Europe Healthcare Logistics Market, By Type (Cold Chain and Non-Cold Chain), Component (Hardware, Software, and Services), Temperature Type (Ambient, Chilled/Refrigerated, Frozen and Cryogenic), Logistics (Transportation, Packaging, Storage, and Others), Logistic Type (Sea Freight Logistics, Air Freight Logistics, Overland Logistics, and Contract Logistics), Application (Medicine, Bulk Drug Handlers, Vaccine, Chemical & Other Raw Material, Biological Material, and Organs, Hazardous Cargo and Others), End User (Biopharmaceutical Companies, Hospitals & Clinics, Research Institutes, and Others) Industry Trends and Forecast to 2029.
Europe Healthcare Logistics Market Analysis and Size
Logistics is utilized in the healthcare industry to control the manner resources are kept, obtained, and transferred. The effective use of logistics in this business aids in the continual transport of pharmaceuticals, devices, and systems from vendors and providers positioned throughout the country. Hospitals and clinics, in addition to wholesalers of clinical objects and big pharmacy retail chains, make up the healthcare industry.
The increased preference for biological pharmaceuticals as well as the growing tendency of businesses to outsource are the main drivers anticipated to drive market growth. Significant numbers of healthcare items need to be shipped over considerable distances through firms these days. These materials are valuable and delicate. The developing market for temperature-sensitive drugs and biological clinical objects, in addition to growing awareness amongst pharmaceutical and logistics companies, is boosting the scope for temperature-controlled healthcare logistics, benefiting the whole healthcare logistics market.
Data Bridge Market Research analyses that the healthcare logistics market is expected to reach the value of USD 48,377.14 million by 2029, at a CAGR of 7.5% during the forecast period. “Non-Cold Chain" accounts for the largest technology segment in the healthcare logistics market non-cold chain high benefits offered by third party logistics. The healthcare logistics market report also covers pricing analysis, patent analysis, and technological advancements in depth.
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020
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Quantitative Units
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Revenue in USD Million, Pricing in USD
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Segments Covered
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By Type (Cold Chain and Non-Cold Chain), By Component (Hardware, Software and Services), By Temperature Type (Ambient, Chilled/Refrigerated, Frozen and Cryogenic), By Logistics (Transportation, Packaging, Storage and Others), By Logistic Type (Sea Freight Logistics, Air Freight Logistics, Overland Logistics and Contract Logistics), By Application (Medicine, Bulk Drug Handlers, Vaccine, Chemical & Other Raw Material, Biological Material And Organs, Hazardous Cargo and Others), By End User (Biopharmaceutical Companies, Hospitals & Clinics, Research Institutes and Others)
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Countries Covered
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Germany, France, U.K., Italy, Spain, Netherlands, Switzerland, Belgium, Austria, Rest of Europe in Europe
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Market Players Covered
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DB Schenker, Deutsche Post DHL Group, FedEx, ADAllen Pharma., Biosensors International Group, Ltd., Entero Healthcare, CRYOPDP, SF Express, Alloga, among others.
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Market Definition
Healthcare comprises maintenance or improvement of wellness through the conclusion, anticipation, therapy, recuperation, or fix of infection, disease, injury, and different physical and mental impedances in individuals. Healthcare help is addressed with the aid of using fitness experts in allied health fields. Dentistry, pharmacy, nursing, audiology, medicine, optometry, midwifery, psychology, occupational and bodily therapy, and different health professions are all additives to healthcare.
Logistics refers to the general procedure of managing how resources are acquired, stored, and transported to their final destination. It contains figuring out potential distributors and providers and dealing with their effectiveness and accessibility. Hence, healthcare logistics is the logistics of medical and surgical supplies, pharmaceuticals, clinical gadgets and equipment, and different products demanded to assist doctors, nurses, and different healthcare specialists.
Healthcare logistic management is used for various modes of transportation such as roadways, railways, marine, and airways. The freight movement done through the path of roads is termed under the segment. It is the most common type of transportation mode as it requires single customs document process. The Railway mode of transportation is highly fuel-efficient and can be termed as a ‘green’ mode of transportation. Marine shipments are used for the movement of bulk commodities. Airways are the fastest mode of transportation and are highly used to achieve ‘just-in-time’ (JIT) inventory replenishment in healthcare logistics.
