PUBLISHER: Grand View Research | PRODUCT CODE: 1147496
PUBLISHER: Grand View Research | PRODUCT CODE: 1147496
The global healthcare supply chain management market size is expected to reach USD 5.2 billion by 2030 and is expected to expand at a CAGR of 9.2% from 2022 to 2030, according to a new report by Grand View Research, Inc. The major factors contributing to the industry growth are the growing adoption of such platforms by healthcare providers to improve efficiency and enhance operational affordability. There is a growing demand for RFID systems by medical device manufacturers, pharmaceutical and biopharmaceutical companies, hospitals, and other life sciences companies to control inventory costs in developed countries, which further fuels market growth.
Cloud-based warehouse management systems assist supply chain performance by improving order management and production planning across all warehouse locations. These cloud-based warehouse management systems generate data sets over time, which, in turn, show patterns, making it possible to forecast shifts in demand. Furthermore, the adoption of cloud-based warehouse management systems by manufacturers to optimize order management and inventory fulfillment has significantly increased their revenue. Automating pricing and customer approval workflows with a cloud-based application has further reduced order cycle time and helped in improving quality. This has further driven the demand for cloud-based software solutions in the healthcare industry, thus positively impacting market growth.
Key players are also focusing on developing new technologies to help in streamlining the production process. For instance, in March 2019, JDA Software, Inc. and Panasonic Collaboration announced a joint venture. The purpose of the joint venture was to create new solutions for businesses in manufacturing, logistics, and retail fields by combining JDA's comprehensive SaaS software for supply chain management along with Panasonic sensing technologies.
Other factors such as the adoption of GS1 standards and UDI and mobile-based healthcare management solutions also boost the market growth. However, factors such as data privacy and high cost associated with the implementation and maintenance of healthcare supply chain management solutions are likely to restrain the market growth. COVID-19 positively impacted the market growth. Major organizations are shifting toward digitalized supply chain managing solutions for rebuilding their supply chains and creating transparency and resiliency across their supply chain processes.
Software held the largest share in 2021 and is expected to expand at the fastest CAGR during the forecast period. The market growth can be attributed to the growing adoption rate of next-generation cloud computing applications such as supply chain management enterprise resources. By mode of delivery, the cloud-based segment held the largest share in 2021 and is expected to grow at the highest rate during the forecast period. This growth can be attributed to the rising demand for user-friendly technology, cost-effectiveness, and higher adoption rate. The growing penetration of cloud computing among healthcare providers for maintaining inventory and procurement information is further driving the segment.
By end-use, the healthcare manufacturers segment emerged as one of the extremely high potential segments in 2021 and is expected to grow at the fastest rate during the forecast period due to the rising adoption of healthcare supply chain managing solutions for streamlining their manufacturing process. North America dominated the overall market in 2021 with a revenue share of over 30.0%. Asia Pacific is projected to expand at the fastest CAGR of 10.5% in the forecast period due to the growing adoption of GS1 standards in the region to track the visibility of pharmaceutical products.