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The healthcare logistics market is estimated to grow at a CAGR of 11.67% between 2022 and 2027. The size of the market is forecast to increase by USD 87.9 billion. The growth of the market depends on several factors, including growing global pharmaceutical sales, increasing government initiatives, and rising seaborne pharmaceutical transportation.
This report extensively covers market segmentation by product (pharmaceutical products and medical devices), service (transportation and warehousing), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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Growing global pharmaceutical sales are notably driving the market growth, although factors such as increased complexities due to time-bound deliveries and customization of the supply chain may impede the market growth. Our researchers analyzed the data with 2022 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.
Growing global pharmaceutical sales are notably driving market growth. The global pharmaceutical market includes prescription drugs and over-the-counter drugs and is expected to witness substantial growth during the forecast period. The growing geriatric population and new product launches by pharmaceutical manufacturers are the major factors driving the market growth.
The incidence of chronic diseases and the need for improved medical assistance are rising. There is a dire need for advanced equipment to effectively deal with the growing number of patients. Factors such as increasing healthcare awareness and growing medicinal knowledge among people with the help of the Internet are increasing the sales of over-the-counter drugs. The growth in pharmaceutical sales is expected to increase the demand for healthcare logistics and cold chain logistics.
An increase in patent expiration is the key trend in the healthcare logistics market. Patent expirations in the pharmaceutical industry are expected to increase, on average, year-over-year by 3% during the forecast period. If medicines lose patents, the production of their low-cost generic medicines will increase.
It is difficult for manufacturers to invest in the R&D of innovative and customized supply chain solutions. This, in turn, fuels the growth of healthcare logistics service providers, as they have the required infrastructure and skilled expertise to provide readily available supply chain solutions for generic drug manufacturers, which drives market growth.
Increased complexities due to time-bound deliveries and customization of the supply chain is the major challenge impeding market growth. Healthcare supplies require special care and attention, specific packaging, and a customized supply chain for sustaining the physical and chemical properties of the products. Logistics complexities vary with infrastructure based on technological advances, and region/country-specific regulations, among others. This makes it difficult for logistics service providers to formulate an effective supply chain model. The high criticality of healthcare supplies requires an agile and responsive supply chain to reduce lead time.
Healthcare product manufacturers are required to consider order size to maintain profitability, as the cost of freight declines with an increase in the volume of freight movement. The difference between rural and urban areas in terms of infrastructure required for an efficient logistics network also makes the designing of a supply chain model highly complex. This will restrict the growth of the market during the forecast period.
The 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 also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Healthcare Logistics Market Customer Landscape
Vendors 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.
SF Express - The company also provides time-definite express, economy products, and cold chain delivery services. Under the freight segment, the company provides a wide range of freight services. Additionally, the company offers other services such as supply chain and intra-city delivery.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the pharmaceutical products segment will be significant during the forecast period. Pharmaceutical products were the largest segment of the market in 2022. Pharmaceutical products include branded drugs, generic drugs, and other vaccines. The FDA Center for Drug Evaluation and Research (CDER) approved 46 new drugs or new molecular entities (NME) in 2018, which was more than the number of entities approved in 2017. The rise in new drug approvals will create a demand for pharmaceutical logistics.
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The pharmaceuticals products segment was valued at USD 39.38 billion in 2017 and continued to grow until 2021. The growth of new drug approvals is expected to increase the demand for pharmaceutical logistics. Hence, logistics players can convert or set up their existing logistics or warehouse units for new products based on the requirement of pharmaceutical manufacturers. Thus, these factors will drive the growth of the pharmaceutical products segment during the forecast period.
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APAC is projected to hold a 37% share of the global market by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The pharmaceutical industry in India is expected to grow during the forecast period, as the country is a low-cost, high-quality generic medicine manufacturing hub for pharmaceutical manufacturers. In addition, the pharmaceutical industries in Southeast Asian countries such as Malaysia, Singapore, and Thailand are also emerging due to rising awareness among people about health. These countries witness a huge demand and supply gap for medicines. However, there is an estimated rise in healthcare spending, which can provide opportunities for both pharmaceutical manufacturers and healthcare logistics vendors. Therefore, the market in APAC is expected to grow during the forecast period.
Due to the outbreak of COVID-19 in 2020, APAC witnessed an increase in demand for and the use of healthcare logistics robots. To reduce frequent contact with COVID-19 patients, many hospitals were using robots to deliver food and medicines. The robots also delivered food to patients on hospital premises.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, service, and region.
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Healthcare Logistics Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.67% |
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Market growth 2023-2027 |
USD 87.9 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
11.12 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 37% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, AGRO Merchants Group, Air Canada, AmerisourceBergen Corp., CEVA Logistics AG, Cold Chain Technologies, Continental Cargo OU, Deutsche Post AG, DSV AS, Farmasoft, FedEx Corp., Kuehne Nagel Management AG, McKesson Corp., Oximio, DB Schenker, SF Express Co. Ltd., Swisslog Holding AG, United Parcel Service Inc., and VersaCold Logistics Services |
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Market dynamics |
Parent market analysis, 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 forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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