USD 77.3 billion
Report ID:
SQMIG35D2241 |
Region:
Global |
Published Date: October, 2024
Pages:
212
|Tables:
116
|Figures:
76
Healthcare Logistics Market size was valued at USD 92.38 Billion in 2023 and is poised to grow from USD 99.38 Billion in 2024 to USD 178.3 Billion by 2032, growing at a CAGR of 7.58% during the forecast period (2025-2032).
Globalization is the interdependence of the world's economies, populations, and cultures brought together by cross-border trade in technology, goods, and others. Today, most of the country's economy is highly dependent on buying and selling goods among various countries. The Asia-Pacific and North America region has been the major players in global trade and has a high volume of trade flow that has increased the requirement of logistics service providers to make the flow of trade more convenient and faster. Thus, it is boosting the growth in the healthcare logistics market globally.
Third-party logistics is outsourced with operational logistics from warehousing to delivery, this includes providing several services in the supply chain such as freight forwarding, packaging, order fulfillment, inventory forecasting, picking and packing, warehousing, and transportation. Third-party logistics offers a wide range of benefits as it helps the business owners to focus more on the other aspects of business such as product development, marketing, and sales. The high benefits offered by third-party logistics are therefore acting as the major factor for boosting the growth of the global healthcare logistics market.
Healthcare management refers to the management of the storage, transportation and delivery of medical supplies, drugs, devices, and other healthcare supplies. Furthermore, the growth in healthcare infrastructure and healthcare provision across the globe is estimated to have a positive impact on the healthcare logistics market growth. Increased focus on patient safety and increasing number of chronic diseases call for reliable and efficient logistics, thereby enhancing market growth. Growing need for thermal transportation and stringent regulations on healthcare storage and transportation are driving the market. In November 2023, the Government announced the implementation of new strategies and practices aimed at strengthening healthcare delivery. New strategies are being introduced to address the challenges of essential drugs and drug resistance.
Global Market Size
USD 77.3 billion
Largest Segment
Cold Chain
Fastest Growth
Non-cold Chain
Growth Rate
9.8% CAGR
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Global Healthcare Logistics Market is segmented by Type, Component, Temperature Type, Logistics, Logistics Type, Application, End User, and Region. Based on Type, the market is segmented into Cold Chain, Non-Cold Chain. Based on Component, the market is segmented into Hardware, Services, Software. Based on Temperature Type, the market is segmented into Ambient, Chilled/Refrigerated, Frozen, Cryogenic. Based on Logistics, the market is segmented into Transportation, Packaging, Storage, Others. Based on Logistics Type, the market is segmented into Overland Logistics, Sea Freight Logistics, Air Freight Logistics, Contract Logistics. Based on Application, the market is segmented into Medicine, Bulk Drug Handlers, Vaccine, Chemical & Other Raw Material, Biological Material and Organs, Hazardous Cargo, Others. Based on End User, the market is segmented into Biopharmaceutical Companies, Hospital & Clinics, Research Institutes, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Type
As per healthcare logistics market outlook, the cold chain segment plays an important role in the healthcare logistics market, which includes inflammatory drugs such as vaccines, vaccines, and blood products a highly desirable. Recent advances in biotechnology, gene therapy, and personalized medicine have raised the need for robust cold-chain drug delivery systems. The cold chain segment dominates the market due to its high-value offerings and essential role in delivering critical medical products globally. The COVID-19 pandemic highlighted the importance of cold chain logistics, as vaccines requiring ultra-low temperatures were distributed worldwide, cementing its dominance. Investments in cutting-edge technologies, such as the IoT-enabled temperature monitoring, and infrastructure like refrigerated warehouses, have strengthened this segment.
Non-cold chain transport emphasizes ensuring on-time, cost-effective delivery, optimizing supply chain efficiency and reducing transit time. The rapid growth of the influenza chain segment is attributed to growing global reliance on biopharmaceuticals and vaccines, advancements in medical research and chronic diseases which is increasing. This segment contains an extensive range of merchandise, along with over the counter (OTC) capsules, surgical instruments, diagnostic kits, and other non-perishable medical supplies. The non-cold chain segment performs a pivotal role inside the healthcare logistics market by way of coping with the transportation and distribution of pharmaceuticals, medical devices, and healthcare products that don't require temperature-controlled environments.
Analysis by Logistics
As per healthcare logistics market analysis, transportation is the dominant segment. The transportation segment plays an important role in ensuring that medical supplies, including drugs, medical devices and biologics, are delivered safely and efficiently. It involves the movement of goods via air, sea, and land, catering to the global demand for healthcare products. These products must be kept in a special temperature-controlled environment to maintain their effectiveness and safety. Additionally, transport must comply with strict regulations such as Good Distribution Practices (GDP) to ensure safe handling and traceability throughout the supply chain. A key component of this segment is cold chain logistics, which is vital for temperature-sensitive products like the vaccines and biologics.
