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

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.

 

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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.

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 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 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