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    Healthcare Supply Chain Management Market

    ID: MRFR/HCIT/4261-HCR
    100 Pages
    Kinjoll Dey
    October 2025

    Healthcare Supply Chain Management Market Research Report Information By Models (Make-To-Stock Model, Build-To-Order, Continuous Replenishment Model, Chain Assembly, Others), By Function (Forecasting and Planning, Inventory Management and Procurement, Internal Logistics and Operations, Warehousing and Distribution, Reverse and Extended Logistics, Others), By Component (Software, Hardware, and Services), Delivery Mode (On-Premises, Web-based, Cloud-based), By End Users (Healthcare Providers, Healthcare Manufacturers, Distributors, Others), An...

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    Healthcare Supply Chain Management Market Infographic
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    Healthcare Supply Chain Management Market Summary

    As per Market Research Future Analysis, the Healthcare Supply Chain Management Market was valued at USD 2.87 billion in 2024 and is projected to reach USD 13.10 billion by 2035, growing at a CAGR of 14.80% from 2025 to 2035. The market is driven by the increasing adoption of Radio Frequency Identification (RFID) technology and innovative supply chain solutions, particularly in tracking pharmaceuticals. The COVID-19 pandemic has highlighted the need for efficient supply chain management, leading to increased investments in technology and software solutions. Key players are focusing on enhancing productivity and reducing costs through advanced inventory management systems.

    Key Market Trends & Highlights

    The market is witnessing significant trends that are shaping its growth trajectory.

    • Healthcare Supply Chain Management Market Size in 2024: USD 2.87 billion.
    • Projected Market Size by 2035: USD 13.10 billion.
    • CAGR during 2024-2032: 14.80%.
    • Majority share in 2021 held by Build-to-Order segment.

    Market Size & Forecast

    2024 Market Size USD 2.87 billion
    2035 Market Size USD 13.10 billion
    CAGR (2024-2035) 14.80%

    Major Players

    Key players include SAP, Infor, GHX, TECSYS, McKesson, Manhattan Associates, Jump Technologies, JDA Software, LogiTag Systems, and Oracle.

    Healthcare Supply Chain Management Market Trends

    Growing Adoption of Radio Frequency Identification (RFID) to Boost Market Growth

    Radio Frequency Identification (RFID) technology has been in existence for several years now, however, advances in the technology can potentially help many companies to improve their supply chain operations. In healthcare organizations, RFID tags can be used to track and manage pharmaceuticals. The system provides notifications to the user regarding expiration dates and the stock level of medication.

    Furthermore, it also helps in tracking machines, equipment, and vehicles, which are critical for any organization by providing their location, thus helping in asset management and maintenance. Real-time tracking of healthcare products provides major opportunities and helps them improve customer services such as increasing the efficiency of hospital processes and reducing wastes such as expired products, surplus inventory, and unnecessary staff movements. Therefore, the adoption of RFID tags in healthcare supply chain management has increased rapidly due to its adoption in tagging pharmaceutical products, such as prescription drugs and other medical devices, thereby leading to improvement in stock control.

    The ongoing evolution of the Global Healthcare Supply Chain Management Market underscores a growing emphasis on efficiency and resilience, as stakeholders increasingly prioritize integrated solutions to navigate complexities in healthcare delivery.

    U.S. Department of Health and Human Services

    Healthcare Supply Chain Management Market Drivers

    Regulatory Compliance

    Regulatory compliance remains a crucial driver in the Global Healthcare Supply Chain Management Market Industry. Governments worldwide are implementing stringent regulations to ensure the safety and efficacy of medical products. Compliance with these regulations necessitates robust supply chain management practices, which can lead to increased operational costs. However, organizations that effectively navigate these regulations can gain a competitive advantage. For example, adherence to the FDA's guidelines in the United States has prompted healthcare providers to invest in advanced supply chain solutions, thereby enhancing their operational efficiency and ensuring patient safety.

    Focus on Cost Reduction

    A growing focus on cost reduction is influencing the Global Healthcare Supply Chain Management Market Industry. Healthcare organizations are increasingly seeking ways to minimize operational costs while maintaining high-quality patient care. This focus has led to the adoption of lean supply chain practices, which aim to eliminate waste and improve efficiency. For example, hospitals are implementing just-in-time inventory systems to reduce holding costs and ensure that supplies are available when needed. This trend is expected to drive investments in supply chain technologies and solutions, further contributing to market growth.

    Market Growth Projections

    Technological Advancements

    The Global Healthcare Supply Chain Management Market Industry is experiencing a surge in technological advancements, particularly in automation and data analytics. Innovations such as artificial intelligence and machine learning are streamlining operations, enhancing inventory management, and improving demand forecasting. For instance, the integration of blockchain technology is being explored to ensure transparency and traceability in the supply chain. These advancements are expected to contribute to the market's growth, with projections indicating an increase from 2.87 USD Billion in 2024 to 10.3 USD Billion by 2035, reflecting a compound annual growth rate of 12.32% from 2025 to 2035.