The packaging segment plays an important role in healthcare logistics, providing essential protection for medical supplies during transit. Additionally, packaging must meet strict regulatory requirements, including tamper-evident seals and clear labeling, to ensure the product's safety and compliance. Packaging ensures that products are protected from contamination, physical damage, and environmental factors, such as temperature fluctuations or humidity, which can compromise product integrity. Together, both transportation and packaging segments are integral to the seamless operation of the healthcare logistics market. Proper packaging minimizes the risk of contamination, breakage, or tampering, which is critical for healthcare goods. Regulatory-compliant packaging ensures adherence to international and regional standards, such as FDA and WHO guidelines, reducing liabilities and enhancing customer trust.
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North America is the dominant region for the healthcare logistics market, as it has advanced healthcare infrastructure, widespread adoption of new technologies and strong regulatory framework. The presence of leading pharmaceutical companies and logistics providers, such as UPS Healthcare and FedEx, further enhances the region's market dominance. Cold chain logistics has grown due to the high demand for personalized medicines. Additionally, the rising demand for biologics and personalized medicines in the U.S. and Canada has driven the growth of cold chain logistics. North America's focus on improving supply chain efficiency and its substantial investments in R&D make it a key player in the global healthcare logistics market.
Asia-Pacific is the fastest growing region, driven by the expanding healthcare sector, increasing pharmaceutical manufacturing and growing population. Increasing prevalence of chronic diseases and increasing government investment in healthcare further contribute to Asia Pacific growth. Growing adoption of advanced medical technology and increased demand for the healthcare services in this region are also creating new opportunities for healthcare logistics providers over the coming years. Furthermore, rapid urbanization and growing healthcare infrastructure in the region contribute to the growth of the market.
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Healthcare Logistics Market Drivers
Growing Demand for Medicine and Biology
Growing demand for pharmaceuticals, biopharmaceuticals and personalized medicines is a major factor driving the market. Biologics, which require precise temperature control during storage and transportation, are particularly driving the demand for cold chain logistics solutions. The healthcare logistics market has seen an increase in technologies and infrastructure that ensure safe and timely delivery of medical supplies.
Technological Advances in Logistics Solutions
Blockchain technology provides transparency and traceability throughout the supply chain, reducing risks such as medicines. IoT-enabled devices allow real-time monitoring of temperature and humidity ensuring compliance with stringent regulatory standards for pharmaceutical products. The integration of advanced technologies such as IoT, blockchain and artificial intelligence (AI) is transforming healthcare logistics.
Healthcare Logistics Market Restraints
Complex Legal and Compliance Challenges
Navigating these regulations can be a challenge for shippers, especially when dealing with the cross-border shipments. The health care system is subject to stringent regulations and compliance requirements, which vary across industries and the products. For example, pharmaceuticals must adhere to the Good Distribution Practices (GDP), while biologics often require compliance with more complex guidelines.
High Cost of Cold Chain Collection
Biologics and vaccines often require the storage and transportation at specific temperatures, which necessitates the use of expensive equipment, such as the temperature-controlled containers, monitoring devices, and refrigeration units. High costs associated with cold chain logistics are a significant limitation for the healthcare logistics market. Smaller firms and regions with limited resources may struggle to adopt these advanced logistics solutions, potentially hampering market growth, especially in the developing countries.
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The healthcare logistics industry is highly competitive, with the key players focusing on innovation, strategic partnerships and geographical expansion to strengthen their market positions. Geographically, the supplier's exports are dominated by established pharmaceutical companies and specialized logistics companies (3PLs). Companies such as UPS Healthcare, DHL Supply Chain, FedEx Corporation, Kuehne + Nagel lead the market in providing advanced logistics solutions specializing in cold chain management. These companies will provide IoT-enabled tracking systems for increased operational efficiency and compliance.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the healthcare logistics market is experiencing strong growth, fueled by increasing demand for efficient transport and storage of pharmaceuticals, biologics and medical devices. Key factors include rising chronic diseases, advances in bioscience and generalized medicine. Industries are being transformed by ensuring care realizes their authenticity and enables real-time monitoring. Despite rapid expansion, the market faces challenges, including high costs associated with cold chain logistics and navigating the complex regulatory and compliance requirements. North America dominates the market due to advanced infrastructure and strong regulatory standards, while Asia Pacific is emerging as the fastest growing region. These barriers affect the smaller companies and emerging markets. However, the increasing shift towards decentralized healthcare, sustainability programs, and last-mile solutions presents new growth opportunities for the exported goods.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 92.38 Billion |
Market size value in 2032 | USD 178.3 Billion |
Growth Rate | 7.58% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Healthcare Logistics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Healthcare Logistics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Healthcare Logistics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Healthcare Logistics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG35D2241
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