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The rural clinical and healthcare logistics market size is forecast to increase by USD 2.26 billion at a CAGR of 5.84% between 2023 and 2028. The market's growth is influenced by several key factors. Firstly, the aging population is expanding, leading to a higher demand for healthcare products and services. Additionally, pharmaceutical manufacturers are continuously introducing new drugs, enhancing treatment options and driving market growth. The increasing prevalence of chronic diseases further fuels this demand, as more individuals require ongoing medication and medical care. Together, these factors create a robust environment for market expansion, ensuring sustained growth and innovation in the healthcare and pharmaceutical sectors. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market encompasses the transportation, warehousing, and distribution of various healthcare products, including pharmaceuticals, medical devices, and temperature-controlled products, to rural areas. This market plays a crucial role in ensuring the availability of essential healthcare supplies for the geriatric population and those suffering from chronic diseases. Innovative technologies such as the Internet of Things and Radio Frequency Identification are being integrated into the supply chain to enhance efficiency and improve patient care. Value-based models are gaining popularity in the healthcare industry, requiring a reliable and efficient logistics system to deliver evidence-based care. Clinicians and supply chain professionals rely on healthcare manufacturers to provide these products, which may include ventilators and other medical devices, in a timely and effective manner. Health awareness initiatives and the growing need for transportation and logistics solutions in rural areas are expected to drive market growth in the coming years. Distribution centers and healthcare logistics play a vital role in ensuring the smooth flow of these products from manufacturers to end-users. Our researchers analyzed the market research and growth 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.
The growing introduction of new drugs by pharmaceutical manufacturers is driving the market. The global pharmaceutical industry encompasses prescribed and non-prescribed medications and is predicted to experience significant expansion in the projected period. It is estimated that global pharmaceutical sales will reach USD 1.4 trillion by 2023. Specialty drugs are projected to account for around 43% of worldwide expenditure in 2027 and roughly 56% of total expenditure in developed markets.
In addition, it is anticipated that global expenditure on cancer medications will rise to USD 370 billion by 2026-2027, with growth accelerating because of the introduction and use of innovative drugs and the restricted impact of new biosimilars. Expenditure growth in neurology drugs is expected to be driven by new therapies for rare neurological disorders, Alzheimer's disease, and migraines. Thus, such therapies will lead to the introduction of new drugs in the market. This, in turn, will drive the market growth during the forecast period.
The increasing adoption of blockchain technology is the primary trend driving the market growth. Blockchain technology is a digital platform that provides a distributed transaction ledger, which helps various stakeholders maintain identical copies on multiple computer-controlled systems. In general, a blockchain technology system uses a thread of cryptographically protected records and details of transactions for all stakeholders in the supply chain and eliminates the requirement of a central authority to maintain records. This helps in developing a cost-efficient and effective supply chain.
Due to the advantages of blockchain, various logistics companies are implementing blockchain technology in their supply chain to improve efficiency and data. The adoption of blockchain will streamline supply chain operations and will expedite the sharing of information and data. The acceptance of blockchains in the logistics industry has been steadily rising. Various companiess such as DHL has embraced blockchain technology, which gives its various benefits in the field of logistics and shipping. The introduction of blockchain technology is expected to leverage the market and, in turn, will drive market growth during the forecast period.
Shortage of skilled truck drivers is the major challenge impeding the market. A shortage of skilled truck drivers can result in supply chain disruption in the market, where the lead time is of critical importance and determines the potential of saving lives through medical assistance. From 2017, there was a shortfall of 50,000 truck drivers in the US, which is expected to escalate to approximately 175,000 by 2026.
In addition, the logistics in rural areas are highly complex due to inefficient logistical infrastructure; thus, there is a need for experienced truck drivers who can ensure the timely delivery of products. Also, many truckers are objecting to the US regulation on electronic logging devices (ELDs) in the transportation industry, as digital monitoring of drivers is looked like an invasion of privacy. This can also increase the shortage of skilled truck drivers. Thus, the increasing demand-supply gap for skilled truck drivers will affect the market negatively during the forecast period.
The market forecasting 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 market growth and forecasting 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.
Agility Public Warehousing Co. K.S.C.P -The company provides a comprehensive logistics offering to its clients, including freight forwarding, transportation, contract logistics, project logistics, and fairs and events logistics.
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 share growth by the cold chain logistics will be significant during the forecast period. Cold chain logistics refers to the process of maintaining a temperature-controlled supply chain for perishable products, such as vaccines, drugs, and other healthcare products that require a specific temperature range to maintain their efficacy. In the market, cold chain logistics plays an important role in ensuring that these products reach their intended destination in a timely and safe manner. The criticality of cold chain logistics even increases in rural areas, where healthcare infrastructure and access to medical facilities may be limited.
