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

The report covers Healthcare Supply Chain Companies and it is Segmented by Component (Software Application and Hardware Type), Delivery Mode (On-premise and Cloud-based), End-User (Healthcare Providers, Healthcare Manufacturers, and Others), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, South America).

Healthcare Supply Chain Management Market Size

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Healthcare Supply Chain Management Market Summary
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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

Major Players

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*Disclaimer: Major Players sorted in no particular order

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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 Market Trends

Cloud based Segment is Expected to Register a Significant Growth Over the Forecast Period

The network, storage, and capacity provided by cloud-based supply chain solutions operate on a flexible, usage-based model that allows for faster updates and adaptations. Scaling up (or down), adapting to new market conditions, connecting with new partners, and adding new suppliers are all potential uses.

The segment is expected to grow during the forecast period owing to the rising research studies and advancements in cloud-based solutions. For instance, according to an article published in August 2022 by the National Center of Biotechnology Information, a study conducted in Hong Kong and the United States mentioned that the technical sustainability of cloud-based blockchain could be combined with artificial intelligence (AI) for efficient healthcare supply chain management. Therefore, such research studies boost the developments in cloud-based healthcare supply chain management operations.

Additionally, the rising adoption of cloud-based supply chain solutions by various healthcare organizations is also expected to boost segment growth during the forecast period. For instance, in October 2022, Indiana-based Methodist Hospitals partnered with cloud solutions company Infor to create a cloud-based healthcare application that will allow the health system to standardize key processes in various areas, such as finance, human resources, supply chain, and operations. Such partnerships are expected to expand the cloud-based solution market during the forecast period.

Furthermore, the launch of advanced cloud-based supply chain management software is expected to propel market growth. For instance, in May 2022, Jump Technologies launched a cloud-based software solution called JumpStock that integrates with the electronic medical record (EMR), enterprise resource planning (ERP), or scheduling systems and enhances its mobile scanning solution to improve compliance for recording lot and serial numbers, as well as expiration dates of product used in hospitals, allowing hospitals to save money on supply hoarding, physician preference variances, and stock-outs.

Therefore, owing to the high adoption of cloud-based supply chain management and rising launches and partnerships by market players, the segment is expected to propel during the forecast period.

Healthcare Supply Chain Management Market: Number of Counterfeit Incidences Concerning Pharmaceuticals, Global, 2021

North America is Expected to Hold a Significant Market Share Over The Forecast Period

North America is anticipated to hold the major share of the market over the forecast period owing to the increasing risks from substandard and falsified drugs and stringent regulatory frameworks, and mandatory implementation of GS1 and Unique Device Identification (UDI) on pharmaceutical drugs and medical devices, coupled with the presence of large manufacturing hubs. For instance, in July 2022, the Food and Drug Administration (FDA) published the final guidelines and policies regarding the unique device identification system to adequately identify medical devices sold in the United States from manufacturing through distribution to patient use. Therefore, the availability of such national government guidelines and recommendations is expected to propel the demand for supply chain management in the region during the forecast period.

Furthermore, the increasing adoption of various business strategies by the market players, such as collaborations, partnerships, and product launches in the region, is also contributing to the market expansion. For instance, in October 2022, Tecsys Inc., a Quebec-based supply chain management software company, launched a new feature, Elite Healthcare Receiving, in its end-to-end Elite Healthcare supply chain execution platform. The new feature is a hospital receiving application that seamlessly integrates receiving and delivery processes into a health system's supply chain operations. Therefore, the addition of new features to simplify the supply chain operations in healthcare organizations is projected to augment the market growth over the forecast period.

Healthcare Supply Chain Management Market - Growth Rate by Region

Healthcare Supply Chain Management Industry Overview

The healthcare supply chain management market is a fast-growing market and moderately competitive in nature. The current market share is majorly controlled by a few medical technology companies that have expertise in providing service solutions in the healthcare domain. Some of the key market players are SAP AG Group, Oracle Corporation, McKesson Corporation, Avery Dennison Corporation, Tecsys Inc., Ochsner Health System, and Providence Health & Services.

Healthcare Supply Chain Management Market Leaders

  1. SAP AG Group

  2. McKesson Corporation

  3. Avery Dennison Corporation

  4. Oracle Corporation

  5. Tecsys Inc.

*Disclaimer: Major Players sorted in no particular order

Healthcare Supply Chain Management Market Concentration
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Healthcare Supply Chain Management Market News

  • January 2023: Accord BioPharma, the United States specialty division of Intas Pharmaceuticals, Ltd., launched a mobile app and web-based inventory management capability, AccordConnects, to assist healthcare practices in keeping track of Accord BioPharma therapy's inventory.
  • June 2022: Syft, a subsidiary of GHX and a national provider of healthcare inventory control and end-to-end supply chain management software and services launched Syft Synergy 4.5. An updated mobile app interface on this supply chain management software platform makes receiving and distributing supplies easier.

Healthcare Supply Chain Management Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Efforts of Healthcare Providers to Reduce Cost and Improve the Quality of Supply Chain

      2. 4.2.2 Rising Demand of the Quality Inventory Management System

    3. 4.3 Market Restraints

      1. 4.3.1 High Cost of Implementation of Supply Chain Management Software

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

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

    1. 5.1 By Component

      1. 5.1.1 Software Application

        1. 5.1.1.1 Supplier Management Software

        2. 5.1.1.2 Inventory Management Software

        3. 5.1.1.3 Other Software Applications

      2. 5.1.2 Hardware Type

        1. 5.1.2.1 Barcode Scanners

        2. 5.1.2.2 RFID

        3. 5.1.2.3 Other Hardware Types

    2. 5.2 By Delivery Mode

      1. 5.2.1 On-premise

      2. 5.2.2 Cloud based

    3. 5.3 By End User

      1. 5.3.1 Healthcare Providers

      2. 5.3.2 Healthcare Manufacturers

      3. 5.3.3 Others

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 South Korea

        6. 5.4.3.6 Rest of Asia-Pacific

      4. 5.4.4 Middle East and Africa

        1. 5.4.4.1 GCC

        2. 5.4.4.2 South Africa

        3. 5.4.4.3 Rest of Middle East and Africa

      5. 5.4.5 South America

        1. 5.4.5.1 Brazil

        2. 5.4.5.2 Argentina

        3. 5.4.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Advocate Healthcare

      2. 6.1.2 Ascension Health

      3. 6.1.3 Avery Dennison Corporation

      4. 6.1.4 Tecsys Inc.

      5. 6.1.5 Mckesson Corporation

      6. 6.1.6 Oracle Corporatipon

      7. 6.1.7 Providence Health & Services

      8. 6.1.8 SAP AG Group

      9. 6.1.9 Spectrum Health

      10. 6.1.10 Ochsner Health System

      11. 6.1.11 Aspen Technology Inc

      12. 6.1.12 Infor

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape covers- Business Overview, Financials, Products and Strategies and Recent Developments
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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 Research 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.

SAP AG Group, McKesson Corporation, Avery Dennison Corporation, Oracle Corporation and Tecsys Inc. are the major companies operating in the Healthcare Supply Chain Management Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Healthcare Supply Chain Management Market.

In 2023, the Healthcare Supply Chain Management Market size was estimated at USD 2.89 billion. The report covers the Healthcare Supply Chain Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Healthcare Supply Chain Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Healthcare Supply Chain Management Industry Report

Statistics for the 2023 Healthcare Supply Chain Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Healthcare Supply Chain Management analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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