    Globalization of Healthcare

    The globalization of healthcare is reshaping the Global Healthcare Supply Chain Management Market Industry. As healthcare providers expand their reach across borders, the complexity of supply chains increases. This globalization necessitates the adoption of advanced supply chain management practices to navigate diverse regulatory environments and logistical challenges. For instance, multinational healthcare organizations are leveraging technology to coordinate their supply chains effectively, ensuring that medical products are delivered where needed. This trend is likely to drive market growth as organizations seek to enhance their global presence and operational efficiency.

    Rising Demand for Healthcare Services

    The rising demand for healthcare services is a significant driver in the Global Healthcare Supply Chain Management Market Industry. As populations age and chronic diseases become more prevalent, healthcare providers are under pressure to deliver efficient and timely services. This demand necessitates a well-structured supply chain to ensure the availability of medical supplies and equipment. The increasing number of healthcare facilities globally further exacerbates this need. Consequently, organizations are investing in supply chain solutions to optimize their operations, which is likely to propel the market growth significantly over the coming years.

    Market Segment Insights

    Healthcare Supply Chain Management Models Insights

    The healthcare supply chain management market segmentation, based on model, includes make-to-stock model, build-to-order, continuous replenishment model, chain assembly, and others. The build-to-order segment held the majority share in 2021 in respect to the healthcare supply chain management revenue. This is primarily owing to the growing self-sufficient healthcare ecosystem, emergence of cloud-based solutions, and growing number of unique device identification (UDI). Growing pressure on healthcare providers to increase efficiency while reducing cost is encouraging the adoption of healthcare supply chain management solutions around the world.

    Healthcare supply chain management also includes efficient supply chain methods to achieve traceability and operational efficiency while reducing operating costs without compromising quality.

    August 2022: Kit Check collaborated with Genixus to introduce its RFID technology in Genixus’s new KinetiX syringes. This collaboration states that RFID-tagged will be provided for Genixus’s KinetiX

    October 2022:Tecsys Inc. launched Elite Healthcare Receiving, it is an extension to its end-to-end Elite Healthcare Supply Chain execution platform. This will allow for coordinated distribution to easily manage items in all locations throughout the hospital using a single point of entry. Additionally, this will also help to eliminate the use of multiple tools, systems, and processes and provides you with a complete chain of custody tracking.

    Healthcare Supply Chain Management Function Insights

    The healthcare supply chain management market segmentation, based on function, includes forecasting and planning, inventory management and procurement, internal logistics and operations, warehousing and distribution, reverse and extended logistics, and others. The forecasting and planning segment dominated the market in 2021 during the forecast period, 2024-2032. This is due to the growing preference for efficient planning, visibility into consigned inventory, and growing demand for limiting the large-scale counterfeiting of drugs in the pharmaceutical industry. Therefore, rising applications of healthcare supply chain management implants positively impacts the market growth.

    Healthcare Supply Chain Management Component Insights

    The healthcare supply chain management market data based on component, includes software, hardware, and services. The software component segment dominated the market in 2021 during the forecast period, 2024-2032. The growing adoption of software such as SaaS that offers next-generation cloud computing applications such as supply chain management enterprise resource planning are among key factors boosting the market growth. The rising need for efficient management of organizational workflows in healthcare organizations and a shift in the trend toward value-based care in developed economies are boosting segment growth.

    Furthermore, rising initiatives undertaken by private and public players for supporting healthcare IT infrastructure are driving the segment in healthcare organizations.

    February 2020: ProShip, Inc. collaborated with JDA Software Inc. to expand its portfolio of integrated shipping and supply chain operations along with collaborating for some of their complicated and largest installs. This collaboration has further broadened the growth opportunity for the healthcare supply chain management industry.

    April 2021: Tecsys Inc. announced that Spectrum Health has upgraded its Tecsys environment to accommodate its growing network of supply chain and warehousing demands. The new system includes a SaaS supply chain management platform with warehouse management, distribution management, and delivery management, with robust connectors to Spectrum Health's Workday ERP.

    Healthcare Supply Chain Management Delivery Mode Insights

    The healthcare supply chain management market data based on delivery mode, includes on-premises, web-based, and cloud-based. The cloud-based delivery mode segment dominated the market in 2021 during the forecast period, 2024-2032. This is attributed to the associated advantages such as identification, monitoring, and mitigation of supply chain risks, disruptions, and vulnerabilities. A shift in the trend towards value-based care in developed countries, coupled with the upsurge in the need for efficient management of structural workflows in healthcare companies, are a few factors propelling the segment's growth.

