Need to reduce drug counterfeiting to grow healthcare supply chain management market: Report
The report further stresses on expanding the requirement for pharmaceutical companies to reduce the widespread medicine counterfeiting, increasing the adoption of supply chain management systems, and rising data in the healthcare industry
The healthcare supply chain management market size is estimated to be USD 2,528.6 million in 2022 and is expected to witness a CAGR of 9.71% during the forecast period 2023-2033. The growing implementation of the GS1 set of standards in many countries and rising pressure on healthcare providers are factors contributing to the market growth.
These insights are based on the recently released "Healthcare Supply Chain Management Market by Product, Delivery Mode, End User, and by Region - Global Forecast to 2022-2033" report, which has been added to ResearchAndMarkets.com's offering.
The report further stresses on expanding the requirement for pharmaceutical companies to reduce the widespread medicine counterfeiting, increasing adoption of supply chain management systems, and rising data in the healthcare industry. The report cites that growing issues about security and data privacy are expected to hinder the growth of the pharma industry.
Increasing adoption of supply chain management systems is predicted to spur the growth of the market. These systems encourage and support transparency between primary, ancillary, and non-acute care providers to ensure that services and procedures are delivered efficiently.
Healthcare supply chain management software can help hospitals and medical practices follow rules and deliver value-based care. The market for healthcare supply chain management is developing as a result of emerging economies' growing adoption of supply chain management solutions, including hardware and software.
Rising data in the healthcare industry is also projected to propel market growth. The growth of the healthcare supply chain management market is being supported by the rise of healthcare data, advancements in the manufacturing supply chain network, and expanding acceptance of supply chain management solutions, including hardware and software, in developing countries. Processes for supply chain management (SCM) must be improved in healthcare facilities, as per the report.
The market is divided into hardware, software, and services. In 2022, the software segment accounted for the highest revenue share due to expanding use of software including SaaS, which provides next-generation cloud computing applications. Growth in the segment is being fuelled by the growing requirement for healthcare companies to maintain organizational workflows effectively and a change in the tendency toward value-based care in developed nations. The segment in healthcare companies is also being driven by growing initiatives launched by private and public entities to support healthcare IT infrastructure.
The market is categorized into web-based, cloud-based, and on-premise. In the global market, the cloud-based segment accounted for the largest revenue share in 2022 owing to several security problems on web-based and on-premise deployment. Software upgrades for older systems require ongoing financial investments. Information sharing with clients and other stakeholders is a major concern, so a large number of players are employing this technology, in addition to the expanding demands on IT infrastructure and changing business requirements.
Additionally, as cloud-based services are built on a pay-as-you-go approach, it requires significantly less financial investment due to the reduced requirement for physical infrastructure. As a result, demand for cloud-based distribution has surged significantly relative to other delivery methods and is anticipated to expand at the quickest rate in the years to come.
The market is segmented into healthcare providers, healthcare manufacturers, logistics, and distributors. In 2022, the healthcare manufacturers segment accounted for the largest revenue share owing to an increase in the usage of SaaS Software among healthcare manufacturers. The healthcare providers represented the second-largest share during the forecast period. One of the major factors behind the industry's expansion is the increasing use of cloud-based software solutions in hospitals. Other factors anticipated to drive market expansion include the increased demand for automated services and the requirement for the integration of patient health-related data.
In 2022, the North American region accounted for the highest revenue in the healthcare supply chain management market and is expected to maintain its dominance during the forecast period. This is attributed to the mandatory adoption of GS1 standards and the use of Unique Device Identifiers (UDIs) on pharmaceuticals and medical equipment. The increase in chronic disease incidence, the growing patient burden in the United States, regulatory requirements, and the application of various ways to improve healthcare supply chain management in Canada are other factors that contribute to the expansion.
Drugs are now easier to track due to the increased use of scanning technology including barcodes and RFID to stop medicine counterfeiting. To curb the sale of counterfeit medicines, manufacturers in the US have begun employing edible barcodes. Additionally, the market expansion in the region is being boosted by the use of these scanning technologies among healthcare providers and distributors. Asia Pacific is expected to register a lucrative CAGR due to continuously expanding healthcare IT infrastructure and the rising demand for cloud computing.