Authored By: Sarah
11 Jul 2024

 Healthcare Logistics Market in North America Size to grow by USD 19.72 billion between 2024-2028

According to a research report “ Healthcare Logistics Market in North America” by Product (Pharmaceuticals, Medical devices) Service (Transportation, Warehousing) Geography (North America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 19.72 billion, at a CAGR of  9.38% during the forecast period. In the North American healthcare logistics market, stringent regulations in the medical and pharmaceutical industries pose significant challenges for new entrants and the introduction of new drugs. The Canadian government mandates various medical and healthcare insurance schemes, ensuring essential coverage and facilitating affordable personal medical expenses. This increased accessibility to healthcare services has resulted in heightened spending on disease treatment and disorder management, thereby fueling the demand for pharmaceutical manufacturing and consumption. Consequently, the healthcare logistics sector, particularly the pharmaceutical segment, experiences significant growth due to the Canadian government's compulsory health insurance coverage for a substantial portion of the population.

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By Product, the Pharmaceuticals segment is projected to dominate the market size in 2024

The North American healthcare logistics market's transportation segment is a significant contributor to the industry's growth, focusing on the transit of pharmaceuticals and medical devices via rail, air, water, and roadways. This segment is projected to expand significantly due to an increase in patent expirations and government investments in logistics infrastructure. Notable drugs losing patent protection in 2021 include Lucentis (Genentech/Roche), Bystolic (AbbVie/Allergan), and Nothera (Lundbeck). Patent expirations have resulted in noticeable price declines for various companies in the sector.

By Service, Transportation  segment is expected to hold the largest market size for the year 2024

In the North American healthcare logistics market, the pharmaceutical segment is experiencing significant growth, driven by the approval of new drugs and increasing demand for biologics. In 2021, the FDA's Center for Drug Evaluation and Research (CDER) approved 46 new molecular entities (NMEs), primarily small molecule drugs, but also biologics. The growing preference for biologics, which offer more effective treatment options for various health disorders, is fueling the development of new drugs for both common and rare diseases. This trend is expected to continue, leading to increased demand for healthcare logistics services to ensure timely and efficient delivery of these complex drugs.

North America is forecasted to hold the largest market size by region in 2024

The healthcare logistics market in North America is primarily driven by the significant contribution of the US pharmaceutical sector. Key players, including Johnson and Johnson Services Inc., Pfizer Inc., Abbot Laboratories, and Bristol-Myers Squibb Co., spearhead this industry in the region. Factors such as the increasing value of US pharmaceutical exports, escalating healthcare expenditures, and the burgeoning aging population are fueling market expansion. Moreover, the proliferation of government healthcare insurance programs, such as the Affordable Care Act, further bolsters growth. These elements collectively create a robust business environment for healthcare logistics in North America.

The Healthcare Logistics Market in North America growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Air Canada
  • AmerisourceBergen Corp.
  • AP Moller Maersk AS
  • Bollore SE
  • C H Robinson Worldwide Inc.
  • CMA CGM SA Group
  • Cold Chain Technologies
  • Deutsche Bahn AG
  • Deutsche Post AG
  • DSV AS
  • FedEx Corp.
  • Hellmann Worldwide Logistics SE and Co KG
  • Kuehne Nagel Management AG
  • Lineage Logistics Holdings LLC
  • Nippon Yusen Kabushiki Kaisha
  • Noatum Holdings SLU
  • Owens and Minor Inc.
  • SEKO Logistics
  • UniGroup CA
  • United Parcel Service Inc.
.

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Research Analysis Overview

The healthcare logistics market in North America is a critical sector that connects healthcare transportation, medical facilities, healthcare product companies, and medical equipment manufacturers. The supply chain in this industry involves the movement of raw materials from manufacturing facilities to production sites, where healthcare items and pharmaceuticals are produced. Once manufactured, these products are transported to medical facilities and warehouses using various logistics solutions. With the rise of globalization and international commerce, healthcare logistics has seen a significant shift towards outsourcing operational logistics to third-party logistics providers. This trend is driven by the need for efficient and cost-effective supply chain management, especially for temperature-sensitive drugs and biological pharmaceuticals. Consumers are increasingly relying on online platforms for the sale of healthcare products, including prescription drugs and medical equipment. Freight forwarding and warehousing solutions are essential for ensuring timely delivery of these items. E-commerce and electronic commerce have also disrupted the healthcare logistics market, requiring logistics companies to adapt to new technologies and delivery methods. In conclusion, the healthcare logistics market in North America is a complex and dynamic sector that requires specialized expertise and innovative solutions to meet the unique needs of healthcare providers, manufacturers, and consumers. Effective logistics management is crucial for ensuring the timely and efficient delivery of healthcare items and pharmaceuticals, while also maintaining the integrity of temperature-sensitive products.

Market Research Overview

The North American healthcare logistics market is a fastest-growing market in the world's economies, driven by technology advancement, optimizing warehousing, and fostering regional growth. The market is expected to witness significant investment pockets in the coming years due to increasing access to care, value-driving services, and business solutions. Healthcare disparities remain a challenge, particularly in the nephrological condition where timely delivery of cold-chain products like kidney and blood products is crucial. Medical facilities, healthcare product companies, and medical equipment manufacturers are key players in this market. The production and supply chain of medical items, including platelets, medical equipment, pharmaceutical products, and health trackers, require advanced technology facilities and cold storage facilities. Drones and time-bound deliveries are new technologies fostering growth in healthcare transportation. The market potential is vast, with increasing use of homecare medical devices, aging population, and the increasing income of consumers. The medical devices category, including medical equipment and pharmaceutical products, is a significant contributor to the market's sales. The supply chain services of third-party logistics providers are essential for the sale of products, especially for temperature-sensitive drugs and healthcare items. The market's future estimations include the increasing use of digital technology, mobile apps, and mobile devices for healthcare services. The market's optimization and digital transformation are crucial for truck-dependent businesses to overcome congestion and traffic volumes. The importing and cross-border commerce of generic drugs, branded drugs, and OTC products are also significant trade flows in the market. The market's growth is driven by mutual dependence between healthcare providers, including veterinarians, alternate site pharmacies, physician practices, health systems, acute care hospitals, medical clinics, and home healthcare supplies. The market's success relies on the ability to select and pack, inventory forecasting, order fulfillment, freight forwarding, and warehousing. The market's financials and company performance are crucial for providing quality healthcare and advanced medical technology to consumers through online purchase and e-commerce platforms.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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