Healthcare Supply Chain Outsourcing Market
Number of pages: 100 | Report Format: PDF | Published date: April 04, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
|
Report Attribute |
Details |
|
Market Size Value in 2022 |
US$ 2.54 billion |
|
Revenue Forecast in 2031 |
US$ 4.06 billion |
|
CAGR |
5.34% |
|
Base Year For Estimation |
2022 |
|
Forecast Period |
2023-2031 |
|
Historical Year |
2021 |
|
Segments Covered |
Service, End User, and Region |
|
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global healthcare supply chain outsourcing market was valued at US$ 2.54 billion in 2022 and is expected to register a revenue CAGR of 5.34% to reach US$ 4.06 billion by 2031.
Healthcare Supply Chain Outsourcing Market Fundamentals
Healthcare supply chain outsourcing is the process of employing a third party to manage various areas of a healthcare organization's supply chain operations. This can include acquiring, managing inventory, logistics, and distributing medical equipment, supplies, and drugs. Outsourcing healthcare supply chain management allows healthcare organizations to focus on their core capabilities, such as patient care and clinical operations.
During the forecast period, outsourcing services will likely be the fastest-growing in the healthcare supply chain management market. Outsourcing enables healthcare organizations to leverage third-party companies' expertise, economies of scale, and advanced technology to streamline their operations. Furthermore, healthcare supply chain outsourcing can assist companies in focusing on their core strengths while lowering operational costs, which is critical in the current economic situation. As a result, outsourcing is becoming a common solution for healthcare companies planning to improve their supply chain management procedures.
The healthcare supply chain outsourcing market is expected to grow at a significant revenue share during the forecast period. The rise in revenue growth is due to the increasing focus of healthcare providers on cost reduction and efficiency improvement. Adopting advanced technologies such as blockchain and artificial intelligence is also expected to drive the revenue growth of the healthcare supply chain outsourcing market.
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Healthcare Supply Chain Outsourcing Market Dynamics
The supply chain outsourcing concern is establishing a surge in demand for cost-effective and efficient healthcare services as the demand for high-quality healthcare at reasonable pricing. Outsourcing might also provide access to skills and technologies that may not be available in-house. Furthermore, outsourcing can help healthcare providers to adapt to changing market dynamics and regulations, enabling them to be faster and more responsive. As a result, outsourcing is becoming an increasingly popular strategy for healthcare providers looking to remain competitive in today's fast-paced healthcare environment.
Healthcare supply chain outsourcing service providers often have a larger scale of operations, allowing them to negotiate at better prices from suppliers and logistics providers. As a result, healthcare providers can benefit from cost savings associated with purchasing, transporting, and warehousing supplies. Furthermore, outsourcing healthcare supply chain services allows healthcare providers to focus on their core skills and improve patient care results by relieving them of the difficulties of managing the supply chain. This enables them to devote more resources to enhance patient outcomes and experiences.
Integration of AI, analytics, and cloud-based services with healthcare supply chain outsourcing can improve the efficacy of the healthcare supply chain outsourcing market. By leveraging AI and analytics, healthcare organizations can predict demand and optimize inventory levels, leading to reduced waste and cost savings. Cloud-based services can improve collaboration and communication between healthcare providers and suppliers, resulting in a more streamlined supply chain process. This integration can also enhance patient outcomes by ensuring that the appropriate supplies and drugs are available when needed, eliminating treatment delays, and enhancing the overall quality of care. Ultimately, the combination of these technologies has the potential to completely transform the healthcare supply chain outsourcing sector and improve healthcare delivery.
However, data privacy and security concerns are major restraining factors for the healthcare supply chain outsourcing market. To address these concerns, companies in the healthcare supply chain outsourcing market are implementing strict data protection measures and partnering with experienced vendors with a proven track record in cybersecurity.
Healthcare Supply Chain Outsourcing Market Ecosystem
The global healthcare supply chain outsourcing market is analyzed from three perspectives: service, end user, and region.
Healthcare Supply Chain Outsourcing Market by Service
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Based on services, the global healthcare supply chain outsourcing market is segmented into order management, manufacturing management, sustainability services, inventory management, transport management, and others.
The transport management segment accounts for most of the global healthcare supply chain outsourcing market revenue share. Transport management is an important part of healthcare supply chain outsourcing since it guarantees that medical supplies and equipment are delivered to hospitals and clinics. Transportation management also aids in cost reduction and overall efficiency in the healthcare supply chain. Moreover, it entails arranging the delivery of supplies from suppliers to healthcare institutions, tracking shipments, and assuring regulatory compliance.