    Furthermore, the platform also helps to enable collaborative information sharing, growing launches by companies helps in the growth of the healthcare supply chain management market.

    February 2022: Healthcare Exchange, LLC. acquired Syft, a provider of AI-enhanced inventory control and end-to-end supply chain management. This acquisition helped the company to expand its existing portfolio for healthcare supply chain management solutions

    August 2019: Pfizer and Biogen-led organization Clinical Supply Blockchain Working Group (CSBWG) completed a proof of concept project for a digital inventory and event tracking record in the pharmaceutical & clinical supply chain.

    Figure 2: Healthcare Supply Chain Management Market, by Delivery Mode, 2023 & 2032 (USD Billion)

    Healthcare Supply Chain Management End-User Insights

    The healthcare supply chain management market data based on end-user, includes healthcare providers, healthcare manufacturers, distributors, and others. The healthcare manufacturers dominated the market in 2021 during the forecast period, 2024-2032. This is attributed to the growing adoption of SaaS software among healthcare manufacturers is changing the trend by shifting from paper-based functioning to an automated system. Pharmaceutical companies are among the major beneficiaries of emerging IT trends and technologies including cloud computing.

    This has also reduced the risk of errors and help to overcome substantial challenges such as efficient planning and visibility into consigned inventory. Furthermore, the pharmaceutical industry generates petabytes of data every second through multiple data streams such as R&D and CRM systems helps in the growth of the healthcare supply chain management market.

    March 2022: Symplr, the leader in enterprise healthcare operations, and Charlesbank Capital Group, L.P. entered into a stretegic agreement to purchase GreenLight Medical, Inc., a provider of healthcare supply chain management software. This will creates a comprehensive cloud-based software platform for value-based purchasing decision support, enabling healthcare organizations to make timely and data-driven decisions.

    March 2020: Jump Technologies temporarily opened its inventory management solutions for all healthcare facilities. Such initiatives were focused on helping hospitals to maintain their supplies during the pandemic.

    Get more detailed insights about Healthcare Supply Chain Management Market Research Report - Forecast to 2032

    Regional Insights

    By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. North America healthcare supply chain management held the largest market share in 2021 This is attributed to the increasing prevalence of chronic diseases, regulatory requirements, mandatory implementation of GS1 standards and Unique Device Identifiers (UDIs) on pharmaceutical drugs and medical devices across the region.

    Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    Figure 3: HEALTHCARE SUPPLY CHAIN MANAGEMENT MARKET SHARE BY REGION 2023 (%)Healthcare Supply Chain Management Market Share By Region

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Europe healthcare supply chain management market accounts for the second-largest market share due to the increasing awareness of suppliers of the demand for healthcare supply chain management solutions. Further, the Germany healthcare supply chain management market held the largest market share, and the UK healthcare supply chain management market was the fastest growing market in the European region.

    The Asia-Pacific Healthcare Supply Chain Management Market is expected to grow with the significant share. This is due to constantly developing healthcare IT infrastructure and growing demand for cloud computing are some of the factors accelerating growth. Moreover, China healthcare supply chain management market held the largest market share, and the India healthcare supply chain management market was the fastest growing market in the Asia-Pacific region.

    For instance, India healthcare supply chain management market is the favored destination for growing adoption of GS1 standards to track the visibility of pharmaceutical products to further boost the market growth in the Asia-Pacific region. According to the World Health Organization (WHO), Asia Pacific holds the largest share of the trade in counterfeit medicines. The pharmaceutical industry has adopted scanning technologies, such as RFID and barcodes, to track products and gain information about products for curbing the counterfeiting of drugs. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2024–2032.

    Key Players and Competitive Insights

    Major market players are spending a lot of money on R&D to increase their product lines, which will help the healthcare supply chain management market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the healthcare supply chain management industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

    One of the primary business strategies adopted by manufacturers in the healthcare supply chain management industry to benefit clients and expand the healthcare supply chain management market sector is to manufacture locally to reduce operating costs. In recent years, healthcare supply chain management has provided advance technologies with some of the most significant benefits.

    e2open (US), a leading network-based provider of cloud-based, mission-critical, end-to-end supply chain management software. In August 2021, e2open announced a strategic partnership with Vizient, Inc. the largest healthcare performance improvement company in the US to facilitate the rapid development of a cloud-based, multi-party collaboration platform that enables end-to-end visibility between participating healthcare providers, distributors, and suppliers. This agreement will create a platform that improves collaboration between participating healthcare organizations and suppliers.

