The healthcare supply chain management market will power at a rate of 10.8% by the end of this decade to touch USD 4999.3 million by 2030.

The key factors responsible for the growth of the industry are the pressure of cost reduction in the healthcare sector, acceptance of GS1 standards, accompanied by the growing funding by healthcare providers and related product manufacturers of healthcare supply chain management solutions.

The software and services category will grow significantly at a rate of, over 10% in the years to come.

The factors accountable for the growth are frequent product launch, growing requirement for greater access to business intelligence data for the formulation of strategies, product tracking ease through these solutions, acceptance of environmental initiatives, for example those for reducing the paperwork in healthcare administrations, and snowballing count of online purchases.

Cloud-based platforms will grow at a rate of about 12% by the end of this decade as they are altering the industry. A large percentage of users are favoring cloud-based solutions over on-premises solutions because of the former’s scalable disposition through SaaS model, ease of sharing info at diverse locations, and low costs of maintenance and installation.

Healthcare product manufacturers use these solutions the most, with over 35% share. Large pharma companies are contracting out the manufacturing to CDMOs in emerging countries for coping with the growing requirement for numerous products and reduce the operational cost. Therefore, CDMOs are mounting their footprint across nations by starting manufacturing units.

The healthcare supply chain management market of North America led the industry with a share of around 40%. This domination has a lot to do with the fact that the U.S. is the largest employer in the healthcare industry worldwide with over 780 thousand companies.

Furthermore, the U.S. spends nearly twice of what other nations spend on healthcare, which was 19.7% of its gross domestic product in 2020.

APAC will have the fastest growth with over 11% by the end of this decade. This is because of the emergence of nations like, China, India, South Korea, and Singapore as the favored locations amongst large pharma companies for drug manufacturing, clinical trials, and pathological testing. Consequently, pharma companies are outsourcing to CDMO companies or investing in them.

For example, in January 2022, PPL invested in India-based Yapan Bio; the former has a 27.78% share in the latter company. This investment was done with an intention of adding the competences of manufacturing and developing large molecules for human clinical trials to PPL’s portfolio.

It is because of the acceptance of GS1 standards, the demand for healthcare supply chain management solutions is on the rise. This will also continue in the future as well.

Source: P&S Intelligence