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The cold chain logistics segment was valued at USD 3.46 billion in 2018 and continued to grow until 2022. Many vaccines and drugs require refrigeration or freezing to maintain their potency, and failure to maintain the correct temperature during transportation can result in product spoilage and loss of effectiveness. To ensure proper cold chain logistics, various stakeholders in the healthcare supply chain need to work together. This includes manufacturers, distributors, transporters, and healthcare providers. In rural areas, where transportation infrastructure may not be appropriate, specialized cold chain logistics providers may be necessary to ensure that products are transported safely and efficiently. In addition, due to increasing investment by the government to boost the critical care infrastructure in rural areas, cold logistics is expected to grow during the forecast period. Thus, the cold chain logistics segment is expected to grow positively in the global market during the forecast period.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, the market witnessed high growth in APAC. The high growth expected in the healthcare market will be due to improved healthcare facilities and increased investments by governments and NGOs to improve public health standards. In addition, the promotion of medical insurance increased foreign direct investment in the healthcare sector, and increased spending to improve logistics infrastructure will drive the growth of the market. For instance, the warehousing, industrial, and logistics (WIL) sectors are projected to be crucial for attaining the vision of India of being a USD 5 trillion economy by FY25. Approx. 46% of the market's growth will originate from APAC during the forecast period. According to the Logistics Skill Council in 2022-2023, the Indian logistics sector is valued at USD 150 billion, contributing 14.4% of the country's GDP. Furthermore, the increasing demand for pharmaceutical products from rural areas will drive the regional market to focus during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Market plays a crucial role in ensuring the smooth delivery of essential medical supplies and equipment to rural areas. This market involves the transportation and storage of pharmaceuticals, medical devices, and consumables from manufacturers to healthcare facilities in rural regions. The use of advanced technology such as temperature-controlled transportation and real-time tracking systems is essential to maintain the quality and integrity of these products during transit. The demand is driven by the increasing focus on expanding healthcare access in rural areas and the growing population in these regions. The challenges in this market include the difficult terrain, limited infrastructure, and long delivery distances.
In addition, to overcome these challenges, logistics providers are adopting innovative solutions such as the use of drones for last-mile delivery and the establishment of centralized warehouses to reduce delivery times. The market is expected to grow significantly in the coming years due to the increasing government initiatives to improve healthcare infrastructure in rural areas and the rising awareness of the importance of timely access to healthcare services in these regions. The market is also expected to be influenced by the increasing adoption of technology in logistics operations and the growing demand for cost-effective and efficient logistics solutions.
Moreover, the Market is rapidly evolving, driven by advancements in medical device technology, the expansion of hospitals, and the vital role of pharmacies and diagnostic and research laboratories. The need for temperature controlled products is paramount, ensuring that sensitive healthcare products reach their destinations in optimal conditions. This has led to a growing emphasis on value based models and evidence based care, promoting efficient and effective healthcare delivery. Healthcare product companies and medical equipment manufacturers are increasingly relying on robust transport and logistics solutions, utilizing temperature controlled trucks, cars, trains, boats, and airplanes. The global healthcare industry faced unprecedented challenges during the pandemic period and second wave, highlighting the critical need for timely deliveries of oxygen, vaccines during the global vaccination campaign, and other critical medical items.
Furthermore, the logistics sector has adapted to these demands with time bound deliveries and sustainable logistics solutions, particularly for cold chain products like platelets, blood, and organs for nephrological conditions. Addressing healthcare disparities in rural areas requires innovative approaches, including the use of e-commerce, third party logistics, and data analytics. Healthcare organizations must navigate regulatory compliance and leverage digital technologies to enhance the global supply chain. Both non cold chain and cold chain logistics are vital for transporting medical equipment and supplies to hospitals and clinics in remote areas. Biopharmaceutical companies, healthcare transportation providers, and e-pharmacies play a crucial role in this ecosystem, ensuring future estimations are met with precision and care. By focusing on healthcare expenditure and utilizing sustainable logistics solutions, the market aims to improve access to essential healthcare services, ultimately enhancing patient outcomes and supporting the overall health of rural populations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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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 5.84% |
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Market growth 2024-2028 |
USD 2.26 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.43 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 47% |
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Key countries |
China, India, US, Germany, and Mexico |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, AmerisourceBergen Corp., C H Robinson Worldwide Inc., Cavalier Logistics Inc., CMA CGM SA Group, Cold Chain Technologies, Deutsche Bahn AG, Deutsche Post AG, Distribution Management Corp Inc., DSV AS, FedEx Corp., Global Logistics Network SAS, Kuehne Nagel Management AG, MARKEN Ltd., Matternet, Nippon Yusen Kabushiki Kaisha, SCG Logistics Management Co. Ltd., SF Express Co. Ltd., United Parcel Service Inc., and Zipline International Inc. |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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 Type
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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