Healthcare Supply Chain Management Market Size

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.