Healthcare Logistics Market: Industry Analysis and Forecast (2024-2030)

  • Healthcare Logistics Market size was valued at USD 86.87 Bn. in 2023 and the total Healthcare Logistics Market size is expected to grow at a CAGR of 9% from 2024 to 2030, reaching nearly USD 154.61 Bn. by 2030.

  • Format : PDF | Report ID : SMR_1947

Healthcare Logistics Market Overview

Healthcare logistics involves managing the flow of medical supplies, pharmaceuticals, and medical devices from manufacturers to healthcare facilities and, ultimately, to patients. It also relates to handling other healthcare-related items such as lab specimens, organs, veterinary medicinal products, etc.

 

The Healthcare Logistics Market is set to experience significant growth in the foreseeable future, propelled by various strategic initiatives and factors. Market participants are placing greater emphasis on innovating and developing products to meet changing consumer needs and preferences. Development into emerging markets and forming strategic partnerships or collaborations are also crucial strategies for driving market growth. Additionally, investments in research and development aimed at advancing technology and enhancing product quality are pivotal. The market's prospects appear promising due to the increasing adoption of digitalization and the incorporation of advanced technologies, which are expected to create new opportunities for growth and innovation in the market.

Healthcare Logistics Market

 

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Healthcare Logistics Dynamics

Emerging Technologies Propel Growth in Healthcare Logistics

Surged in the healthcare logistics market, as it is crucial in maintaining the quality and safety of healthcare products, with emerging supply chain technologies playing a pivotal role. The use of RFID tracking systems, fleet management, and TMS systems, along with visual documentation tools, allows companies to quickly and accurately monitor shipments as it helps to ensure that pharmaceuticals and high-value medical equipment travel safely and securely, boosting the demand for healthcare logistics services. By outsourcing shipping, warehousing, and inventory management, medical companies have significantly reduced staffing and capital expenses, enabling them to concentrate on their core business activities. Many companies prefer to use single-source third-party logistics (3PL) providers to ensure product quality.

 

This approach allows them to track products from the warehouse to their final destination. Partnering with a 3PL provider typically offers control tower visibility over the entire supply chain process, enabling organizations to track orders and deliveries in real-time. This real-time tracking provides greater insight into the shipping and management of products, ensuring timely arrivals and accurate order fulfillment. Working with a 3PL provider gives companies access to advanced technologies and systems that streamline processes, reduce costs, and improve customer service. From automated tracking systems to sophisticated delivery and route optimization, outsourcing healthcare logistics offers organizations the latest technology for enhanced efficiency and cost savings. This access to state-of-the-art logistics solutions has significantly propelled market demand.

Healthcare Logistics Market1

Challenges in Healthcare Logistics Market

The major challenge faced by healthcare logistics is the poor transportation networks that affect the supply chain of the products and equipment. Lack of robust infrastructure such as underdeveloped warehousing facilities, and limited last-mile connectivity has impacted the timely and efficient delivery of medical supplies to healthcare institution's healthcare logistics market.  Pharmaceutical medicines and vaccines need to be maintained constantly due to the lack of integrity and efficacy of temperature-sensitive areas. Additionally, diverse climates, inadequate refrigeration infrastructure, and long distances in several regions have made it difficult to maintain the required temperature throughout the supply chain.

 

Lack of investment in healthcare logistics has been a major factor affecting the market growth. In rural areas where infrastructure is the major challenge, Investing in temperature-controlled transportation, storage facilities, and cold chain management systems is a major factor impacting market growth. These difficulties highlight the need for service providers in healthcare logistics to develop innovative solutions and invest in advanced technologies to overcome these barriers and ensure product quality and safety.

 

Revolutionizing Healthcare Logistics Market

The adoption of new technology has been a major trend in the healthcare logistics market owing to the surge in reliance on automation and robotics that has helped to reduce costs, increase efficiency, and ensure the safety of products boosting the market growth. Automation and robotic systems are now being used in many healthcare settings, including inventory management, warehousing, and shipping. The rise in demand for automation in healthcare logistics has helped to streamline operations, reduce errors, and improve the accuracy of orders. The increase in real-time tracking technology has transformed the healthcare logistics industry.

 

This technology allows for instant updates on the status of orders and helps to keep the supply chain running smoothly has propelled the demand. With real-time tracking, medical device logistics shows exactly where products are at any given time and adjusts accordingly. The rise in the trend of data analytics has been a major factor influencing market growth. For instance, analyzing data related to healthcare logistics is critical to optimize operations and improve decision-making. Actionable intelligence and continuous improvement are achieved through data analysis of shipments, trends, supply, and demand. The information has been used to streamline operations and ensure the efficient delivery of medical devices.

