Healthcare Logistics Market

• The growing population is driving the market growth

E-commerce, also known as electronic commerce, is the purchasing and selling products and services over online platforms. In recent years, the widespread use of e-commerce platforms such as Amazon, eBay, and Flipkart has led to a substantial increase in the online purchase and sale of products. This has allowed consumers to purchase and utilize healthcare products according to their needs freely. Such a rapidly growing e-commerce sector is anticipated to boost the market CAGR throughout the forecast period.

Outsourcing operational logistics from warehousing to delivery to a third-party logistics provider includes various supply chain services, including freight forwarding, packaging, inventory forecasting, order fulfillment, selecting and packing, warehousing, and transportation. Third-party logistics offers many advantages because it allows business owners to devote more time to product manufacturing, advertising, and sales. Therefore, the high benefits provided by third-party logistics are the primary factor driving the expansion of the Healthcare Logistics Market. 

Globalization is the mutual dependence of the world's economies, communities, and cultures brought about by cross-border commerce. Today, most of the country's economy is heavily dependent on importing and exporting products to and from other nations. Asia-Pacific and North America have been the main players in global trade and have a high volume of trade flow, increasing the demand for logistics service providers to make trade flow more convenient and swift. Thus, it contributes to the global market expansion of the healthcare logistics. Thus, such factors are driving the Healthcare Logistics market revenue.

In May 2024, the DHL supply chain expanded its logistics capacity with a logistics facility at the Leipzig/Halle multi-user campus. The recently established logistics center will have sufficient space for clients that require efficient logistics services within Germany, Europe, or across the globe. The center is 34,000 square meters in area and marks the expansion of the company’s state-of-the-art facilities within the multi-user campus in Leipzig/Halle. DHL supply chain services a wide variety of industries and segments utilizing the region’s great connectivity for local and global distribution.

The Global Healthcare Logistics Market Industry is projected to experience substantial growth in the coming years. With a market value of 93.2 USD Billion in 2024, it is anticipated to reach 260.7 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.8% from 2025 to 2035. Such projections indicate a robust demand for healthcare logistics services, driven by factors such as technological advancements, regulatory compliance, and the increasing complexity of supply chains. The market's expansion reflects the critical role that logistics plays in ensuring the efficient delivery of healthcare products and services on a global scale.

The rise of e-commerce in the healthcare sector is a significant driver of the Global Healthcare Logistics Market Industry. With the increasing preference for online purchasing of medical supplies and pharmaceuticals, logistics providers are adapting to meet the demands of this evolving landscape. The convenience of e-commerce platforms necessitates efficient logistics solutions to ensure timely deliveries and maintain product integrity. As the market continues to expand, it is anticipated that logistics services tailored for e-commerce will become increasingly vital. This shift is expected to contribute to the projected compound annual growth rate of 9.8% from 2025 to 2035, reflecting the growing intersection of healthcare and technology.

Technological advancements play a pivotal role in shaping the Global Healthcare Logistics Market Industry. Innovations such as automation, artificial intelligence, and the Internet of Things are revolutionizing logistics operations. These technologies facilitate improved tracking, inventory management, and route optimization, enhancing overall efficiency. For instance, the implementation of AI-driven analytics allows healthcare providers to predict demand patterns, thereby reducing waste and ensuring timely deliveries. As the market evolves, it is projected to grow significantly, with a forecasted value of 260.7 USD Billion by 2035. This growth underscores the potential of technology to transform logistics into a more responsive and adaptive system.

The aging population globally is a critical factor influencing the Global Healthcare Logistics Market Industry. As the demographic shifts towards an older population, there is an increasing demand for healthcare services and products. This trend necessitates efficient logistics systems to ensure that medical supplies, pharmaceuticals, and equipment are delivered promptly to healthcare facilities and patients. The growing healthcare needs of the elderly population are likely to drive investments in logistics infrastructure and services. Consequently, logistics providers are expected to enhance their capabilities to meet these demands, further propelling the market's growth in the coming years.

The Global Healthcare Logistics Market Industry is significantly influenced by increasing regulatory compliance requirements. Governments and health authorities worldwide are imposing stricter regulations to ensure the safety and efficacy of healthcare products. This trend necessitates robust logistics systems capable of maintaining compliance throughout the supply chain. Healthcare organizations are investing in logistics solutions that can provide traceability and documentation to meet these regulatory standards. As a result, logistics providers are adapting their services to align with these requirements, which may contribute to the overall growth of the market. The emphasis on compliance is likely to drive innovation and investment in logistics technologies.

