North America 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 and Other Raw Material, Biological Material and Organs, Hazardous Cargo, and Others), End User (Biopharmaceutical Companies, Hospitals and Clinics, Research Institutes, and Others) – Industry Trends and Forecast to 2031.
North America Healthcare Logistics Market Analysis and Size
Pharmaceutical distribution within the healthcare logistics market involves the intricate management and transportation of pharmaceutical products from manufacturers to various points of dispensation, including wholesalers, pharmacies, hospitals, clinics, and ultimately, patients. This application encompasses a range of activities such as procurement, inventory management, warehousing, order fulfilment, and last-mile delivery. Effective pharmaceutical distribution ensures that patients have timely access to medications while maintaining product integrity and safety throughout the supply chain. It involves adherence to regulatory standards, quality control measures, and temperature-sensitive handling, particularly for biologics and vaccines.
North America healthcare logistics market size was valued at USD 33.98 billion in 2023 and is projected to reach USD 64.31 billion by 2031, with a CAGR of 8.3% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024-2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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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, and Other Raw Material, Biological Material and Organs, Hazardous Cargo and Others), End User (Biopharmaceutical Companies, Hospitals and Clinics, Research Institutes, and Others)
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Countries Covered
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U.S., Canada, and Mexico
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Market Players Covered
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TOTAL QUALITY LOGISTICS, LLC (U.S.), Cavalier Logistics Management II, Inc. (U.S.), C.H. Robinson (U.S.), AmerisourceBergen Corporation (U.S.), Air Canada (Canada), CEVA Logistics (Switzerland), DB Schenker (Germany), Deutsche Post DHL Group (Germany), FedEx (U.S.), Burris Logistics (U.S.), OIA North America (U.S.), United Parcel Service of America, Inc. (U.S.), VersaCold Logistics Services (Canada), and Abbott (U.S.)
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Market Opportunities
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Market Definition
Healthcare logistics involves the management and distribution of pharmaceuticals, medical devices, and healthcare-related products throughout the supply chain. It encompasses processes such as inventory management, transportation, warehousing, and regulatory compliance to ensure the timely and efficient delivery of healthcare goods to patients, healthcare facilities, and providers.
Healthcare Logistics Market Dynamics
Drivers
- Rising Global Healthcare Expenditure
As countries worldwide invest more in healthcare systems to address the needs of growing populations, there's a corresponding need for efficient logistics solutions to ensure the seamless distribution of medical supplies, pharmaceuticals, and equipment. This increased spending fuels the expansion of healthcare facilities, pharmaceutical manufacturing, and distribution networks, necessitating robust logistics infrastructure to support these developments. Moreover, as healthcare becomes more complex and specialized, the logistics requirements for transporting sensitive and high-value medical products become more intricate, driving the need for advanced logistics capabilities.
- Growing Technological Advancements
Innovations such as automation, artificial intelligence, and real-time tracking systems enable more efficient inventory management, route optimization, and supply chain visibility. These technologies streamline processes, reduce costs, and minimize errors, ultimately improving the quality and reliability of healthcare logistics operations. In addition, advancements in cold chain logistics and temperature-monitoring solutions ensure the safe transportation of temperature-sensitive medications and biologics, expanding the reach of healthcare products.
Opportunities
- Growing Regulatory Quality Standards
Regulatory bodies impose rigorous standards to ensure product safety, efficacy, and compliance with quality assurance protocols. As these standards evolve and become more demanding, healthcare logistics providers must invest in advanced technologies, infrastructure, and processes to meet regulatory expectations. Adherence to these standards mitigates risks associated with product damage or loss and enhances patient safety and trust in the healthcare supply chain. Consequently, companies that excel in maintaining compliance and quality standards gain a competitive edge, driving market growth and fostering innovation in healthcare logistics solutions.