 

Healthcare Logistics Market Segment Analysis

Based on the Supply Chain, the Cold Chain Logistics segment held the largest share and is projected to grow with an increasing CAGR through the forecast period.  The pharmaceutical industry's reliance on the safe and effective transportation and storage of temperature-sensitive products has accelerated the market growth. The surged demand for temperature-controlled storage and transportation of pharmaceuticals, vaccines, and other medical products is a key factor driving growth in the cold chain logistics market.

 

Healthcare cold chain logistics play a crucial role in both the medical and transportation sectors, as the shipment of these sensitive products faces numerous challenges. Even slight temperature deviations can jeopardize healthcare items. Advancements in the cold chain monitoring systems which provide real-time tracking of product conditions and issue alerts if deviations occur have boosted the market growth. The rise in technological advancements helps to ensure that goods are kept at the correct temperature during storage and transit, thereby protecting product integrity.

 

Additionally, advances in healthcare have significantly raised global life expectancy and improved quality of life. The rise in the aging population has led to a higher demand for pharmaceuticals and increased healthcare spending globally has boosted the market. The rise in trend is particularly pronounced in developed regions such as the European Union, where the Organisation for Economic Cooperation and Development (OECD) forecasts a 350% rise in healthcare expenditure by 2050, outpacing the anticipated 180% economic growth over the same period.

Healthcare Logistics Market2

Healthcare Logistics Market Regional Analysis

North America dominated the market and is expected to maintain its dominance through the forecast period with an increasing CAGR. Healthcare logistics in North America is a dynamic and complex landscape that requires dedicated efforts and innovative solutions to overcome the challenges faced. By recognizing the importance of robust infrastructure, streamlining the supply chain, investing in temperature-controlled facilities, ensuring regulatory compliance, and putting a skilled workforce, the Healthcare Logistics sector has contributed significantly to improved patient care across the region. Collaboration among stakeholders, leveraging technology, and continuous improvement are key drivers in transforming healthcare logistics into a well-orchestrated system that enhances accessibility, reliability, and efficiency in delivering great healthcare supplies to those in need.

 

These major countries, including the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil, are substantial markets for healthcare logistics services, each characterized by its specific attributes and obstacles. As these regions continue to experience economic expansion and industrial advancement, the need for effective logistics solutions is anticipated to grow, spurring additional innovation and investment within the sector.

Healthcare Logistics Market3

Healthcare Logistics Competitive Landscape

  • In March 2024, Agility Public Warehousing Company KSCP (Agility) announced that its Board of Directors had approved an interim cash dividend distribution of KD 25.5 million (USD 83 million), equivalent to 10 fls per share. Agility’s Board has also approved an in-kind dividend distribution estimated at KD 800 million (USD 2.6 billion), representing shares forming 49% of the issued share capital of a subsidiary, Agility Global PLC, which is pursuing a listing on the Abu Dhabi Securities Exchange (ADX).
  • In 2023, Kerry Logistics Network entered into a strategic cooperation agreement with EC Healthcare (Stock Code 2138. HK), Hong Kong’s largest publicly listed non-hospital medical service provider, to provide a comprehensive suite of integrated medical logistics management services. The companies held an agreement signing ceremony in Hong Kong in November 2023.

Healthcare Logistics  Market Scope

Market Size in 2023

USD 86.87 Bn.

Market Size in 2030

USD 154.61 Bn.

CAGR (2024-2030)

9 %

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

   Segments

By Supply Chain

  • Cold Chain Logistics
  • Non Cold Chain Logistics

By Transportation Type

  • Airways
  • Waterways
  • Railways
  • Roadways

By End User

  • Pharmacies
  • Healthcare Facilities
  • Research and Diagnostic Laboratories
  • Others

Regional Scope

North America- United States, Canada, and Mexico

Europe – United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe

Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC

Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa

South America – Brazil, Argentina, Rest of South America

 

Healthcare Logistics Market Key Players

  1. IDS (Healthcare Logistics)
  2. Hellmann CCCI Healthcare Logistics
  3. Reliable HealthCare Logistics
  4. Logistics Healthcare Management
  5. Caduceus Medical Logistics
  6. Andlauer Healthcare Group
  7. CB Healthcare
  8. DHL Supply Chain  
  9. UPS Healthcare  
  10. FedEx HealthCare Solutions  
  11. Kuehne + Nagel  
  12. DB Schenker  
  13. Cardinal Health  
  14. AmerisourceBergen  
  15. McKesson Corporation  
  16. CEVA Logistics  
  17. Agility Logistics  
  18. GEODIS  
  19. Bolloré Logistics  
  20. Sinotrans  
  21. SF Express  
  22. CH Robinson  
  23. Almac Group  
  24. World Courier  
  25. United Cargo  
  26. XXX Logistics


Frequently Asked Questions

Shifts in consumer preferences are expected to be the major drivers of the market.

