improve patient care and operational efficiency.

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Healthcare Supply Chain Management Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Efforts of Healthcare Providers to Reduce Cost and Improve the Quality of Supply Chain

      2. 1.2.2 Rising Demand of the Quality Inventory Management System

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Implementation of Supply Chain Management Software

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size by Value - USD million)

    1. 2.1 By Component

      1. 2.1.1 Software Application

        1. 2.1.1.1 Supplier Management Software

        2. 2.1.1.2 Inventory Management Software

        3. 2.1.1.3 Other Software Applications

      2. 2.1.2 Hardware Type

        1. 2.1.2.1 Barcode Scanners

        2. 2.1.2.2 RFID

        3. 2.1.2.3 Other Hardware Types

    2. 2.2 By Delivery Mode

      1. 2.2.1 On-premise

      2. 2.2.2 Cloud based

    3. 2.3 By End User

      1. 2.3.1 Healthcare Providers

      2. 2.3.2 Healthcare Manufacturers

      3. 2.3.3 Others

    4. 2.4 Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Mexico

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Italy

        5. 2.4.2.5 Spain

        6. 2.4.2.6 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 China

        2. 2.4.3.2 Japan

        3. 2.4.3.3 India

        4. 2.4.3.4 Australia

        5. 2.4.3.5 South Korea

        6. 2.4.3.6 Rest of Asia-Pacific

      4. 2.4.4 Middle East and Africa

        1. 2.4.4.1 GCC

        2. 2.4.4.2 South Africa

        3. 2.4.4.3 Rest of Middle East and Africa

      5. 2.4.5 South America

        1. 2.4.5.1 Brazil

        2. 2.4.5.2 Argentina

        3. 2.4.5.3 Rest of South America

Healthcare Supply Chain Management Market Size FAQs

The Healthcare Supply Chain Management Market size is expected to reach USD 3.21 billion in 2024 and grow at a CAGR of 11.02% to reach USD 5.41 billion by 2029.

In 2024, the Healthcare Supply Chain Management Market size is expected to reach USD 3.21 billion.

Healthcare Supply Chain Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)