Healthcare Distribution Market Overview and Analysis:
The Global Healthcare Distribution Market was valued at USD 802.72 billion in the year 2022 and is expected to register a CAGR of 6.5% over the forecast period, 2022-2031.
Healthcare distribution refers to entire distribution practices in the healthcare sector used for enterprise resource planning, customer relationship management, medical and pharmacy supplies, wholesaling medications, along distribution and associated services.
The large economic burden of chronic diseases, technological advancement in distribution, favorable R&D investment scenario, and subsequent increase in drug launches are the main driving features of the healthcare distribution market.
Healthcare Distribution Market Latest Trends:
Artificial Intelligence, machine learning, and other technologies, the healthcare distribution market sector has witnessed an advanced change. Adopting IoT (Internet of Things) technologies has given distributors real-time information about their pharmacies and provider clients. This allows them to provide with consistent supply schedule. IoT (Internet of Things) technology also has diversions by algorithms to assess if the delivery route is not followed or if an unusual delay has occurred. With these advanced technology and safe and effective delivery tracking systems, there is increasing growth in the healthcare distribution market.
Segmentation:
The healthcare distribution market is segmented
By Product Type :
Pharmaceutical Product Distribution Services
- Counter Drugs
- Generic Drugs
- Branded Drugs
Biopharmaceutical Product Distribution Services
- Recombinant Proteins
- Monoclonal Antibodies
- Vaccines
- Medical Devices Distribution Services
End-User :
- Retail Pharmacies
- Hospital Pharmacies
- Other
Geography :
- North America
- Europe
- Asia-Pacific
- Middle East
- Africa
- South America
The report offers the value (in USD million) for the above segments. The report offers the value (in USD million) for the above segments. The report offers the value (in USD million) for the above segments.
Healthcare Distribution Market Drivers:
Increasing Chronic Diseases:- High incidence and large economic burden of chronic diseases are the main driving features of the healthcare distribution market. For instance, according to the article published “The global burden of multiple chronic conditions: A narrative review” by the National Center for Biotechnology Information, 2021, the major driving factor for the healthcare distribution market is the high incidence of chronic disease cases like diabetes, chronic obstructive pulmonary and cancer, etc. are associated with a higher level of health resource utilization patterns.
Similarly, according to the Canadian Medical Association Journal, 2021, the number of patients with chronic disease increased by 11.0% over the 10-year study period to 9.8 million in 2017/18, and the number with multimorbidity increased by 12.2% to 6.5 million. Thus, the number of people suffering from chronic disease is constantly increasing. To cure these disorders, cellular treatment, biomarker imaging, generics, biosimilars, and other wide range of healthcare medications are used. These created necessities for effective healthcare distribution services. Generics are also in high demand due to their cost-effectiveness. Furthermore, Thus, increasing cases of chronic disease are driving the healthcare distribution market.
There is a growing need for medical device equipment such as vitro diagnostic equipment, diagnostic imaging equipment, and endoscopic equipment are used in this healthcare industry for a variety of functions. Therefore, the healthcare distribution market which ensures a safe and effective delivery network to fulfill the need of consumers is required and thus directly drives the healthcare distribution market.
Healthcare Distribution Market Technological Advancements
Technological advancements in distribution are boosting the healthcare distribution market. For instance, ScienceOpen.com in 2021, titled, Applications of Artificial Intelligence (AI) Healthcare: A Review summarizes that with the coming of technologies such as Artificial Intelligence, machine learning, and other technologies, the healthcare distribution market sector has witnessed an advanced change. Adopting IoT (Internet of Things) technologies has given distributors real-time information about their pharmacies and provider clients. This allows them to provide with consistent supply schedule. IoT (Internet of Things) technology also has diversions by algorithms to assess if the delivery route is not followed or if an unusual delay has occurred. Due to this advanced technology and safe and effective delivery tracking system, there is increasing growth in the healthcare distribution market. *
Restraints High Cost of Healthcare Distribution
The healthcare distribution is mainly dependent on AI and IoT since these technologies are quite expensive as result slowing down the studied market growth
COVID-19 Impact on the Healthcare Distribution Market
The COVID-19 pandemic was an incomparable global public health emergency, it has impacted almost every sector of the industry including the healthcare distribution market industry. The strict lockdowns and government regulations intended to slow down the spread of COVID-19, restricting the movement of people and so the sales of the healthcare distribution market were affected during the initial phase of the lockdown.
For instance, an article published in Maritime Economics and Logistics, in 2021 summarizes that COVID-19 impacted manufacturing activity and caused disruptions in transportation and logistics activities globally, these factors lead to a sudden and drastic fall in the economy. Within a few weeks of the COVID-19 crisis a considerable change in consumer behaviour and demand, consumer purchase patterns, re-routing of the supply chain, and significant government intervention was observed. The supply chain disruptions during the initial phase of the lockdown were a major downfall for the distribution market resulting in a slowdown in the healthcare distribution activities and this led to the setting up of a strong supply chain network for efficient healthcare distribution services.
The disease will inevitably be an overwhelming burden on healthcare systems that cannot be effectively dealt with by existing facilities or responses based on conventional approaches. All these long-term effects of COVID-19 have resulted in significant healthcare industrial growth and have driven the healthcare distribution market.