Healthcare Logistics Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
- Rapid Growth In The E-Commerce Sector
E-commerce or electronic commerce is the process of buying and selling goods and services over an electronic network or online platform, primarily the Internet. In recent times, the widespread use of e-commerce platforms such as amazon, Flipkart, and eBay has contributed to substantial growth in online buying and selling of goods. This has provided a platform for consumers to freely purchase healthcare products and use them according to their requirements.
- High Benefits Offered By Third Party Logistics
Third-party logistics is outsourced with operational logistics from warehousing to delivery, this includes providing a number of services in the supply chain such as freight forwarding, packaging, order fulfillment, inventory forecasting, picking and packing, warehousing, and transportation. Third-party logistics offer a wide range of benefits as it helps the business owners to focus more on the other aspects of business such as product development, marketing, and sales. The high benefits offered by third-party logistics are therefore acting as the major factor for boosting the growth of the global healthcare logistics market.
- Rising Growth In Cross Border Trades And Globalization
Globalization is the interdependence of the world's economies, populations, and cultures brought together by cross-border trade in technology, goods, and others. Today, most of the country's economy is highly dependent on buying and selling goods among various countries. Asia-Pacific and North America region has been the major players in Europe trade and has a high volume of trade flow that has increased the requirement of logistics service providers to make the flow of trade more convenient and faster. Thus, it is boosting the growth in the healthcare logistics market in Europe.
- Congestion Associated With Trade Routes
As traffic volumes and congestion grows on roadways and waterways, freight and transport service operators grow to be increasingly challenged to keep reliable schedules. This affects supply chains and truck-dependent businesses, each of which is of growing significance for both public coverage and private region operators. Moreover, several accidents on roads or oil spills at sea can result in unexpected healthcare logistics restraints. Recent COVID-19 has also halted several logistics operations causing severe damage to entire supply chain operations. These factors act as a significant restraint for the growth of the Europe healthcare logistics market.
- High Cost Associated With Reverse Logistics
The cost associated with reverse logistics services offered by various manufacturers and service providers is high. Reverse logistics services are quite popular in the healthcare sector due to the high demand for various healthcare-related products. According to Thomas Publishing Company, Industrial equipment return rates are approximately 4% to 8%, while healthcare equipment has 8% to 20%. Total U.S. revenue impacted by returns is estimated between USD 52 Million and USD 106 Million.
The reason for reverse logistics services being so expensive are a combination of various factors which determine the pricing of these services.
- Concerns Related To Inventory Management in Healthcare Logistics
Inventory management is the process of ordering, storing, and selling a company's products and maintaining its logs. This includes the management of raw materials, components, and finished products and warehousing and processing of returned items.
Inventory is a company's most valuable asset. Adopting inventory management can increase productivity, reduce costs, mitigate risks, improve customer satisfaction, cut costs, and maximize return on assets. However, inventory management has become quite difficult tricky for healthcare logistics services providers.
- Inclination Towards Digitalization Of The Sector
Digital transformation is referred to the changes that a business undergoes by adopting digital technology. It has become a necessity for transportation and logistics to give extreme importance to optimization, efficiency, speed, and timing. The changing scenario in the market and upcoming new trends have made it highly important for the transportation industry to go under digital transformation. Healthcare logistics companies use mobile devices to improve agility. Moreover, the mobile apps help the customers to order, process, and track return shipments at any time. This growing digital transformation of the logistics industry is thus boosting the growth of the healthcare logistics market.
- Inadequate Labour Resources To Handle Return
The overall supply chain management process involves analysing a large amount of data and a large number of returns. Due to rapid growth in the E-commerce sector, the workforce needs to take the necessary steps at the right time. The information provided needs to be well-executed in order to provide optimum results and quality of services.
However, lack of skilled workers and training to the employees can lead to several errors causing inefficiency in the services offered, acting as a major challenge for the growth in the healthcare logistics sector. This can be a major setback as customer satisfaction is everything in the healthcare logistic sector. The workforce working in healthcare logistics must be trained in identifying specific serial or part numbers. Moreover, the workforce must know the authoritative inventory, warranty policy, and accounting information housed in their central enterprise resource planning (ERP) system, but it's difficult to find a skilled workforce to handle healthcare product returns.
