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The Canada healthcare logistics market size is estimated to increase by USD 2.34 billion and grow at a CAGR of 10.15% between 2023 and 2028. The market's expansion hinges on legislative and regulatory shifts favoring pharmaceutical growth, the rise in pharmaceutical sales, and the proliferation of healthcare products with specialized logistics requirements. However, challenges persist due to a shortage of transportation drivers leading to extended lead times, the complexity of managing inventory losses, and the burden of increased stock-keeping units (SKUs) at warehouses. Additionally, barriers in cold chain pharmaceutical logistics pose significant hurdles. Despite these obstacles, the industry is propelled forward by the evolving regulatory landscape and the continuous demand for healthcare products. Effective navigation of these challenges will be crucial for sustaining growth and meeting the dynamic needs of the pharmaceutical and healthcare sectors.
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The non-cold chain segment is estimated to witness significant growth during the forecast period. Less complicated transport and storage are included in the logistics of healthcare products and pharmaceuticals not covered by cold chains. It does not require a great deal of care when transporting or storing generic medicines and medical devices. The pharmaceutical industry mostly provides non-cold chain products and services directly to hospitals, clinics, big retail drugstore chains, and wholesalers of medical supplies.
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The non-cold chain segment was the largest segment and was valued at USD 2.44 billion in 2018. Moreover, the growing demand for pharmaceutical products in Canada is expected to fuel the growth of the market. Furthermore, the constant rise in the healthcare infrastructure across Canada and the low cost of non-cold chain logistics are expected to fuel the growth of the non-cold chain segment, thereby driving the market during the forecast period.
In Canada, the healthcare logistics sector operates within a stringent regulatory framework to ensure the safe and efficient transportation of medical supplies and products. With the increasing trend of online purchases, inventory forecasting, order fulfillment, and meticulous selecting and packing processes have become essential aspects of the healthcare system. Various modes of transportation, including trains, boats, cars, trucks, and airplanes, are employed to meet delivery demands promptly. Depth expert analysis and pipeline analysis guide strategic planning and execution, ensuring optimal management of storage and healthcare products. International commerce and e-commerce channels are utilized, often outsourcing operational logistics to facilitate smooth delivery and freight forwarding. Temperature-controlled trucks play a crucial role, particularly during critical times like the second wave, ensuring the integrity of medical supplies throughout their journey. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing development of healthcare products with special logistics needs is the key factor driving market growth. The majority of medicines and medical equipment used in Canada are imported from countries such as the US, China, Mexico, or Germany. The US pharma companies benefited from the similarity of regulations in the US and Canada with regard to the safety and quality of medical devices and pharmaceutical products. Thus, the increased import of new pharmaceutical products and medical devices in Canada has given rise to the need for more effective logistics services for the efficient transportation of temperature-sensitive products.
Furthermore, maintaining a temperature-controlled environment requires the use of cold chain solutions, which makes it difficult for manufacturers of such products to optimize their packaging and transportation costs. Therefore, manufacturers are availing the services of logistics service providers with expertise in cold chain logistics for the transportation of new pharmaceutical products. Hence, the increasing development of products with special logistics needs is anticipated to drive the growth of the market during the forecast period.
The emergence of drones is the primary trend shaping market growth. The drones are unmanned air vehicles and they fly autonomously through remote control by a pilot. Applications of drones to the transport sector, notably delivery operations in remote and rural areas, are increasing beyond military use. Drones can overcome the problem of inadequate road or railway infrastructure. They can deliver essential healthcare supplies, such as pharmaceutical drugs and small-sized and low-weight medical devices in hard-to-reach remote destinations.
Moreover, key participants in the pharmaceuticals and healthcare supply chain are focusing on using UAVs for last-mile deliveries. In addition, the use of drones will also help logistics companies customize their supply chain model effectively based on real-time information received from the UAV. Hence, the increased use of drones for the delivery of supplies in Canada is expected to drive the growth of the market during the forecast period.
Shortage of transportation drivers resulting in higher lead time is a challenge that affects market growth. In the pharmaceutical sector, where the lead time is of critical importance because of the potential to save lives through medical assistance, the shortage of skilled drivers may lead to supply chain disruption. The absence of drivers in the country has resulted in delays in plans by carriers to expand their fleets. The shortage of drivers in the country is also impacting the demand, especially in remote and rural areas.
In addition, in rural areas, logistics is highly complex due to the lack of proper infrastructure; thus, there is a need for experienced truck drivers who can adapt to such challenges while ensuring the timely delivery of pharmaceutical products. Furthermore, with the geriatric population rising in the country, the availability of experienced drivers is also expected to decline further in Canada, leading to a rise in the demand-supply disparities for skilled truck drivers, thereby negatively impacting the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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In Canada, the market is undergoing a transformation fueled by digitalization and the adoption of new technologies. Depth expert analysis and patient epidemiology drive strategic planning and execution in this sector, ensuring efficient coordination and procurement of critical medical supplies. Regulatory frameworks and trade regulations shape operations, while e-commerce and online purchases are reshaping the landscape of healthcare logistics. Companies like FedEx Express play a vital role in international commerce and freight forwarding, particularly in the pharmaceutical and medical devices categories. With a focus on just-in-time resupplies and time-bound deliveries, the industry navigates challenges such as congestion and the second wave, ensuring the seamless transportation of critical medical items and personalized medicine to healthcare facilities across the country.
Moreover the healthcare logistics landscape in Canada is evolving rapidly with the integration of digital transformation and e-commerce into traditional supply chain models. Pipeline analysis and regulatory frameworks shape the movement of pharmaceuticals and medical devices, ensuring compliance and safety. Efficient inventory management and waste reduction strategies optimize resources in the face of increasing demand and evolving healthcare needs. The rise of online purchasing and outsourcing operational logistics underscores the industry's adaptation to globalization and cross-border commerce. With a focus on application niches and production analysis, the sector navigates challenges like expensive healthcare costs and healthcare disparities.
However, as the aging population grows, logistics play a crucial role in ensuring the availability and timely delivery of critical medical supplies, including oxygen, platelets, and medicine, leveraging various modes of transportation from trucks to airplanes. Investment pockets emerge in innovative solutions like temperature-controlled trucks and the concept of "Medicine from the Sky," promising advancements in healthcare accessibility and delivery efficiency.
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Market Scope |
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Report Coverage |
Details |
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Page number |
144 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.15% |
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Market growth 2024-2028 |
USD 2.34 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.84 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Air Canada, AmerisourceBergen Corp., Andlauer Healthcare Group Inc., C H Robinson Worldwide Inc., Canada Post Corp., Canadian Healthcare Logistics, Cardinal Health, CEVA Logistics S A, DB Schenker, Deutsche Post AG, FedEx Corp., i2i fulfillment, Kuehne Nagel Management AG, Purolator Inc., Rogue Transportation Services Inc., Ryder System Inc., Skelton Truck Lines Inc., TFI International Inc., United Parcel Service Inc., and Williams Pharmalogistics |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the market forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service
8 Market Segmentation by Product
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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