Healthcare Supply Chain Management Market worth 2.31 Billion USD by 2022
According to the new market research report "Healthcare Supply Chain Management Market by Component (Software {Inventory (Order and Warehouse Management), Purchasing (Suppliers, Strategic Sourcing)), Hardware (Barcode, RFID)), Delivery Mode (On-Premise, Cloud), End User - Global Forecasts to 2022", published by MarketsandMarkets™, analyzes and studies the major market drivers, restraints/challenges, and opportunities in North America, Europe, Asia-Pacific, and the Rest of the world (RoW).
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Increasing pressure faced by healthcare providers to improve operational efficiency and profitability, emergence of cloud-based solutions, adoption of the GS1 system of standards in various countries, and growing focus to curb the large-scale counterfeiting of drugs in the pharmaceutical industry are driving the growth of this market. Healthcare supply chain management is the vital practice of developing efficient supply chain methods to achieve operational efficiency and traceability while reducing operating costs without compromising quality.
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. Increasing pressure on healthcare providers to improve operational efficiency & profitability and the emergence of cloud-based solutions are the key factors driving the growth of this market.
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Healthcare supply chain management is the practice of developing efficient supply chain methods by stakeholders in the healthcare arena to achieve operational efficiency and traceability while reducing operating costs without compromising quality. The adoption of healthcare supply chain management solutions offers significant benefits to various stakeholders involved in the supply chain, such as healthcare providers, distributors, and suppliers. Globally, there is an increasing focus among stakeholders to reduce their operating costs by achieving operational efficiency. The adoption of supply chain solutions helps them achieve these objectives, and thus the demand for these solutions is increasing across the globe.
The healthcare supply chain management market has been segmented, on the basis of component, into software and hardware. The software segment is expected to command the largest share of the healthcare supply chain management market in 2017 due to the benefits it offers, such as, increased efficiency, reduced costs, and business intelligence.
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High costs associated with the implementation and maintenance of healthcare supply chain management solutions limit the adoption of these solutions in the healthcare arena, thereby restricting the market to some extent. The efficient use of healthcare supply chain management solutions demands significant investments by hospitals and pharmacies. Small to medium-sized hospitals and pharmacies find it difficult to afford such systems as they have controlled budgets and cannot justify long payback periods. Furthermore, the implementation time of these software solutions can take as long as several months. This is a major concern as many hospitals are not comfortable operating for such long periods without their ongoing minimal IT support.
Key players in this market include 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. These players are increasingly undertaking mergers and acquisitions, and product launches to develop and introduce new technologies and products in the market.
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