Post COVID-19 Impact on Healthcare logistics Market
COVID-19 created a major impact on the healthcare logistics market as almost every country has opted for the shutdown for every production facility except the ones dealing in producing the essential goods. The government has taken some strict actions such as the shutdown of production and sale of non-essential goods, blocked international trade, and many more to prevent the spread of COVID-19. The only business which is dealing in this pandemic situation is the essential services that are allowed to open and run the processes.
The growth of the healthcare logistics market is increase in growth of logistics through airways and water ways and rapid growth in the e-commerce sector across the world. However, factors such as concerns related to inventory management in healthcare logistics are restraining the market growth. The shutdown of production facilities during the pandemic situation has had a significant impact on the market.
Manufacturers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the healthcare logistics. With this, the companies will bring advanced and accurate controllers to the market. In addition, the use of healthcare logistics by government authorities in sea freight logistics, air freight logistics, overland logistics and contract logistics has led to the market's growth.
Recent Developments
- In January 2022, DB Schenker introduced breakbulk freight and transportation in Middle East and Africa. This expansion is based on the view to operate in Middle East oil and gas industries. This expansion helped in improving the global presence of the company.
- In January 2022, ADAllen Pharma have achieved compliance with the new ISO 9001:2015 standards under BSI standards. The ISO 9001 standards were revised in 2015 by BSI from the previous 2008 standards and is a powerful tool that helps manage ADAllen Pharma business effectively. The revised standard will ensure that quality management is now completely integrated and aligned with the business strategies of ADAllen Pharma organization. This achievement helped in improving the global presence of the company.
Europe Healthcare Logistics Market Scope
The healthcare logistics market is segmented on the basis of type, application, components, temperature type, logistics, logistics type and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Non-Cold Chain
- Cold Chain
On the basis of technology, the Europe healthcare logistics market is segmented into non-cold chain and cold chain.
Components
- Hardware
- Services
- Software
On the basis of component, the Europe healthcare logistics market has been segmented into hardware, software and services.
Temperature Type
- Ambient
- Chilled/Refrigerated
- Frozen
- Cryogenic
On the basis of temperature type, the Europe healthcare logistics market has been segmented into ambient, chilled/refrigerated, frozen and cryogenic.
Logistics
- Transportation
- Packaging
- Storage
- Others
On the basis of logistics, the Europe healthcare logistics market has been segmented into transportation, packaging, storage and others.
Logistics Type
- Overland Logistics
- Sea Freight Logistics
- Air Freight Logistics
- Contract Logistics
On the basis of logistic type, the Europe healthcare logistics market has been segmented into sea freight logistics, air freight logistics, overland logistics and contract logistics.
Application
- Medicine
- Bulk Drug Handlers
- Vaccine
- Chemical & Other Raw Material
- Biological Material and Organs
- Hazardous Cargo
- Others
On the basis of application, the Europe healthcare logistics market has been segmented into medicine, bulk drug handlers, vaccine, chemical & other raw material, biological material and organs, hazardous cargo and others.
End User
- Biopharmaceutical Companies
- Hospital & Clinics
- Research Institutes
- Others
On the basis of end user, the Europe healthcare logistics market has been segmented into biopharmaceutical companies, hospitals & clinics, research institutes and others.
Healthcare Logistics Market Regional Analysis/Insights
The healthcare logistics market is analysed and market size insights and trends are provided by country, type, application, components, temperature type, logistics, logistics type and end user as referenced above.
The countries covered in the healthcare logistics market report are Germany, France, U.K., Italy, Spain, Netherlands, Switzerland, Belgium, Austria, Rest of Europe in Europe.
The U.K. dominates the Europe healthcare logistics market, this is attributable to the high benefits offered by third party logistics. In addition, platform for consumers to freely purchase healthcare products and use them according to their requirements in Germany. The demand in this region is projected to be driven by the third party logistics offer wide range of benefits as it helps the business owners to focus more on the other aspects of business such as product development, marketing and sales.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Europe brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Healthcare Logistics Market Share Analysis
The healthcare logistics market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to healthcare logistics market.
Some of the major players operating in the healthcare logistics market are - DB Schenker, Deutsche Post DHL Group, FedEx, ADAllen Pharma., Biosensors International Group, Ltd., Entero Healthcare, CRYOPDP, SF Express, Alloga, among others.
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