    Key Companies in the Healthcare Supply Chain Management Market market include

    Industry Developments

    October 2020: Sandoz Inc. launched its Radio Frequency Identification (RFID) tagged critical injectable medicines with Kit Check to optimize the supply chain and automate restocking in US hospitals. Sandoz and Kit Check together to provide comprehensive solutions to hospital customers to lower costs, reduce risks and treat patients safely and more efficiently

    June 2020: Vamstar, that connects healthcare buyers and suppliers using artificial intelligence, got project funding of USD 55.5 million from Innovate UK, the innovation agency, which is also part a of UK government's fast-track funding to drive forward cutting-edge start-ups in response to the coronavirus crisis and to enhance hospital supply management

    May 2020: Oracle collaborated with KPMG to launch new solutions in the healthcare industry enabling its clients to move their finance, supply chain, and human resources functions to the Oracle cloud

    Future Outlook

    Healthcare Supply Chain Management Market Future Outlook

    The Healthcare Supply Chain Management Market is projected to grow at a 14.80% CAGR from 2025 to 2035, driven by technological advancements, regulatory changes, and increasing demand for efficiency.

    New opportunities lie in:

    • Implement AI-driven analytics for inventory optimization and demand forecasting.
    • Develop blockchain solutions for enhanced transparency and traceability in supply chains.
    • Invest in sustainable practices to meet regulatory requirements and consumer expectations.

    By 2035, the market is expected to achieve substantial growth, reflecting evolving healthcare demands and technological integration.

    Market Segmentation

    Healthcare Supply Chain Management Models Outlook

    • Make-To-Stock Model
    • Build-To-Order
    • Continuous Replenishment Model
    • Chain Assembly
    • Others

    Healthcare Supply Chain Management End User Outlook

    • Healthcare Providers
    • Healthcare Manufacturers
    • Distributors
    • others

    Healthcare Supply Chain Management Function Outlook

    • Forecasting and Planning
    • Inventory Management and Procurement
    • Internal Logistics and Operations
    • Warehousing and Distribution
    • Reverse and Extended logistics
    • Others

    Healthcare Supply Chain Management Regional Outlook

    North America
    • US
    • Canada
    Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Rest of Europe
    Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    Rest of the World
    • Middle East
    • Africa
    • Latin America

    Healthcare Supply Chain Management Component Outlook

    Hardware
    • Barcodes
    • RFID Tags

    Healthcare Supply Chain Management Delivery Mode Outlook

    • On-Premises
    • Web-based
    • Cloud-based

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 USD 2.87 billion
    Market Size 2035 13.10
    Compound Annual Growth Rate (CAGR) 14.80% (2025 - 2035)
    Base Year 2024
    Forecast Period 2025 - 2035
    Historical Data 2018 & 2020
    Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Segments Covered Models, Function, Component, Delivery Mode, End-User and Region
    Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
    Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled SAP (Germany), Infor (US), Oracle (US), GHX (US), TECSYS (Canada), McKesson (US), Manhattan Associates (US),  Jump Technologies (US),  JDA Software (US),   LogiTag Systems (Israel),  Advocate Health Care (Murray UT)
    Key Market Opportunities Growing number of unique device identification (UDI)
    Key Market Dynamics Growing adoption of Radio Frequency Identification (RFID) Expanding acceptance of supply chain management solutions
    Market Size 2025 3.29

    Market Highlights

    Author
    Kinjoll Dey
    Research Analyst Level I

    He is an extremely curious individual currently working in Healthcare and Medical Devices Domain. Kinjoll is comfortably versed in data centric research backed by healthcare educational background. He leverages extensive data mining and analytics tools such as Primary and Secondary Research, Statistical Analysis, Machine Learning, Data Modelling. His key role also involves Technical Sales Support, Client Interaction and Project management within the Healthcare team. Lastly, he showcases extensive affinity towards learning new skills and remain fascinated in implementing them.

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    FAQs

    How much is the healthcare supply chain management market?

    The healthcare supply chain management market is anticipated to reach USD 6.81 billion at a CAGR of 14.80% during the forecast period of 2024 to 2032

    How Big is the U.S healthcare supply chain management market?

    The US healthcare supply chain management market share is 35-40% during the forecast period of 2024 to 2032

    What is the growth rate of the healthcare supply chain management market?

    The healthcare supply chain management market is expected to register a CAGR of 14.80% during the forecast period of 2024 to 2032.

    Which region held the largest market share in the healthcare supply chain management market?

    The North America held the largest market share in the healthcare supply chain management market

    Who are the key players in the healthcare supply chain management market?

    SAP (Germany), Infor (US),Oracle (US),GHX (US),and TECSYS (Canada) are the key players in the healthcare supply chain management market

    Which component type led the healthcare supply chain management market?

    The software component led the healthcare supply chain management market

    Which end-user had the largest market share in the healthcare supply chain management market?

    The healthcare manufacturers segment held the healthcare supply chain management market

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