Segmentation Trends
Retail Pharmacy is Expected to Witness Growth Over the Forecast Period
A retail pharmacy is defined as any pharmacy where drugs are compounded, dispensed, stored, or sold or where prescriptions are filled or dispensed to the general public. The Retail pharmacy witnessed the expected growth over the forecast period and accounts for the significant growth in the market. For instance, the Journal of Economics, 2022, states that retail pharmacies deal with many details of the prescription. In developed countries, some affordable healthcare schemes and programs led to a significant increase in the number of prescriptions. The government is also putting forward significant measures to reduce healthcare spending which has increased the number of prescriptions reaching retail pharmacies which is like fuel to this segment’s revenue growth over the forecast period. The affordable generic drug demands account for the increase in demand for retail pharmacies.
For instance, the article titled “Using Commercial Retail Pharmacy Data To Develop a Teaching Strategy for Population Health Pharmacy” states that the retail pharmacy has several benefits which include scaling up the economy, technology development, customers having better access, lowering the unit cost, etc. because of all these reasons retail pharmacies have gained significant growth in recent years. According to the journal, International Journal of Health Services in 2021, the social media analytic framework is significantly improving operation and service management which has driven the growth in retail pharmacy sales.
For instance, in the International Journal of Healthcare Management in 2021, the governments in different countries have removed regulations to offer easy broader access to pharmacy services. Such regulation has spurred the competition by allowing the entry of new drug distribution channels, effectively increasing the demand for retail pharmacies.
Geography Trends North America is Expected to Dominate the Healthcare Distribution Market
North America is expected to dominate the market owing to factors such as recent advancements. For instance, an article published in the journal, Information Systems Frontiers in 2021, titled “The Application of the Principles of Responsible AI on Social Media Marketing for Digital Health” states that technologies dominate this market. Due to a significant increase in the number of prescriptions filled at retail pharmacies, and effective supply chain management, distributors have turned to modern industrial technology such as machine learning and Artificial Intelligence for big data and standardized influence, Due to this the healthcare distribution market is effectively growing in the United States. Using AI technologies in healthcare, coupled with patients’ growing adoption of AI-enabled devices, allows the collection and storage of and access to large-scale data, both by healthcare providers and technology vendors.
Further, advanced healthcare infrastructure and increasing investments by biotechnology companies in research activities are expected to drive market growth in the region. For instance, the American Journal of Public Health 2021, states how healthcare centers’ infrastructure supports the healthcare distribution market in the United States. It also tells that along with infrastructure skilled manpower can also be an initiative to increase the efficiency of the healthcare distribution market. Also due to the coming of E-pharmacy, the sales and distribution of pharmaceutical and medical products online mode have increased. This has also led to an increase in sales of retail pharmacies in North America.
Therefore, owing to the aforementioned factors the growth of the studied market is anticipated in the North American region.
Healthcare Distribution Market Competitive Landscape
The healthcare distribution market is fragmented in nature due to the presence of several companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international as well as local companies that hold the market shares and are well known as
Key Players :
- McKesson Corporation
- Cardinal Health
- Morris and Dickson Company
- Smith Drug Company
- Owens and Minor Inc.
- Patterson Companies
- PHOENIX Group,
- Owens Medline Industries
- Other
Recent Developments
- In 2022, Microsoft acquired Nuance, a provider of conversational AI and cloud-based ambient clinical intelligence for healthcare providers. Nuance’s products include the Dragon Ambient experience, Dragon Medical One, and PowerScribe for radiology reporting. Its solutions, which work with core healthcare systems, including relationships with Electronic Health Records, are currently used by more than 55% of physicians and 75% of radiologists in the U.S. and used in 77% of U.S. hospitals.
- In March 2021, Cardinal Health and FourKites established a global corporation to improve the tracking of medical equipment, pharmaceutical items, first aid supplies, and personal protective equipment in transit to hospitals, pharmacies, and other care facilities throughout the world.
Frequently Asked Questions (FAQ) :
Q1. How big is the Healthcare Distribution Market?
Q2. What segments are covered in the Healthcare Distribution Market Report?
Q3. What are the Drivers of the Healthcare Distribution Market ?
Q4. Which Region is expected to hold the highest Market share ?
Study Assumptions and Market Definition
Scope of the Study
RESEARCH METHODOLOGY
EXECUTIVE SUMMARY
MARKET DYNAMICS
Market Overview
Market Drivers
High Incidence and Large Economic Burden of Chronic Diseases
Favorable R&D Investment Scenario, and Subsequent Increase in Drug Launches
Market Restraints
High Cost of Healthcare Distribution
Porter's Five Force Analysis
Threat of New Entrants
Bargaining Power of Buyers/Consumers
Bargaining Power of Suppliers
Threat of Substitute Products
Intensity of Competitive Rivalry
MARKET SEGMENTATION (Market Size by Value - USD million)
By Product Type
Pharmaceutical Product Distribution Services
Biopharmaceutical Product Distribution Service
Medical Devices Distribution Services
By Application
Antibiotics
Recombinant Proteins
Probiotics
Others
By End-users
Retail Pharmacies
Hospital Pharmacies
Others
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
COMPETITIVE LANDSCAPE
Company Profiles
McKesson Corporation
Cardinal Health
Morris and Dickson Company
Smith Drug Company
Owens and Minor Inc
Patterson Companies
PHOENIX Group
Shanghai Pharmaceutical Group
Medline Industries
CuraScript SD
MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
Forecast Model
