Global Healthcare Logistics Market - Focused Insights 2024-2029

HEALTHCARE LOGISTICS MARKET INSIGHTS

The global healthcare logistics market was valued at USD 185.77 billion in 2023 and is projected to reach USD 290.73 billion by 2029, growing at a CAGR of 7.75% during the forecast period. The market is expanding steadily, and this trend is expected to persist due to the rising demand for temperature-sensitive drugs, biological, and clinical materials. Increased awareness among pharmaceutical and logistics companies is further enhancing the potential for temperature-controlled healthcare logistics, thus driving the overall growth of the healthcare logistics market.

MARKET DEFINITION

Healthcare logistics encompasses coordinating and overseeing the movement of various medical necessities, including pharmaceuticals, medical equipment, and supplies, from production facilities to healthcare institutions and finally to individuals in need. Additionally, it involves organizing ancillary healthcare items like laboratory samples, organs, and veterinary medications.

MARKET TRENDS & DRIVERS

M&A Strategies Driving Healthcare Expansion into Non-Acute Settings

The shift towards non-acute care settings marks a fundamental change in healthcare delivery, driven by the need to improve access, lower costs, and enhance patient outcomes. Ambulatory surgery centers, community clinics, and home care services provide more convenient and cost-effective alternatives to traditional hospital-based care, especially for routine procedures and chronic disease management. Mergers and acquisitions play a key role in this transition, as healthcare organizations look to expand their reach and integrate non-acute services into their networks. For instance, a health system might acquire a local hospital that operates ambulatory surgery centers or a network of clinics, facilitating better care coordination and improving patient access across the continuum. The shift towards non-acute care and preventative care aligns with a broader movement toward value-based healthcare models that prioritize patient-centered, holistic wellness approaches. Through strategic M&A activities and focused initiatives, healthcare organizations aim to create more efficient, equitable, and sustainable healthcare systems that address the diverse needs of patients and communities.

Increasing Adoption of Cloud-Based Enterprise Resource Planning (ERP) Systems

The adoption of cloud-based enterprise resource planning (ERP) systems in the healthcare supply chain has greatly enhanced data management practices. These systems act as centralized hubs for storing and managing vast amounts of data related to inventory, procurement, distribution, and other supply chain activities. One of the primary advantages of cloud-based ERP systems is their ability to integrate data from various sources into a single, unified platform. This integration enables real-time visibility into inventory levels, demand patterns, and supply chain performance metrics across multiple facilities and locations. With all relevant data accessible from a centralized location, supply chain managers can make informed decisions quickly and efficiently. Additionally, cloud-based ERP systems support the use of advanced technologies such as artificial intelligence (AI) and machine learning (ML). These technologies tap into the extensive data stored in the ERP system to drive predictive analytics and optimization algorithms.

SEGMENTATION ANALYSIS

1. By Product Type: The pharmaceuticals segment holds the largest global healthcare logistics market share in 2023. This growth can be attributed to rising healthcare expenditures, increased investments in research and development, and the rise of biologics and biosimilars. Pharmaceutical supply chain management involves strategically coordinating the entire value-added process of a product within the industry, along with its logistics. This includes collaborative efforts among manufacturers, suppliers, distributors, business partners, and consumers, spanning from procurement to final delivery.
2. By Functionality Type: The air transportation segment is experiencing significant growth, with the fastest-growing CAGR during the forecast period. Air freight has become a crucial component of the global economy, enabling fast and efficient transportation of goods worldwide, thereby driving the growth of this segment. While air transport has traditionally been the pharmaceutical industry’s preferred choice for international shipping due to its unmatched speed and flexibility, a notable shift is underway. More industry leaders are now turning to ocean freight as a more cost-effective alternative. The economic advantage is clear, as air freight costs are four times higher than surface shipping. This shift is particularly compelling in light of regulatory pressures from health authorities, which are pushing suppliers to reduce costs more aggressively.
3. By End-User Type: The pharmacies segment holds the largest share of the global healthcare logistics market, driven by the essential role pharmacies or drugstores play in dispensing and compounding medications. Pharmacists are responsible for preparing dosage forms of drugs, including sterile solutions for injections, capsules, and tablets. As the pharmaceutical industry expands, pharmacists are increasingly recognized as trusted professionals, supported by emerging technologies and trends focused on sustainability and development. Health system pharmacists, in particular, are playing a critical role, backed by advancements in communication technology and risk management within supply chain management, all of which contribute to enhancing patient healthcare systems.

GEOGRAPHICAL ANALYSIS

The North American region holds the largest share of over 34% in the global healthcare logistics market. This dominance is primarily attributed to the concentration of healthcare suppliers in the region. Factors such as high acceptance rates, a significant prevalence of chronic diseases, and a growing geriatric population are driving the market’s growth.

The APAC region is also experiencing significant growth in the global healthcare logistics market during the forecast period. Emerging Asian markets have gained considerable attention from the pharmaceutical industry due to their vast potential. Government investments in research and development (R&D) and increasing health awareness, particularly in countries like India and China, are major influencing factors.

COMPETITIVE LANDSCAPE

The global healthcare logistics market report provides exclusive data on 41 vendors. The market is highly fragmented, with a few key vendors holding the majority of the market share. These vendors provide logistics services across various industries, including aerospace, consumer and retail, e-commerce, energy, automotive, and healthcare. The market is rapidly evolving in response to the growing demand for faster deliveries and increased visibility into shipments. Key vendors in this market include Cencora, CEVA Logistics, Deutsche Post DHL, FedEx Corporation, Kuehne + Nagel, DB Schenker, and UPS. These companies are distinguished by their broad geographical presence, strong focus on innovation in logistics, and diverse service portfolios.