The Global Healthcare Logistics Market Industry experiences a notable surge in demand for efficient supply chain solutions. As healthcare providers strive to enhance operational efficiency, the need for streamlined logistics becomes paramount. In 2024, the market is valued at 93.2 USD Billion, reflecting a growing recognition of the importance of logistics in delivering timely medical supplies and equipment. This trend is likely to continue, as healthcare organizations increasingly adopt advanced technologies to optimize their supply chains. The integration of real-time tracking and inventory management systems appears to be a key factor driving this demand, ensuring that critical resources are available when needed.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Healthcare Logistics Market area will dominate in 2022. This high revenue share is primarily attributable to the region's dominance in pharmaceutical and biologic medications and an increase in biopharmaceutical exports and imports. Due to the region's expensive healthcare costs, new technologies are adopted relatively rapidly. Consequently, healthcare businesses throughout North America increasingly rely on 3PL service providers for optimizing warehousing and transportation, thereby fostering regional growth.

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

Figure 2: HEALTHCARE LOGISTICS MARKET SHARE BY REGION 2022 (%)

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

Europe’s Healthcare Logistics market accounts for the second-largest market share. Technology advancement is a key trend that is acquiring popularity in the healthcare logistics industry. To strengthen their market position, the major market players in the healthcare logistics are concentrating on providing technologically advanced logistics solutions. Further, the German market of Healthcare Logistics held the largest market share, and the UK market of Healthcare Logistics was the fastest-growing market in the European region

The Asia Pacific Healthcare Logistics Market is anticipated to grow at the fastest CAGR from 2023 to 2032. The rising demand for cold storage facilities, the increasing adoption rate of advanced technology facilities, and the increase in merger and acquisition activity by industry participants will boost the market in this region. Further, the China market of Healthcare Logistics held the largest market share, and the India market of Healthcare Logistics was the fastest-growing market in the Asia Pacific region

Leading market players are investing heavily in R&D to expand their product portfolio. Companies are also undertaking strategic activities to expand their global market share, with key market developments including new product launches, partnerships, collaborations, and mergers and acquisitions.

In recent years, the Healthcare Logistics industry has noted heavy investments for further development of warehousing and transportation of healthcare products. Major players in the market of Healthcare Logistics include Air Canada, AmerisourceBergen Corp, CEVA Logistics AG, Cold Chain Technologies LLC, Deutsche Post DHL Group, FedEx Corp, Kuehne + Nagel International AG, Schenker AG, United Parcel Service Inc., Owens & Minor, Lufthansa Cargo, Alloga, PHEONIX Group, C.H. Robinson, DSV, and Farmasoft.

Air Canada is a scheduled passenger service supplier. It provides accommodations, meals, in-flight entertainment, preferred seating, and Wi-Fi. The company provides major freight forwarding companies and businesses with direct cargo services. In addition, it provides vacation travel packages that include hotels, flights, cruises, day tours, vehicle rentals, and excursions. Boeing 777-300ER, Boeing 777-200LR, Boeing 787-8, Boeing 787-9, Airbus A330-300, Airbus A321, Boeing 767-300ER, Boeing 737- MAX 8, Airbus A320, and Airbus A319 comprise the company's operating aircraft fleet. The company's brands include Air Canada, Air Canada Express, and Air Canada Rouge. Air Canada's headquarters are located in Montreal, Quebec.

AmerisourceBergen Corp (AmerisourceBergen) provides pharmaceutical products, business solutions, and value-driving services that enhance access to care. The company distributes a comprehensive selection of brand-name, specialty, over-the-counter (OTC), generic pharmaceuticals, equipment, outsourced compounded sterile preparations, home healthcare supplies, and related services. It serves numerous healthcare providers in the United States and certain international markets, including independent and chain retail pharmacies, medical clinics, acute care hospitals and health systems, physician practices, long-term care mail-order pharmacies, medical and dialysis clinics, alternate site pharmacies, veterinarians, and other clients. The US headquarters of AmerisourceBergen is located in Conshohocken, Pennsylvania.