The global healthcare supply chain management market is on a robust growth trajectory, driven by several key factors. In 2020, the market’s revenue was estimated at $2.2 billion, and it is projected to reach $3.3 billion by 2025, reflecting a compound annual growth rate (CAGR) of 7.9% over this period. This article delves into the factors fueling this growth and the key players in the industry.
Download PDF Brochure-https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=77439622
Key Growth Drivers:
-
Adoption of GS1 System: The widespread adoption of the GS1 system of standards within the global healthcare industry is a pivotal factor driving market growth. This system helps streamline processes and enhance efficiency in the supply chain.
-
Emergence of Cloud-Based Solutions: The emergence of cloud-based solutions has been instrumental in transforming healthcare supply chain management. Cloud-based systems enable seamless information sharing and integration across different locations, while also offering cost-effective installation and maintenance.
-
Operational Cost Reduction: Healthcare organizations are increasingly focusing on reducing operational costs while improving overall profitability. Effective supply chain management is seen as a key strategy in achieving these goals.
Challenges Ahead:
While the healthcare supply chain management market is poised for substantial growth, it faces challenges as well. One notable hurdle is the high cost associated with implementing supply chain management software. This cost factor may limit the market’s growth to a certain extent, particularly for smaller healthcare organizations.
Segment Analysis:
-
Software vs. Hardware: Software-based systems are gaining prominence in the healthcare supply chain management market. This shift is attributed to the rise in online purchases, growing interest in business intelligence, and a preference for eco-friendly logistics solutions.
-
Delivery Modes: The market is segmented into on-premise and cloud-based solutions. While on-premise solutions currently hold the largest market share, cloud-based options are expected to experience the highest growth. This growth is driven by the advantages of cost-effectiveness, ease of installation, and information sharing that cloud-based solutions offer.
-
End Users: Manufacturers dominate the healthcare supply chain management market. They are increasingly seeking supply chain management solutions for transportation and warehouse management to ensure faster, more accurate, and efficient operations.
Regional Insights:
-
North America: The North American region is projected to witness the highest growth rate in the healthcare supply chain management market. Factors contributing to this growth include hospital consolidation, a rising prevalence of chronic diseases, and increased awareness.
-
Europe: Europe is expected to follow North America in terms of growth rate, with the second-highest CAGR during the forecast period. The Asia-Pacific region and the rest of the world (ROW) are also expected to contribute to market expansion.
Key Players:
The healthcare supply chain management market is characterized by its fragmentation, featuring both established and emerging players. In 2019, notable market leaders included SAP SE, Oracle Corporation, and Infor. Other significant players in the industry include McKesson Corporation, TECSYS, Global Healthcare Exchange, Cardinal Health, and more.
Recent Developments:
- In 2020, Infor acquired Intelligent InSite, bolstering its capabilities in the healthcare supply chain management sector.
- Oracle launched Intelligent Track and Trace, a blockchain application, in 2019, further emphasizing the importance of technological advancements in the industry.
- SAP SE partnered with Microsoft Corporation in 2019 to enhance consumer adoption of SAP Cloud Platform and SAP S/4 HANA on Microsoft Azure, showcasing the industry’s commitment to innovation.
In conclusion, the healthcare supply chain management market is poised for substantial growth, driven by factors such as industry standards adoption, cloud-based solutions, and a focus on cost reduction. Despite challenges related to implementation costs, the market is expected to continue its upward trajectory, with North America leading the way in terms of growth.
