According to the Canadian market research and consulting company Emergen Research, Healthcare supply chain management (SCM) market is growing towards a bright future – driven by the spurt in demand and a drop in the cost of healthcare. Between 2020 and 2027, the Healthcare SCM market is expected to grow at a CAGR of 7.6% with an emerging trend of cloud-based delivery and estimated value of USD 3.67 billion by 2027. Healthcare SCM helps in healthcare supply chain decision making and focuses on identifying & reducing waste in the supply chain.
The market for Healthcare SCM is being propelled by a number of factors including increasing expectations towards efficient delivery of services, increase in demand for better healthcare, government regulations, technological advancements in the field of healthcare along with the growing awareness about the sector.
Healthcare SCM aims to identify operational vulnerabilities throughout the healthcare organization and suggest efficient plans to minimize them, with the ultimate goal of achieving the targeted healthcare outcomes. It ensures smooth functioning of healthcare services by ensuring that medical equipment, medication, and medical supplies reach the retailer or patient in a timely manner. This has been boosting demand for healthcare supply chain software and is expected to drive market revenue growth during the forecast period.
A large factor in the growth of the Healthcare SCM is the amalgamation of technology with various verticals throughout the supply chain to increase effectiveness in operations, security, and transparency. For instance, during the pandemic, the healthcare sector witnessed an increase in the usage of drone technology to deliver medicines, medical kits, vaccines and equipment. Similarly, the pharma and medical device companies are planning to inculcate SCM softwares in their operations, with the aim to simplify and automate repetitive tasks, thus, reducing waste, enabling faster delivery, reducing costs and facilitating data based decision making. Technology is also being exploited by the means of digitization & software integration in companies at the service provider end and an increase in ordering online at the service user’s end. Therefore, it is expected that inducing technology further into the Healthcare SCM is going to be a major revenue generator.
Talking about regional growth, the United States is anticipated to register the highest growth of the sector – owing to the rise in prevalence of chronic diseases, presence of well established healthcare system and growing demand for cloud computing in healthcare sector.