Healthcare Logistics Market Size

Global Healthcare Logistics Market Overview

The Healthcare Logistics Market Size was valued at USD 77.3 billion in 2022 and is projected to grow from USD 84.87 Billion in 2023 to USD 179.30 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.80% during the forecast period (2023 - 2032). Increasing pharmaceutical revenue growth in international commerce and globalization are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Healthcare Logistics Market Trends

• 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.

Healthcare Logistics Market Segment Insights

Healthcare Logistics Service Insights

The Market segments of Healthcare Logistics, based on Service, includes Transportation and Warehousing. The warehousing segment dominated the market, accounting for 45%-55 of the market revenue. Utilizing 3PL services allows the healthcare industry to reduce overhead operating costs and expenditures. Owing to a rise in demand, service providers have added value-added services such as packaging and warehousing to their menus.

Healthcare Logistics Product Insights

The Healthcare Logistics Market segmentation, based on Product, includes Pharmaceutical Products, Medical Devices, and Medical Equipment. The medical devices category generated the most income. The major driving factors are the increasing use of homecare medical devices for the aging population, the increasing emphasis on personalized medicine through health trackers and remote patient monitoring devices, and the increasing supply chain ability to adapt and overcome medical device shortages.

Figure 1: Healthcare Logistics Market, by Product, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Healthcare Logistics Type Insights

The Market segmentation of Healthcare Logistics, based on type, includes Branded Drugs and Generic Drugs. The generic drugs segment dominated the market in 2022. Increased affordability and the availability of products tailored to these populations, the rapid growth of the elderly population, and the prevalence of chronic diseases will likely drive the market. The primary factor contributing to the market's growth is the sharp increase in the elderly population across geographies, particularly in developed and emerging economies. This has increased affordability and the availability of products tailored to these populations.

Healthcare Logistics End Users Insights

Based on End Users, the Healthcare Logistics Market segmentation includes Pharmacies, Healthcare Facilities, and Research and Diagnostic Laboratories. The pharmacies category generated the most income. The expanding global pharmaceutical logistics market is anticipated to drive the market development of the healthcare logistics. As pharmaceutical products or medications must be stored and transported to drug stores, pharmacies, and others, rising sales of pharmaceuticals are expected to increase the demand for transportation or healthcare logistics.

Healthcare Logistics Regional Insights

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, MRFR 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

Healthcare Logistics Key Market Players & Competitive Insights

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.

Key Companies 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


• H. Robinson


• DSV


• Farmasoft

Healthcare Logistics Industry Developments

In September 2023, Cipla Limited in conjunction with Skye Air Mobility began drone deliveries. The two partners commenced the campaign in Himachal Pradesh India targeting critical medication's deliveries such as drugs for cardiac and respiratory therapies. It desires to accomplish on-time delivery to remote clinics and chemists while preventing the risks of delays, temperature excursions (higher or lower than normal), and accidents.

In April 2023, UPS Healthcare opens its first specialized facility in Giessen Germany. The first healthcare logistics facility specializes measures 293,000 square foot (27,200 m2), complies with GMP and GDP standards, and incorporates more than 30000 pallet positions for a variety of healthcare products with different temperature including 2C to 8C, 15C to 25C, and minus 20 C degrees.

In February 2021, Agility started a service that provides cross-border transportation within the Gulf Region. The service aims to provide FTL and LTL transportation.

In December 2020, Agility stated that Maersk selected Agility’s warehouse project in Abidjan, which is 5000 SQM in size, as a warehousing, deconsolidation and distribution center. It intends to serve the needs of Maersk customers in many sectors.

In May 2020, United Parcel Svc. Of America, Inc. announced the enhancement of the company’s healthcare capabilities with the introduction of the new UPS Premier. UPS’s healthcare unit, UPS Premier, focuses on enhancing service dependability, and tracking capability of medical products through cutting-edge technology and tracking features.

Healthcare Logistics Market Segmentation

Healthcare Logistics Service Outlook

• Food


• Beverages


• Supplements

Healthcare Logistics Product Outlook

• Store-Based


• Non-Store-Based

Healthcare Logistics Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America