Published Date : 16 May 2023
The global healthcare distribution market value is growing at USD 1,137.23 billion in 2023 and is expected to attain around USD 4.3 trillion by 2032, growing at a remarkable CAGR of 15.93% between 2023 and 2032.
Over the projected period, alliances in the healthcare delivery market and the introduction of new products are anticipated to unleash a surge of opportunities in the global healthcare distribution market.
Healthcare institutions rely on distributors to purchase goods in bulk from manufacturers in order to improve supply chain efficiency, cost savings, and safety. Distributors then transport the goods to each facility in a tidy and timely manner after storing them, sorting, picking, and packing products exactly according to clients' particular orders and requested amounts. Several sectors employ this distribution model, yet it is frequently disregarded. The aforementioned market is being driven by the expanding demand for medical devices equipment, including diagnostic imaging equipment, in-vitro diagnostic equipment, and endoscopic equipment, which are employed in this sector for a range of purposes. As a result, the healthcare distribution industry needs a secure and efficient delivery network that can meet customer needs and hence substantially contribute to market growth.
Healthcare Distribution Market Report Scope:
|Market Revenue in 2023||USD 1,137.23 Billion|
|Projected Forecast Revenue in 2032||USD 4.3 Trillion|
|Growth Rate from 2023 to 2032||CAGR of 15.93%|
|Largest Market||North America|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Due to the existence of several businesses operating both internationally and regionally, the healthcare distribution industry is fragmented. The competitive environment comprises a review of a few national and multinational businesses with significant market shares, including:
McKesson Corp. (MCK)
Pharmaceuticals and other medical supplies are distributed by McKesson Corp. throughout the United States, Canada, and Europe. McKesson Corp. provides goods and services to 14 nations through collaborating with biopharma firms, healthcare organizations, pharmacies, producers, and governments.
AmerisourceBergen Corp. (ABC)
AmerisourceBergen Corp., a distributor of pharmaceuticals and medical supplies, supports community-based care, sources and distributes products, and collaborates with manufacturers to bring items to market. By doing so, it enables people to get the healthcare products they require.
Cardinal Health Inc. (CAH)
Healthcare institutions may get performance and data solutions from Cardinal Health, a global manufacturer and distributor of medical and laboratory goods. 90% of all hospitals in the United States as well as 10,000 specialty physician offices and clinics are served by Cardinal Health through services including ambulatory surgical centers, home care, and long-term care.
Market Drivers: Personalized care and technological advancement driving the growth
In order to offer value-added services like independent pharmacy support, generic sourcing initiatives, hub services, and creative alliances, several distributors are expanding beyond their core product lines. Becoming a vital actor in the healthcare ecosystem requires this evolution: The existing business of distributors will probably be impacted by a number of new and convergent trends, such as industry integration and consolidation, personalized care, technological advancements, nontraditional competitors, and public scrutiny. These trends will also likely present new opportunities for growth, such as blended service offerings and analytics-driven insights.
Market Opportunities: Biosimilars driving healthcare distribution industry
Pharmaceutical outsourcing to Asian countries, growing pharmaceutical formulations, higher spending on pharmaceutical R&D, and a novel manufacturing process made possible by global pharmaceutical behemoths in new geographies all contributed to the Pharmaceutical Distribution Services segment's largest market share.
The future healthcare distribution industry participants also anticipate significant development prospects from developing nations like China and India to expand the biosimilars market, expand the distribution of specialist medications, and boost the use of biopharmaceuticals. Yet in the future years, the increasing pricing pressure on market participants will have a big impact.
Logistic Expertise in the healthcare distribution market
Most medical institutions are ill-equipped to handle the multiplicity of parts needed to manage inventory for a healthcare provider on their own. Among a wide range of other services and solutions, distributors help the healthcare sector become more efficient and less expensive by offering the following things:
The United States has the largest national pharmaceutical market in the world since many of the top pharmaceutical businesses are based there. China has emerged as one of the key participants in the sector, and in recent years, the expanding pharmaceutical market has had robust yearly growth rates. The traditional markets of North America and Europe will still be in the lead in 2025, according to forecasted pharmaceutical sales. The largest businesses in Europe are Novartis, Roche, GSK, and Sanofi.
The fact that retail pharmacies routinely handle a huge volume of prescriptions is a crucial element in fostering the development of the sector. Retail pharmacies also carry products for a variety of illnesses, from skin conditions to cardiovascular ailments. Also, the rising popularity of 24-hour pharmacies and retail pharmacy chains is anticipated to significantly contribute to the high revenue share of retail pharmacies. With a share of more than 52.9% in the end user group in 2022, retail pharmacies generated the most revenue.
By Product Type
By End User
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