- Increasing Direct-to-Patient Delivery
Healthcare logistics enables healthcare providers and pharmaceutical companies to deliver products directly to patients' homes or preferred locations, bypassing traditional distribution channels such as pharmacies or hospitals. It enhances patient convenience, accessibility, and adherence to treatment regimens, particularly for chronic conditions or specialty medications. Direct-to-patient delivery leverages advanced logistics technologies, including real-time tracking systems and temperature-controlled packaging, to ensure timely and secure transportation while maintaining product integrity. This approach aligns with evolving patient preferences for personalized healthcare experiences and contributes to the market's growth by fostering greater efficiency, satisfaction, and outcomes in healthcare delivery.
Restraints/Challenges
- High Operational Costs
Logistics providers must invest in temperature-controlled storage facilities, specialized vehicles, and tracking systems to ensure the safe and efficient distribution of healthcare products. Furthermore, adhering to regulatory standards increases operational costs, necessitating investment in documentation, audits, and staff training. These high costs can erode profit margins, especially in a competitive market environment, and may limit the affordability and accessibility of healthcare logistics services.
- High Cybersecurity Risks
The interconnected nature of these systems makes them vulnerable to cyberattacks, including ransomware, data breaches, and phishing scams. Such attacks can disrupt operations, compromise sensitive patient information, and undermine trust in the healthcare supply chain. Additionally, regulatory compliance requirements, such as HIPAA in the United States, impose strict standards for protecting patient data, adding complexity and cost to cybersecurity measures.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developments
- C.H. Robinson and Waymo Via established a strategic partnership to explore autonomous driving technology's application in logistics. Combining Waymo's innovative Waymo Driver with C.H. Robinson's Navisphere technology, they aim to enhance efficiency and advance their product offerings in supply chain management
- BDP INTERNATIONAL achieved Center of Excellence for Independent Validators (CEIV) certifications for pharmaceutical logistics at key office locations in Brussels, Milan, and JFK. This recognition by the International Air Transport Association (IATA) underscores BDP's commitment to maintaining the highest international compliance standards, ensuring the integrity of pharmaceutical products during transportation, and bolstering its global footprint in the industry
Healthcare Logistics Market Scope
The 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
Components
- Hardware
- Services
- Software
Temperature Type
- Ambient
- Chilled/Refrigerated
- Frozen
- Cryogenic
Logistics
- Transportation
- Packaging
- Storage
- Others
Logistics Type
- Overland Logistics
- Sea Freight Logistics
- Air Freight Logistics
- Contract Logistics
Application
- Medicine
- Bulk Drug Handlers
- Vaccine
- Chemical and Other Raw Material
- Biological Material and Organs
- Hazardous Cargo
- Others
End User
- Biopharmaceutical Companies
- Hospital and Clinics
- Research Institutes
- Others
Healthcare Logistics Market Regional Analysis/Insights
The 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 market report are U.S., Canada, and Mexico.
North America is expected to dominate the market due to the widespread adoption of e-commerce. E-commerce provides a convenient platform for consumers in the U.S. and Canada to purchase healthcare products online. This trend is expected to fuel demand for both forward and reverse logistics services in the region. The convenience and accessibility offered by e-commerce platforms contribute significantly to the growth of the healthcare logistics market in North America.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as 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 global 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.
Healthcare Infrastructure Growth Installed Base and New Technology Penetration
The market also provides you with detailed market analysis for every country growth in healthcare expenditure for capital equipment, installed base of different kind of products for market, impact of technology using life line curves and changes in healthcare regulatory scenarios and their impact on the market. The data is available for historic period 2016-2021.
Competitive Landscape and Healthcare Logistics Market Analysis
The 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, global 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 the market.
Some of the major players operating in the market are
- TOTAL QUALITY LOGISTICS, LLC (U.S.)
- Cavalier Logistics Management II, Inc. (U.S.)
- C.H. Robinson (U.S.)
- AmerisourceBergen Corporation (U.S.)
- Air Canada (Canada)
- CEVA Logistics (Switzerland)
- DB Schenker (Germany)
- Deutsche Post DHL Group (Germany)
- FedEx (U.S.)
- Burris Logistics (U.S.)
- OIA North America (U.S.)
- United Parcel Service of America, Inc. (U.S.)
- VersaCold Logistics Services (Canada)
- Abbott (U.S.)
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