1.    Healthcare Logistics Market: Research Methodology 
2.    Healthcare Logistics Market: Executive Summary
3.    Healthcare Logistics Market: Competitive Landscape
4.    Potential Areas for Investment

4.1. Stellar Competition Matrix
4.2. Competitive Landscape
4.3. Key Players Benchmarking
4.4. Market Structure
4.4.1.    Market Leaders 
4.4.2.    Market Followers
4.4.3.    Emerging Players

4.5. Consolidation of the Market
5.    Healthcare Logistics Market: Dynamics
5.1. Market Drivers
5.2. Market Trends 
5.3. Market Restraints
5.4. Market Opportunities
5.5. Market Challenges
5.6. PORTER’s Five Forces Analysis
5.7. PESTLE Analysis
5.8. Strategies for New Entrants to Penetrate the Market
5.9. Analysis of Government Schemes and Initiatives for the Healthcare Logistics Industry
5.10. Regulatory Landscape by Region
5.10.1.    North America
5.10.2.    Europe
5.10.3.    Asia Pacific
5.10.4.    Middle East and Africa
5.10.5.    South America

5.11. Healthcare Logistics Market Size and Forecast by Segments (by Value USD)
5.11.1.    Healthcare Logistics Market Size and Forecast, by Supply Chain (2023-2030)
5.11.1.1.    Cold Chain Logistics
5.11.1.2.    Non Cold Chain Logistics
5.11.2.    Healthcare Logistics Market Size and Forecast, by Transportation Type (2023-2030)
5.11.2.1.    Airways
5.11.2.2.    Waterways
5.11.2.3.    Railways
5.11.2.4.    Roadways
5.11.3.    Healthcare Logistics Market Size and Forecast, by End User (2023-2030)
5.11.3.1.    Pharmacies 
5.11.3.2.    Healthcare Facilities 
5.11.3.3.    Research and Diagnostic Laboratories
5.11.3.4.    Others

5.12. Healthcare Logistics Market Size and Forecast, by Region (2023-2030)
5.12.1.    North America
5.12.2.    Europe
5.12.3.    Asia Pacific
5.12.4.    Middle East and Africa
5.12.5.    South America

6.    North America Healthcare Logistics Market Size and Forecast (by Value USD)
6.1. North America Healthcare Logistics Market Size and Forecast, by Supply Chain (2023-2030)
6.1.1.    Cold Chain Logistics
6.1.2.    Non Cold Chain Logistics

6.2. North America Healthcare Logistics Market Size and Forecast, by Transportation Type (2023-2030)
6.2.1.    Airways
6.2.2.    Waterways
6.2.3.    Railways
6.2.4.    Roadways

6.3. North America Healthcare Logistics Market Size and Forecast, by End User (2023-2030)
6.3.1.    Pharmacies 
6.3.2.    Healthcare Facilities 
6.3.3.    Research and Diagnostic Laboratories
6.3.4.    Others

6.4. North America Healthcare Logistics Market Size and Forecast, by Country (2023-2030)
6.4.1.    United States
6.4.2.    Canada
6.4.3.    Mexico

7.    Europe Healthcare Logistics Market Size and Forecast (by Value USD)
7.1. Europe Healthcare Logistics Market Size and Forecast, by Supply Chain (2023-2030)
7.1.1.    Cold Chain Logistics
7.1.2.    Non Cold Chain Logistics

7.2. Europe Healthcare Logistics Market Size and Forecast, by Transportation Type (2023-2030)
7.2.1.    Airways
7.2.2.    Waterways
7.2.3.    Railways
7.2.4.    Roadways

7.3. Europe Healthcare Logistics Market Size and Forecast, by End User (2023-2030)
7.3.1.    Pharmacies 
7.3.2.    Healthcare Facilities 
7.3.3.    Research and Diagnostic Laboratories
7.3.4.    Others

