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The rural clinical and healthcare logistics market size is estimated to grow at a CAGR of 6.03% between 2022 and 2027. The market size is forecast to increase by USD 2,226.4 million. The growth of the market depends on several factors, including the growing older population, the growing introduction of new drugs by pharmaceutical manufacturers, and the growing incidence of chronic diseases.
This rural clinical and healthcare logistics market report extensively covers market segmentation by type (cold chain logistics and non-cold chain logistics), service (transportation and warehousing), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing introduction of new drugs by pharmaceutical manufacturers is notably driving market growth, although the shortage of skilled truck drivers 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.
The growing introduction of new drugs by pharmaceutical manufacturers is driving the rural clinical and healthcare logistics 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 rural clinical and healthcare logistics 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 vendors such as DHL has embraced blockchain technology, which gives its various benefits in the field of logistics and shipping. The introduction of blockchain technology in rural clinical and healthcare logistics 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 rural clinical and healthcare logistics 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 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 Rural Clinical and 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.
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 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 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 rural clinical and healthcare logistics 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 3,292.66 million in 2017 and continued to grow until 2021. 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 rural clinical and healthcare logistics market during the forecast period.
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APAC is estimated to contribute 44% 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 rural clinical and healthcare logistics 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.
COVID-19 led to an upsurge in the demand in the APAC region. In 2020, the outbreak of COVID-19 affected the economies of all countries in the region. A rise in the number of COVID-19 cases led to partial lockdowns in several countries, including India and China. Moreover, the pandemic resulted in travel restrictions and disrupted the supply chain of the logistics industry. This hampered the rural clinical and healthcare logistics market in APAC. The situation gradually returned to normalcy in 2021 due to the initiation of large-scale COVID-19 vaccination campaigns by governments of several countries in APAC. This, in turn, positively impacted the logistics industry, consequently, the market in focus in 2021. Furthermore, the increasing demand for pharmaceutical products from rural areas will drive the regional market to focus during the forecast period.
The rural clinical and healthcare logistics market 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.
Technavio categorizes the rural clinical and healthcare logistics market as a part of the global air freight and logistics market within the global transportation market. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period. The parent global air freight and logistics market covers revenue generated by companies providing air freight transportation; courier; and logistics services, including package and mail delivery and customs agents.
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Rural Clinical And Healthcare Logistics Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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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 6.03% |
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Market growth 2023-2027 |
USD 2,226.4 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.25 |
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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 44% |
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Key countries |
US, Mexico, China, India, and Germany |
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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, 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 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. |
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 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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