North America - Healthcare Logistics Market by Product and Service - Forecast and Analysis 2024-2028

North America Healthcare Logistics Market Forecast 2024-2028

North America Healthcare Logistics Market size is forecast to increase by USD 19.72 billion at a CAGR of 9.38% between 2023 and 2028. Market growth analysis indicates a surge in demand for healthcare products, spurring investments in manufacturing facilities and production facility. Electronic commerce facilitates online purchases, driving sales of medical equipment and raw materials. Medical facilities and healthcare transportation networks benefit from streamlined logistics, ensuring the timely delivery of essential supplies.

Market research and forecasting highlight the upward trajectory of healthcare product companies and medical equipment manufacturers. Market forecast projections underscore the pivotal role of e-commerce in driving sales and optimizing supply chain efficiency. As the healthcare sector continues to evolve, market research and growth strategies play critical roles in anticipating and capitalizing on emerging opportunities.

What will be the size of the Market During the Forecast Period?

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What is the Largest-Growing Segments in the Market?

The pharmaceuticals segment is estimated to witness significant growth during the forecast period. Pharmaceutical products include branded drugs, generic drugs, and vaccines. The Food and Drug Administration (FDA) Center for Drug Evaluation and Research (CDER) approved 46 new drugs or new molecular entities (NME) in 2021. The major proportion of approved entities were small molecule drugs, and the rest were biologics (large complex drugs).

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The pharmaceuticals segment was the largest and was valued at USD 18.63 billion in 2018. The demand for biologics for more effective treatment of diseases is growing, as synthetic drugs have limitations in treating many health disorders. Therefore, the development of new biologics for the treatment of existing disorders and rare diseases is expected to fuel the growth of the pharmaceutical products segment and simultaneously boost the demand for healthcare logistics. The increase in new drug approvals in North America is expected to lead to a rise in the demand for pharmaceutical logistics in North America. Logistics players are, therefore, converting existing or setting up new logistics or warehouse units for new products based on the requirements of pharmaceutical manufacturers. Therefore, the pharmaceutical products segment of the market in North America is expected to grow during the forecast period.

Market Dynamics and Customer Landscape

Legislative and regulatory changes significantly drive market growth and forecasting in the pharmaceutical industry. Stringent regulations pose major hurdles for new entrants and introducing new drugs in North America's market. Canada's single-payer healthcare system, funded through taxation, impacts the sale of products and boosts the pharmaceutical industry.

Additionally, Canadian regulations to lower pharmaceutical prices fuel sales and demand for healthcare logistics. Emerging trends like drone usage in healthcare logistics, driven by logistics companies, reshape Market forecasting, enhancing supply chain efficiency. However, the high cost of branded drugs remains a challenge, affecting market forecasting and hindering industry growth..

Key Market Driver

Legislative and regulatory changes supporting the growth of the pharmaceutical industry are notably driving the market growth. Stringent regulations in the medical and pharmaceutical industries are the major hurdles to the entry of new players and the introduction of new drugs into the market. Further, North American countries such as Canada have a single-payer healthcare system that is funded by federal, provincial, and territorial taxation. Such regulations directly impact the number of people opting for medical care and treatment and serve as an impetus for the growth of the pharmaceutical industry.

Additionally, the Government of Canada has enforced regulations to reduce the prices of pharmaceutical drugs. The regulation is said to form the final amendments to the Patented Medicines Regulations in the country. Such regulations lead to lower costs of drugs and make them more accessible to the public, thereby driving the sales of drugs, which, in turn, is driving the growth of the market. Thus, these factors will enhance the growth of the market during the forecast period.

Significant Market Trends

The emergence of drones in healthcare logistics is an emerging trend shaping the market growth. Drones are unmanned aerial vehicles (UAVs) that are controlled via remote operation by a drone pilot. The applications of drones are growing beyond military uses to include the logistics sector, particularly in delivery operations in remote or rural areas. 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 in the market customize their supply chain model effectively based on real-time information received from the UAV. Thus, the increased use of drones for the delivery of healthcare supplies in North America is expected to drive the growth of the market during the forecast period.

Major Market Challenge

The high cost of branded drugs is a significant challenge hindering the market growth. A key factor restraining the growth of the pharmaceutical industry, particularly in the US, is the high cost of medication. For instance, Harvoni (ledipasvir+sofosbuvir) is a combination drug indicated for the hepatitis C virus. The sophisticated machinery that is used to produce pharmaceutical drugs, particularly biopharmaceuticals, is expensive to install and operate. 

Moreover, the cost of manufacturing, analytical development, and validation rose by 30%-50% in 2020-2021. In the US, speciality drugs for the long-term treatment of conditions such as rheumatoid arthritis, multiple sclerosis, and cancer can cost between USD 100 and USD 1,000 thousand annually, with prices rising further each year. Such factors are expected to restrict the market growth during the forecast period. 

Market Customer Landscape

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 also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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.

Air Canada - The company offers healthcare logistics such as AC Pharmacair Simple and AC Pharmacair Plus.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AmerisourceBergen Corp.
• AP Moller Maersk AS
• Bollore SE
• C H Robinson Worldwide Inc.
• CMA CGM SA Group
• Cold Chain Technologies
• Deutsche Bahn AG
• Deutsche Post AG
• DSV AS
• FedEx Corp.
• Hellmann Worldwide Logistics SE and Co KG
• Kuehne Nagel Management AG
• Lineage Logistics Holdings LLC
• Nippon Yusen Kabushiki Kaisha
• Noatum Holdings SLU
• Owens and Minor Inc.
• SEKO Logistics
• UniGroup CA
• United Parcel Service Inc.

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.

Market Analyst Overview

The market is undergoing a transformative phase driven by advancements in digital technology and globalization. With the rise of e-commerce and the increasing demand for healthcare items, efficient third-party logistics and freight forwarding are essential for the timely delivery of biological pharmaceuticals and temperature-sensitive drugs.

Packaging innovations and inventory forecasting play critical roles in order fulfillment and picking and packing processes, ensuring the integrity of medical products during transit. Moreover, digital transformation has revolutionized transportation industry operations, enhancing efficiency, speed, and timing.

As traffic volumes and congestion pose challenges, optimization of supply chains becomes imperative, especially for truck-dependent businesses. The Asia-Pacific region emerges as a significant hub due to its burgeoning healthcare infrastructure and population.

To capitalize on emerging opportunities, companies invest in production analysis and technological innovations, focusing on advanced medical technology and quality healthcare. The market potential is augmented through strategic product launches and international commerce, leveraging online platforms and value-added services.

As changes in market regulations influence product approvals and application dominance, collaboration with third-party logistics providers becomes pivotal for outsourcing operational logistics and navigating cross-border commerce complexities. Ultimately, the convergence of health awareness and technological advancements fosters a mutually dependent ecosystem benefiting consumers, communities, and the world's economies.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook 
  • Pharmaceuticals
  • Medical devices

• Service Outlook 
  • Transportation
  • Warehousing 

Market Scope
Report Coverage	Details
Page number	149
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 9.38%
Market Growth 2024-2028	USD 19.72 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	9.22
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Air Canada, AmerisourceBergen Corp., AP Moller Maersk AS, Bollore SE, C H Robinson Worldwide Inc., CMA CGM SA Group, Cold Chain Technologies, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Nippon Yusen Kabushiki Kaisha, Noatum Holdings SLU, Owens and Minor Inc., SEKO Logistics, UniGroup CA, and United Parcel Service Inc.
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.
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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