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The North America - Healthcare Logistics Market size is estimated to grow at a CAGR of 9.38% between 2023 and 2028. The market size is forecast to increase by USD 19.72 billion. The accelerated growth of the market is due to various factors such as legislative and regulatory changes supporting the growth of the pharmaceutical industry, growing pharmaceutical sales and increasing development of healthcare products with special logistics needs.
The report includes a comprehensive outlook on the North America Healthcare Logistics Market offering forecasts for the industry segmented by Product, which comprises pharmaceuticals and medical devices. Additionally, it categorizes Service into transportation and warehousing. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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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.
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 North America - healthcare logistics 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 demand for North America - healthcare logistics market. Thus, these factors will enhance the growth of the market during the forecast period.
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 North America - healthcare logistics 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.
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.
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.
North America Healthcare Logistics 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.
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:
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 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 healthcare logistics market in North America is expected to grow during the forecast period.
The North America Healthcare Logistics Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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North America Healthcare Logistics Market Scope |
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Report Coverage |
Details |
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Page number |
149 |
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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 9.38% |
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Market Growth 2024-2028 |
USD 19.72 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.22 |
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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., 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. |
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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. |
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 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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