The global healthcare supply chain management market is projected to reach USD 2.31 Billion by 2022 from an estimated USD 1.55 Billion in 2017, growing at a CAGR of 8.4% during the forecast period.
Growth in the market can primarily be attributed to factors such as increasing pressure on healthcare providers to improve operational efficiency & profitability, implementation of unique device identification (UDI) by the US FDA, and the emergence of cloud-based solutions. However, the high implementation cost of supply chain management solutions is expected to restrain the growth of this market to a certain extent.
On the basis of component, the market is segmented into software and hardware. In 2017, software segment is expected to command the largest share of the global healthcare supply chain management market. The large share of this segment can be attributed to the benefits it offers, such as increased efficiency, reduced costs, and business intelligence.
By delivery mode, the market is categorized into on-premise and cloud-based segments. The cloud-based segment is expected to grow at the highest CAGR during the forecast period. Cloud-based solutions help healthcare organizations share and integrate information from different locations and these solutions are cheaper to install and maintain than on-premise solutions. All these factors contribute to the high growth and popularity of the cloud-based mode.
The North American healthcare supply chain market is expected to grow at the highest CAGR during the forecast period of 2017-2022. Factors such as the consolidation of hospitals, regulatory requirements, rising prevalence of chronic diseases, increasing patient burden in the US, and implementation of various strategies to improve healthcare supply chain management in Canada are driving the growth of the market in this region.
SAP (Germany), Oracle (US), Infor (US), McKesson (US), TECSYS (Canada), are leading players in the market. Other prominent players include GHX (US), Manhattan Associates (US), JDA Software (US), Jump Technologies (US), and LogiTag (Israel) are some of the major players operating in the healthcare supply chain management market.
Increasing Pressure Faced by Healthcare Providers to Improve Operational Efficiency and Profitability
Implementation of the Unique Device Identification (UDI) Initiative by the FDA
Emergence of Cloud-Based Solutions
Adoption of the GS1 System of Standards in Various Countries
Continuous Support in the Form of Funding, Investments, and Partnerships
Growing Focus to Curb the Large-Scale Counterfeiting of Drugs in the Pharmaceutical Industry
High Costs Associated With the Implementation And Maintenance of Healthcare Supply Chain Management Solutions