7.4. Europe Healthcare Logistics Market Size and Forecast, by Country (2023-2030)
7.4.1.    UK
7.4.2.    France
7.4.3.    Germany
7.4.4.    Italy
7.4.5.    Spain
7.4.6.    Sweden
7.4.7.    Russia
7.4.8.    Rest of Europe

8.    Asia Pacific Healthcare Logistics Market Size and Forecast (by Value USD)
8.1. Asia Pacific Healthcare Logistics Market Size and Forecast, by Supply Chain (2023-2030)
8.1.1.    Cold Chain Logistics
8.1.2.    Non Cold Chain Logistics

8.2. Asia Pacific Healthcare Logistics Market Size and Forecast, by Transportation Type (2023-2030)
8.2.1.    Airways
8.2.2.    Waterways
8.2.3.    Railways
8.2.4.    Roadways

8.3. Asia Pacific Healthcare Logistics Market Size and Forecast, by End User (2023-2030)
8.3.1.    Pharmacies 
8.3.2.    Healthcare Facilities 
8.3.3.    Research and Diagnostic Laboratories
8.3.4.    Others

8.4. Asia Pacific Healthcare Logistics Market Size and Forecast, by Country (2023-2030)
8.4.1.    China
8.4.2.    S Korea
8.4.3.    Japan
8.4.4.    India
8.4.5.    Australia
8.4.6.    ASEAN
8.4.7.    Rest of Asia Pacific

9.    Middle East and Africa Healthcare Logistics Market Size and Forecast (by Value USD)
9.1. Middle East and Africa Healthcare Logistics Market Size and Forecast, by Supply Chain (2023-2030)
9.1.1.    Cold Chain Logistics
9.1.2.    Non Cold Chain Logistics

9.2. Middle East and Africa Healthcare Logistics Market Size and Forecast, by Transportation Type (2023-2030)
9.2.1.    Airways
9.2.2.    Waterways
9.2.3.    Railways
9.2.4.    Roadways

9.3. Middle East and Africa Healthcare Logistics Market Size and Forecast, by End User (2023-2030)
9.3.1.    Pharmacies 
9.3.2.    Healthcare Facilities 
9.3.3.    Research and Diagnostic Laboratories
9.3.4.    Others

9.4. Middle East and Africa Healthcare Logistics Market Size and Forecast, by Country (2023-2030)
9.4.1.    South Africa
9.4.2.    GCC
9.4.3.    Egypt
9.4.4.    Rest of ME&A

10.    South America Healthcare Logistics Market Size and Forecast (by Value USD)
10.1. South America Healthcare Logistics Market Size and Forecast, by Supply Chain (2023-2030)
10.1.1.    Cold Chain Logistics
10.1.2.    Non Cold Chain Logistics

10.2. South America Healthcare Logistics Market Size and Forecast, by Transportation Type (2023-2030)
10.2.1.    Airways
10.2.2.    Waterways
10.2.3.    Railways
10.2.4.    Roadways

10.3. South America Healthcare Logistics Market Size and Forecast, by End User (2023-2030)
10.3.1.    Pharmacies 
10.3.2.    Healthcare Facilities 
10.3.3.    Research and Diagnostic Laboratories
10.3.4.    Others

10.4. South America Healthcare Logistics Market Size and Forecast, by Country (2023-2030)
10.4.1.    Brazil
10.4.2.    Argentina
10.4.3.    Rest of South America

11.    Company Profile: Key players
11.1. IDS (Healthcare Logistics)
11.1.1.    Company Overview
11.1.2.    Financial Overview
11.1.3.    Business Portfolio
11.1.4.    SWOT Analysis
11.1.5.    Business Strategy 
11.1.6.    Recent Developments

11.2. Hellmann CCCI Healthcare Logistics
11.3. Reliable HealthCare Logistics
11.4. Logistics Healthcare Management
11.5. Caduceus Medical Logistics
11.6. Andlauer Healthcare Group
11.7. CB Healthcare
11.8. DHL Supply Chain  
11.9. UPS Healthcare  
11.10. FedEx HealthCare Solutions  
11.11. Kuehne + Nagel  
11.12. DB Schenker  
11.13. Cardinal Health  
11.14. AmerisourceBergen  
11.15. McKesson Corporation  
11.16. CEVA Logistics  
11.17. Agility Logistics  
11.18. GEODIS  
11.19. Bolloré Logistics  
11.20. Sinotrans  
11.21. SF Express  
11.22. CH Robinson  
11.23. Almac Group  
11.24. World Courier  
11.25. United Cargo  
11.26. XXX Logistics
12.    Key Findings
13.    Industry Recommendation

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