Manufacturing management in healthcare supply chain outsourcing involves the application of lean principles and advanced technologies to improve efficiency, reduce costs, and enhance quality in the production and delivery of medical products and services. This approach requires close collaboration between manufacturers, healthcare providers, and logistics partners to ensure timely and accurate delivery of critical supplies and equipment.
However, order management is critical in healthcare supply chain outsourcing since it assists in streamlining the procurement process, reducing errors and expenses, and improving efficiency. Moreover, with the rising demand for healthcare services and a need for cost-efficient solutions, effective order management will become even more crucial in future years.
Healthcare Supply Chain Outsourcing Market by End-User
Based on end-user, the global healthcare supply chain outsourcing market is segmented into biotechnology and pharmaceutical companies, distributors, retailers, and others.
The biotechnology and pharmaceutical companies segment accounted for the majority of the global healthcare supply chain outsourcing market. Outsourcing healthcare supply chain management in biotechnology and pharmaceutical organizations can result in significant cost savings, higher efficiency, and a greater focus on core skills. It also enables businesses to harness the expertise of specialized third-party providers to ensure regulatory compliance and industry standards. Outsourcing can also assist these businesses in overcoming difficulties such as supply chain disruptions, inventory management, and logistics optimization. This enables them to devote resources to research and development, ultimately developing new and novel treatments and therapies.
Healthcare Supply Chain Outsourcing Market by Region
Based on the region, the global healthcare supply chain outsourcing market is segmented into North America, Europe, Asia Pacific, Latin America, & the Middle East & Africa.
North America dominated the healthcare supply chain outsourcing market. This is due to the presence of major pharmaceutical and medical device manufacturers in the United States and Canada; the area accounts for the highest revenue share. Furthermore, the rising need for cost-effective manufacturing solutions and expanding use of innovative technologies in the healthcare sector will likely fuel market revenue expansion in North America. Furthermore, favorable government initiatives and policies promoting outsourcing in the healthcare sector add to North America's market revenue growth. However, constraints like data security concerns and regulatory issues are expected to hamper the market revenue expansion in the region.
The healthcare supply chain outsourcing market in Europe is characterized by several key players offering healthcare providers a wide range of services and solutions. These players increasingly focus on innovation and technology to enhance their offerings and gain a competitive edge in the market. Moreover, the rising demand for cost-effective and efficient healthcare services drives the revenue growth of Europe's healthcare supply chain outsourcing market. This trend is expected to continue in the coming years, creating new opportunities for market players to expand their business.
Asia Pacific is expected to grow rapidly during the forecast period. The rise in revenue share is attributed to the greater adoption of automation and digitization, the region's low labor costs, and favorable government initiatives. Furthermore, rising demand for environmentally friendly manufacturing methods is expected to promote the revenue growth of outsourcing the Asia Pacific healthcare supply chain. The increased implementation of artificial intelligence and the Internet of Things will also help the manufacturing managing market in the Asia Pacific. Furthermore, the region's enormous population and increasing middle class are driving up demand for consumer goods, highlighting the importance of efficient and sustainable production methods.
Competitive Landscape of the Global Healthcare Supply Chain Outsourcing Market
The competitive landscape of the global healthcare supply chain outsourcing market is constantly evolving due to the increasing demand for cost-effective and efficient healthcare services. Key players in the market are focusing on strategic partnerships and collaborations to expand their market presence and gain a competitive edge. Additionally, advancements in technology and the adoption of automation in manufacturing management are expected to drive the revenue growth of the healthcare supply chain outsourcing market to some extent. This rise in revenue share is due to the increased efficiency and cost savings achieved through these technologies. For instance, AmerisourceBergen, a global pharmaceutical sourcing and distribution services company, offers a wide range of services, including product sourcing, inventory management, and distribution. The company focuses on strategic acquisitions and partnerships to expand its service offerings and geographic reach. Likely, DHL Supply Chain, a logistics and supply chain management company, offers transportation, warehousing, and inventory management services. The company strongly focuses on sustainability and has implemented several initiatives to reduce its environmental impact.
The prominent companies operating in the global healthcare supply chain outsourcing market with the largest revenue share are:
Recent Developments
The transport management segment accounts for the largest revenue share in the global healthcare supply chain outsourcing market.
The expected revenue CAGR of the global healthcare supply chain outsourcing market is 5.34% during the forecast period.
Accenture, Cognizant Technology Solutions, Firstsource Solutions, and GEBBS Healthcare Solutions are a few key players in the global healthcare supply chain outsourcing market.
Data privacy and security concerns are major restraining factors for the healthcare supply chain outsourcing market.
Asia Pacific is expected to observe the highest global healthcare supply chain outsourcing market revenue growth during the forecast period.
*Insights on financial performance are subject to the availability of information in the public domain