The global digital healthcare supply chain management market is forecast to reach $5,4-billion by 2030 – growing at a CAGR of 9% from 2024 to 2030 – according to a new report by Grand View Research.
Major factors driving the market growth include adopting the GS1 standard system and UDI, emerging cloud-based solutions, and the growing need to reduce operating costs.
Moreover, the increasing adoption of mobile-based healthcare supply chain management (SCM) solutions contributes to market growth over the forecast period.
Mobile apps have become an essential part of SCM solutions. GPS-enabled mobile applications have made supply chain management easier for logistic companies in developed and emerging countries. These apps use mobile devices and sensors to track vehicles, providing better visibility of the entire SCM.
The Covid-19 pandemic positively impacted market growth with the healthcare industry facing substantial shifts and obstacles during the crisis. The pandemic fueled the adoption of telehealth services as digital supply chain systems played a vital part in facilitating the distribution of virtual healthcare solutions including telemedicine equipment and remote monitoring devices.
Additionally, the importance of data-driven decision-making increased significantly. Key companies in the market integrated advanced analytics to predict demand, improve inventory management, and enhance distribution efficiency.
Moreover, key players in the market such as Mckesson Corporation, Oracle, SAP, and Mediceo Corporation, among others are engaging in strategic initiatives such as partnerships, collaborations, new product launches, acquisitions, and expansions to strengthen their market position. For example, in October 2022, Oracle introduced Oracle Cloud SCM – a healthcare industry specific supply chain solution. The Oracle Cloud SCM assists clinics and hospitals to plan more effectively, manage responsive supply chains, and improve the quality of care.
Other highlights from the report include:
* Based on products, the software segment dominated the market in 2023 and is expected to witness the fastest CAGR of 9,3% over the forecast period owing to the increasing adoption of software as a service (SaaS) which offers cloud computing applications for supply chain management and enterprise resource planning.
* Based on deployment, the cloud-based segment held the market with the largest revenue share of 40,43% in 2023 and is anticipated to grow at the fastest CAGR over the forecast period owing to the increasing adoption of user-friendly technology and cost-effectiveness.
* Based on end-use, the pharmaceutical segment held the market with the largest revenue share of 36,24% in 2023 driven by the need to comply with strict product tracking and tracing regulations throughout the supply chain.
* North America dominated the market with a revenue share of 32,87% in 2023 owing to the need for enhanced digital supply chain efficiencies and the adoption of technological advances facilitating overall cost reduction.